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CHAPTER

11 Compound Interest

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m
Section I — Basic Formula of Compound Interest

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1. The compound interest on a sum of (a) ` 1750 (b) ` 2089.70 Explanation: We have
` 5000 at 8% per annum for 9 months (c) ` 1891.50 (d) ` 2136.40 2
⎛ 10 ⎞
12100 = P ⎜ 1 +
⎝ 100 ⎟⎠
when interest is compounded quarterly’s
is Explanation: We have,
[SSC SI & Assistant SI (CISF) Prelim Exam. 2016] 2
⎡⎛ 5 ⎞
3
⎤ ⎛ 11 ⎞
Compound interest = P ⎢⎜ 1 + − 1⎥ ⇒ ⎜⎝ ⎟⎠ P = 12100

dy
(a) ` 310.4 (b) ` 200 ⎟
⎣⎝ 100 ⎠
10
(c) ` 306.04 (d) ` 520.5 ⎦
10 10
⎡⎛ 21 ⎞ 3 ⎤ ⇒ P = 12100 × × = `10000
Explanation: Principal amount = ` 5000 = 12000 ⎢⎜ ⎟ − 1⎥ = ` 1891.5 11 11
Rate of interest = 8% per annum ⎣⎝ 20 ⎠ ⎦ Hence, the correct option is (d).
tu
1 Hence, the correct option is (c).
Quarterly rate of interest = 8 × = 2% 5. In what time will ` 64000 amount to
4 3. At what rate of compound interest per ` 68,921 at 5% per annum, interest being
9 annum will a sum of ` 1200 become compounded half yearly?
cs
Time period = 9 months = yr
12 ` 1348.32 in 2 years? (SSC CAPF’ SI, CISF ASI & DP SI Exam, 2015)
9 [SSC CHSL (10+2) LDC, DEO & PA/SA Exam,
For quarterly = ×4=3 1
12 2015] (a) 3 years (b) 2 years
2
/ss

∴ Compound interest (CI ) (a) 7.5% (b) 6.5%

(c) 7% (d) 6% 1
⎡⎛ r ⎞
T
⎤ (c) 2 years (d) 1 years
= P ⎢⎜ 1 + − 1⎥ 2
⎟
⎣⎝ 100 ⎠ ⎦ Explanation: We have, Explanation: Since, interest is com-
pounded half yearly, then rate = 2.5% per
2
⎡⎛ 3
⎤ ⎛ R ⎞
s:/

2 ⎞ 1348.32 = 1200 ⎜ 1 +
= 5000 ⎢⎜ 1 +
⎝ 100
⎟⎠ − 1⎥ ⎝ 100 ⎟⎠ half year.
⎣ ⎦ 2 Therefore,
⎡⎛ 102 ⎞ 3 ⎤ ⎛ R ⎞ 1348.32 134832
⇒ ⎜⎝ 1 + ⎟⎠ = =
= 5000 ⎢⎜ ⎟ − 1⎥
t
100 1200 120000 ⎛ 5 ⎞
⎣⎝ 100 ⎠ 68921 = 64000 ⎜ 1 +
⎝ 200 ⎟⎠
tp

⎦ 2
11236 ⎛ 106 ⎞
⎡⎛ 51 ⎞ 3
⎤ = =⎜ ⎟
= 5000 ⎢⎜ ⎟ − 1⎥ 10000 ⎝ 100 ⎠ ⎛ 41 ⎞
t
68921 ⎛ 41 ⎞
3
⎝
⎣ 50 ⎠ ⎦ ⇒ ⎜⎝ ⎟⎠ = =⎜ ⎟
⎛ R ⎞ 106 6 64000 ⎝ 40 ⎠
ht

⇒ 40
⎡ 132651 − 125000 ⎤ ⎜⎝ 1 + ⎟⎠ = = 1+
= 5000 ⎢ 100 100 100
⎣ ⎥⎦ 1
125000 ⇒ R = 6% per annum ⇒ t = 3 half years = 1 years
7651 2
= 5× Hence, the correct option is (d).
Hence, the correct option is (d).
125
Hence, the correct option is (c). 4. A certain sum will amount to ` 12100
6. The principal that yields a compound
in 2 years at 10% per annum of compound
2. The compound interest on ` 12000 for interest of ` 420 during the second year at
interest, interest being compounded
9 months at 20% per annum, interest 5% per annum is
annually. The sum is
(SSC CGL Tier-II Exam, 2014 & 2015)
being compounded quarterly is (SSC CGL Tier-I Exam, 2015)
[SSC CHSL (10+2) LDC, DEO & PA/SA. Exam, (a) ` 7000 (b) ` 5000
(a) ` 8000 (b) ` 6000
2015] (c) ` 8000 (d) ` 6000
(c) ` 12000 (d) ` 10000

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11.2 Chapter 11

Explanation: We have, Explanation: Principal = ` S and rate = Explanation: We have,

⎛ R ⎞ R 2r% p.a. ⎡⎛ 5 ⎞
2
⎤
P ⎜1 + × = 420 328 = P ⎢⎜ 1 + − 1⎥
⎝ 100 ⎟⎠ 100 Therefore, ⎟
3 3 ⎣⎝ 100 ⎠ ⎦
⎛ 2r ⎞ ⎛ r ⎞
⎛ 5 ⎞ 5 Amount = S ⎜ 1 + ⎟ = S ⎜1 + ⎟ ⎛ 41 ⎞
⇒ P ⎜1 + × = 420 ⎝ 100 ⎠ ⎝ 50 ⎠
⎝ 100 ⎟⎠ 100 ⇒ 328 = P ⎜
⎝ 400 ⎟⎠
⇒ P = `3200
Hence, the correct option is (c).
20 Hence, the correct option is (c).
⇒ P = 420 × 20 × = ` 8000
21 10. The compound interest on a sum of
money for 2 years is ` 615 and the simple 13. Rekha invested a sum of ` 12000 at
Hence, the correct option is (c). 5% per annum compound interest. She
interest for the same period is ` 600. Find

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7. On a certain principal the compound the principal. received an amount of ` 13230 after n
years. Find n.

m
interest compounded annually for the (SSC CHSL DEO Exam.2014)
(SSC CAPFs SI, CISF ASI & DP SI exam. 2014)
second year at 10% per annum is ` 132. (a) ` 6500 (b) ` 6000
The principal is (a) 2.8 years (b) 3.0 years
(c) ` 8000 (d) ` 9500
(SSC CGL Tier II Exam. 2015) (c) 2.5 years (d) 2.0 years

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(a) ` 1250 (b) ` 1000 Explanation: We have,
Explanation: We have,
(c) ` 1200 (d) ` 1320 Compound interest – Simple interest = n
615 – 600 = ` 15 ⎛ 5 ⎞ 13230 441
Explanation: If principal is P, then ⎜⎝ 1 + ⎟⎠ = =
Simple interest for 1 year = ` 300 100 12000 400
P × 10 P Therefore, simple interest for 1 year on ⎛ 21 ⎞
n
⎛ 21 ⎞
2

dy
Simple interest in 1 year = = ⇒ ⎜⎝ ⎟⎠ = ⎜⎝ ⎟⎠
100 10 ` 300 = ` 15 20 20
Now, based on given condition, we have Then
⇒ n = 2 years
15 × 100
⎡⎛ 10 ⎞
2
⎤ P Rate = = 5% Hence, the correct option is (d).
P ⎢⎜ 1 + 300 × 1
⎟⎠ − 1⎥ − = 132
tu
⎣ ⎝ 100 ⎦ 10 14. A sum of ` 3200 invested at 10% p.a.
Now,
PRT compounded quarterly amounts to ` 3362.
⎛ 21 ⎞ P = 600
⇒ P⎜ − = 132 Compute the time period.
⎝ 100 ⎟⎠ 10 100
cs
(SSC GL Tier-U Exam. 2013)
132 × 100 600 × 100
⇒ P= = `1200 ⇒ P= = `6000 1
11 5×2 (a) year (b) 1 year
2
Hence, the correct option is (c). Hence, the correct option is (b). 3
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(c) 2 years (d) year

8. The sum of money which becomes 11. Two years ago, the value of my 4
` 2420 at 10 % rate of compound interest motorbike was ` 62500. If the value depre- Explanation: We have,
after two years is ciates by 4% every year, now its value is 4t
⎛ 10 ⎞ 3362 1681
(SSC CGL Tier-II Exam. 12.04.2015) (SSC CGL Tier-E Exam. 2014) ⎜⎝ 1 + ⎟ = =
400 ⎠
s:/

(a) ` 56700 (b) ` 57600 3200 1600

(a) ` 2000 (b) ` 1000 4t 2
(c) ` 57500 (d) ` 55700 ⎛ 41 ⎞ ⎛ 41 ⎞
(c) ` 2500 (d) ` 1500 ⇒ ⎜⎝ ⎟⎠ =⎜ ⎟
40 ⎝ 40 ⎠
Explanation: We have, Explanation:
1
tp

n
⎛ r ⎞ ⇒ 4t = 2 ⇒ t =
year
⎛ 10 ⎞
2
Present value is = P ⎜ 1 −
P ⎜1 + = 2420 ⎝ 100 ⎟⎠ 2
⎝ 100 ⎟⎠ 2
Hence, the correct option is (a).
⎛ 4 ⎞
= 62500 ⎜ 1 −
⎝ 100 ⎟⎠
ht

10 10 15. The compound interest on ` 5000 for

⇒ P = 2420 × × = `2000
11 11 3 years at 10% p. a. will amount to
24 24
Hence, the correct option is (a). = 62500 × × = `57600 (SSC GL Tier-2 Exam. 2013)
25 25 (a) ` 1,654 (b) ` 1,655
9. When principal is ` S, rate of interest is Hence, the correct option is (b).
2r % per annum, then what amount a per- (c) ` 1,600 (d) ` 1,565
son will get after 3 years at compound 12. The compound interest on a certain Explanation: We have,
interest? (SSC CGL Tier-II Exam. 2015) sum of money for 2 years at 5% is ` 328,
then the sum is ⎡⎛ 10 ⎞ 3 ⎤
6Sr ⎛ r ⎞
3
Compound interest = 5000 ⎢⎜ 1+ ⎟ − 1⎥
(a) ` (b) ` S ⎜ 1 +
⎝ 100 ⎟⎠
(SSC CGL Tier-U Exam. 2014) ⎣⎝ 100 ⎠ ⎦
100
(a) ` 3000 (b) ` 3600
3 3 ⎡⎛ 11 ⎞ 3 ⎤
⎛ r ⎞ ⎛ r ⎞ (c) ` 3200 (d) ` 3400 = 5000 ⎢⎜ ⎟ − 1⎥
(c) ` S ⎜ 1 + ⎟ (d) ` 3S ⎜ 1 +
⎝ 50 ⎠ ⎝ 100 ⎟⎠ ⎣⎝ 10 ⎠ ⎦

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Compound Interest 11.3

331 Therefore, ⎡⎛ 5 ⎞
2
⎤ 5P
= 5000 × = `1655 ⇒ 420 = P ⎢⎜ 1 + − 1⎥ −
1000 ⎟
⎣⎝ 100 ⎠
10x 100x
+ = 21000 ⎦ 100
Hence, the correct option is (b). 11 121
⎡ 41 5 ⎤ ⎡ 21 ⎤
⇒ x = ` 12100 ⇒ 420 = P ⎢ − ⎥ =P⎢
16. ` 800 at 5% per annum compounded ⎣ 400 100 ⎦ ⎣ 400 ⎥⎦
annually will amount to ` 882 in Hence, the correct option is (b).
(SSC Constable (GD) Exam. 2013) 420 × 400
19. In what time will ` 1000 becomes ` 1331 ⇒ P= = `8000
(a) 1 year (b) 2 years 21
at 10% per annum compounded annually?
(c) 3 years (d) 4 years Hence, the correct option is (c).
(SSC CGL Prelim Exam. 2004 & SSC NITS
Exam. 2013) 22. A principal of ` 10000, after 2 years
Explanation: We have,

/
1 compounded annually, the rate of interest
t (a) 3 years (b) 2 years

m
⎛ 5 ⎞ 882 441 2 being 10% per annum during the first
⎜⎝ 1 + ⎟ = =
100 ⎠ 800 400 1 year and 12% per annum during the sec-
t 2 (c) 2 years (d) 3 years ond year (in rupees) will amount to
⎛ 21 ⎞ ⎛ 21 ⎞ 2
⇒ ⎜⎝ ⎟⎠ = ⎜⎝ ⎟⎠ (SSC SI & LDC Exam. 2012)

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20 20 Explanation: We have,
t
(a) ` 12000 (b) ` 12320
⇒ t = 2 years ⎛ 10 ⎞ (c) ` 12500 (d) ` 11320
1331 = 1000 ⎜ 1 +
Hence, the correct option is (b). ⎝ 100 ⎟⎠
t 3 Explanation: We have,
17. The time in which ` 80000 amounts ⎛ 11 ⎞ 1331 ⎛ 11 ⎞
⇒ ⎜⎝ ⎟⎠ = =⎜ ⎟ ⎛ 10 ⎞ ⎛ 12 ⎞

dy
to ` 92610 at 10% p.a. compound interest, 10 1000 ⎝ 10 ⎠ A = 10000 ⎜ 1 + 1+ = ` 12320
interest being compounded semi-annu- ⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠
⇒ t = 3 years
ally is (SSC GL Tier-1 Exam. 2013) Hence, the correct option is (b).
Hence, the correct option is (a).
1
(a) 1 years (b) 2 years 23. A sum of ` 8000 will amount to ` 8820
tu
20. A man saves ` 2000 at the end of each
2 in 2 years if the interest is calculated every
year and invests the money at 5% com-
1 year. The rate of compound interest is
(c) 2 years (d) 3 years pound interest. At the end of 3 years he will
2 have
(SSC SI LDC Exam.2012)
cs
Explanation: Since, interest is compound- (SSC Multi-Tasking Staff Exam. 2013) (a) 6% (b) 7%
ed half yearly, then rate = 5% per half year. (c) 3% (d) 5%
(a) ` 4305 (b) ` 6305
Therefore, (c) ` 4205 (d) ` 2205 Explanation: We have,
/ss

t 3
⎛ 5 ⎞ 92610 9261 ⎛ 21 ⎞
⎜⎝ 1 + ⎟⎠ = = =⎜ ⎟ 2
80000 8000 ⎝ 20 ⎠
Explanation: We have, ⎛ r ⎞
100 8000 ⎜ 1 + = 8820
⎛ 5 ⎞
2
⎝ 100 ⎟⎠
1 Amount = 2000 ⎜ 1 +
⇒ t = 3 half years = 1 years ⎝ 100 ⎟⎠ ⎛ r ⎞
2
8820 441
2 ⇒ ⎜⎝ 1 + ⎟⎠ = =
⎛ 5 ⎞
s:/

100 8000 400

+2000 ⎜ 1 +
⎝ 100 ⎟⎠
Hence, the correct option is (a).
r 21
18. A man borrows ` 21000 at 10% com- ⇒ 1+ = ⇒ r = 5% per annum
21 41 100 20
pound interest. How much he has to pay = 2000 × × = ` 4305
20 20 Hence, the correct option is (d).
annually at the end of each year, to settle
tp

his loan in two years? Then, required amount = 2000 + 4325 = 24. The compound interest on ` 30000 at
(SSC GL Tier-I Exam. 2013) ` 6325 7% per annum for a certain time is ` 4347.
Hence, the correct option is (b). The time is
(a) ` 12000 (b) ` 12100 (SSC SI & LDC Exam. 2012)
ht

(c) ` 12200 (d) ` 12300 21. The sum of money that yields a com- (a) 3 years (b) 4 years
pound interest of ` 420 during the second (c) 2 years (d) 2.5 years
Explanation: Let each instalment be x, year at 5% p.a is
then amount for first instalment (SSC GL Tier-1 Exam. 2012) Explanation: We have,
t
x 10x (a) ` 4000 (b) ` 42000 ⎛ 7 ⎞
= = 30000 ⎜ 1 + − 30000 = 4347
1+
10 11 (c) ` 8000 (d) ` 21000 ⎝ 100 ⎟⎠
100 t 2
Present amount in second instalment =
Explanation: We have, ⎛ 107 ⎞ 34347 11449 ⎛ 107 ⎞
⇒ ⎜⎝ ⎟⎠ = = =⎜ ⎟
x 100x Compound interest 100 30000 10000 ⎝ 100 ⎠
=
⎛ 10 ⎞
2
121 ⎡⎛ r ⎞
t
⎤ PR ⇒ t = 2 years
⎜⎝ 1 + ⎟⎠ = P ⎢⎜ 1 + ⎟⎠ − 1⎥ −
100
⎣ ⎝ 100 ⎦ 100
Hence, the correct option is (c).

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11.4 Chapter 11

25. An amount of ` 6000 lent at 5% per 1 2 200 1

annum compound interest for 2 years will (a) 1 years (b) 1 years ⇒ r= %= 4 %
2 3 48 6
become (SSC Investigator Exam. 2010)
1 1 Hence, the correct option is (c).
(a) ` 600 (b) ` 6600 (c) 2 years (d) 2 years
3 2 31. In what time ` 8000 will amount to
(c) ` 6610 (d) ` 6615
Explanation: Since interest is com- ` 9261 at 10% per annum compound
Explanation: We have, pounded half yearly, then rate = 5% interest, when the interest is compounded
2
⎛ 5 ⎞ half yearly? (SSC CPO SI Exam. 2008)
A = 6000 ⎜ 1 + Therefore,
⎝ 100 ⎟⎠ t 1 1
⎛ 5 ⎞ (a) 3 years (b) 1 years
926.10 = 800 ⎜ 1 +
⎝ 100 ⎟⎠
21 21 2 2
= 6000 × × = ` 6615

/
20 20 1
t 3 (c) 2 years (d) 2 years
⎛ 21 ⎞ 9261 ⎛ 21 ⎞

m
2
Hence, the correct option is (d). ⎜⎝ ⎟⎠ = =⎜ ⎟
20 8000 ⎝ 20 ⎠ Explanation: Since interest is com-
26. A sum becomes ` 1352 in 2 years at 4%
⇒
1
t = 3 half years = 1 years pounded half yearly, then rate = 5%
per annum compound interest. The sum is

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2 Therefore,
(SSC CGL Prelim Exam. 2003 & SSC CGL t
Hence, the correct option is (a). ⎛ 5 ⎞
Prelim Exam.2008 & SSC CISF ASI Exam. 2010) 9261 = 8000 ⎜ 1 +
⎝ 100 ⎟⎠
(a) ` 1225 (b) ` 1270 29. At what rate per cent per annum will t 3
(c) ` 1245 (d) ` 1250 a sum of ` 1000 amounts to ` 1102.50 in ⎛ 21 ⎞ 9261 ⎛ 21 ⎞
⇒ ⎜⎝ ⎟⎠ = =⎜ ⎟
2 years at compound interest? 20 8000 ⎝ 20 ⎠

dy
Explanation: We have,
2
(SSC CGL Tier-1 Exam 2010) 1
⎛ 4 ⎞ ⇒ t = 3 half years = 1 years
1352 = P ⎜ 1 + (a) 5% (b) 5.5%
⎝ 100 ⎟⎠ 2
(c) 6% (d) 6.5% Hence, the correct option is (b).
2
⎛ 26 ⎞
⇒ 1352 = P ⎜ ⎟
tu
Explanation: We have, 32. The compound interest on ` 6000 at
⎝ 25 ⎠
2 1
1352 × 625 ⎛ r ⎞ 10% per annum for 1 years, when the
1000 ⎜ 1 + = 1102.50
⇒ P= = ` 1250 ⎝ 100 ⎟⎠ 2
676 interest being compounded annually is
cs
2
Hence, the correct option is (d). ⎛ r ⎞ 11025 (SSC CPO S.I. Exam. 2008)
⇒ ⎜⎝ 1 + ⎟ =
27. At what per cent per annum will 100 ⎠ 10000 (a) ` 910 (b) ` 870
` 3000 amounts to ` 3993 in 3 years if the (c) ` 930 (d) ` 900
r 105
/ss

interest is compounded annually? ⇒ 1+ = ⇒ r = 5%

100 100 Explanation: We have,
[SSC CGL Prelim Exam. 2000 & SSC SAS Exam.
2010 (Paper-I)] Hence, the correct option is (a). ⎛ 1 ⎞
× 10
(a) 9% (b) 10% 30. At what rate per cent per annum will ⎛ 10 ⎞ ⎜ 2 ⎟
A = 6000 ⎜ 1 + 1+
⎝ 100 ⎟⎠ ⎜ 100 ⎟
s:/

