ABC26GN4125 · Compound Interest

Subject: General Aptitude · Chapter: Compound Interest · Exam: 2008 · Marks: · Difficulty:

The simple interest accrued on an amount of ` 40000 at the end of four years is ` 24000. What would be the compound interest accrued on the same amount at the same rate in the same period?
Answer
Answer (as printed):
Explanation
Clearly, Principal = ` 40000, Time = 4 years, S.I. = ` 24000.  100 × 24000  So, Rate =   % = 15%.  40000 × 4    15   4  23 23 23 23   279841  Amount = `  40000 ×  1 +   = `  40000 × × × ×  = `   = ` 69960.25.   100    20 20 20 20   4  \ C.I. = ` (69960.25 – 40000) = ` 29960.25.

Explanation as extracted from the printed page; notation may be imperfect.

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