Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 7)
7.
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
Answer: Option
Explanation:
Let the rate be R% p.a.
| Then, 1200 x |  |
1 + | R |  |
2 | = 1348.32 |
| 100 |
 |
|
1 + | R | |
2 | = | 134832 | = | 11236 |
| 100 | 120000 | 10000 |
 |
|
1 + | R | |
2 | = | |
106 | |
2 |
| 100 | 100 |
| 1 + |
R | = | 106 |
| 100 | 100 |
R = 6%
Discussion:
41 comments Page 4 of 5.
Mounica said:
1 decade ago
Can any one explain this?
1348.32 is CI, but here they have taken directly at the place of amount?
1348.32 is CI, but here they have taken directly at the place of amount?
Vaibhav patil jadhv said:
1 decade ago
@Mounika.
They didn't said 1348.32 is the compound interest they asked at what rate of the compound interest per annum the sum becomes 1348.32 from 1200 i.e 1348.32 can be equated to amount.
C.I = amount-sum.
Amount=sum(1+r/100)^t as the interest is compounded yearly.
Good luck.
They didn't said 1348.32 is the compound interest they asked at what rate of the compound interest per annum the sum becomes 1348.32 from 1200 i.e 1348.32 can be equated to amount.
C.I = amount-sum.
Amount=sum(1+r/100)^t as the interest is compounded yearly.
Good luck.
Arulmozhi Nathan said:
9 years ago
I can't understand this problem could please anyone explain for me?
Narayana Rao Gartam said:
1 decade ago
Hai Shikhar,
1+R/100= 106/100.
100+R/100 = 106/100.
100+R= 106 ( 100 AND 100 CANCELLED EACH OTHER).
S0, R= 106-100.
i.e: 6.
I'm sure this would help you.
1+R/100= 106/100.
100+R/100 = 106/100.
100+R= 106 ( 100 AND 100 CANCELLED EACH OTHER).
S0, R= 106-100.
i.e: 6.
I'm sure this would help you.
Madhu said:
1 decade ago
How to find the root of 11236?
Zahir said:
10 years ago
1348.32-1200 = 148.32.
Now, 148.32/1200*100 = 148.32/12 which is greater than 12% but less than 13%.
So for 2 years of effective compound interests, annual interest must be greater than 6% but less than 6.5% (as 6.5% would lead effective interest to somewhere greater than 13%).
So, given options answer must be 6%.
Answer: 6%.
Now, 148.32/1200*100 = 148.32/12 which is greater than 12% but less than 13%.
So for 2 years of effective compound interests, annual interest must be greater than 6% but less than 6.5% (as 6.5% would lead effective interest to somewhere greater than 13%).
So, given options answer must be 6%.
Answer: 6%.
TKB said:
10 years ago
Can't we just apply the formula P = R/T using 1200 as the principal amount?
Mounika said:
9 years ago
Please share short cut method for this type of problems.
Naresh said:
9 years ago
@Pinky.
You said that divide numerator and denominator by 12 we got 11236/10000.
My doubt is why we have to divide it by 12, please tell me the reason.
You said that divide numerator and denominator by 12 we got 11236/10000.
My doubt is why we have to divide it by 12, please tell me the reason.
Anilkumar said:
9 years ago
@Naresh it is divided by 12 since it is easy that way, also, it gives a perfect square of 106 & 100. One more important point you can divide both the numbers with any number, but we use specific numbers since they give a perfect square or else you can use any number to solve that problem.
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