Aptitude - Compound Interest - Discussion
Discussion Forum : Compound Interest - General Questions (Q.No. 2)
2.
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
Answer: Option
Explanation:
Let the sum be Rs. x. Then,
| C.I. = |  |
x |  |
1 + | 4 |  |
2 | - x |  |
= | |
676 | x | - x | |
= | 51 | x. |
| 100 | 625 | 625 |
| S.I. = | |
x x 4 x 2 | |
= | 2x | . |
| 100 | 25 |
 |
51x | - | 2x | = 1 |
| 625 | 25 |
x = 625.
Discussion:
149 comments Page 11 of 15.
Salman said:
10 years ago
Actually the question is wrong:
It should be difference between compound and simple interest.
Since compound interest will always be larger than simple interest given the same rate and period.
It should be difference between compound and simple interest.
Since compound interest will always be larger than simple interest given the same rate and period.
Manaswini said:
10 years ago
I can't understand this please some one help me to understand this sum.
$weth@ said:
10 years ago
Is that a formula you used over there?
[x(1+4/100)2]-x? where and all we can use this?
[x(1+4/100)2]-x? where and all we can use this?
Eshwar said:
10 years ago
CI = A-P.
A = P(1+r/100)n.
CI = P(1+r/100)n-P.
Where in above problem P = x.
A = P(1+r/100)n.
CI = P(1+r/100)n-P.
Where in above problem P = x.
Rick said:
1 decade ago
You people should add the formula of C.I in the formula section which is missing.
C.I = p[(1+r/100)^n -1].
C.I = p[(1+r/100)^n -1].
Monalisa said:
1 decade ago
Hey guys, I have a shortcut formula for such problem:
p = d*100^2/r^2 (only for 2 yrs).
Where p = principle.
d = difference.
r = rate.
p = d*100^2/r^2 (only for 2 yrs).
Where p = principle.
d = difference.
r = rate.
Bhupathi raju said:
1 decade ago
Any easiest method solve this problem?
Hema said:
1 decade ago
Shortcut formula P = (100/R)^T*D, D = Difference here.
= (100/4)^2*1 = 625.
= (100/4)^2*1 = 625.
Aparna said:
1 decade ago
P(1+0.04)^2-P)-P*0.08.
From the above step how did you got that P(1/625) = 1.
Can you please explain me?
From the above step how did you got that P(1/625) = 1.
Can you please explain me?
Ganga said:
1 decade ago
@Pankaj parashar.
Please tell me how CI rate for 2 years = 8.16%.
Please help me.
Please tell me how CI rate for 2 years = 8.16%.
Please help me.
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