Question
Download Solution PDFA sum amounts to Rs. 9,680 in 2 years and Rs. 10,648 in 3 years at a certain rate per annum, interest compounded yearly. The same sum will amount to how much after \(3\frac{3}{4}\) years at double the rate of interest (nearest to a whole number)?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Amount after 2 years (A2) = ₹9,680
Amount after 3 years (A3) = ₹10,648
Time (t2) = 2 years
Time (t3) = 3 years
Time for calculation = 3(3/4) years = 3.75 years
Formula used:
A = P(1 + r/100)t
Calculations:
From the given data:
A3/A2 = (1 + r/100)3 / (1 + r/100)2
⇒ ₹10,648/₹9,680 = (1 + r/100)
⇒ 1.1 = (1 + r/100)
⇒ r = 10%
A2 = P\((1+\frac{r}{100})^2\)
9680 = P\((1+\frac{10}{100})^2\)
9680 = P\((1.1)^2\)
9680 = P × 1.21
⇒ P = \(\frac{9680}{1.21}\)
⇒ P = ₹8,000
New rate (r') = 2 × original rate = 2 × 10% = 20%
New time (t') = \(3\frac{3}{4}\) years = 3 years + \(\frac{3}{4}\) year
First, calculate the amount after 3 full years with the new rate:
Amount after 3 years = P\((1+\frac{r'}{100})^3\)
⇒ Amount after 3 years = 8000\((1+\frac{20}{100})^3\)
⇒ Amount after 3 years = 8000\((1.2)^3\)
⇒ Amount after 3 years = 8000 × 1.728
⇒ Amount after 3 years = ₹13,824
Now, The simple interest for the remaining \(\frac{3}{4}\) year on this amount:
Interest for fractional year = \(13824 \times \frac{20}{100} \times \frac{3}{4}\)
⇒ Interest for fractional year = \(13824 \times 0.20 \times 0.75\)
⇒ Interest for fractional year = 13824 × 0.15
⇒ Interest for fractional year = ₹2073.6
Final Amount = Amount after 3 years + Interest for fractional year
⇒ Final Amount = ₹13,824 + ₹2073.6
⇒ Final Amount = ₹15,897.6
⇒ Final Amount ≈ ₹15,898
∴ The same sum will amount to ₹15,898 (nearest to a whole number) after \(3\frac{3}{4}\) years at double the rate of interest.
Last updated on Jul 15, 2025
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