📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    At what rate percent per annum will Rs. 75,000 yields a

    compound interest of Rs. 6,120 in 6 months if the interest is being compounded quarterly? Calculate the simple interest at the same rate of interest for 18 months.
    A 20%, Rs. 18,000 Correct Answer Incorrect Answer
    B 16%, Rs. 18,000 Correct Answer Incorrect Answer
    C 25%, Rs. 20,000 Correct Answer Incorrect Answer
    D 18%, Rs. 20,000 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the rate of C.I be R per cent per annum, ∴ CI = P [ ( 1 + R/100 )ᵀ - 1] ⇒ 6,120 = 75,000 [ ( 1 + R/400)2 - 1 ]        [T= 6  months = 2 times because interest is calculated quarterly] ⇒ 6,120/75,000 = ( 1 + R/400)2 - 1 ⇒ ( 1 + R/400)2 - 1 = 51/625 ⇒ ( 1 + R/400)2 = 1 + 51/625 ⇒ ( 1 + R/400)2 = 676/625 ⇒ ( 1 + R/400)2 = ( 26/25)2 ⇒ 1+ R/400 = 26/25 ⇒ R/400 = 26/25 - 1 = 1/25 R = 400/25 = 16% Now, S.I= (P ×  R ×  T)/100 =(75000 × 16×18)/(100 ×12) = 18,000

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question