A man gets a simple interest of Rs.1000 on a certain principal at the rate of 5% p.a in two years.
A man gets a simple interest of Rs.1000 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.
Answer/Solution
Rs.512.5
Steps/Work
Let the principal be Rs.P
S.I at 5% p.a in 8 years on Rs.P = Rs.1000
(P)(8)(5)/100 = 1000
P = 2500
C.I on Rs.2P i.e., Rs.5000 at 5% p.a in two years
=5000{ [1 + 5/100]2 - 1} = 5000{ 212 - 202 /202}
= Rs.512.5
ANSWER:D
S.I at 5% p.a in 8 years on Rs.P = Rs.1000
(P)(8)(5)/100 = 1000
P = 2500
C.I on Rs.2P i.e., Rs.5000 at 5% p.a in two years
=5000{ [1 + 5/100]2 - 1} = 5000{ 212 - 202 /202}
= Rs.512.5
ANSWER:D