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 4 of 15.
Bhavani said:
6 years ago
S.P - C.I = 1.
p = 1 (100/4)^2.
= 1(100 x 100/4 x 4).
= 25 x 25.
= 625.
p = 1 (100/4)^2.
= 1(100 x 100/4 x 4).
= 25 x 25.
= 625.
Bhavani said:
6 years ago
Principal = X say.
C.I = Amount-Principal.
= {X[1+4/100]^2-X}.
S.I = [ X(4)(2)/100].
C.I = Amount-Principal.
= {X[1+4/100]^2-X}.
S.I = [ X(4)(2)/100].
Gourikrishna said:
6 years ago
Explain clearly the first step.
Siddu said:
6 years ago
P = ci - si/{r/100}2 use this formula to get answer.
Mukesh vijey said:
6 years ago
Where p=x, n=2, r-2.
c.i = (p(1+r/100)^n-1).
= (x+r/100)^n-x) (//multiply x inside)
= (x+2/100)^2-x)(//substitute n and r value)
= (676/625)x+x.
c.i = (51/625)x.
SI = pnr/100.
= xnr/100(//p=x).
= (x*2*4)/100.
SI = 2x/25.
Given that , s.i - c.i =1.
Therefore, 2x/25-(51x-625)=1.
x = 625.
Answer is 625.
c.i = (p(1+r/100)^n-1).
= (x+r/100)^n-x) (//multiply x inside)
= (x+2/100)^2-x)(//substitute n and r value)
= (676/625)x+x.
c.i = (51/625)x.
SI = pnr/100.
= xnr/100(//p=x).
= (x*2*4)/100.
SI = 2x/25.
Given that , s.i - c.i =1.
Therefore, 2x/25-(51x-625)=1.
x = 625.
Answer is 625.
Nitin said:
6 years ago
Difference =p*(r/100)^2,
1=p*(4/100)^2,
10000/16=P,
625=P.
1=p*(4/100)^2,
10000/16=P,
625=P.
Tarun.P said:
6 years ago
We have used -x because compound interest formula is Amount - principle.
And the formula for Amount is;
Amount=P (1+r/100) ^n.
First, we will calculate the amount later the total amount can be subtracted by the principle values!
And the formula for Amount is;
Amount=P (1+r/100) ^n.
First, we will calculate the amount later the total amount can be subtracted by the principle values!
Mjr said:
6 years ago
Si;
p = 100.
r = 4%pa,
t = 2yr,
i = 8, .
Ci;
p=100.
r=4%pa,
t=2 yr.
And; i = 8.16.
0.16 = 100,
1= 100/0.16,
= 625.
p = 100.
r = 4%pa,
t = 2yr,
i = 8, .
Ci;
p=100.
r=4%pa,
t=2 yr.
And; i = 8.16.
0.16 = 100,
1= 100/0.16,
= 625.
Sree said:
6 years ago
Here the formula:
P=D^2*100^2÷r^2:
This formula applicable for only the difference between 2 yrs.
Where;
D=1.
R=4%.
1^2*100^2÷4^2,
= 1*10000÷16,
= 625.
P=D^2*100^2÷r^2:
This formula applicable for only the difference between 2 yrs.
Where;
D=1.
R=4%.
1^2*100^2÷4^2,
= 1*10000÷16,
= 625.
Ashok said:
7 years ago
Here is a formula for diff B/w C.I & S.I.
Diff between means C.I - S.I = P(r/100)^2.
1 = P(4/100)^2.
1 = P(1/25)^2,
1 =P(1/625),
P = 625.
Diff between means C.I - S.I = P(r/100)^2.
1 = P(4/100)^2.
1 = P(1/25)^2,
1 =P(1/625),
P = 625.
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