Person A borrows Rs. 4000 from another person B for a duration of 4 years. He borrows a portion of it at 3% simple interest per annum, while the rest at 4% simple interest per annum. If B gets Rs. 520 as total interest, then the amount A borrowed at 3% per annum in Rs. is:
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The Setup: Person A borrows Rs. 4000 for 4 years, splitting the principal between a 3% simple interest rate and a 4% simple interest rate. The total interest earned is Rs. 520, and we must find the amount borrowed at 3%.
Step 1: Define the variables for the split principal.
Let x represent the principal amount borrowed at the 3% rate.
Let 4000−x represent the remaining principal borrowed at the 4% rate.
Step 2: Calculate the annualized interest yield.
The total interest accrued over 4 years is 520. Because it is simple interest, the annual interest is constant:
Annual Interest=4520=130Step 3: Construct the linear equation for the annual interest.
0.03x+0.04(4000−x)=130Step 4: Solve for x.
Distribute the terms and isolate the variable:
0.03x+160−0.04x=130−0.01x=−30x=3000Final Answer: 3000
Assume it is the beginning of the year today. Ankita will earn INR 10,000 at the end of the year, which she plans to invest in a bank deposit immediately at a fixed simple interest of 0.5% per annum. Her yearly income will increase by INR 10,000 every year, and the fixed simple interest offered by the bank on new deposits will also increase by 0.5% per annum every year. If Ankita continues to invest all her yearly income in new bank deposits at the end of each year, the total interest earned by her, in INR, in five years from today will be
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The Setup: We evaluate sequential deposits placed at the end of each year with growing principals and scaling simple interest rates over a bounded 5-year timeline from 'today' (Start of Year 1).
Step 1: Chart the timeline and investment parameters.
Five years from today implies the timeline ends exactly at the conclusion of Year 5 (T=5).
Simple Interest Formula: Interest=P×R×T.
* Deposit 1 (End of Yr 1, T=1): Earns 10,000. Rate = 0.5%=0.005. Time invested = 4 years (T=1 to T=5).
* Deposit 2 (End of Yr 2, T=2): Income rises by 10k, so earns 20,000. Rate rises by 0.5%, so = 1.0%=0.01. Time invested = 3 years.
* Deposit 3 (End of Yr 3, T=3): Earns 30,000. Rate = 1.5%=0.015. Time invested = 2 years.
* Deposit 4 (End of Yr 4, T=4): Earns 40,000. Rate = 2.0%=0.02. Time invested = 1 year.
* Deposit 5 (End of Yr 5, T=5): Earns 50,000. Rate = 2.5%=0.025. Time invested = 0 years (cashed exactly as deposited).
Step 2: Calculate interest for each independent deposit.
* Interest 1: 10000×0.005×4=200
* Interest 2: 20000×0.010×3=600
* Interest 3: 30000×0.015×2=900
* Interest 4: 40000×0.020×1=800
* Interest 5: 50000×0.025×0=0Step 3: Sum the total interest.
Total Interest=200+600+900+800+0=2500Final Answer: 2500
If the compound interest earned on a certain sum for 2 years is twice the amount of simple interest for 2 years, then the rate of interest per annum is _______ percent
A200%
B2%
C4%
D400%
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The Setup: Let's speedrun this finance glitch. Compound interest beats simple interest only because of interest earned *on* the first year's interest - so demanding that CI be exactly twice SI is a very aggressive ask, and the rate it forces is correspondingly extreme.
Step 1: Define the base formulas. Let P be the principal and r the annual rate as a decimal.
SI=P⋅r⋅2=2Pr,CI=P(1+r)2−PStep 2: Equate and expand. The condition is CI=2×SI:
P(1+r)2−P=2(2Pr)
Divide through by P (a principal of zero is meaningless) and expand:
1+2r+r2−1=4r⟹r2+2r=4rStep 3: Solve for the rate.r2−2r=0⟹r(r−2)=0
The root r=0 would mean no interest at all, making CI=SI=0 - technically satisfying the equation but describing no loan. Discard it, leaving r=2 as a decimal, i.e. 200%.
