EXERCISE 2.

1)
ompound intenst on N0 at 5% per annum tor -Vears.
Find the amount and the Calculate:
man invests 46875 at 4 er annum ompound interest for 3 vears.
2 A
() the interest for the tist vea
end of the second year.
(:1) the amount standing to his credit at the
() the interest for the thind vear.
compound interest for the seond vear on S000 invested tor
3 Caleulate the
3 vears at l0° p.a.
Also find the sum due at the end of third vear.
vears at the rate of 10% per annum compound interest.
4 Ramesh invests ?12800 for three
Find :
() the sum due to Ramesh at the end of the first vear.
() the interest he earns for the second vear.
(iii) the total amount due to him at the end of three vears.
vears at 12°% per annum is 1380. Find:
5 The simple interest on asum of money for 2
(i) the sum of money.
pavable half-vearly at the same
(2:) the compond interest on this sum for one vear
rate.

6 A person invests ?10000 for two vears at a certain rate

of interest, compounded
Calculate :
annuallv. At the end of one vear this sum amounts to 11200.
(i) the rate of interest per annum.
(ii) the amount at the end of second year.
7 Mr. Lalit invested 5000 at a certain rate of interest, compounded annuallv for two
vears. At the end of first year it amounts to 5325. Calculate
(i) the rate of interest.
(ii) the amount at the end of second vear, to the nearest rupee.
8 A man invests 5000 for three years at a certain rate of interest, compounded
annually. At the end of one year it amounts to 5600. Calculate:
(i)) the rate of interest per annum.

46 Understanding ICSE Mathematics IX

 (ii) the interest accrued in the second year.
(ii) the amount at the end of the third year.
a Eind the amount and the compound interest on 72000 at 10% p.a. for 2 1 years,
compounded annually. 2

0 Find the amount and the compound interest on 50000 for1 years at 8% per annum,
10
the interest being compounded semi-annually.
11 Calculate the amount and the compound interest on5000 in 2 years when the rate of
interest for successive years is 6%o and 8% respectively.
12 Calculate the amount and the compound interest on 17000 in 3 years when the rate
of interest for successive years is 10%, 10% and 14%o respectively.
13 ASum of 9600 is invested for 3 years at 10% per annum at compound interest.
() What is the sum due at the end of the first year?
(i) What is the sum due at the end of the second year?
(ii) Find the compound interest earned in 2 years.
(iv) Find the difference between the answers in (i) and (i) and find the interest on this
sum for one year.
(v) Hence, write down the compound interest for the third year.
14 The simple interest on a certain sum of money for 2 years at 10% per annum is 1600.
Find the amount due and the compound interest on this sum of money at the same
rate after 3years, interest being reckoned annually.
15 Vikram borrowed 20000 from a bank at 10% per annum simple interest. He lent it
to his friend Venkat at the same rate but compounded annually. Find his gain after
2 years.
16 Aman borrows T6000at 5% compound interest. If he repays 1200 at the end of each
year, find the amount outstanding at the beginning of the third year.
17 Mr. Dubey borrows 100000 from State Bank of India at 11% per annum compound
interest. He repays 41000 at the end of first year and 747700 at the end of second
year. Find the amount outstanding at the beginning of the third year.
18 Jaya borrowed 50000 for 2 years. The rates of interest for two successive years are
12% and 15% respectively. She repays 33000 at the end of first year. Find the amount
she must pay at the end of second year to clear her debt.
 EXERCISE 2.2
1 Find the amount and the compound interest on 5000 for 2 years at 6 per annum,
interest payable yearly.
2 Find the amount and the compound interest on ?8000 for 4 years at 10o per annum,
interest reckoned yearly.
3 If the interest is compounded half yearly, calculate the amount when the principal is
7400, the rate of interest is 5% and the duration is one year.

