5000250002400020000 Show
Answer : B Solution : S.I = `(P xx N xx R)/(100) = (20000 xx 5 xx 5)/(100) = 5000` <br> Amount (A) = I + P <br> where I is the interest and P is the principal. <br> A = 5000 + 20000 = Rs. 25000 <br> Hence, the correct option is (b). What would be the compound interest earned on Rs. 20000 in 2 years if the rate of interest for the first year is 5% per annum and that for the second year is 8% per annum?
Answer (Detailed Solution Below)Option 1 : Rs. 2680 Free 10 Questions 10 Marks 7 Mins GIVEN: Amount = Rs. 20000, Rate = 5% per annum for the first year and 8% per annum for the second year. FORMULA USED: Cumulative rate for x% and y% = (x + y + xy/100) CALCULATION: Cumulative rate when rate is 5% per annum for the first year and 8% per annum for the second year = 5 + 8 + (40/100) = 13.4% ∴ Interest = 20000 × (13.4/100) = Rs. 2680 Alternate Method Amount = P(1 + R1/100)(1 + R2/100) = 20000(1 + 5/100)(1 + 8/100) = 20000(105/100)(108/100) = 22680 ∴ Compound interest = 22680 - 20000 = Rs. 2680. Last updated on Sep 21, 2022 The RRB (Railway Recruitment Board) has released the RRB Chennai Region Result. On 18th October 2022, the results have been announced after the document verification conducted between 26th September 2022 to 30th September 2022 and on 10th October 2022 for the absentee candidates. Earlier, the results and Cut Off marks for the CBAT (Computer Based Aptitude Test) stage for Pay Level 6 were released. 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. Stay updated with the Quantitative Aptitude questions & answers with Testbook. Know more about Interest and ace the concept of Compound Interest. Investments earned on a scheme are calculated as gains accumulated against the interest accumulated. Such gains are compiled in either compound or simple interest. Interest is calculated on the principal amount. Calculating the amount that you will gain after a certain period based on the interest is vital. If your investment accumulates funds based on the simple interest you can use a simple interest calculator. These calculators help you easily compute the total amount of funds you will be able to generate on maturity. Simple Interest FormulaTo calculate Total Maturity Amount Value:The simple interest formula for the calculator which is utilized to compute the overall gains accumulated is represented as: A = P(1 + rt) here: A represents the Total accumulated Amount (principal + interest) To calculate the Interest on the Investments and loansSI= P X RX T/100 In it, the variables represent the following –
Groww SI calculator uses this formula to help easily determine interest rates and gauge the increase in the value of the initial investment. Let’s understand it with the help of an instance. Mr. A has invested an amount of Rs. 15000 at an interest rate of 5% for almost 2 years. So his SI will be calculated as Rs. (15000 X 5 X 2/100) which is equal to Rs.16500. What is the Simple Interest Formula and when is it Used?The amount one needs to pay or receive after a certain tenure base based on the interest can be calculated using the Simple Interest Formula. It is the best and simple method of calculating interest on the principal amount and should be used:
How to Calculate Simple Interest using Calculator?For individuals who are confused regarding the gains that they will accumulate once the maturity period is over, a simple interest EMI calculator is the only option. Just enter the principal, rate and time value and the result will be calculated within seconds. How can Simple Interest Calculator help you?It is regarded as the best computing device to determine the value of money gain over the tenure of investment. Users will know how much interest they will earn. Its simplified nature and accuracy have increased the demand for a simple interest rate calculator recently. The principal amount is constant when calculating a simple interest rate. This indicates the fact that interest is levied on principal remains the same for the consecutive tenure.
Advantages of using Simple Interest CalculatorsThere are times when borrowers, depending on the manual method, people pay unpaid interest before principal. This situation leads to issues during computing simple interest on an amount. Following are some of the advantages of switching to an online calculator from the manual method.
How much more will be the interest earned on 20000 at the rate of 20% per annum?The interest earned is Rs 620 more than the simple interest . Hence, the interest earned is Rs 620 more than the simple interest .
What will be the compound interest on 20000 at the rate of 5% per annum for 2 years?I=10020000×2×5=Rs. 2,000.
What would be the compound interest earned on Rs 20000 in 2 years if the rate of interest for the first year is 5% per annum and that for the second year is 8% per annum?Rate = 5% per annum for the first year and 8% per annum for the second year. ∴ Compound interest = 22680 - 20000 = Rs. 2680.
How do you calculate interest in 5 years?r = R/100 = 3.875%/100 = 0.03875 per year. The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 3.875% per year for 5 years is $11,937.50.
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