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 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:
