Question

A bank lends some money to a farmer at 50/3% p.a for 1 year 73 days. How much Compound interest the farmer had to pay if the Simple interest for the first year was Rs. 6000? The values of the CI and Sum lent are given in the options, which of the option correctly states the above question?

1. Rs. 7400, Rs. 36000
2. Rs. 3600, Rs. 36000
3. Rs. 7400, Rs. 18000 
4. Rs. 3600, Rs. 18000
5. None of the above

Answer 1

Correct Answer - Option 1 : Rs. 7400, Rs. 36000

Calculation:

Rate = 50/3 = 1/6%

⇒ (P × R × T)/100 = 6000

⇒ P = 36000

Let us suppose principal = 36

∴ Interest for 1^st year = 6

Interest for 2^nd year = 6 + 1 = 7

∴ Interest for 73 days = (7 × 73)/365

⇒ 1.4

∴ Total Interest = 6 + 1.4

⇒ 7.4

36 corresponds to 36000

1 will correspond to 1000

7.4 will correspond to 1000 × 7.4

⇒ 7400

So, the Compound Interest for 1 year 73 days is Rs. 7400 and the Sum lent to the farmer is Rs. 36000.