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
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:
