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If the compound interest earned for the 2nd year is Rs. 240 and the rate of interest applied is 20% per annum, then find the principal invested.
- a)Rs. 1000
- b)Rs. 2000
- c)Rs. 1200
- d)Rs. 2400
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
If the compound interest earned for the 2nd year is Rs. 240 and the r...
Given:
Compound interest earned for the 2nd year = Rs. 240
Rate of interest = 20% per annum
To find:
Principal invested
Formula used:
Compound Interest = P[(1 + R/100)^n - 1]
where P = Principal, R = Rate of interest, n = Time period
Calculation:
Let the principal invested be P.
For the 2nd year, the compound interest can be calculated as:
240 = P[(1 + 20/100)^2 - 1]
240 = P[(1.2)^2 - 1]
240 = P[0.44]
P = 240/0.44
P = Rs. 545.45 (approx)
But this is the principal for the 2nd year. To find the original principal, we need to calculate the principal for the 1st year and add it to the above value.
For the 1st year, the compound interest can be calculated as:
240 = P[(1 + 20/100)^1 - 1]
240 = P[0.2]
P = 240/0.2
P = Rs. 1200
Therefore, the principal invested is Rs. 1200.
Compound interest earned for the 2nd year = Rs. 240
Rate of interest = 20% per annum
To find:
Principal invested
Formula used:
Compound Interest = P[(1 + R/100)^n - 1]
where P = Principal, R = Rate of interest, n = Time period
Calculation:
Let the principal invested be P.
For the 2nd year, the compound interest can be calculated as:
240 = P[(1 + 20/100)^2 - 1]
240 = P[(1.2)^2 - 1]
240 = P[0.44]
P = 240/0.44
P = Rs. 545.45 (approx)
But this is the principal for the 2nd year. To find the original principal, we need to calculate the principal for the 1st year and add it to the above value.
For the 1st year, the compound interest can be calculated as:
240 = P[(1 + 20/100)^1 - 1]
240 = P[0.2]
P = 240/0.2
P = Rs. 1200
Therefore, the principal invested is Rs. 1200.
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Community Answer
If the compound interest earned for the 2nd year is Rs. 240 and the r...
Given
The compound interest earned for the 2nd year = Rs. 240,
R = 20% p.a.
Formula used:
(1.) C.In+1 = (1 + R%) × C.In
Where,
C.In = Compound interest earned for nth year
C.In+1 = Compound interest earned for (n + 1)th year
R = rate of interest applied
(2.) S.I = PRT/100
Where,
P = Principal
R = Rate of interest applied
T = Time invested
Concept used:
Simple interest and Compound interest are the same for the first year.
Calculation:
According to the question,
⇒ C.I2 = (1 + 20%) × C.I1
⇒ Rs. 240 = (1 + 20%) × C.I1
⇒ Rs. 240 = 1.2 × C.I1
⇒ C.I1 = Rs. 200
Now,
Let P be the principal invested.
Since simple interest and compound interest are the same for the first year,
Therefore,
⇒ P = Rs. 1000
Therefore, 'Rs. 1000' is the required answer.
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If the compound interest earned for the 2nd year is Rs. 240 and the rate of interest applied is 20% per annum, then find the principal invested.a)Rs. 1000b)Rs. 2000c)Rs. 1200d)Rs. 2400Correct answer is option 'A'. Can you explain this answer?
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