1
4 Find the amount and the compournd interest on ?5000 at 10% p.a. for 1 2 years,
compound interest reckoned semi-annually.
5 Find the amount and the compound interest on ?100000 compounded quarterly for
9 months at the rate of 4% p.a.
1
Hint. r =
4
of 4% = 1% arnd n =
93.
3

6 Find the difference between C.I. and S.I. on sum of 4800 for 2 vears at 5% per annum
payable yearly.

58 Understanding ICSE Mathematics IX

- End the difterene between the simple interest and compound interest on 2500 tor
2 vears at + per annum, compound interest being reckoned semi-annually.
8 Findthe amount and the compound interest on 2000 in 2 vears if the rate is 4o for
ha ôrst vear and 3% for the second vear.
o Find the compound interest on 3125 for 3 vears if the rates of interest for the first,
sond and third year are respectively 4%, 5% and 6% per annum.
10 What sum of money will amount to 9261 in 3 vears at 5% per annum compound
interest?

11 What sum invested at 4% per annum compounded semi-annually amounts to

7S03 at the end of one vear?
1
12 What sum invested tor 1; years compounded half-yearly at the rate of 4% p.a. will
amount to 1326512

13 On what sum will the compound interest for 2 years at 4% per annum be 5712?
14 Aman invests 1200 for two years at compound interest. After one year the money
amounts to ?1275. Find the interest for the second year correct to the nearest rupee.
15 At what rate percent per annum compound interest will 2304 amount to 2500 in
2 years?
16 Asum compounded annually becomes 16
times of itself in two vears. Determine the
rate of interest per annum.
17 At what rate percent will 2000 amount to 2315-25 in 3 years at compound
interest?

18 If 40000 amounts to 48620-25 in 2 years, compound interest payable half-yearly, find

the rate of interest per annum.
19 Determine the rate of interest for asum that becomes 125
times of itself in 1 years,
compounded semi-annually.
20 At what rate percent p.a. compound interest would 80000 amount to 88200
in two years, interest being compounded yearly. Also find the amount after
3vears at the above rate of compound interest.
21 A certain sum amounts to 5292 in 2 years and to 5556-60 in 3 years at compound
interest. Find the rate and the sum.

22 A certain sum amounts to 798-60 after 3 years and 878-46 after 4years. Find the
interest rate and the sum.
23 In what time will15625 amount to 17576 at 4% per annum compound interest?
24 () In what time will? 1500yield 496-50 as compound interest at 10o per annum
compounded annually?
(i) Find the time (in years) in which 12500 will produce 3246-40 as compound
interest at 8% per annum, interest compounded annually.
25 16000 invested at 10% p.a., compounded semi-annually, amounts to 18522. Find the
time period of investment.
26 What sum will amount to 2782-50 in 2 years at compound interest, if the rates are
5% and 6% for the successive years?
27 A sum of money is invested at compound interest payable annually. The interest in
two successive vears is 225 and 7240. Find
(1) the rate of interest.
(ii) the original sum.
(ii) the interest earned in the third year.

