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
Similar Questions
The population of a town increases 5% annually. If its present population is 84,000, what will be its population in 2 years time?
A certain principal invested at compound interest payable yearly amount to Rs. 10816.00 in 3 years and Rs. 11248.64 in 4 years. What is the rate of interest?
A sum of money doubles at compound interest in 6 years. In how many years will it become 16 times?
Important Questions from Compound Interest
A person borrowed Rs. 10000 on compound interest at the rate of 40 percent per annum. If the interest is compounded half yearly, then what will be the amount to be paid after 1.5 years?
A sum of Rs. 9500 amounts to Rs. 11495 in 2 years at a certain rate percent per annum, interest compounded yearly. What is the simple interest (in Rs. ) on the same sum for the same time and double the rate?
The difference between the compound interest (compounding annually) and the simple interest on a sum of money at the rate of 40 per cent per annum for 2 years is Rs. 2400. What is the amount?
In how many years will a sum of Rs.1875 amount to Rs.2187 at 8 percent p.a. compound interest?
There is a 75 percent increase in an amount in 12.5 years at simple interest. What will be the compound interest of Rs.20000 after 3 years at the same rate?
