A money lender borrows a sum of ₹7,000 from market at compound interest at a rate of 5% per annum, compounded annually. The amount paid after two year will be:
₹7,717.50
Compound Interest formula: A = P(1 + r/100)⊃n
Here, P = ₹7,000, r = 5%, n = 2
A = 7000 × (1 + 5/100)² = 7000 × (1.05)²
= 7000 × 1.1025 = ₹7,717.50
Important Questions from Compound Interest
The certain sum amounts to Rs. 9,982.50 in \(2\frac{1}{2}\) years at 12% p.a., interest compounded 10-monthly. The sum (in Rs.) is:
The difference between the simple interest and the compound interest compounded annually on a certain sum of money for 2 years at a rate of 8% per annum is Rs. 16.80. Find the principle amount.
If a sum of ₹ 2000 is lent at 10% p.a. compound interest, what is the interest for the second year?
A sum becomes 5 times of itself in 3 years. at compound interest (interest is compounded annually). In how many years. will the sum becomes 125 times of itself?
If the compound interest on a certain sum of money for two years at 9% p.a. is Rs. 3,762, then the sum is:
