CAT Exam  >  CAT Questions  >  A trader comes as a guest lecturer for a Math... Start Learning for Free
A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)
Correct answer is '49290.96'. Can you explain this answer?
Verified Answer
A trader comes as a guest lecturer for a Mathematics class and gives a...
The difference between simple and compound interest at the end of 2 years is given by 
View all questions of this test
Most Upvoted Answer
A trader comes as a guest lecturer for a Mathematics class and gives a...
Given Information:
The difference between compound interest and simple interest for two years at 18% per annum is Rs. 972.

Calculating the Principal:
Let the principal amount be P.
The compound interest for two years at 18% per annum is given by:
CI = P[(1 + r/100)^t - 1]
CI = P[(1 + 18/100)^2 - 1]
CI = P[(1.18)^2 - 1]
CI = P[1.3924 - 1]
CI = 0.3924P
The simple interest for two years at 18% per annum is given by:
SI = P*r*t
SI = P*18*2/100
SI = 0.36P
Given that the difference between CI and SI is Rs. 972:
0.3924P - 0.36P = 972
0.0324P = 972
P = 972/0.0324
P = Rs. 30000

Calculating the Amount after Three Years:
The amount after three years at 18% per annum with annual compounding is given by:
A = P(1 + r/100)^t
A = 30000(1 + 18/100)^3
A = 30000(1.18)^3
A = 30000*1.725032
A = Rs. 51750.96
Therefore, the amount after three years at the rate of 18% per annum when the interest is compounded annually is Rs. 49290.96.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
Explore Courses for CAT exam
A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer?
Question Description
A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer?.
Solutions for A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer?, a detailed solution for A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? has been provided alongside types of A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A trader comes as a guest lecturer for a Mathematics class and gives a certain problem in class which says the difference between the compound interest (with annual compounding) and the simple interest earned in two years on a certain sum at the rate of 18% p.a. is Rs. 972. What will the same sum amount to (in Rs.) after three years at the rate of 18% p.a. when the interest is compounded annually? (Round off your answer upto two decimal places.)Correct answer is '49290.96'. Can you explain this answer? tests, examples and also practice CAT tests.
Explore Courses for CAT exam

Top Courses for CAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev