Compound Interest Ques 10
Question
The difference between compound interest and simple interest on a certain sum at $12 \%$ per annum for two years is Rs. 90 . What will be the value of the amount at the end of three years?
(1) Rs. 9000
(2) Rs. 6250
(3) Rs. 8530.80
(4) Rs. 8780.80
(5) Rs. 8900
(Indian Bank PO (Pre.) Exam, 21.01.2017 (Ist Sitting))
Show Answer
Answer: (4)
Solution: (4)
For two years,
C.I. - S.I. $=\frac{PR^{2}}{10000}$
$\Rightarrow 90=\frac{P \times 12 \times 12}{10000}$
$\Rightarrow P=\frac{10000 \times 90}{12 \times 12}=$ Rs. 6250
Amount $=P\left(1+\frac{R}{100}\right)^{T}$
$=6250\left(1+\frac{12}{100}\right)^{3}$
$=6250\left(1+\frac{3}{25}\right)^{3}=6250\left(\frac{28}{25}\right)^{3}$
= Rs. $\left(\frac{6250 \times 28 \times 28 \times 28}{25 \times 25 \times 25}\right)$
$=$ Rs. 8780.80
BETA
