A sum was lent for one year at the rate of 16 percent per annum on compound interest (compounding annually). If the compounding had been done half yearly, then the interest would have increased by Rs. 64. What was the sum lent?
Rs. 10000
We are given the difference in the interest earned when compounding is done annually versus half-yearly and need to find the initial sum lent, which is the principal. Compound Interest Compound interest is the interest calculated on the principal amount and the accumulated interest from previous periods. Therefore, the correct answer is Rs. 10000.
Important Questions from Compound Interest
- A sum of money triples itself at a certain rate of compound interest in 11 years. In how many years will it amount to 27 times of itself?
A sum of ₹10,000 amounts to ₹12,321 in 2 years at a certain rate of interest per annum, compounded annually. The rate of interest per annum is:
- If the interest earned during the 2nd year on a certain sum is ₹2,352, and the rate of interest is 5% per annum compounded annually, then the sum is:
- A sum of money triples itself at a certain rate of compound interest in 17 years. In how many years will it amount to 81 times of itself?
If the interest earned during the $2^{nd}$ year on a certain sum is ₹3,342, and the rate of interest is 20% per annum compounded annually, then the sum is:
