Sunil earned Rs.2828.80 in compound interest over two years at 8% p.a. What total sum (principal plus interest) did he receive at the end?
Show answer Hide answer
Answer: B. Rs.19,828.80
Explanation
Calculating the compound interest over two years at eight percentage per annum gives the exact interest earned. Adding this earned compound interest to the unknown initial principal determines the total accumulated sum received. Evaluating the total sum calculation results in nineteen thousand eight hundred twenty-eight point eighty rupees. Total accumulated sum in compound interest equals the initial principal plus the total interest earned. Compound interest compounds periodically, growing exponentially faster than simple interest over time. Financial transactions involving compound interest require careful addition of principal and interest components.
Investors track total accumulated sums to monitor the growth performance of their savings accounts. Banks provide total payout figures at maturity that combine initial deposits with all accumulated interest. Understanding compound growth helps individuals plan effectively for long-term financial objectives. Option A underestimates the total sum by subtracting the interest instead of adding it to the principal. Option C results from an arithmetic subtraction error during the principal and interest combination. Option D underestimates the total accumulated amount due to intermediate calculation rounding errors.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
Related questions
Q1. Selling an article at a 12% profit yields Rs. 6 more than selling it at a 12% loss. What is the cost price:
Show answer Hide answer
Answer: B. Rs. 25
The difference between a 12 percent profit and a 12 percent loss equals 24 percent of cost price. The monetary difference between the two selling prices is given as 6 rupees. Dividing 6 rupees by 0.24 gives a cost price...
Q2. A radio bought for Rs. 1500 is retailed at Rs. 1230. Determine the loss percentage?
Show answer Hide answer
Answer: A. 18%
Subtracting the retail selling price from the original purchase cost gives a total loss of two hundred seventy. Dividing the loss amount by the original cost price determines the fractional loss proportion. Multiplying t...
Q3. A stream current flows at 4 kmph. A boat travels 6 km and returns in 2 hours; find the boat's speed in still water.
Show answer Hide answer
Answer: C. 8 kmph
Letting the boat speed in still water be b, the upstream speed is b minus four and the downstream speed is b plus four. The total travel time equation is six divided by b minus four plus six divided by b plus four equals...
Q4. The difference between compound and simple interest on Rs. 5000 for 2 years is Rs. 72. Find the annual interest rate:___________?
Show answer Hide answer
Answer: D. 12%
The two-year difference between compound and simple interest equals principal times rate squared. Dividing the 72 rupee difference by the 5000 rupee principal gives zero point zero 144. Taking the square root and multipl...
Q5. A rhombus has diagonals of 15 cm and 20 cm. Find its area?
Show answer Hide answer
Answer: C. 150 sq m
The area of a rhombus is calculated as one half multiplied by the product of its two diagonals. Multiplying diagonal one by diagonal two gives three hundred total square units. Dividing three hundred by two yields the fi...
Q6. The difference between compound and simple interest on Rs. 15,000 over 2 years is Rs. 96. What is the annual interest rate?
Show answer Hide answer
Answer: A. 8
The difference between compound and simple interest over a two-year period is given by the formula principal times the square of the rate percentage. Substituting the given difference of ninety-six and the principal of f...