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 |
|
||||||||||
|
|||||||||||
| = Rs. 8820. |
Discussion:
23 comments Page 1 of 3.
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.
Ashok kumar said:
8 years ago
The compound interest means interest made for the interest after one-year maturity.
The actual amount is 8000.
For this 5% interest is 400 per year,
For this 400 if u are taking 5% interest it will be 20,
The actual interest of 8000 for 2 years is 800,
And the compound interest for one year will be 20,
So the total will be 8820.
The actual amount is 8000.
For this 5% interest is 400 per year,
For this 400 if u are taking 5% interest it will be 20,
The actual interest of 8000 for 2 years is 800,
And the compound interest for one year will be 20,
So the total will be 8820.
Lavakusha said:
8 years ago
Hi, guys.
This can be done simple. Let's try.
On 1st yr -> he gets only simple interest i.e
5% of 8000=(5/100)*8000=400.
On 2nd yr -> simple interest + (5% of 400 ) i.e,
400+((5/100)*400)=420.
At the end of 2 yrs, he gets a CI of Rs. 820 (adding amount of both yrs 400+420).
This can be done simple. Let's try.
On 1st yr -> he gets only simple interest i.e
5% of 8000=(5/100)*8000=400.
On 2nd yr -> simple interest + (5% of 400 ) i.e,
400+((5/100)*400)=420.
At the end of 2 yrs, he gets a CI of Rs. 820 (adding amount of both yrs 400+420).
(1)
Lithin said:
9 years ago
Go by this formula 2r+r^2÷100.
That is 2(5) + 25÷100.
Then you will get 10.25,
Now you go for cross multiplication.
For 100 --8000
110.25--?
Your answer will be=8820
Thank you friends.
That is 2(5) + 25÷100.
Then you will get 10.25,
Now you go for cross multiplication.
For 100 --8000
110.25--?
Your answer will be=8820
Thank you friends.
Yaminee said:
8 years ago
If I go with another method I am getting answer as 8820.
Interest for 1st year = 8000 * (5/100) = 400,
8000 + 400 = 8400.
Now interest for 2nd year = 8400 * (5/100) = 420,
420 + 8400 = 8820.
Interest for 1st year = 8000 * (5/100) = 400,
8000 + 400 = 8400.
Now interest for 2nd year = 8400 * (5/100) = 420,
420 + 8400 = 8820.
Salman said:
5 years ago
Traditional method:
For 1st year:8000*5/100=rs 400.
For 2nd year:8400*5/100=rs 420.
Total: rs 820.
Total amount= principal amount + interest.
So, 8000+820 = rs8820.
For 1st year:8000*5/100=rs 400.
For 2nd year:8400*5/100=rs 420.
Total: rs 820.
Total amount= principal amount + interest.
So, 8000+820 = rs8820.
(2)
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.
Gurpreet singh said:
4 years ago
5% = 5/100 = 1/20.
20:21(20+1),
20 * 20:21 * 21,
=400:441.
400 * 20:441 * 20,
8000:8820.
8820 => answer.
20:21(20+1),
20 * 20:21 * 21,
=400:441.
400 * 20:441 * 20,
8000:8820.
8820 => answer.
Divya said:
8 years ago
p=8000 ----- 400
400 --- 20
8000*(5/100)=400
8000*(5/100)=400
400*(5/100)=20
820
820+8000=8820.
400 --- 20
8000*(5/100)=400
8000*(5/100)=400
400*(5/100)=20
820
820+8000=8820.
Madhavi said:
9 years ago
Another formula for compound CI=p(1+r/n)^nt.
Any body know what is n means in this formula?
Any body know what is n means in this formula?
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers