Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 9)
9.
Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
Answer: Option
Explanation:
| Amount |
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| = Rs. 8820. |
Discussion:
23 comments Page 1 of 3.
Ritha said:
1 decade ago
How this 21/20 is come? please can someone explain this.
Lucky said:
1 decade ago
(1+ 5)/100
LCM 100+5 / 100
105/100=21/20
LCM 100+5 / 100
105/100=21/20
Senthilprakash said:
1 decade ago
Why we are putting (1+5/100) 2,
I need why 1 is there and why we are squaring them.
I need why 1 is there and why we are squaring them.
Suraj said:
1 decade ago
Why is (1+5/100)2 is used?
Swapna said:
1 decade ago
Hi @Suraj its formula for compound interest = p(1+r/100)^n where r is rate 5% and n is time which is already mentioned in question.
Shivani said:
1 decade ago
What is interest? compound interest?
Nishant said:
1 decade ago
@Shivani.
C.I = P(1 +R/100)^n.
Use this formula you will get answer.
C.I = P(1 +R/100)^n.
Use this formula you will get answer.
PRINCE said:
1 decade ago
I will use this formula: FV = PV(1+r)^t.
FV = the future value that Albert will received, PV= is the amount he is investing currently; r= rate and t = number of years the investment will last.
Now let go back to the question: PV= Rs.8000, r=5%=5/100=0.05, t=2years, FV is what we are to solve.
FV = PV(1+r)^t.
8000(1+0.05)^2.
8000(1.05)^2.
Find the square of 1.05 = 1.05*1.05 or 1.05^2 = 1.1025.
Therefore, FV = 8000*1.1025 = Rs.8820.
FV = the future value that Albert will received, PV= is the amount he is investing currently; r= rate and t = number of years the investment will last.
Now let go back to the question: PV= Rs.8000, r=5%=5/100=0.05, t=2years, FV is what we are to solve.
FV = PV(1+r)^t.
8000(1+0.05)^2.
8000(1.05)^2.
Find the square of 1.05 = 1.05*1.05 or 1.05^2 = 1.1025.
Therefore, FV = 8000*1.1025 = Rs.8820.
Shubakar ps said:
9 years ago
Given: r = 5, n = 2, p = 8000.
Amount = P[1+r/100]^n;
CI = Amount + principal;
Amount = P[1+r/100]^n;
CI = Amount + principal;
Sweta said:
9 years ago
Can I solve this question by any short trick?
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