RRB Paramedical Staff Nurse Model Paper 10

Question : 44 of 100

Marks: +1, -0

The simple interest on a certain sum of money for 2 years at 5% is Rs. 3200. The compound interest at the same rate after 3 years interest compound annually, is

Rs.5040
Rs.5044
Rs.4555
Rs.5535

Validate

Solution:

Simple interest

=\;{P × R × T}/{100}

where,
P = principal,
R = rate,
T = time period

∴ 3200=\;{P × 5 × 2}/{100}=\;{P}/{10}

∴ Principal

=\Rs .32000

Compound Interest

=P[(1+\;{r}/{100})^{n}-1]

Compound Interest

=P[(1+\;{r}/{100})^{n}-1]=32000[(1+\;{1}/{20})^{3}-1]

Compound Interest

=P[(\;{21}/{20})^{3}-1]=32000 ×[\;{21}/{20} × \;{21}/{20} × \;{21}/{20}-1]

Compound Interest

=32000 ×[\;{9261}/{8000}-1]=32000 ×[\;{9261-8000}/{8000}]

Compound Interest

=32000 × \;{1261}/{8000}=R s .5044

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