(c) 11% (d) 13% ` 2304 amount to ` 2500 in 2 years at ⎜⎝ ⎟⎠

compound interest?
Explanation: We have, [(SSC CPO 5.I. Exam. 2004) & (SSC CGL Prelim ⎛ 11 ⎞ ⎛ 21 ⎞
= 6000 ⎜ ⎟ ⎜ ⎟ = `6930
P = ` 3000, A = ` 3993 and n = 3 Exam. 2008 )] ⎝ 10 ⎠ ⎝ 20 ⎠
1 1
tp

Therefore, n (a) 4 % (b) 4 % Compound interest = ` 930

⎛ r ⎞ 2 5
A = P ⎜1 +
⎝ 100 ⎟⎠ 1 1
Hence, the correct option is (c).
(c) 4 % (d) 4 %
3 33. If the rate of interest be 4% per
ht

⎛ r ⎞ 6 3
⇒ 3993 = 3000 ⎜ 1 +
⎝ 100 ⎟⎠ Explanation: We have,
annum for first year, 5% per annum for
3
second year and 6% per annum for third
n
⎛ r ⎞ 1331 ⎛ r ⎞ year, then the compound interest of
⇒ ⎜⎝ 1 + ⎟ = A = P ⎜1 +
100 ⎠ 1000 ⎝ 100 ⎟⎠ ` 10000 for 3 years will be
2 (SSC CPO B.I. Exam. 2008)
r 11 ⎛ r ⎞
⇒ 1+ = ⇒ r = 10% ⇒ 2500 = 2304 ⎜ 1 +
⎝ 100 ⎟⎠
(a) ` 1600 (b) ` 1625.80
100 10
Hence, the correct option is (b). 2
(c) ` 1575.20 (d) ` 2000
⎛ r ⎞ 2500
⇒ ⎜⎝ 1 + ⎟ = Explanation: We have,
28. In how many years will a sum of ` 800 100 ⎠ 2304
at 10% per annum compound interest, ⎛ 4 ⎞⎛ 5 ⎞⎛ 6 ⎞
A = 10000 ⎜ 1 + 1+ 1+
⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠
compounded semi-annually becomes r 50
⇒ 1+ =
` 926.10? (SSC CGL Tier-I Exam 2010) 100 48

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Compound Interest 11.5

2
26 21 53 37. A certain sum of money yields ` 1261 ⎛ 3⎞ ⎛ 3 ⎞
= 10000 × × × = ` 11575.20 = 8000 ⎜ 1 + ⎟ ⎜ 1 +
25 20 50 as compound interest for 3 years at 5% ⎝ 20 ⎠ ⎝ 20 × 3 ⎟⎠
per annum. The sum is
Therefore, interest = ` 1575.20 23 23 21
Hence, the correct option is (c).
(SSC CGL Prelim Exam. 2008) = 8000 × × × = ` 11109
(a) ` 9000 (b) ` 8400 20 20 20
34. The compound interest on ` 16000 (c) ` 7500 (d) ` 8000 Compound interest = 11109 – 8000 =
for 9 months at 20% per annum, interest ` 3109
being com-pounded quarterly is Explanation: We have, Hence, the correct option is (c).
(SSC CPO S.I. Exam. 2008)
⎡⎛ r ⎞
t
⎤ 40. At what rate per annum will ` 32000
(a) ` 2520 (b) ` 2524 P ⎢⎜ 1 + ⎟ − 1⎥ = C .I .
⎣⎝ 100 ⎠
yield a compound interest of ` 5044 in
⎦

/
(c) ` 2522 (d) ` 2518 9 months interest being compounded

m
⎡⎛ 5 ⎞
3
⎤ quarterly? (SSC CGL Prelim Exam. 2007)
Explanation: Since, interest is com- ⇒ P ⎢⎜ 1 + ⎟ − 1⎥ = 1261
⎣⎝ 100 ⎠
20 (a) 20% (b) 32%
pounded quarterly, then r = = 5% ⎦
4 (c) 50% (d) 80%
Time = 9 months = 3 quarters ⎡ 9261 ⎤

.co
⇒ P⎢ − 1 = 1261 Explanation: Since, 9 months = 3 quarters
Therefore, ⎣ 8000 ⎥⎦
r
3 Rate of interest = % quarterly
⎛ 5 ⎞ ⎡ 9261 ⎤ 4
A = 16000 ⎜ 1 + ⎟ ⇒ P⎢ − 1 = 1261
⎝ 100 ⎠ ⎣ 8000 ⎥⎦ Therefore,
3
⎛ r / 4⎞
21 21 21 ⇒ P = `8000 32000 + 5044 = 32000 ⎜ 1 + ⎟

dy
= 16000 × × × = ` 18522 ⎝ 100 ⎠
20 20 20 Hence, the correct option is (d).
3 3
Hence, interest = 18522 – 16000 = ` 2522 ⎛ r ⎞ 37044 9261 ⎛ 21 ⎞
38. In what time will ` 10000 amount to ⇒ ⎜⎝ 1 + ⎟⎠ = = =⎜ ⎟
Hence, the correct option is (c). ` 13310 at 20% per annum if compounded 400 32000 8000 ⎝ 20 ⎠
r 21
tu
35. A certain sum amounts to ` 5832 in half yearly? (SSC CGL Prelim Exam. 2008) ⇒ 1+ =
2 years at 8% per annum compound inter- 400 20
1
est, the sum is (a) 1 years (b) 2 years 400
2 ⇒ r= = 20% per annum
cs
(SSC CGL Prelim Exam. 2008) 20
1
(a) ` 5000 (b) ` 5200 (c) 2 years (d) 3 years Hence, the correct option is (a).
2
(c) ` 5280 (d) ` 5400
Explanation: Since, interest is compound- 41. The compound interest of ` 2000 in
/ss

Explanation: We have, ed half yearly, then r = 10% half yearly. 2 years if the rate of interest is 4% per
2 annum for the first year and 3% per
⎛ 8 ⎞ Now,
P ⎜1 + = 5832
⎝ 100 ⎟⎠
annum for the second year, will be
t
⎛ 10 ⎞ (SSC CGL Prelim Exam. 2007)
10000 ⎜ 1 + = 13310
25 25 ⎝ 100 ⎟⎠ (a) ` 142.40 (b) ` 140.40
⇒ P = 5832 × × = ` 5000
s:/

27 27 t 3
⎛ 11 ⎞ ⎛ 11 ⎞ (c) ` 141.40 (d) ` 143.40
Hence, the correct option is (a). ⇒ ⎜⎝ ⎟⎠ = ⎜⎝ ⎟⎠
10 10 Explanation: We have,
36. A certain sum, invested at 4% per 1
⇒ t = 3 half years = 1 years ⎛ 4 ⎞⎛ 3 ⎞
A = 2000 ⎜ 1 + 1+
tp

annum compound interest, compounded

half-yearly, amounts to ` 7803 at the end
2 ⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠
Hence, the correct option is (a).
of one year. The sum is 26 103
(SSC CGL Prelim Exam. 2008) 39. The compound interest on ` 8000 at = 2000 × × = ` 2142.40
25 100
ht

(a) ` 7000 (b) ` 7200 15% per annum for 2 years 4 months,
when compounded annually is Therefore, interest = ` 142.40
(c) ` 7500 (d) ` 7700 Hence, the correct option is (a).
(SSC CPO S.I. Exam. 2007)
Explanation: Since, 1 year = 2 half years (a) ` 2980 (b) ` 3091 42. In how many years will ` 2000
Therefore, (c) ` 3109 (d) ` 3100 amounts to ` 2420 at 10% per annum
2
⎛ 2 ⎞ compound interest?
P ⎜1 + = 7803
⎝ 100 ⎟⎠
Explanation: We have, (SSC CGL Prelim Exam. 2000 & 2005)
1
Time = 2years 4 months = 2 years 1
50 50 3 (a) 3 years (b) 2
years
⇒ P = 7803 × × = ` 7500 Now, 2
51 51 2
1
⎛ 15 ⎞ 3 1
Hence, the correct option is (c). A = 8000 ⎜ 1 + ⎟ (c) 2 years (d) 1 years
⎝ 100 ⎠ 2

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11.6 Chapter 11

Explanation: We have, R 968 Explanation: Since interest is com-

t
= ⇒ R = 10% pounded half yearly, then rate = 10%
⎛ 10 ⎞ 100 9680
2420 = 2000 ⎜ 1 +
⎝ 100 ⎟⎠ Hence, the correct option is (b). Therefore,
t
⎛ 10 ⎞
1331 = 1000 ⎜ 1 +
t 2
⎛ 11 ⎞ 2420 121 ⎛ 11 ⎞ 44. The principal, which will amount to
⇒ ⎜⎝ ⎟⎠ = = =⎜ ⎟ ` 270.40 in 2 years at the rate of 4% per ⎝ 100 ⎟⎠
10 2000 100 ⎝ 10 ⎠
annum compound interest is ⎛ 11 ⎞
t
1331 ⎛ 11 ⎞
3
⇒ t = 2 years (SSC CPO SI. Exam. 2004) ⎜⎝ ⎟⎠ = =⎜ ⎟
10 1000 ⎝ 10 ⎠
Hence, the correct option is (c). (a) ` 200 (b) ` 225
1
43. A sum of money on compound inter- (c) ` 250 (d) ` 220 ⇒ t = 3 half years = 1 years
2

/
est amounts to ` 10648 in 3 years and
` 9680 in 2 years. The rate of interest per Explanation: We have, Hence, the correct option is (a).

m
2
annum is (SSC CPO B.I. Exam. 2005) ⎛ 4 ⎞
270.40 = P ⎜ 1 +
⎝ 100 ⎟⎠
46. The compound interest on ` 10000 in
(a) 5% (b) 10% 2 years at 4% per annum, the interest
(c) 15% (d) 20% ⎛ 26 ⎞
2
being compounded half-yearly, is

.co
⇒ 270.40 = P ⎜ ⎟
Explanation: We have, ⎝ 25 ⎠ (SSC CGL Prelim Exam. 2000)

2 270.40 × 625 (a) ` 636.80 (b) ` 824.32

⎛ R ⎞ ⇒ P= = ` 250
P ⎜1 + = 9680 (c) ` 912. 86 (d) ` 828. 82
⎝ 100 ⎟⎠
(1) 676
Hence, the correct option is (c). Explanation: We have,

dy
3
⎛ R ⎞
P ⎜1 + = 10648
⎝ 100 ⎟⎠
(2) 45. In what time will ` 1000 amounts to 4
⎛ 2 ⎞
A = 10000 ⎜ 1 + = 10824.3216
⎝ 100 ⎟⎠
` 1331 at 20% per annum, when com-
By dividing equations (1) and (2), we have pounded half yearly?
R 10648 (SSC CGL Prelim Exam. 2003) Therefore,
1+ =
tu
100 9680 1
(a) 1 years (b) 2 years Interest = 10824.3216 – 10000 = ` 824.32
2 Hence, the correct option is (b).
1
(c) 1 year (d) 2 years
cs
2

Section II — Based on Both Compound and Simple Interest

/ss

1. On a certain sum of money, the simple

⎡⎛ 104 ⎞ 2 ⎤ Explanation: Given, CI = 525
interest for 2 yr is ` 350 at the rate of 4% ⇒ CI = 4375 ⎢⎜ ⎟ − 1⎥ ⎛ r ⎞
n

⎣⎝ 100 ⎠ ⎦ ⇒ P ⎜1 + − P = 525
⎝ 100 ⎟⎠
per annum. If it was invested at compound
interest at the same rate for the same
s:/

⎡⎛ 26 ⎞ 2 ⎤
duration as, before, how much more inter- = 4375 ⎢⎜ ⎟ − 1⎥ ⎛ 10 ⎞
n

est would be earned? ⎣⎝ 25 ⎠ ⎦ ⇒ P ⎜1 +

⎝ 100 ⎟⎠
− P = 525
[SSC SI & Assistant SI (CISF) Prelim Exam. ⎡ 676 − 625 ⎤ 121P
⇒ CI = 4375 ⎢ ⇒ − P = 525 ⇒ 21P = 525 × 100
⎣ 625 ⎥⎦
2016]
tp

(a) ` 10 (b) ` 8 100

⇒ CI = ` 357 ⇒ P = 2500
(c) ` 5 (d) ` 7
∴ More interest to be earned = CI – SI 10
Explanation: Principal (P) = ?, SI = ` 350, ∵r = = 5%
ht

2
= `(357 − 350 ) = ` 7
Rate = 4% per annum,T = 2 yr and t = 2 × 2 = 4 yr
Hence, the correct option is (d).
P × R ×T P=
∴ SI = 2. The compound interest on a certain Pr t 2500 × 5 × 4
100 ∴ SI = = = ` 500
sum for 2 yr at 10% per annum is ` 525.
SI × 100 350 × 100 100 100
⇒P = = The simple interest on the same sum for
Hence, the correct option is (c).
R ×T 4×2 double the time at half the rate per cent
Principal = ` 4375 per annum is 3. A certain amount of money earns ` 540 as
[SSC CGL Prelim Exam. 2016] simple interest in 3 years. If it earns a com-
⎡⎛ 4 ⎞
2
⎤ (a) ` 520 (b) `550 pound interest of ` 376.20 at the same rate of
CI = 4375 ⎢⎜ 1 + ⎟ − 1⎥
⎣⎝ 100 ⎠ (c) ` 500 (d) ` 515 interest in 2 years, find the amount (in `).
⎦
(SSC CAPFc SI, CHIP ASI & DP SI Exam 2015)

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Compound Interest 11.7

(a) 1600 (b) 1800 Explanation: We have, 1000000

⇒ P= = ` 20000
(c) 2000 (d) 2100 ⎡⎛ 5 ⎞
2
⎤ 50
P ⎢⎜ 1 + ⎟⎠ − 1⎥ = 410
Explanation: Simple interest for 3 years ⎣ ⎝ 100 ⎦
Hence, the correct option is (a).
= ` 540 400 8. A sum becomes ` 2916 in 2 years at 8%
Simple interest for 1 year = ` 180 ⇒ P = 410 × = ` 4000 per annum compound interest .The sim-
41
Simple interest for 2 years = ` 360 ple interest at 9% per annum for 3 years
4000 × 2 × 5
Difference = C.I. – S.I. = 376.20 – 360 = Simple interest = = ` 400 on the same amount will be
` 16.20 100 (SSC SI & LDC Exam. 2013)
16.20 Hence, the correct option is (a). (a) ` 600 (b) ` 675
Rate = × 100 = 9% per annum

/
180 6. If the compound interest on a sum for (c) ` 650 (d) ` 625
180 × 100

m
1
Principal = = ` 2000 2 years at 12 p.a is ` 510, the simple Explanation: We have,
1× 9 2
2
interest on the same sum at the same rate ⎛ 8 ⎞
Hence, the correct option is (c). P ⎜1 + = 2916
for the same period of time is ⎝ 100 ⎟⎠

.co
4. A man borrowed some money from a (SSC CGL Tier-II Exam. 2014)
private organization at 5% simple interest (a) ` 400 (b) ` 450 25 25
⇒ P = 2916 × × = ` 2500
per annum. He lends 50% of this money (c) ` 460 (d) ` 480 27 27
to another person at 10% compound Therefore,
interest per annum and thereby the man Explanation: We have,
2500 × 9 × 3

dy
made a profit of ` 3205 in 4 years. How Simple interest = = ` 675
much did the man borrow? ⎡⎛ 25 ⎞
2
⎤ 100
P ⎢⎜ 1 + ⎟ − 1⎥ = 510
(SSC CGL Exam. 2014) ⎣⎝ 100 × 2 ⎠ ⎦ Hence, the correct option is (b).
(a) ` 80000 (b) ` 100000 64 9. If the compound interest on a certain
⇒ P = 510 × = ` 1920
tu
(c) ` 120000 (d) ` 150000 17 sum for two years at 12% per annum is
1920 × 2 × 25 ` 2544, the simple interest on it at the
Explanation: Simple interest after 4 Simple interest = = ` 480 same rate for 2 years will be
P × 4 ×5 P 100 × 2
years = =
cs
(SSC GL ‘Tier II Exam. 2013)
100 5 Hence, the correct option is (d).
(a) ` 2400 (b) ` 2500
Then, amount lent on compound interest 7. The compound interest on a certain
P (c) ` 2480 (d) ` 2440
= sum of money at a certain rate per annum
/ss

2 for two years is ` 2050 and the simple Explanation: We have,

Therefore, interest on the same amount of money at ⎡⎛ 12 ⎞
2
⎤
Compound interest the same rate for 3 years is ` 3000. Then P ⎢⎜ 1 + ⎟ − 1⎥ = 2544
⎣ ⎝ 100 ⎠ ⎦
the sum of money is
P ⎡⎛ ⎤
4
10 ⎞
= + ⎟⎠ − 1⎥
s:/

⎢⎜⎝ 1 (SSC CGL Tier-I pre-Exam. 2013 & 2014) 625

2⎣ 100 ⎦ (a) ` 20000 (b) ` 18000 ⇒ P = 2544 × = ` 10000
159
P 0.4641P (c) ` 21000 (d) 25000
= ⎡⎣(1.1) − 1⎤⎦ =
4
Therefore,
2 2
Explanation: We have, 10000 × 2 × 12
tp

Therefore, Simple interest = = ` 2400

Simple interest for 3 years = ` 3000 100
0.4641P P Simple interest for 1 year = ` 1000
− = 3205 Hence, the correct option is (a).
2 5 Simple interest for 2 years = ` 2000
ht

⇒ P = 3205 ×
10
= ` 100000 Difference = C.I. – S.I. = 2050 – 2000 = ` 50 10. There is 100% increase to an amount
0.3205 Now, in 8 years, at simple interest. Find the
Hence, the correct option is (b). PR × 3 compound interest of ` 8000 after 2 years
= 3000 at the same rate of interest.
100
5. The compound interest on a certain (SSC GL Tier-I Exam. 2013)
sum of money for 2 years at 5% per ⇒ PR = ` 100000
(a) ` 2500 (b) ` 2000
annum is ` 410. The simple interest on the Therefore,
(c) ` 2250 (d) ` 2125
same sum at the same rate and for the PR 2
same time is Difference =
10000 Explanation: We have,
(SSC CGL Tier-I Exam. 2014)
P (PR ) (100000) 100 × 100 25
2 2
(a) ` 400 (b) ` 350 ⇒ 50 = = Rate = = %
(c) ` 300 (d) ` 405 10000 × P 2
10000 × P 100 × 8 2

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11.8 Chapter 11

Therefore, Explanation: Difference = CI – SI = 954 (a) 4% (b) 6%

Compound interest – 900 = ` 54 (c) 8% (d) 10%
Therefore,
⎡⎛ 25 ⎞
2
⎤ ⎡ 81 ⎤ Explanation: We have,
= 8000 ⎢⎜ 1 + ⎟⎠ − 1⎥ = 8000 ⎢ − 1⎥ 2 × Difference × 100
⎣ ⎝ 200 ⎦ ⎣ 64 ⎦ Rate = P ×r
S.I. Simple interest = = 260 (i)
17 2 × 54 × 100 100
= 8000 × = ` 2125 = = 12% Now,
64 900
Hence, the correct option is (d). Now, ⎡⎛ r ⎞
2
⎤
P ⎢⎜ 1 + ⎟ − 1⎥ = 540.80
⎛ 100 ⎞
2
⎣ ⎝ 100 ⎠ ⎦
11. 1f the compound interest on a certain Sum = Difference × ⎜ ⎟
⎝ rate ⎠

/
sum for 2 years at 4% p.a. is ` 102, the sim- ⎡ r2 2r ⎤
2 ⇒ P⎢ + ⎥ = 540.80

m
ple interest at the same rate of interest for ⎛ 100 ⎞
= 54 × ⎜ = ` 3750 ⎣ 10000 100 ⎦
two years would be ⎝ 12 ⎟⎠
(SSC CGL Exam. 1999 & SSC Multi-Tasking P × r 2 2P × r
Staff Exam. 2013) Hence, the correct option is (d). ⇒ + = 540.80
10000 100

.co
(a) ` 200 (b) ` 50 14. The compound interest on a certain 260
(c) ` 150 (d) ` 100 sum of money at 5% per annum for ⇒ r× + 2 × 260 = 540.80
100
2 years is ` 246. The simple interest on the
Explanation: We have, 100
same sum for 3 years at 6% per annum is ⇒ r = 20.8 × = 8%
260
⎡⎛ 4 ⎞
2
⎤ (SSC CGL Prelim Exam. 2008)

dy
P ⎢⎜ 1 + ⎟ − 1⎥ = 102 Hence, the correct option is (c).
⎣ ⎝ 100 ⎠ ⎦
(a) ` 435 (b) ` 450
(c) ` 430 (d) ` 432 17. Compound interest on a sum of
625
⇒ P = 102 × = ` 1250 money for 2 years at 4 per cent per annum
51 Explanation: We have, is ` 2448. Simple interest of the same sum
Therefore,
tu
⎡⎛ 5 ⎞
2
⎤ of money at the same rate of interest for
1250 × 2 × 4 P ⎢⎜ 1 + ⎟ − 1⎥ = 246
Simple interest = = ` 100 ⎝ 100 ⎠ 2 years will be [SSC SO (CA) Exam. 2006]
100 ⎣ ⎦ (a) ` 2,500 (b) ` 2,400
Hence, the correct option is (d). 400
⇒ P = 246 × = ` 2400
cs
(c) ` 2,360 (d) ` 2,250
41
12. The compound interest on a certain
Hence, the correct option is (d). Explanation: We have,
sum of money for 2 years at 10% per annum
is ` 420. The simple interest on the same 15. The simple interest on a sum of ⎡⎛ 4 ⎞
2
⎤
2448 = P ⎢⎜ 1 + − 1⎥
/ss

⎟
⎣⎝ 100 ⎠
sum at the same rate and for the same time money at 4% per annum for 2 years is ⎦
will be (SSC Assistant Grade-III Exam. 2012) ` 80. The compound interest in the same
(a) ` 350 (b) ` 375 ⎡ 676 ⎤
sum for the same period is ⇒ 2448 = P ⎢ −1
(c) ` 380 (d) ` 400 (SSC CGL Prelim Exam. 2008) ⎣ 625 ⎥⎦
s:/

(a) ` 82.60 (b) ` 82.20 625

Explanation: We have, ⇒ P = 2448 × = ` 30000
(c) ` 81.80 (d) ` 81.60 51
⎡⎛ 10 ⎞
2
⎤
P ⎢⎜ 1 + ⎟ − 1⎥ = 420 30000 × 4 × 2
Explanation: We have, Simple interest = = ` 2400
⎣⎝ 100 ⎠ ⎦ 100
tp

80 × 100
⇒ P = 420 ×
100
= ` 2000 Principal = = Rs.1000 Hence, the correct option is (b).
21 2× 4
Therefore, 18. The compound interest on a certain
Therefore, sum of money invested for 2 years at 5%
ht

Compound Interest
2000 × 10 × 2 per annum is ` 328. The simple interest
Simple interest = = ` 400 ⎡⎛ 4 ⎞
2
⎤ 51
100 = 1000 ⎢⎜ 1 + on the sum, at the same rate and for the
⎝ ⎟⎠ − 1⎥ = 1000 ×
Hence, the correct option is (d). ⎣ 100 ⎦ 625 same period will be
[(SSC CPO B.I. Exam.2004) & (SSC CPO 81.
13. The simple interest and compound = ` 81.60
Exam. 2005)]
interest (compounded annually) on a cer- Hence, the correct option is (d).
(a) ` 320 (b) ` 308
tain sum of money with a given rate for a 16. At a certain rate per annum, the sim- (c) ` 300 (d) ` 287
period of 2 years are ` 900 and ` 954 ple interest on a sum of money for one
respectively. The sum of money is year is ` 260 and the compound interest Explanation: We have,
(SSC CPO S.I. Exam. 2008) on the same sum for two years is ` 540.80. ⎡⎛ 5 ⎞
2
⎤
(a) ` 3700 (b) ` 3650 The rate of interest per annum is P ⎢⎜ 1 + ⎟⎠ − 1⎥ = 328
⎣ ⎝ 100 ⎦
(c) ` 3850 (d) ` 3750 (SSC CGL Prelim Exam. 2008)

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Compound Interest 11.9

⎛ 41 ⎞ 20. If the compound interest on a sum for 22. If the compound interest on a sum of
⇒ P⎜ = 328
⎝ 400 ⎟⎠ 1 money for 3 years at the rate of 5% per
2 years at 12 % per annum is ` 510, the
2 annum is ` 252.20, the simple interest on
400
⇒ P = 328 × = ` 3200 simple interest on the same sum at the the same sum at the same rate and for the
41 same rate for the same period of time is same time is (SSC CPO SI. Exam. 2003)
Therefore, (SSC CGL Prelim Exam. 2004) (a) ` 220 (b) ` 240
3200 × 5 × 2 (a) ` 400 (b) ` 480
Simple interest = = ` 320 (c) ` 245 (d) ` 250
100 (c) ` 450 (d) ` 460
Hence, the correct option is (a). Explanation: We have,
Explanation: We have, ⎡⎛ 3
⎤
19. The compound interest on a certain 5 ⎞
P ⎢⎜ 1 + ⎟ − 1⎥ = 252.20

/
⎡⎛ ⎤2
⎣⎝ 100 ⎠
sum of money at a certain rate for 2 years 25 ⎞
510 = P ⎢⎜ 1 + ⎟ − 1⎥ ⎦

m
is ` 40.80 and the simple interest on the ⎣⎝ 200 ⎠ ⎦ 8000
same sum is ` 40 at the same rate and for ⇒ P = 252.20 × = ` 1600
⎡ 81 ⎤ ⎛ ⎞
17 1261
the same time. The rate of interest is = P ⎢ − 1⎥ = P ⎜ ⎟
⎣ 64 ⎦ ⎝ 64 ⎠ Therefore,

.co
(SSC CPO S.I. Exam. 2004)
(a) 2% per annum (b) 3% per annum 64 1600 × 5 × 3
⇒ P = 510 × = ` 1920 Simple interest = = ` 240
(c) 4% per annum (d) 5% per annum 17 100
1920 × 2 × 25 Hence, the correct option is (b).
Explanation: We have, Simple interest = = ` 480
100 × 2 23. If the compound interest on a certain
⎡⎛ r ⎞
2
⎤

dy
P ⎢⎜ 1 + ⎟ − 1⎥ = 40.80 (i) Hence, the correct option is (b). sum for 2 years at 3% per annum is
⎣⎝ 100 ⎠ ⎦ ` 101.50, then the simple interest on the
21. On a certain sum of money the com- same sum at the same rate and for the same
Now, simple interest
pound interest for 2 years is ` 282.15 and time will be
P ×r ×2 (SSC CPO B.I. Exam. 2003)
= 40 (ii) the simple interest for the same period of
tu
100 (a) ` 90.00 (b) ` 95.50
time is ` 270. The rate of interest per
By dividing equations (1) and (2), we have annum is (SSC CPO SI. Exam. 2003)
(c) ` 100.00 (d) ` 98.25

⎡⎛ 2
⎤ (a) 6.07% (b) 10% Explanation: We have,
r ⎞
cs
P ⎢⎜ 1 + ⎟ − 1⎥ (c) 9% (d) 12.15%
⎣ ⎝ 100 ⎠ ⎦ = 40.80 ⎡⎛ 3 ⎞
2
⎤
101.50 = P ⎢⎜ 1 + ⎟ − 1⎥
2P × r 40 Explanation: Let C.I. = y and S.I. = x ⎝ 100 ⎠
⎣ ⎦
100 Therefore,
/ss

⎛ r ⎞ ⎡ 10609 ⎤
100 ⎡ r2 2r ⎤ ⇒ 101.50 = P ⎢ −1
⇒ ⎢1+ + − 1⎥ = 1.02 y = x ⎜1 +
⎝ 200 ⎟⎠ ⎣ 10000 ⎥⎦
2r ⎣ 10000 100 ⎦
⎛ r ⎞
⇒ P = 101.50 ×
10000 1015000
=
100 ⎡ r 2 2r ⎤ ⇒ 282.15 = 270 ⎜ 1 +
⇒ + = 1.02 ⎝ 200 ⎟⎠ 609 609
2r ⎣ 10000 100 ⎥⎦
⎢
s:/

12.15 × 200 1015000 × 2 × 3

r ⇒ r= = 9% Simple interest = = ` 100
⇒ + 1 = 1.02 ⇒ r = 0.02 × 200 = 4% 270 609 × 100
200
Hence, the correct option is (c). Hence, the correct option is (c).
Hence, the correct option is (c).
tp

Section III — Difference between Compound and Simple Interest

ht

1. Find the difference between the com- Compound Interest (a) ` 31000 (b) ` 31500
pound interest and the simple interest on ⎡⎛ 4
⎤ (c) ` 30000 (d) ` 30500
10 ⎞
` 32000 at 10% p.a. for 4 years. = 32000 ⎢⎜ 1 + ⎟ − 1⎥ = ` 14851.20
(SSC CHSL DEO & LDC Exam. 2014) ⎣⎝ 100 ⎠ ⎦ Explanation: We have,
2
(a) ` 2051.20 (b) ` 2052.50 Required difference = 14851.20 – 12800 = ⎛ r ⎞
Difference = P ⎜
(c) ` 2025.20 (d) ` 2501.20 ` 2051.20 ⎝ 100 ⎟⎠
Hence, the correct option is (a). 2
⎛ 100 ⎞
Explanation: We have, ⇒ P = Difference × ⎜
2. The difference between the compound ⎝ r ⎟⎠
Simple interest interest and simple interest on a certain 2
32000 × 4 × 10 ⎛ 100 ⎞
sum for 2 years at 10% per annum is 300. = 300 × ⎜ = ` 30000
=
100
= ` 12800
Find the sum. ⎝ 10 ⎟⎠
(SSC CGL Tier-I pre-Exam.2013 & 2014) Hence, the correct option is (c).

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11.10 Chapter 11

3. On what sum of money will the differ- 6. The difference between the compound 9. The difference between simple inter-
ence between S.I and C.I for 2 years at 5% interest and the simple interest on a cer- est and compound interest of a certain
per annum will be equal to 25? tain sum at 5% per annum for 2 years is sum of money at 20% per annum for
(SSC CGL Tier-I Re-Exam. 2013 & 2014) ` 1.50. The sum is 2 years is 48. Then the sum is
(a) ` 10000 (b) ` 10500 (SSC Multi-Tasking Staff Exam. 2013) (SSC CGL Tier-1 Exam. 19.08.2011)
(c) ` 9500 (d) ` 9000 (a) ` 600 (b) ` 500 (a) ` 1000 (b) ` 1200
(c) ` 400 (d) ` 300 (c) ` 1500 (d) ` 2000
Explanation: We have,
2 Explanation: We have, Explanation: We have,
⎛ r ⎞
Difference = P ⎜
⎝ 100 ⎟⎠
2 2
⎛ r ⎞ ⎛ r ⎞
Difference = P ⎜ Difference = P ⎜
⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠

/
2
⎛ 100 ⎞

m
⇒ P = Difference × ⎜
⎝ r ⎟⎠
2 2
⎛ 100 ⎞ ⎛ 100 ⎞
⇒ P = Difference × ⎜ ⇒ P = Difference × ⎜
2 ⎝ r ⎟⎠ ⎝ r ⎟⎠
⎛ 100 ⎞
= 25 × ⎜ = ` 10000
⎝ 5 ⎟⎠
2 2
⎛ 100 ⎞ ⎛ 100 ⎞
= 1.5 × ⎜ = ` 600 = 48 × ⎜ = ` 1200

Hence, the correct option is (a).
4. On what sum of money will the differ-
ence between simple interest and com-
pound interest for 2 years at 5% per
.co
⎝ 5 ⎟⎠
Hence, the correct option is (a).
7. On a certain sum of money lent out at
16% p.a. the difference between the com-
⎝ 20 ⎟⎠
Hence, the correct option is (b).
10. The difference between the com-
pound interest and simple interest on

dy
annum will be equal to ` 63? pound interest for 1 year payable half ` 10000 for 2 years is ` 25. The rate of
[SSC CHSL (10+2) LDC, DEO & PA/SA Exam, yearly and the simple interest for 1 year is interest per annum is
2013] ` 56. The sum is (SSC CGL Tier-1 Exam. 26.06.2011)
(a) ` 24600 (b) ` 24800 [SSC CPO (SL ASI & Intelligence Officer) Exam. (a) 5% (b) 7%
2011 (Paper-I)]
tu
(c) ` 25200 (d) ` 25500 (c) 10% (d) 12%
(a) ` 1080 (b) ` 7805
Explanation: We have, (c) ` 8750 (d) ` 5780 Explanation: We have,
2
⎛ r ⎞ ⎛ r ⎞
2
Difference = P ⎜
cs
⎝ 100 ⎟⎠ Explanation: Since interest is payable at Difference = P ⎜
⎝ 100 ⎟⎠
half yearly, rate = 8% and time = 2
2
⎛ 100 ⎞ ⎛ r ⎞
2
⇒ P = Difference × ⎜ difference
⎝ r ⎟⎠ Difference = P ⎜
⎝ 100 ⎟⎠ ⇒ r= × 100
/ss

2
P
⎛ 100 ⎞ ⎛ 100 ⎞
2
= 63 × ⎜ = ` 25200 25
⎝ 5 ⎟⎠ ⇒ P = Difference × ⎜
⎝ r ⎟⎠ = × 100 = 5%
10000
2
Hence, the correct option is (c). ⎛ 100 ⎞ Hence, the correct option is (a).
= 56 × ⎜ = ` 8750
⎝ 8 ⎟⎠
s:/

5. What sum will give ` 244 as the differ-

11. The difference between the com-
ence between simple interest and com- Hence, the correct option is (c).
pound interest and simple interest for the
1
pound interest at 10% in 1 years when 8. If the difference between S.I. and C.I. amount of ` 5000 in 2 years is ` 32. The
2 rate of interest is
tp

compounded half yearly? for 2 years on a sum of money lent at 5%

(SSC GL Tier-II Exam. 2013 is ` 6, then the sum is (SSC CGL Tier-1 Exam. 2011)

(a) ` 40000
(SSC CGL Tier-1 Exam. 2011) (a) 5% (b) 8%
(a) ` 2200 (b) ` 2400 (c) 10% (d) 12%
ht

(b) ` 36000
(c) ` 2600 (d) ` 2000
(c) ` 32000 Explanation: We have,
(d) ` 28000 Explanation: We have, 2
⎛ r ⎞
Difference = P ⎜
⎝ 100 ⎟⎠
2
Explanation: Since interest is compound- ⎛ r ⎞
Difference = P ⎜
ed half yearly, rate = 5% and time = 3 ⎝ 100 ⎟⎠
difference
Difference × (100 )
3
⎛ 100 ⎞
2
⇒ r= × 100
P = Difference × ⎜ P
Sum =
r 2 (300 + r ) ⎝ r ⎟⎠
32
244 × 1000000 ⎛ 100 ⎞
2 = × 100 = 8%
= = ` 32000 =6×⎜ = ` 2400 5000
25 × 305 ⎝ 5 ⎟⎠
Hence, the correct option is (b).
Hence, the correct option is (c). Hence, the correct option is (b).

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Compound Interest 11.11

12. On a certain sum of money, the dif- P × 2 × 10 (a) ` 100000 (b) ` 110000
ference between the compound interest Simple interest = = 0.2P
100 (c) ` 120000 (d) ` 170000
for a year, payable half-yearly, and the Difference = 0.21P – 0.2P = 40
simple interest for a year is ` 180. If the Explanation: We have,
⇒ P = ` 4000 2
rate of interest in both the cases is 10%, ⎛ 100 ⎞
Sum = (C.I. − S.I. ) ⎜
then the sum is Hence, the correct option is (a). ⎝ r ⎟⎠
[SSC Multi-Tasking (Non-Technical) Staff Exam.
15. A sum of ` 6000 is deposited for ⎛ 100 ⎞
2
2011]
= 768 ⎜ = ` 120000
(a) ` 60000 (b) ` 72000
3 years at 5% per annum compound inter- ⎝ 8 ⎟⎠
est (compounded annually). The differ-
(c) ` 62000 (d) ` 54000 ence of interests for 3 and 2 years will be Hence, the correct option is (c).

/
Explanation: Since, interest is payable at
[SSC SO (CA) Exam. 2007] 18. If the difference between the com-

m
half yearly, then rate = 5% and time = 2 (a) ` 75.00 (b) ` 30.75 pound and simple interests on a certain
(c) ` 330.75 (d) ` 375.00 sum of money for 3 years at 5% per
Therefore, annum is ` 15.25, then the sum is
⎡⎛ 5 ⎞
2
⎤ Explanation: Compound interest after (SSC CPO S.I. Exam. 2006)

.co
Compound interest = P ⎢⎜ 1 + ⎟ − 1⎥
⎝ 100 ⎠ ⎡⎛ 5 ⎞
3
⎤ (a) ` 2000 (b) ` 1000
⎣ ⎦ 3 years = 6000 ⎢⎜ 1 + ⎟ − 1⎥ = ` 945.75
41P ⎣⎝ 100 ⎠ ⎦ (c) ` 1500 (d) ` 2500
= Compound interest after 2 years =
400 Explanation: We have,
P × 10 × 1 P ⎡⎛ 5 ⎞
2
⎤
6000 ⎢⎜ 1 + − 1⎥ = ` 615 PR 2 ⎛ R ⎞

dy
Simple interest = = ⎟ Difference = + 3⎟
2 ⎜
100 10 ⎣⎝ 100 ⎠ ⎦ ( )
100 ⎝ 100 ⎠
According to the question, we have Difference = 945.75 – 615 = ` 330.75
Hence, the correct option is (c). P × 25 ⎛ 5 ⎞
i.e., ⎜ + 3⎟ = 15.25
41 1
P − P = 180 10000 ⎝ 100 ⎠
16. The difference between the com-
tu
400 10 15.25 × 400 × 100
pound and the simple interest on a sum i.e., P= = ` 2000
⇒ P = 180 × 400 = ` 72000 for 2 years at 10% per annum, when the 305
Hence, the correct option is (b). interest is compounded annually it is ` 28. Hence, the correct option is (a).
cs
If the interest were compounded half-
13. The difference between compound 19. The difference between the simple
yearly, the difference in the two interests
and simple interest on a certain sum for and compound interest on a certain sum
will be [SSC SO (CA) Exam. 2007]
3 years at 5% per annum is ` 122. The of money for 2 years at 4% per annum is
(a) ` 44 (b) ` 28.35
/ss

sum is (SSC CGL Prelim Exam. 2008) ` 4. The sum is

(c) ` 43.41 (d) ` 43.29 (SSC CGL Prelim Exam. 2005)
(a) ` 16000 (b) ` 15000
(c) ` 12000 (d) ` 10000 Explanation: We have, (a) ` 2500 (b) ` 2400
⎛ 100 ⎞
2 (c) ` 2600 (d) ` 2000
Explanation: We have, Sum = (C.I. − S.I. ) ⎜
⎝ r ⎟⎠
s:/

Explanation: We have,
Difference × (100 )
3

Sum =
2
⎛ 100 ⎞ ⎛ r ⎞
2
r 2 (300 + r ) = 28 ⎜ = ` 2800 =4
⎝ 10 ⎟⎠ Sum ⎜
⎝ 100 ⎟⎠
122 × 1000000
= = ` 16000 Since, interest is compounded half yearly,
tp

100 100
25 × 305 then ⇒ Sum = 4 × × = ` 2500
4 4
Hence, the correct option is (a). Rate = 5% and Time = 4 half years Hence, the correct option is (a).
14. The difference between compound 2800 × 5 × 4
ht

interest (compounded annually) and sim- Simple interest = = ` 560 20. The difference between simple and
100 compound interest on a certain sum of
ple interest on a certain sum of money at Compound Interest money for 2 years at 4 per cent per annum
10% per annum for 2 years is ` 40. The
sum is (SSC CPO S.I. Exam. 2007)
⎡⎛ 5 ⎞
4
⎤ is ` 1. The sum of money is
= 2800 ⎢⎜ 1 + ⎟ − 1⎥ = ` 603.41
⎣⎝ 100 ⎠
(SSC CGL Prelim Exam. 13.11.2005 Exam.
(a) ` 4000 (b) ` 3600 ⎦ 26.05.2005)
(c) ` 4200 (d) ` 3200 Difference = 603.41 – 560 = ` 43.41 (a) ` 600 (b) ` 625
Hence, the correct option is (c). (c) ` 560 (d) ` 650
Explanation: We have,
Compound interest 17. The difference between compound
Explanation: We have,
interest and simple interest of a sum for
⎡⎛ 10 ⎞
2
⎤ 2 years at 8 per cent is ` 768. The sum is ⎛ r ⎞
2
= P ⎢⎜ 1 + ⎟ − 1⎥ = 0.21P Sum ⎜ =1
⎣ ⎝ 100 ⎠ ⎦ [SSC SO (CA) Exam. 2006] ⎝ 100 ⎟⎠

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11.12 Chapter 11

100 100 (a) ` 1500 (b) ` 1200 (a) ` 40 (b) ` 45

⇒ Sum = 1 × × = ` 625
4 4 (c) ` 1100 (d) ` 1000 (c) ` 14 (d) ` 4
Hence, the correct option is (b).
Explanation: We have, Explanation: We have,
21. If the difference between the simple
Difference × (100 )
3 2500 × 2 × 4
Simple interest = = ` 200
and compound interests on a sum of Sum = 100
money for 2 years at 4% per annum is r 2 (300 + r )
Compound interest =
` 80, the sum is (SSC CPO B.I. Exam. 2005) 31 × 1000000
(a) ` 5000 (b) ` 50000 = = ` 1000 ⎡⎛ 4 ⎞
2
⎤
100 × 310 2500 ⎢⎜ 1 + ⎟ − 1⎥ = ` 204
(c) ` 10000 (d) ` 1000 Hence, the correct option is (d). ⎣⎝ 100 ⎠ ⎦
Required difference = 204 – 200 = ` 4

/
Explanation: We have, 25. The difference between simple and Hence, the correct option is (d).

m
⎛ r ⎞
2
compound interest compounded annu-
Sum ⎜ = 80
⎝ 100 ⎟⎠ ally, on a certain sum of money for 2 years 28. If the difference between the com-
at 4% per annum is ` 1. The sum (in `) is pound interest and simple interest on a
100 100 sum at 5% rate of interest per annum for

.co
⇒ Sum = 80 × × = ` 50000 (SSC CGL Prelim Exam. 2003)
4 4 (a) 650 (b) 630 three years is ` 36.60, then the sum is
Hence, the correct option is (b). (c) 625 (d) 640
(SSC CGL Prelim Exam. 2002)
(a) ` 8000 (b) ` 8400
22. The difference between the com-
Explanation: We have, (c) ` 4400 (d) ` 4800
pound interest (compounded annually)

dy
2
and the simple interest on a sum of ` 1000 ⎛ r ⎞ Explanation: Difference of compound
Difference = P ⎜
at a certain rate of interest for 2 years is ⎝ 100 ⎟⎠ interest and simple interest for 3 years is
` 10. The rate of interest per annum is 2 PR (300 + R ) P × 25 × 305
(SSC CGL Prelim Exam. 2004) ⎛ 100 ⎞ = = = 36.60
⇒ P = Difference × ⎜
(a) 5% (b) 6% ⎝ r ⎟⎠ 1003 1003
tu
2 36.60 × 100 × 100 × 100
(c) 10% (d) 12% ⎛ 100 ⎞ ⇒P= = ` 4800
= 1× ⎜ = ` 625 25 × 305
⎝ 4 ⎟⎠
Explanation: If the difference between Hence, the correct option is (d).
cs
C.I. and S.I. is x, then Hence, the correct option is (c).
2 29. The difference between the simple
⎛ r ⎞ 26. The difference between simple and
Sum ⎜ =x and compound interest on a certain sum
⎝ 100 ⎟⎠ compound interest (compounded annu- of money at 5% rate of interest per annum
/ss

⎛ r ⎞
2 ally) on a sum of money for 2 years at 10% for 2 years is ` 15. Then the sum is
⇒ 1000 ⎜ = 10
⎝ 100 ⎟⎠ per annum is ` 65. The sum is (SSC CGL Prelim Exam. 2002)
(SSC CGL Prelim Exam. 2003)
100 (a) ` 6500 (b) ` 8500
⇒ r= = 10% (a) ` 65650 (b) ` 65065
(c) ` 6000 (d) ` 7000
10
(c) ` 6565 (d) ` 6500
s:/

Hence, the correct option is (c). Explanation: We have,

Explanation: Compound interest
23. The difference between simple and
compound interests on a sum of money at Compound interest
⎡⎛ 5 ⎞
2
⎤ 41
= P ⎢⎜ 1 + − 1⎥ =
2
4% per annum for 2 years is ` 8. The sum ⎛ 10 ⎞ 21P ⎟ P
= P ⎜1 + −P = ⎣⎝ 100 ⎠
tp

is (SSC CGL Prelim Exam. 2004) ⎝ 100 ⎠ ⎟ ⎦ 400

100
(a) ` 400 (b) ` 800 P ×5×2 P
P × 10 × 2 P Simple interest = =
(c) ` 4000 (d) ` 5000 Simple interest = = 100 10
ht

100 5
41 1 P
Explanation: We have, Therefore, Therefore, C.I. – S.I. = P− P=
2 400 10 400
⎛ 100 ⎞ 21P P
Sum = Difference × ⎜ P
⎝ rate ⎟⎠ C.I. – S.I. = − = 65
100 5
And so = 15
400
⎛ 100 ⎞
2
We get ⇒ P = ` 6000
= 8×⎜ = ` 5000
⎝ 4 ⎟⎠ P = ` 6500 Hence, the correct option is (c).
Hence, the correct option is (d). Hence, the correct option is (d). 30. What is the difference between com-
24. On what sum does the difference 27. The difference between compound 1
pound interest on ` 5000 for 1 years at
between the compound interest and the interest and simple interest on ` 2500 for 2
simple interest for 3 years at 10% is ` 31? 2 years at 4% per annum is 4% per annum accordingly as the interest
(SSC CGL Prelim Exam. 2004) (SSC CPO B.I. Exam. 2003) is compounded yearly or half-yearly ?
(SSC CGL Prelim Exam. 2000)

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Compound Interest 11.13

(a) ` 2.04 Compound interest (half yearly) = (a) ` 10000 (b) ` 12000
3
(b) ` 3.06 ⎛ 2 ⎞ (c) ` 15000 (d) ` 9000
5000 ⎜ 1 + ⎟ − 5000 = ` 306.04
(c) ` 8.30 ⎝ 100 ⎠
Explanation: Since, interest is com-
(d) ` 4.80 Difference = 306.04 – 302.9805 = ` 3.059 = pounded half yearly then
` 3.06
Explanation: We have,
Hence, the correct option is (b). Rate = 6% and Time = 1 year
Compound interest (yearly) Therefore,
1.5 31. If the difference between the com-
⎛ 4 ⎞ 100 × 100 × 36
= 5000 ⎜ 1 + ⎟ − 5000 pound interest, compounded every six Sum = = ` 10000
⎝ 100 ⎠ 6×6
months and the simple interest on a cer-

/
⎛ 26 ⎞
1.5 tain sum of money at the rate of 12% per Hence, the correct option is (a).
= 5000 ⎜ ⎟ − 5000 = ` 302.9805 annum for one year is ` 36, the sum is

m
⎝ 25 ⎠
(SSC CGL Prelim Exam. 2000)

.co
Section IV — If the Amount Becomes n Times of the Sum After t Years at Compound
Interest
3 (a) 10 years (b) 15 years Explanation: We have,
1. If the amount is 3 times the sum after 3
8 ⎛ r ⎞

dy
(c) 7 years (d) 20 years
3P = P ⎜ 1 +
3 years at compound interest compounded ⎝ 100 ⎟⎠
annually, then the rate of interest per annum Explanation: We have,
3
is ⎛ r ⎞
5
⎛ r ⎞
(SSC CHSL DEO & LDC Exam. 2013) ⇒ 3 = ⎜1 +
(a) 25% (b) 50%
2P = P ⎜ 1 +
⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠
tu
6
2 1
⎛
5
r ⎞ ⎛ r ⎞
(c) 16 % ⇒ 9P = P ⎜ 1 +
⎝ 100 ⎟⎠
(d) 33 %
3 3 ⇒ ⎜⎝ 1 + ⎟ =2
100 ⎠
Explanation: We have, Therefore, required time = 6 years
cs
15
⎛ r ⎞
27 ⎛ r ⎞
3
⇒ ⎜⎝ 1 + ⎟ =8 Hence, the correct option is (c).
P = P ⎜1 + 100 ⎠
8 ⎝ 100 ⎟⎠ 15 6. A sum of money placed at compound
⎛ r ⎞
⇒ P ⎜1 + = 8P interest doubles itself in 4 years. In how
r 3 ⎝ 100 ⎟⎠
/ss

⇒ 1+ = = 1.5 ⇒ r = 50% many years will it amount to four times

100 2
Therefore, P becomes 8P in 15 years. itself ? (SSC CGL Tier-1 exam . 2011)
Hence, the correct option is (b). Hence, the correct option is (b). (a) 12 years (b) 13 years
2. If a sum of money compounded annu- 4. A sum of money becomes 1.331 times (c) 8 years (d) 16 years
s:/

ally becomes 1.44 times of itself in 2 years, in 3 years as compound interest. The rate
Explanation: We have,
then the rate of interest per annum is of interest is 4
(SSC GL Tier-II Exam. 2013) (SSC Multi-Tasking Staff Exam. 2013) ⎛ r ⎞
2P = P ⎜ 1 +
(a) 25% (b) 22% (a) 8% (b) 7.5% ⎝ 100 ⎟⎠
tp

