A man invests ₹8,000 in a finance company which provides 24% annual compound interest, compounded monthly. Compute the compound interest on the invested amount for 3 months.
₹489.66
The company gives 24% annual compound interest, compounded monthly.
Step 1: Find the monthly interest rate.
Monthly rate = Annual rate / 12 = 24%/12 = 2% per month.
Step 2: Use the compound interest formula for 3 months.
Amount = P(1 + r/100)^n, where P = ₹8000, r = 2%, n = 3 months.
Amount = 8000 × (1.02)^3
Step 3: Calculate (1.02)^3.
(1.02)^2 = 1.0404
(1.02)^3 = 1.0404 × 1.02 = 1.061208
Step 4: Find the amount.
Amount = 8000 × 1.061208 = ₹8489.664
Step 5: Compound Interest = Amount − Principal.
Compound Interest = 8489.664 − 8000 = ₹489.664 ≈ ₹489.66
Important Questions from Compound Interest
At what rate percent per annum will Rs. 7200 amount to Rs. 7938 in one year, if interest is compounded half yearly?
What is the compound interest (in Rs.) on a sum of Rs. 8192 for \(1 \frac{1}{4}\) years at 15% per annum, if interest is compounded 5-monthly ?
What is the difference (in Rs.) between the interests on Rs. 50,000 for one year at 8% per annum compounded half yearly and yearly?
A sum of money becomes Rs. 11,880 after 4 years and Rs. 17,820 after 6 years on compound interest, if the interest is compounded annually. What is the half of the sum (in Rs.)?
A sum invested at compound interest amounts to Rs. 7,800 in 3 years and Rs. 11,232 in 5 years. What is the rate per cent?
