GATE Exam > GATE Questions > A person invests Rs. 1000 at 10% annual comp...
Start Learning for Free
A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;
- a)1776
- b)1760
- c)1920
- d)1936
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A person invests Rs. 1000 at 10% annual compound interest for 2 years...
Compound interest for 1st 2 years and simple interest for the next 5 years.
View all questions of this test
Interest after 1 year = Rs 100 (10% of 1000)
Thus, prime amount after 1 year = RS 1100
Interest after 2 year = Rs 110 (10% of 1100)
Thus, prime amount = Rs 1210
Interest after 5years @12% simple interest on Rs 1210
= 1210 × 0.12 × 5 = Rs 726
Hence total value =1210+726 = RS 1936
Most Upvoted Answer
A person invests Rs. 1000 at 10% annual compound interest for 2 years...
Given:
Principal amount (P) = Rs. 1000
Rate of compound interest (r) = 10% = 0.10
Time period for compound interest (t) = 2 years
Rate of simple interest (R) = 12% = 0.12
Time period for simple interest (T) = 5 years
Calculation:
Step 1: Calculate the compound interest:
Compound Interest (CI) = P(1 + r)^t - P
= 1000(1 + 0.10)^2 - 1000
= 1000(1.10)^2 - 1000
= 1000(1.21) - 1000
= 1210 - 1000
= 210
Step 2: Calculate the total amount after compound interest:
Total Amount after compound interest = P + CI
= 1000 + 210
= 1210
Step 3: Calculate the simple interest:
Simple Interest (SI) = PRT
= 1210 × 0.12 × 5
= 726
Step 4: Calculate the total value of the investment:
Total Value of the Investment = Total Amount after compound interest + Simple Interest
= 1210 + 726
= 1936
Hence, the correct answer is option D. The total value of the investment finally is Rs. 1936.
Principal amount (P) = Rs. 1000
Rate of compound interest (r) = 10% = 0.10
Time period for compound interest (t) = 2 years
Rate of simple interest (R) = 12% = 0.12
Time period for simple interest (T) = 5 years
Calculation:
Step 1: Calculate the compound interest:
Compound Interest (CI) = P(1 + r)^t - P
= 1000(1 + 0.10)^2 - 1000
= 1000(1.10)^2 - 1000
= 1000(1.21) - 1000
= 1210 - 1000
= 210
Step 2: Calculate the total amount after compound interest:
Total Amount after compound interest = P + CI
= 1000 + 210
= 1210
Step 3: Calculate the simple interest:
Simple Interest (SI) = PRT
= 1210 × 0.12 × 5
= 726
Step 4: Calculate the total value of the investment:
Total Value of the Investment = Total Amount after compound interest + Simple Interest
= 1210 + 726
= 1936
Hence, the correct answer is option D. The total value of the investment finally is Rs. 1936.
|
Explore Courses for GATE exam
|
|
Similar GATE Doubts
A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer?
Question Description
A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer?.
A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer?.
Solutions for A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GATE.
Download more important topics, notes, lectures and mock test series for GATE Exam by signing up for free.
Here you can find the meaning of A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A person invests Rs. 1000 at 10% annual compound interest for 2 years. At the end of two years the whole amount is invested at an annual simple interest of 12% for 5 years. The total value of the investment finally is;a)1776b)1760c)1920d)1936Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GATE tests.
|
|
Explore Courses for GATE exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup