What is the compound interest on rupees 2500 for 2 years at the rate of interest 4 percentage per annum?
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Compound Interest: The future value (FV) of an investment of present value (PV) dollars earning interest at an annual rate of r compounded m times per year for a period of t years is: Show
FV = PV(1 + r/m)mtor FV = PV(1 + i)n where i = r/m is the interest per compounding period and n = mt is the number of compounding periods. One may solve for the present value PV to obtain: PV = FV/(1 + r/m)mt Numerical Example: For 4-year investment of $20,000 earning 8.5% per year, with interest re-invested each month, the future value is FV = PV(1 + r/m)mt = 20,000(1 + 0.085/12)(12)(4) = $28,065.30 Notice that the interest earned is $28,065.30 - $20,000 = $8,065.30 -- considerably more than the corresponding simple interest. Effective Interest Rate: If money is invested at an annual rate r, compounded m times per year, the effective interest rate is: reff = (1 + r/m)m - 1. This is the interest rate that would give the same yield if compounded only once per year. In this context r is also called the nominal rate, and is often denoted as rnom. Numerical Example: A CD paying 9.8% compounded monthly has a nominal rate of rnom = 0.098, and an effective rate of: r eff =(1 + rnom /m)m = (1 + 0.098/12)12 - 1 = 0.1025. Thus, we get an effective interest rate of 10.25%, since the compounding makes the CD paying 9.8% compounded monthly really pay 10.25% interest over the course of the year. Mortgage Payments Components: Let where P = principal, r = interest rate per period, n = number of periods, k = number of payments, R = monthly payment, and D = debt balance after K payments, then R = P � r / [1 - (1 + r)-n] D = P � (1 + r)k - R � [(1 + r)k - 1)/r] Accelerating Mortgage Payments Components: Suppose one decides to pay more than the monthly payment, the question is how many months will it take until the mortgage is paid off? The answer is, the rounded-up, where: n = log[x / (x � P � r)] / log (1 + r) where Log is the logarithm in any base, say 10, or e.Future Value (FV) of an Annuity Components: Ler where R = payment, r = rate of interest, and n = number of payments, then FV = [ R(1 + r)n - 1 ] / r Future Value for an Increasing Annuity: It is an increasing annuity is an investment that is earning interest, and into which regular payments of a fixed amount are made. Suppose one makes a payment of R at the end of each compounding period into an investment with a present value of PV, paying interest at an annual rate of r compounded m times per year, then the future value after t years will be FV = PV(1 + i)n + [ R ( (1 + i)n - 1 ) ] / i where i = r/m is the interest paid each period and n = m � t is the total number of periods. Numerical Example: You deposit $100 per month into an account that now contains $5,000 and earns 5% interest per year compounded monthly. After 10 years, the amount of money in the account is: FV = PV(1 + i)n + [ R(1 + i)n - 1 ] / i =
Value of a Bond: V is the sum of the value of the dividends and the final payment. You may like to perform some sensitivity analysis for the "what-if" scenarios by entering different numerical value(s), to make your "good" strategic decision. Replace the existing numerical example, with your own case-information, and then click one the Calculate. A sum of money becomes Rs. 2,500 in 2 years and Rs. 3,000 in 3 years at a certain rate of compound interest. Find rate of interest per annum?
Answer (Detailed Solution Below)Option 4 : 20% p.a.
Free Delhi Forest Guard 2020: Full Mock Test 200 Questions 200 Marks 120 Mins Given: A sum of money becomes Rs. 2,500 in 2 years and Rs. 3,000 in 3 years at certain rate of compound interest. Concepts used: A = P × [1 + (R/100)]T Where, A = Amount, P = Principal, R = Rate of interest, T = Time (in years) Calculation: A for 2 years = P × [1 + (R/100)]T ⇒ Rs. 2,500 = P × [1 + (R/100)]2 ----(1) A for 4 years = P × [1 + (R/100)]T ⇒ Rs. 3,000 = P × [1 + (R/100)]3 ----(2) Solving equations (1) and (2) by dividing eq (2) by eq(1), ⇒ Rs. 3,000/Rs. 2,500 = P × [1 + (R/100)]3/P × [1 + (R/100)]2 ⇒ 3,000/2,500 = [1 + (R/100)] ⇒ R/100 = 3,000/2500 – 1 ⇒ R/100 = 500/2500 ⇒ R = 500 × 100/2500 ⇒ R = 20% p.a. ∴ Rate of interest is 20% p.a.. Latest Delhi Forest Guard Updates Last updated on Sep 21, 2022 The Forest Department of Delhi has released the supplementary result for Delhi Forest Guard. The result is announced for the 2019 cycle. A total number of 253 candidates are shortlisted for the post of Forest Guard. The department has also released the Document Verification/Physical Endurance Test date for the selected candidates for the 2019 cycle. The DV is scheduled to be conducted on 8th August 2022. Candidates who will be finally selected will get a salary range between Rs. 5,200 - Rs. 20,200. Know the Delhi Forest Guard Result details here. Stay updated with the Quantitative Aptitude questions & answers with Testbook. Know more about Interest and ace the concept of Compound Interest. What is the compound interest of rupees 2500 for 2 years at rate of interest 4 per annum?= 2704 - 2500 = Rs. 204 C.I. - S.I.
What is the compound interest on Rs 2500 for 2?2500 for 2 years at 12% p.a.? Compound interest in first year on a sum=Simple interest. So compound interest after 1 year=2500*1*12/100=Rs 300. For the next year Sum=2500+300=2800.
What will be the compound interest on a sum of Rs 2500?[Solved] Compound interest accrued on a sum of Rs. 2500 is Rs. 749 at.
How much will ₹ 5000 amount in 2 years at compound interest if the rate for the successive years are 5% and 4% per year?∴ Compound Interest =Rs 5724−Rs 5000=Rs 724.
What will be the compound interest on a sum of Rs 25000 after 2 years at the rate of 12% pa?Rate of interest = 12% p.a. ∴ The compound interest is Rs. 10123.20.
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