0
A sum of money lent out at simple interest amounts to Rs720 after 2 years and to Rs1020 after a further period of 5 years The sum is?
Wiki User
∙ 11y ago
Given, Amount=A1 =Rs 720
Time = 2 yrs
Let P=Principal
and R=Rate %
Simple Interest after 2 yrs = A1- P
Now,
720-P=(P x R x 2)/ 100
=(P x R x 2)/100 ................(I)
Next, Amount = A2 = Rs 1020
Time = 2 + 5 =7 yrs (i.e 2 + a further period of 5 yrs)
R= Rate %( same as above)
Simple Interest after 7yrs = A2- P
now,
1020-P =( P x R x 7)/100 ..................(II)
Next,
equation (I) divided by equation (II), we get
7 (720-P) = 2(1020-P)
solving it we get 5P=3000
or, P = Rs. 600.Ans.
if you want to get the value of R, substitute the value of P in either of the equation then you'll get it to be 10%.
( This problem was solved by Shri. Junemon Paswet from Ladthadlaboh Jowai,West Jaintia Hills District. on the 23/0ct/2012 )
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are the major differences between compound interest loan and simple interest loan?
With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.
What is the concepts of compound interest?
The concept is that at the end of each time interval, the interest for that period is added to the principal. As a reult, the interest for any period is calculated not only on the principal but also the interest from previous periods.
What is interest loan on 10500 at 3 percent for 5 years?
The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.
The concepts of simple interest?
Simple interest is interest that is applied to the original amount for the whole period of the investment or loan. This is unlike compound interest where the interest received on an investment is re-invested, or the interest due on a loan is added to the loan outstanding if unpaid, and so itself gains interest. With simple interest on loans, it is often calculated that borrowing a certain amount for a number of years will be charged at a certain rate for the whole period; then at the end of the period of borrowing the original loan and all the interest are repaid at that moment. However, if monthly repayments are made, then part of the original loan as well as the interest for the month are repaid; this means that not all the loan is borrowed for the whole period and so the real [effective] rate of interest for the period is actually higher than the given rate as that given rate assumes no part of the loan is repaid until the very end.
What would happen to the future value of an annuity if interest rates fell in later period's?
Your annuity will decrease in value as your interest earned would decrease, which would just continue to snowball because that would make your principal value less even further down the road, causing your annuity to devalue even more.
What kind of interest is paid on the deposit plus accumulated interest from period to period?
A Compound interest !
What is meant by the term compound interest?
Compound interest means that the amount of interest earned during a period increases the principal, which is then larger for the next interest period.
What are the major differences between compound interest loan and simple interest loan?
With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.With compound interest, the interest due for any period attracts interest for all subsequent periods. As a result, compound interest, for the same rate, is greater.
Accrued interest vs interest payable?
Interest payable is the interest that has not yet been paid to the customer on the deposit. Accrued interest is interest that is accumulated over a period ,especially from last payment made to the customer. The primary formula for calculating the interest accrued in a given period is: where, T = number of days in the period/number of days in the year
When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called Answer discount interest compound interest primary interest?
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
Which interest free credit cards offer the longest interest free period?
Some interest free credit cards that offer the longest interest free period are Capital One and Discover. They have good promotions for new customers that allow for an extended interest free period calculated at the time of approval.
What is the concepts of compound interest?
The concept is that at the end of each time interval, the interest for that period is added to the principal. As a reult, the interest for any period is calculated not only on the principal but also the interest from previous periods.
What is the interest rate on 4700 if you paid 23.50?
The interest rate is defined in the context of a period of time. You have not specified any time period.
What is interest loan on 10500 at 3 percent for 5 years?
The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.The total value of a loan of 10500 at 3 per cent, which is paid back at the end of 5 years is 10500*(1.03)5 = 12172.38So the interest on the loan is 12172.38 - 10500 = 1672.38The interest will be lower if the loan is paid back, bit by bit, over the 5-year period. The interest on the loan will then depend onhow often repayments are madewhether in constant amounts or nothow often the lender calculates the interest.
If you defer your student loan does it accrue interest while you are at school?
the deferment period is the period when the borrower makes no payments and the loan accrues no interest
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment the investor must?
When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must a. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b. notify the issuer and request that a special payment be made for the appropriate portion of the interest period. c. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date. d. do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.
What is cumulative interest?
sum of all the interest paid during certain period of time.
