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Compound interest
1.
Black Holes of
Aptitude-Compound Interest ©Mayank Gupt-makguffaw@gmail.com,9990123477 Compound Interest Interest: (I) Interest is money paid to the lender by the borrower for using his money for a specified period of time. Various terms and their general representation are as follows: Principal(P): The original sum borrowed Time (t): Time for which money is borrowed. Rate of Interest(r): Rate at which interest is calculated on the original sum. Amount (A): Sum of Principal and Interest. (P+I). . A = 𝑃[1 + r 100 ] A=P+I Type I: Times Times Year X Y 𝑿 𝑵 NY If a sum becomes X times in Y years at CI, It will be 𝑿 𝑵 times in NY years. Exp 1: A Sum of money invested at CI doubles itself in 6 years. At the same rate of interest it will amount to eight times of itself in: Solution: Times Year X Y 𝑿 𝑵 NY =18 years Times Year 2 6 𝟐 𝟑 (8) 3×6=18
2.
Black Holes of
Aptitude-Compound Interest ©Mayank Gupt-makguffaw@gmail.com,9990123477 Type II: Rate If a Sum becomes X times of itself in T years .Find rate % Exp2: If the amount is 2.25 times of the sum after 2 years at CI (annually), the rate of percent per annum is: Solution: Type III X=CI-SI When difference between CI and SI on a certain sum of money for 2 years at R % is Rs. X, then Principal is given by: 𝑷 = 𝑿 × [ 100 𝑅 ]2 When difference between CI and SI on a certain sum of money for 3 years at R % is Rs. X, then Principal is given by: 𝑃 = X × 1003 𝑅2 × (300 + 𝑅) Exp 3: The difference between the CI and SI on a sum at 4% rate of interest per annum for two years is Rs 80, Find the Principal: 𝑷 = 𝑿 × [ 100 𝑅 ]2 𝑷 = 𝟖𝟎 × [ 100 4 ]2 =50000 𝑹% = ((𝑿) 𝟏 𝑻 -1)× 𝟏𝟎𝟎 𝑹% = ((𝑿) 𝟏 𝑻 -1)× 𝟏𝟎𝟎 𝑹% = ((𝟐. 𝟐𝟓) 𝟏 𝟐 -1)× 𝟏𝟎𝟎 =50%
3.
Black Holes of
Aptitude-Compound Interest ©Mayank Gupt-makguffaw@gmail.com,9990123477 Type IV: If the difference between CI and SI for 2 year is X and Rate is R% then: R%= 𝟐×𝑿×𝟏𝟎𝟎 𝑺𝑰 Exp 4: If the CI on a certain sum for 2 years at 3 % pa is Rs. 101.50, then the SI on the same sum at the same rate and for same time will be: R%= 𝟐×𝑿×𝟏𝟎𝟎 𝑺𝑰 3= 𝟐×(𝟏𝟎𝟏.𝟓𝟎−𝑺𝑰)×𝟏𝟎𝟎 𝑺𝑰 SI=100 Type V: An amount of money grows up to Rs. A1 in N years and A2 in N+ 1 year on CI. Find Rate% and principal: R% =((A2 − A1) ×)/A1 P=A1 ( 𝐴1 𝐴2 𝑁 ) Exp 5: A certain sum of money amounts to Rs. 4840 in 2 years and to Rs 5324 in 3 years at CI. The rate % pa is: R% =((A2 − A1) × 100)/A1 R% =((5324 − 4840) × 100)/4840 =10% P=4000 Type VI: If a sum A becomes B in T1 years at CI, then after T2 years the sum becomes: BT2/T1 𝐴( 𝑇2 𝑇1 −1) Exp 6: Rs 4800 becomes Rs 6000 in 4 years at a certain rate of compound interest. What will be the sum after 12 years? =9375
4.
Black Holes of
Aptitude-Compound Interest ©Mayank Gupt-makguffaw@gmail.com,9990123477 Type V: Annual Payment Annual Payment= P×R 100[1−( 100 100+𝑅 ) 𝑁 ] = 𝑃 ( 100 100 +𝑅 )1+( 100 100+𝑅 )2+⋯…. Exp 7: A builder borrows Rs. 2550 to be paid back with CI at the rate of 4 % per annum by the end of 2 years in two equal yearly installments. How much will be each installments be ? Solution: = 𝑃 ( 100 100 +𝑅 )1+( 100 100 +𝑅 )2+⋯…. 2550 ( 100 100 + 4 )1 + ( 100 100 + 4 )2 =1352 Note 𝐶𝐼 𝑆𝐼 = 𝑅 200 +1
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