Compound Interest 59
 and simple
dittennee between the compound interest
t sunn of money w)th of interest charged for both is 5% p.a.?
if the rate
lor vns yual to 25 a vear payable halt-yearly and the
omound interest for
een betwen the monev lent out at 10% for a year is 15. Find the
ehest n a ertain sum of
sum o monev lent out.
ompound interst which is calculated vearly on a certain sum of money
untat interesSl:
is -N in one vear an35 in two vars, Calculate the rate of
225 and the compouna nerest
e Smple nterst on a ertain sum for 3vears is
t te Sme sumat the same rate for 2 vears is F153.
Find the rate of interest and the
princial.
$2 Find the ditterence between compound interest on T8000 for 1-years
2 at 10o P.a. Wnen
0mpounded annuallv and semi-annually.
33 A sum ot monev is lent out at compound interest for two years at 207o P.d C.I. being
eCkoned early. If the same sum of monev is lent out at compound interest at the
ne rate penent per annum, CJ. being reckoned half-yearly, it would have tetched
04S2 mor bv way of interest. Calculate the sum of money
lent out.
3 ASum of monev amounts to 13230 in one vear and to13891-50 in 11
2 yearS at
Omnd interest, compounded semi-annually. Find the sum and the rate of interest
per aum.
EXERCISE 2.3
200000, It population inereaes by 10%% in the
a town in the town at the end f
The Pesent population ol wcond year. ind the population of
Vear and 15". inthe
the lwo year. at the rate of
If the population increases
2 lown in 15625.
n present population of a the
what will be incoaw in the population in next 3 years?
" very year, ben at the beginning
increaney cach year by 4% of what it had
The populationof acily
Ch ye II itN present population is 6760000, find
() its population 2 years hence (0) its population 2 years ag
the rate of 5 every year.
4
The cost of aretrigerator is T9000. Ity value depreciates at
Find the total depreciation in its value at the end of 2 years.
depreciating at the
5 Dinesh purchased a scooter for R24000. The value of the scooter is
rate of 5% per annum. Calculate its value after 3years.
6 A tarmer increses his output of wheat in bis farm cvery year by 8h, This year he
produced 2187 quintals of wheat. What was the yearly produce of wheat two years
ago?
7 The value of aproperty decreases every year at the rate of 5%. If its present value is
R411540, what was its value three years ago?
8 Ahmed purchased an old scooter for ?l6000. If the cost of the scooter after
2yearsdepreciates to 14440, ind the rate of depreciation.
A factory increased its production of cars from 80000 in the year 2011-2012 to
2014-2015. Find the annual rate of growth of production of cars.
10 The value of a machine worth R500000 is depreciating at the rate of 10% every year.
In how many years will its value be reduced to 364500?
11 Afzal purchased an old motorbike for ? 16000. If the value of the motorbike after
2 years is ? 14440, find the rate of depreciation.

64 Understanding ICSE Mathematics IX

12 Mahindra set up a factory by investing 2500O00. During the first two years, his prohts
were 5% and 10?% respectively. If each year the profit was on previous year's capital,
calculate his total profit.
13 The value of a property is increasing at the rate of 25% every year. By what percent
will the value of the property increase after 3 vears?
14 M. Durani bought a plot of land for 180000 and a car for 320000 at the same time.
The value of the plot of land grows uniformly at the rate of 30% p.a., while the value
of the car depreciates by 20, in the first year and by 15% p.a. thereafter. If he sells
the plot of land as well as the car after 3 vears, what will be his profit or loss?

Multiple Choice Questions

Choose the correct ansuer from the given four options (1 to 7):
11 The compound interest on 1000at 10°% pa. compounded annually for 2 years is
(a) 190 (b) 200 (c) ? 210 (d) 1210
2 If Sukriti borrows ? 8000 for two years at the rate of 10% per annum compound
interest, then the amount to be paid by her at the end of two vears to clear the debt
(a) ?8800 (b) 9600 (c) 9680 (d) 102400
3 Ifaman invests ? 12000 for two years at the rate of 10% per annum compound interest,
then the compound interest earned by him at the end of two years is
(a) ? 2400 (b) 2520 (c) ? 2000 (d) 1800
4 MRao bought l-year,? 10000certificate of deposit that paid interest at an annual
rate of 8ocompounded semi-annually. The interest received by him on maturity is
(a) 816 (b) 864 (c) 800 (d) 10816

5 The compound ínterest on ? 5000 at 20°% per annum for 12 years compounded
halí-vearly is
(a) 6655 (6) 1655 (c) 1500 (d) 1565
6 If the number of conversion periods 2, thern the compound interest is
(a) less than simple interest (b) equal to simple interest
(G) greater than or equal to simple interest (d) greater than simple interest
7 The presernt population of a city is 12,00,000. If it increases at the rate of 8°% every year,
then the population of the cit after 2 vears is
(a) 199680 (b) 1399680 (c) 1500000 (d) 1299680