Question

A principal amount of Rs. 40,000 kept for even number years at certain rate of interest gives amount as Rs. 57600. If the same principal amount is kept for half the duration what will be the amount received?

1. Rs. 35000
2. Rs. 42000
3. Rs. 54000
4. Rs. 48000

Answer 1

Correct Answer - Option 4 : Rs. 48000

Given:

P = Rs. 40000

A = Rs. 57600

Formula used:

A = P × (1 + (R/ 100))^N

A = P + I

Where, P = Principal amount, R = Rate of interest, N = number of years and I = Simple interest

Calculation:

58564 = 40000 × (1 + (R/ 100))^N

(1 + (R/ 100))^N = 57600/ 40000

(1 + (R/ 100))^N = 1.44      ….(1)

Now, for half the duration

⇒ A = 40000 × (1 + (R/ 100))^N/2

⇒ A = 40000 × √ 1.44      ….(From Equation 1)

⇒ A = 40000 × 1.2

⇒ A = 48000

∴ Amount is Rs. 48000