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A sum of money becomes Rs 35,680 after 3...

A sum of money becomes Rs 35,680 after 3 years and Rs 53,520 after 6 years at a certain rate percentage p.a., interest compounded yearly. What is the compound interest on the same sum in the first case ? (Your answer should be nearest to an integer)

A

Rs 11,983

B

Rs 11,893

C

Rs 10,842

D

Rs 11,938

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will use the formula for compound interest and the information provided in the question. ### Step-by-Step Solution: 1. **Understanding the Problem**: We are given that a sum of money becomes Rs. 35,680 after 3 years and Rs. 53,520 after 6 years with compound interest. We need to find the compound interest for the first 3 years. 2. **Setting Up the Equations**: We can use the formula for compound interest: \[ A = P \left(1 + \frac{R}{100}\right)^t \] where \(A\) is the amount, \(P\) is the principal, \(R\) is the rate of interest, and \(t\) is the time in years. For the first case (after 3 years): \[ 35680 = P \left(1 + \frac{R}{100}\right)^3 \quad \text{(Equation 1)} \] For the second case (after 6 years): \[ 53520 = P \left(1 + \frac{R}{100}\right)^6 \quad \text{(Equation 2)} \] 3. **Expressing Equation 2 in terms of Equation 1**: We can express the amount after 6 years in terms of the amount after 3 years: \[ 53520 = 35680 \left(1 + \frac{R}{100}\right)^3 \] This gives us: \[ \frac{53520}{35680} = \left(1 + \frac{R}{100}\right)^3 \] 4. **Calculating the Ratio**: Now, we calculate the left side: \[ \frac{53520}{35680} = 1.5 \] Therefore, we have: \[ 1.5 = \left(1 + \frac{R}{100}\right)^3 \] 5. **Taking the Cube Root**: To find \(1 + \frac{R}{100}\), we take the cube root of both sides: \[ 1 + \frac{R}{100} = 1.5^{1/3} \] 6. **Calculating \(1.5^{1/3}\)**: Using a calculator or estimation, we find: \[ 1.5^{1/3} \approx 1.1447 \] Thus: \[ \frac{R}{100} \approx 0.1447 \quad \Rightarrow \quad R \approx 14.47 \] 7. **Finding the Principal (P)**: Now, we can substitute \(R\) back into Equation 1 to find \(P\): \[ 35680 = P \left(1 + \frac{14.47}{100}\right)^3 \] \[ 35680 = P \cdot (1.1447)^3 \] Calculating \((1.1447)^3 \approx 1.5\): \[ 35680 = P \cdot 1.5 \] Therefore: \[ P = \frac{35680}{1.5} \approx 23786.67 \] 8. **Calculating the Compound Interest**: The compound interest for the first 3 years is given by: \[ \text{Compound Interest} = A - P \] \[ \text{Compound Interest} = 35680 - 23786.67 \approx 11893.33 \] 9. **Rounding to the Nearest Integer**: Finally, rounding \(11893.33\) gives us: \[ \text{Compound Interest} \approx 11893 \] ### Final Answer: The compound interest on the same sum in the first case is approximately **Rs. 11,893**.
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