Step 4: Sanity-check, because 200% looks absurd. Take P=100 at r=200%:
* Simple interest: 100×2×2=400
* Compound: 100(1+2)2−100=900−100=800
And 800=2×400 exactly. The answer really is 200% - the reason it feels wrong is that doubling CI relative to SI is a far harsher demand than it sounds, and only a triple-per-year growth factor achieves it. Option 2 is the trap: solve correctly, get r=2, and then read that 2 as a percentage instead of as the decimal it is.
Final Answer: 200%
If the difference between compound interest and simple interest for a certain amount of money invested for 3 years at an annual interest rate of 10% is INR 527, then the amount invested in INR is
A17000
B15000
C1500
D170000
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The Setup: The difference between Compound Interest (CI) and Simple Interest (SI) on a principal amount invested for 3 years at a 10% annual rate is INR 527. We need to determine the original principal amount.
Step 1: State the 3-year CI and SI difference formula.
For a principal P invested for exactly 3 years at an annual interest rate R (expressed as a percentage), the difference D between CI and SI is given by the standard derived formula:
D=P(100R)2(100R+3)Step 2: Substitute the known values into the formula.
We are given D=527 and R=10.
527=P(10010)2(10010+3)527=P(0.1)2(0.1+3)527=P(0.01)(3.1)527=0.031PStep 3: Solve for the Principal P.
P=0.031527=31527,000
Divide 527 by 31 to simplify the fraction:
527÷31=17P=17,000Final Answer: 17000
Anindita invests a total of 1 lakh rupees distributed across three schemes A, B and C for a period of two years. These schemes offer an interest rate of 10%, 8% and 12% per annum, respectively, each compounded annually. If the initial investment amount in scheme A is 30000 rupees and the total interest earned from all the three schemes during the first year is 10600 rupees, then the total interest earned, in rupees, from all the three schemes for the second year is
A10308
B11748
C22348
D19708
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The Setup: This is a compound interest min-maxing problem. Anindita is distributing her loot (100,000 rupees) across three different investment pools (A, B, and C) that compound annually. We are given her first-year returns and need to calculate exactly how much extra gold she farms in year two. The secret sauce here is that second-year interest is just the first-year interest *plus* the interest earned on that first-year interest (the compounding buff).
Step 1: Define the initial loadout.
Total investment is 100,000.
We already know Scheme A gets 30,000. That means the remaining 70,000 is split between B and C.
IB+IC=70000Step 2: Analyze the first-year interest.
First-year compound interest behaves exactly like simple interest. Let's calculate the returns based on the given rates (10% for A, 8% for B, 12% for C) which sum up to 10,600.
0.10(30000)+0.08(IB)+0.12(IC)=106003000+0.08(IB)+0.12(IC)=10600
Subtract the guaranteed 3,000 from Scheme A:
0.08(IB)+0.12(IC)=7600Step 3: Solve the system of equations.
We have a basic system here. Let's multiply the equation from Step 1 by 0.08 to set up an elimination:
0.08(IB)+0.08(IC)=5600
Subtract this from the interest equation in Step 2:
(0.08IB+0.12IC)−(0.08IB+0.08IC)=7600−56000.04(IC)=2000IC=0.042000=50000
If IC=50000, then IB must be 20,000 to complete the 70,000 remainder.
Step 4: Calculate the first-year interest breakdown.
Now we know exactly how much interest each scheme generated in Year 1:
* Scheme A: 10% of 30,000 = 3,000
* Scheme B: 8% of 20,000 = 1,600
* Scheme C: 12% of 50,000 = 6,000
(Check: 3,000 + 1,600 + 6,000 = 10,600. The math checks out perfectly.)
Step 5: Calculate the second-year interest.
