COMPOUND INTEREST

COMPOUND INTEREST

Formulae:
1. Let Principal = Rs.P, Rate =R% p.a, Time = t years
i. When interest is compounded annully:
t
 R 
Amount after t years = P1 + 
 100 
ii. When interest is compounded half yearly:
Principal = Rs. P, Rate = R% p.a =(R/2)% per half yearly,
Time=t years = (2t) half years.
2t
 R 
Amount after t years = P1 + 2 
 100 
 
iii. When interest is compounded quarterly:
Principal = Rs. P, Rate = R% p.a =(R/4)% per half yearly,
Time=t years = (4t) half years.
4t
 R 
Amount after t years = P1 + 4 
 100 
 

iv. When Rate of interest is R1% during first year, R2 during 2nd year, R3% during
third year. Principal Rs.P
 R   R  R 
Amount after 3 years = Rs. P1 + 1  1 + 2 1 + 3 
 100   100  100 
Problems:
1. What is the compound interest on Rs.8000/- at 7% per annum for 2 years ?
A. 1159.2 B.9159.2 C.1059.2 D.None
2. What is the compound interest on Rs.7000/- at 12% per annum for 2 years?
A. 1043.9 B.1780.8 C.1979 D.None
3. If the difference between compound interest and simple interest on a sum of money for 3
years at 5% per annum is Rs.305/- what is the sum ?
A. 30000 B.35000 C.40000 D.None
4. If the difference between compound interest and simple interest on sum of money for 2
years at 10% per annum is Rs.250/ find the sum ?
A. 100000 B.99000 C.150000 D.None
5. If the difference between compound interest and simple interest on asum of money for 3
years at 10% per annum is Rs.930/- fnd the sum ?
A. 20000 B.30000 C.35000 D.None
6. If the difference between compound interest and simple interest on a sum of money for 2
years at 10% per annum is RS.300- find the sum ?
A. 20000 B.25000 C.30000 D.None
7. If the SI on a sum of money at 5% p.a. for 3 years is Rs.1500/- Find the cI on the same
sum for the same period and at the same rate ?
A. 1459.2 B.1629.4 C.1576.2 D.None

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8. If the SI on a sum of money at 10% p.a. for 3 years is Rs.6000//- find the CI on the same
sum for the same period and at the same rate ?
A. 6620 B.5530 C.6320 D.None
9. A man borrowed Rs.8000/- at 12% per annum on SI. He lent the whole sum at 12% p.a.m
in CI. What will behis gain atfter 2 years?
A. 115.2 B.116.5 C.123.5 D.None
10. Mr.KSK. borrowed Rs.12000/- at 11% per annum on SI and immediately he lent the
whole sum to MrRaj at 11% p.a. on CI. What will be the gain of Mr.KSK after 2 years ?
A. 120.5 B.135.4 C.145.2 D.None
11. The CI on a sum at 5% per annum for 3 years is Rs.1261. What will be the SI on the same
sum for the same period and at the same rate?
A. 1300 B.1100 C.1200 D.None
12. The CI on a sum at 5% per annum for 2 years is RS.1025 what will be the SI on the same
sum for the same period and at the same rate?
A. 900 B.100 C.1000 D.None
13. The CI on a sum at 10% per annum for 3 years is rs.662 what will be the SI on the same
sum for the same period and at the same rate?
A. 400 B.600 C.500 D.None
14. The CI on asum of at 10% p.a. for 2 years is RS.840. What will be the SI on the same
sum for the same period and at the same rate ?
A. 800 B.700 C.600 D.None
15. The CI on asum of money at 12% p.a. for 2 years Rs.1272. What will be the SI on the
same sum for the same period and at the same rate?
A. 1600 B.1400 C.1000 D.1200
16. The SI on a money at 15% for 2 years is Rs.3000- what will be the CI on the same sum
for the sam period and at the same rate ?
A. 2235 B.3225 C.3500 D.None
17. The CI on a sum of at 10% p.a. for the second year is Rs.220- find the sum ?
A. 1000 B.1500 C.2000 D.None
18. The CI on a sum of at 3% p.a for the second year is Rs.1469/- find the sum ?
A. 8000 B.9000 C.10000 D.None
19. A sum of money at CI double in 6 years it will amount to 8 times in _____ years ?
A. 16 B.18 C.17 D.None
20. a sum of money at CI amounts to thrice itself in 4 years in how many years will it become
9 times of itself?
A. 8 B.4 C.6 D.None
21. What will be the CI on a sum of money Rs.8000/- at 11% for 2 years ?
A. 1956.8 B.1856.8 C.1456.5 D.None
22. What will be the CI on a sum of money Rs.12000/- at 13% for 2 years ?
A. 3322.8 B.2266.8 C.1926.8 D.None
23. Find the CI on Rs.1800/- for 3 years at the rate of 5%?
A. 183.765 B.283.725 C.293.765 D.None
24. What will be the CI on Rs.2200/- for 3 years at the rate of 10% ?
A. 682.2 B.698.2 C.728.2 D.None

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25. The difference between CI and SI for 2 years at the rate 10%p.a. is Rs.300/- find the
principal amount ?
A. 40000 B.30000 C.25000 D.None
26. The CI and SI on a sum of money for 2 years and Rs. 816 and Rs.800 at the same rate
Find the sum and rate percent.
A. 10000,4% B.12000,6% C.5000,8% D.None
27. The difference between SI and CI on a certain sum 2 years at 4% pa is Rs. 20. Find the
sum
A. 13000 B.11500 C.12500 D.None
1
28. Find the difference between SI and CI on Rs. 6400 for 2 years at 12 % p.a
2
A. 100 B.200 C.300 D.None
29. At what rate of interest will Rs.20000 become Rs.24200 after 2 years when interest is
compounded annually
A. 8% B.9% C.10% D.None
30. The present worth of Rs.1690 due 2 years hence at 4% p.a. is
A. 1505 B.1547.50 C.1562.50 D.1580