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
At what rate percent per annum will Rs. 7200 amount to Rs. 7938 in one year, if interest is compounded half yearly?
What is the compound interest (in Rs.) on a sum of Rs. 8192 for \(1 \frac{1}{4}\) years at 15% per annum, if interest is compounded 5-monthly ?
What is the difference (in Rs.) between the interests on Rs. 50,000 for one year at 8% per annum compounded half yearly and yearly?
A sum of money becomes Rs. 11,880 after 4 years and Rs. 17,820 after 6 years on compound interest, if the interest is compounded annually. What is the half of the sum (in Rs.)?
A sum invested at compound interest amounts to Rs. 7,800 in 3 years and Rs. 11,232 in 5 years. What is the rate per cent?