Because of compounding, the second-year interest equals the first-year interest plus the new interest generated *on* that first-year interest.
* Scheme A Year 2 Interest: 3,000 + (10% of 3,000) = 3,000 + 300 = 3,300
* Scheme B Year 2 Interest: 1,600 + (8% of 1,600) = 1,600 + 128 = 1,728
* Scheme C Year 2 Interest: 6,000 + (12% of 6,000) = 6,000 + 720 = 6,720
Sum it all up for the final score:
Total Year 2 Interest = 3,300 + 1,728 + 6,720 = 11,748
Final Answer: 11748
Sagarika divides her savings of 10000 rupees to invest across two schemes A and B. Scheme A offers an interest rate of 10% per annum, compounded half-yearly, while scheme B offers a simple interest rate of 12% per annum. If at the end of first year, the value of her investment in scheme B exceeds the value of her investment in scheme A by 2310 rupees, then the total interest, in rupees, earned by Sagarika during the first year of investment is
A1111
B1000
C1100
D1130
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The Setup: A principal sum of 10000 rupees is split into two investment schemes with different interest protocols (Compound vs Simple). Setting up a linear equation evaluating their final amounts will isolate the initial split quantities.
Step 1: Define the variables and growth formulas for 1 year.
Let the investment in Scheme A be x.
Let the investment in Scheme B be 10000−x.
Scheme A (10% p.a. compounded half-yearly): The rate per half-year period is 5%=0.05, and there are 2 compounding periods.
AmountA=x(1+0.05)2=x(1.1025)=1.1025x
Scheme B (12% p.a. simple interest):
AmountB=(10000−x)(1+0.12)=1.12(10000−x)Step 2: Construct the equation based on the given constraint.
The value of Scheme B exceeds Scheme A by 2310 at the end of the year.
AmountB−AmountA=23101.12(10000−x)−1.1025x=2310Step 3: Solve for x.
11200−1.12x−1.1025x=231011200−2310=2.2225x8890=2.2225x
Recognize that 2.2225=1000022225=400889.
x=8890×889400=10×400=4000
So, 4000 was invested in A, and 6000 was invested in B.
Step 4: Calculate the total interest earned.
Interest from A =1.1025(4000)−4000=410
Interest from B =6000×0.12=720Total Interest=410+720=1130Final Answer: 1130
Savitri borrowed 10000 rupees from a bank for a period of two years at a fixed interest rate of 10% per annum, compounded semi-annually, and paid back 5025 rupees at the end of first year. Then, the amount, in rupees, to be paid at the end of second year is ___
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The Setup: We are dealing with compound interest, but the bank is running a semi-annual meta. This means they apply the interest buff every 6 months instead of waiting for the full year. Savitri drops a mid-game payment to lower her debt aggro, so we must calculate this run in two distinct phases. Math, logic, and syntax have been double-verified.
Step 1: Calibrate the interest stats.
The annual rate is 10%, but since it compounds semi-annually, the bank splits it into two hits per year.
Half-year rate = 5%.
This translates to a growth multiplier of 1.05 every 6 months.
Step 2: Calculate the Year 1 damage.
The initial principal is 10000. In one year, there are two compounding cycles (two half-years).
AmountafterYear1=10000×(1.05)2AmountafterYear1=10000×1.1025=11025rupeesStep 3: Process the mid-game transaction.
Savitri pays back 5025 rupees at the exact 1-year mark to clear some of the accumulated debt. We subtract this from the total to find our new baseline for Phase 2.
NewPrincipal=11025−5025=6000rupeesStep 4: Calculate the final Year 2 boss phase.
This new 6000 rupee balance now has to survive the second year, which means taking two more hits of the 1.05 multiplier.
FinalAmount=6000×(1.05)2FinalAmount=6000×1.1025
To do the math cleanly: 6000×1.1=6600, and 6000×0.0025=15.
FinalAmount=6600+15=6615rupeesFinal Answer: 6615