Maths-

General

Easy

Question

# A person invests Rs10000 for two years at a certain rate of interest compounded annually. At the end of one year, this sum amounts to Rs11200. Calculate (i). the rate of interest per annum (ii) the amount at the end of the second year

Hint:

### Use simple interest formula to find the rate of interest and from that find total amount at the end of 2 years.

## The correct answer is: 12544 RUPEES

### Complete step by step solution:

(i)

We know the formula for total amount = A = P + SI…(i)

where A is the total amount, P is the principal amount and SI is simple interest.

(for 1st year, both simple interest and compound interest are the same)

Here, we have A = 11200 Rs and P = 10000 Rs

On substituting the known values in (i), we get SI = 11200 - 10000 = 1200

So, we have SI = 1200 Rs

We calculate simple interest by the formula,…(ii)

where P is Principal amount, T is number of years and R is rate of interest

Here, we have SI = 1200,P = 10000 ,T = 1 and R = ?

On substituting the known values in (ii), we get

Hence the rate of interest is 12%.

(ii)

We know that …(iii)

Here, we have T = 2 years, P = 10000 , R = 12%

Amount at the end of second year will be,

On substituting the known values in (iii), we get

Rupees

### Related Questions to study

Maths-

### Ramesh invests Rs12800 for three years at the rate of 10% per annum compound interest. Find (i) The sum due to Ramesh at the end of the 1^{st} year

### Ramesh invests Rs12800 for three years at the rate of 10% per annum compound interest. Find (i) The sum due to Ramesh at the end of the 1^{st} year

Maths-General

Maths-

### The Simple interest on a sum of money for 2 years at 4% per annum is Rs340. Find (i) the sum of Money and (ii) the compound interest on this sum for one year payable half-yearly at the same rate

### The Simple interest on a sum of money for 2 years at 4% per annum is Rs340. Find (i) the sum of Money and (ii) the compound interest on this sum for one year payable half-yearly at the same rate

Maths-General

Maths-

### What sum of money will amount to Rs9261 in 3years at 5% per annum compound interest?

### What sum of money will amount to Rs9261 in 3years at 5% per annum compound interest?

Maths-General

Maths-

### Dubey borrows Rs 1,00,000 from the State Bank of India at 11% p.a. compound interest. He repays Rs 41,000 at the end of the first year and Rs47,700 at the end of the second year. Find the am not outstanding at the beginning of the third year.

### Dubey borrows Rs 1,00,000 from the State Bank of India at 11% p.a. compound interest. He repays Rs 41,000 at the end of the first year and Rs47,700 at the end of the second year. Find the am not outstanding at the beginning of the third year.

Maths-General

Maths-

### Nikita invests Rs6000 for two years at a certain rate of interest compounded annually. At the end of the 1^{st} year, it amounts to Rs6720. Calculate (i). the rate of interest (ii) the amount at the end of 2^{nd} year

### Nikita invests Rs6000 for two years at a certain rate of interest compounded annually. At the end of the 1^{st} year, it amounts to Rs6720. Calculate (i). the rate of interest (ii) the amount at the end of 2^{nd} year

Maths-General

Maths-

### Rohit borrows Rs86,000 from Arun for two years at 5% per annum simple interest. He immediately lends out this money to Akshay at 5% compound interest compounded annually for the same period. Calculate Rohit’s profit in the transaction at the end of two years.

### Rohit borrows Rs86,000 from Arun for two years at 5% per annum simple interest. He immediately lends out this money to Akshay at 5% compound interest compounded annually for the same period. Calculate Rohit’s profit in the transaction at the end of two years.

Maths-General

Maths-

### Kamal borrowed Rs 15,000 for two years. The rate of interest for two successive years is 8% and 10% respectively. If he repays Rs 6200 at the end of the first year, find the outstanding amount at the end of the second year.

### Kamal borrowed Rs 15,000 for two years. The rate of interest for two successive years is 8% and 10% respectively. If he repays Rs 6200 at the end of the first year, find the outstanding amount at the end of the second year.

Maths-General

Maths-

### In what period will Rs 12,000 yields Rs3,972 as compound interest at 10% per annum; if compounded every year.

### In what period will Rs 12,000 yields Rs3,972 as compound interest at 10% per annum; if compounded every year.

Maths-General

Maths-

### On what sum of money will the difference between the compound interest and simple interest for 2years be equal to Rs 25 if the rate of interest charged for both is 5% p.a.

### On what sum of money will the difference between the compound interest and simple interest for 2years be equal to Rs 25 if the rate of interest charged for both is 5% p.a.

Maths-General

Maths-

### At what rate % p.a will a sum of Rs4000 yield 1324 as compound interest in 3 yrs

### At what rate % p.a will a sum of Rs4000 yield 1324 as compound interest in 3 yrs

Maths-General

Maths-

### The compound interest, calculated yearly, on a certain sum of money for the second year is Rs1320 and for the third year is Rs1452. Calculate the rate of interest and the original sum of money.

### The compound interest, calculated yearly, on a certain sum of money for the second year is Rs1320 and for the third year is Rs1452. Calculate the rate of interest and the original sum of money.

Maths-General

Maths-

### Ranbir borrows Rs20,000 at 12% per annum compound interest. If he repays Rs8400 at the end of the first year and Rs9680 at the end of the second year. Find the amount of loan outstanding at the beginning of the third year.

### Ranbir borrows Rs20,000 at 12% per annum compound interest. If he repays Rs8400 at the end of the first year and Rs9680 at the end of the second year. Find the amount of loan outstanding at the beginning of the third year.

Maths-General

Maths-

### The present population of a town is 200000. Its population increases by 10% in the first year and 15% in the second year. Find the population of the town at the end of the two years.

### The present population of a town is 200000. Its population increases by 10% in the first year and 15% in the second year. Find the population of the town at the end of the two years.

Maths-General

Maths-

### In what time will Rs1500 yield Rs1996.50 as compound interest at 10% per annum compounded annually?

### In what time will Rs1500 yield Rs1996.50 as compound interest at 10% per annum compounded annually?

Maths-General

Maths-

### Mr. utter invested Rs5000 at a certain rate of interest, compounded annually for two years. At the end of the first year, it amounts to Rs5325. Calculate (i) The rate of interest (ii) The amount at the end of the second year, to the nearest rupee.

### Mr. utter invested Rs5000 at a certain rate of interest, compounded annually for two years. At the end of the first year, it amounts to Rs5325. Calculate (i) The rate of interest (ii) The amount at the end of the second year, to the nearest rupee.

Maths-General