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The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?
- a)Rs. 1,020
- b)Rs. 1,055
- c)Rs. 2,050
- d)Rs. 1,025
- e)None of these
Correct answer is option 'D'. Can you explain this answer?
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The simple interest accrued on a sum of certain principal is Rs. 7,200...
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The simple interest accrued on a sum of certain principal is Rs. 7,200...
To calculate the compound interest accrued on a principal amount, we use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (including both principal and interest)
P = principal amount
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
Given information:
Principal amount (P) = unknown
Simple interest accrued in 6 years = Rs. 7,200
Rate of interest (r) = 12% per annum
Compound interest rate (r) = 5% per annum
Time (t) = 2 years
Step 1: Calculating the principal amount using simple interest formula
The simple interest formula is given by:
Simple Interest (SI) = (P * r * t) / 100
Substituting the given values:
7,200 = (P * 12 * 6) / 100
Simplifying the equation:
7,200 = (P * 72) / 100
7,200 * 100 = P * 72
720,000 = 72P
P = 720,000 / 72
P = Rs. 10,000
Therefore, the principal amount is Rs. 10,000.
Step 2: Calculating the compound interest
Using the compound interest formula:
A = P(1 + r/n)^(nt)
Substituting the given values:
A = 10,000(1 + 0.05/1)^(1*2)
Simplifying the equation:
A = 10,000(1 + 0.05)^2
A = 10,000(1.05)^2
A = 10,000(1.1025)
A = Rs. 11,025
The compound interest accrued on the principal amount at the rate of 5% per annum for 2 years is Rs. 11,025 - Rs. 10,000 = Rs. 1,025.
Therefore, the correct answer is option D) Rs. 1,025.
A = P(1 + r/n)^(nt)
Where:
A = the final amount (including both principal and interest)
P = principal amount
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
Given information:
Principal amount (P) = unknown
Simple interest accrued in 6 years = Rs. 7,200
Rate of interest (r) = 12% per annum
Compound interest rate (r) = 5% per annum
Time (t) = 2 years
Step 1: Calculating the principal amount using simple interest formula
The simple interest formula is given by:
Simple Interest (SI) = (P * r * t) / 100
Substituting the given values:
7,200 = (P * 12 * 6) / 100
Simplifying the equation:
7,200 = (P * 72) / 100
7,200 * 100 = P * 72
720,000 = 72P
P = 720,000 / 72
P = Rs. 10,000
Therefore, the principal amount is Rs. 10,000.
Step 2: Calculating the compound interest
Using the compound interest formula:
A = P(1 + r/n)^(nt)
Substituting the given values:
A = 10,000(1 + 0.05/1)^(1*2)
Simplifying the equation:
A = 10,000(1 + 0.05)^2
A = 10,000(1.05)^2
A = 10,000(1.1025)
A = Rs. 11,025
The compound interest accrued on the principal amount at the rate of 5% per annum for 2 years is Rs. 11,025 - Rs. 10,000 = Rs. 1,025.
Therefore, the correct answer is option D) Rs. 1,025.
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The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer?
Question Description
The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer?.
The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The simple interest accrued on a sum of certain principal is Rs. 7,200 in six years at the rate of 12 p.c.p.a. What would be the compound interest accrued on that principal at the rate of 5 p.c.p.a. in 2 years?a)Rs. 1,020b)Rs. 1,055c)Rs. 2,050d)Rs. 1,025e)None of theseCorrect answer is option 'D'. Can you explain this answer?.
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