Priya borrowed a certain sum at the rate of 12% per annum. If she paid Rs. 10176 at the end of 2 years as interest compounded annually. What was the sum she borrowed?
Rs. 40000
Given:
Rate of interest = 12% per annum
Time = 2 years
Compound interest = 10176 rupees
Concept:
Formula for compound interest for 2 years:
Compound Interest (CI) = P(1+R/100)t - P
Formula:
Using the formula for compound interest for 2 years:
CI = P(1+12/100)2 - P
10176 = P(1.12)2 - P
⇒ 10176 = 1.2544P - P
⇒ 10176 = 0.2544P
⇒ P = 10176/0.2544
⇒ Principal (P) = 40000
Therefore, the amount borrowed by Priya was 40,000 rupees.
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?
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?
A sum of money has increased by 45% in 9 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
At a certain rate of compound interest a certain sum amounts to Rs. 64800 in 4 years and Rs. 93312 in 6 years. What is the compound interest earned in fifth year?
