Question: what is the principal amount which earns Rs.`132` as compound interest for the second year at `10%` per annum ?
A
`Rs.1000`
B
`Rs. 1200`
C
`Rs. 1320`
D
`Rs. 1188`
Note: Let the principal at the end of first year be Rs.x.
Then,`(x xx 10 xx 1)/100`
`= 132`
`or x = 1320`.
Now,let the original principal be Rs.p
Then, amount after `1` year
`= p + (p xx 10 xx 1)/100`
`= (11p)/10`.
`:. (11p)/10 = 1320`
`or p = (1320 xx 10)/11`
`= Rs. 1200`.
Question: A sum of money amounts to Rs.`4624` in`2` years and to Rs.`4913` in `3` years at compound interest. The sum is :
A
`Rs. 4096`
B
`Rs. 4260`
C
`Rs. 4335`
D
`Rs. 4360`
Note: Interest on Rs.`4624` for `1` year
`= Rs. (6083.50 - 5290)`
`= Rs.793.50`
:.Rate `= ((100 xx 793.50)/(4624 xx 1)%`
`= 6 1/4%`.
Now, x `(1 + 25/(4 xx 100))^2 = 4624`
`or x xx 17/16 xx 17/16 = 4624`
`:.x = (46 xx 16/17 xx 16/17)`
`= Rs. 4096`.