What is the difference between the compound interests on Rs.5000 for 1.5 years at 4% per annum compounded yearly and half-yearly?
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Answer (Detailed Solution Below)Option 4 : Rs. 2.04 Free LIC AAO Prelims 2020: Full Mock Test 100 Questions 70 Marks 60 Mins As we know that:- The formula for annual compound interest, including principal sum, is: A = P (1 + r/n) (nt) Where: A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed for C.I. when interest compounded yearly = Rs. 5000 × (1 + 4/100) × (1 + (4/2) /100) = Rs.(5000 × 26/25 × 51/50) = Rs. 5304. C.I. when interest is compounded half-yearly = Rs. 5000 × (1 + 2/100) 3 = Rs.(5000 × 51/50 × 51/50 × 51/50) = Rs. 5306.04 Difference = Rs.(5306.04 - 5304) = Rs. 2.04 Last updated on Sep 21, 2022 The Life Insurance Corporation (LIC) has released the list of candidates who have cleared the LIC AAO Mains and Interview round of the 2020 cycle. It is important for the candidates to note that candidates who are qualified for the Mains & Interview round of the exam are only eligible for the next round, which is the Medical Test. A total number of 168 vacancies were released for the LIC AAO 2020 cycle. The selected candidates will receive a salary range between Rs. 32,795 to Rs. 62,315. Know about the LIC AAO Result here. Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now! Find the amount after one and a half year compounded semi annually at 20% per annum and principal is Rs. 20,000.
Answer (Detailed Solution Below)Option 4 : Rs. 26,620 Free 10 Questions 10 Marks 7 Mins Given: Rate of interest = 20% per annum Principal = Rs. 20,000 Time = one and a half year = 3/2 years Formula used: Amount = P × (1 + R/100)n Calculation: As the sum is compounded semi-annually R = Rate of interest/2 = (20/2)% ⇒ R = 10% n = Time × 2 = (3/2) × 2 ⇒ n = 3 Amount = P × (1 + R/100)n ⇒ Amount = 20000 × (1 + 10/100)3 ⇒ Amount = 20000 × (11/10)3 ⇒ Amount = Rs. 26,620 ∴ The total amount after one and a half year is Rs. 26,620 Last updated on Sep 21, 2022 The RRB (Railway Recruitment Board) has released the Result, and Cut Off marks for the CBAT (Computer Based Aptitude Test) stage for Pay Level 6. The result and cut-off marks are announced for the RRB Chandigarh, Bhopal & Chennai regions for the recruitment cycle 2021. The exam is conducted to fill up a total number of 35281 vacant posts. Candidates who are qualified for the Computer Based Aptitude Test will be eligible for the next round, which will be Document Verification & Medical Exam. The candidates with successful selection under RRB NTPC will get a salary range between Rs. 19,900 to Rs. 35,400. Know the RRB NTPC Result here. Let's discuss the concepts related to Interest and Compound Interest. Explore more from Quantitative Aptitude here. Learn now!
Post your comments here:Name *: Email : (optional) » Your comments will be displayed only after manual approval. What will be the compound interest on 5000 if it is compounded half yearly for I year 6 months at 8% per annum?Therefore, the compound interest is Rs. 624.32 on Rs. 5000 if it is compounded half yearly for 1 year 6 months at 8 % per annum.
What is the difference between the compound interests on ₹ 5000 for 1 and half years at 5% per annum compounded yearly and half yearly?Detailed Solution. = Rs. (5000 × 26/25 × 51/50) = Rs. 5304.
What is the sum of compound interest on Rs 5000 for 1.5 years?5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly? = Rs. 5304.
What is the compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly?The interest compounded quarterly for 9 months means t=912year. So, the compound interest on Rs 8000 at 20% per annum for 9 months compounded quarterly is 1261.
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