(c) 21% (d) 20% (c) 10% (d) 50% 8

⎛ r ⎞
⇒ 22 = ⎜ 1 +
Explanation: We have, Explanation: If principal is ` 1000 then ⎝ 100 ⎟⎠
2
⎛ r ⎞ amount = 1331 ⎛ r ⎞
8
1.44P = P ⎜ 1 +
ht

⎝ 100 ⎟⎠ 3 3 3
⇒ 22 P = P ⎜ 1 +
⎝ 100 ⎟⎠
⎛ r ⎞ 1331 ⎛ 11 ⎞ ⎛ 10 ⎞
⎜⎝ 1 + ⎟⎠ = = ⎜ ⎟ = ⎜1 +
2
⎛ r ⎞ ⎟ Required time = 8 years
⎟⎠ = (1.2) 1000 ⎝ 10 ⎠ ⎝ 100 ⎠
2
⇒ ⎜⎝ 1 + 100
100 Hence, the correct option is (c).
⇒ r = 20% ⇒ r = 10%
7. A sum of money becomes eight times
Hence, the correct option is (d). Hence, the correct option is (c). in 3 years, if the rate is compounded
3. A sum of money placed at compound 5. A sum of money at compound interest annually. In how much time will the same
interest doubles itself in 5 years. In how amounts to thrice itself in 3 years. In how amount at the same compound rate
many years, it would amount to eight many years will it be 9 times itself ? become sixteen times?
times of itself at the same rate of interest? (SSC GL Tier-II Exam. 2012) (SSC CGL Tier-1 Exam. 2011)
[SSC CGL Prelim Exam. 2005 & (SSC CPO 8.1. (a) 9 years (b) 27 years (a) 6 years (b) 4 years
Exam. 2009) & (SSC CAPs S.I. & CISF ASI Exam. (c) 8 years (d) 5 years
(c) 6 years (d) 3 years
2013)]

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11.14 Chapter 11

Explanation: We have, Explanation: We have, (a) 18 years (b) 12 years

3 2 2
⎛ r ⎞ ⎛ r ⎞ ⎛ r ⎞ (c) 16 years (d) 24 years
8P = P ⎜ 1 + 4 = ⎜1 + ⇒ ⎜1 + = 22
⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠
Explanation: Amount P becomes 2P in
⎛ r ⎞
3
⎛ r ⎞ 4 years.
⇒ 23 = ⎜ 1 + ⇒ ⎜⎝ 1 + ⎟ = 2 ⇒ r = 100%
⎝ 100 ⎟⎠ 100 ⎠ Then, amount 2P becomes 4P in 4 years
Hence, the correct option is (a). And, amount 4P becomes 8P in 4 years
⎛ r ⎞
⇒ 2 = ⎜1 + Total time = 4 + 4 + 4 = 12 years
⎝ 100 ⎟⎠ 11. A sum of money at compound inter-
est doubles itself in 15 years. It will Hence, the correct option is (b).
4
⎛ r ⎞
⇒ 24 P = P ⎜ 1 + become eight times of itself in
⎝ 100 ⎟⎠
14. A sum of money becomes eight times

/
(SSC CGL Prelim Exam. 1999 & SSC CGL Tier-I of itself in 3 years at compound interest.

m
Therefore, required time = 4 years Exam. 2010) The rate of interest per annum is
(a) 45 years (b) 48 years (SSC CGL Prelim Exam. 2004)
8. A sum of ` 12000, deposited at com-
(c) 54 years (d) 60 years (a) 100% (b) 80%
pound interest becomes double after

.co
5 years. How much will it be after Explanation: We have, (c) 20% (d) 10%
15
20 years? ⎛ r ⎞
2P = P ⎜ 1 + Explanation: We have,
(SSC CGL Tier-I Exam. 2010 & SSC CGL Tier-I ⎝ 100 ⎟⎠ 3
2011) ⎛ r ⎞
8P = P ⎜ 1 +
⎝ 100 ⎟⎠
15
(a) ` 144000 (b) ` 120000 ⎛ r ⎞
⇒ ⎜⎝ 1 + ⎟ =2
100 ⎠ r

dy
(c) ` 150000 (d) ` 192000 ⇒ 1+ = 2 ⇒ r = 100%
⎛ r ⎞
45 100
Explanation: We have, ⇒ ⎜⎝ 1 + ⎟ =8 Hence, the correct option is (a).
5
100 ⎠
⎛ r ⎞
24000 = 12000 ⎜ 1 +
45
⎛ r ⎞ 15. A sum borrowed under compound
⎝ 100 ⎟⎠ ⇒ P ⎜1 + = 8P
tu
⎝ 100 ⎟⎠ interest doubles itself in 10 years. When
5 will it become fourfold of itself at the
⎛ r ⎞ Therefore, P becomes 8P in 45 years.
⇒ 2 = ⎜1 +
⎝ 100 ⎟⎠
same rate of interest?
Hence, the correct option is (a). (SSC CGL Prelim Exam. 2002)
cs
20
⎛ r ⎞ 12. A sum of money invested at com- (a) 15 years (b) 20 years
⇒ 24 = ⎜ 1 +
⎝ 100 ⎟⎠ pound interest doubles itself in 6 years. At (c) 24 years (d) 40 years
the same rate of interest it will amount to
Therefore, required time is 20 years.
/ss

eight times of itself in Explanation: Amount P becomes 2P in

Hence, the correct option is (d). 10 years.
(SSC CGL Prelim Exam. 2002 & SSC CGL
9. A sum of money becomes double in Prelim Exam. 2008)
Amount 2P becomes 4P in 10 years
3 years at compound interest com- (a) 15 years (b) 12 years Hence, total time = 10 + 10 = 20 years
pounded annually. At the same rate, in (c) 18 years (d) 10 years Hence, the correct option is (b).
s:/

how many years will it become four times

of itself ? [SSC CPO SI.Exam. 2010 (Paper-I)] Explanation: We have, 16. If the amount is 2.25 times of the sum
6
(a) 4 years (b) 6 years ⎛ r ⎞ after 2 years at compound interest
2P = P ⎜ 1 +
(c) 6.4 years (d) 7.5 years ⎝ 100 ⎟⎠ (compound mutually), the rate of interest
tp

6 per annum is (SSC CGL Prelim Exam. 1999)

⎛ r ⎞ (a) 25% (b) 30%
Explanation: We have, ⇒ ⎜⎝ 1 + ⎟ =2
3 100 ⎠ (c) 45% (d) 50%
⎛ r ⎞
2P = P ⎜ 1 +
⎝ 100 ⎟⎠
18
⎛ r ⎞
ht

⇒ ⎜⎝ 1 + ⎟ =8 Explanation: If principal is ` 100 then

6 100 ⎠ amount = ` 225
⎛ r ⎞
⇒ 4 = ⎜1 +
⎝ 100 ⎟⎠
18
⎛ r ⎞ Now,
⇒ P ⎜1 + = 8P
Thus, required time = 6 years. ⎝ 100 ⎟⎠ ⎛ r ⎞
2

100 ⎜ 1 + = 225
Hence, the correct option is (b). Therefore, P becomes 8P in 18 years. ⎝ 100 ⎟⎠
Hence, the correct option is (c). 2
10. At what rate per cent per annum of ⎛ r ⎞ 225
⇒ ⎜⎝ 1 + ⎟ =
compound interest, will a sum of money 13. A sum of money doubles itself in 100 ⎠ 100
become four times of itself in two years? 4 years at compound interest. It will amount
r 15
(SSC Investigator Exam. 2010) to 8 times itself at the same rate of interest in ⇒ 1+ = ⇒ r = 50%
(SSC CGL Prelim Exam. 2002 & SSC CPO SI. 100 10
(a) 100% (b) 75%
Exam. 2007) Hence, the correct option is (d).
(c) 50% (d) 20%

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Compound Interest 11.15

Section V — A Sum of Money Amounts to ` x1 in t1 Years and ` x2 in t2 Years at

Compound Interest
1. A sum of money at compound interest 3. A certain amount of money at r %, By dividing equations (2) and (1), we have
will amount to ` 650 at the end of the first compounded annually after two and three
r 3936
year and ` 676 at the end of the second years becomes ` 1440 and ` 1728 respec- 1+ =
year. The amount of money is tively, the value of r is 100 3840
(SSC CGL Tier-I pre-Exam. 2013, 2014) (SSC CHSL DEO & LDC Exam. 2012) ⇒ r = 2.5%
(a) ` 1300 (b) ` 650 (a) 5 (b) 10 Hence, the correct option is (a).
(c) ` 1250 (d) ` 625 (c) 15 (d) 20

/
6. A certain sum of money amounts to

m
Explanation: We have, Explanation: We have, ` 2420 in 2 years and ` 2662 in 3 years at
⎛ R ⎞ ⎛ r ⎞
2 some rate of compound interest, com-
650 = P ⎜ 1 + 1440 = P ⎜ 1 +
⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠
(1) pounded annually. The rate of interest per
annum is

.co
R 650 and
⇒ 1+ = (1) (SSC CPO SI. Exam. 2008)
100 P ⎛ r ⎞
3

1728 = P ⎜ 1 + (a) 6% (b) 8%

⎝ 100 ⎟⎠
Now, (2)
2
⎛ R ⎞ (c) 9% (d) 10%
676 = P ⎜ 1 +
⎝ 100 ⎟⎠ By dividing equations (2) and (1), we have Explanation: We have,

dy
2
⎛ 650 ⎞ r 1728 ⎛ r ⎞
2
⇒ 676 = P ⎜ 1+ = 2420 = P ⎜ 1 +
⎝ P ⎟⎠ ⎝ 100 ⎟⎠
100 1440 (1)

from (1) ⇒ r = 20% and

650 × 650
tu 3
⇒ P= = ` 625 Hence, the correct option is (d). ⎛ r ⎞
2662 = P ⎜ 1 +
⎝ 100 ⎟⎠
(2)
676
4. The compound interest on a certain
Hence, the correct option is (d). sum for two successive years are ` 225 and By dividing equations (2) and (1), we have
cs
2. An amount of money appreciates to ` 238.50. The rate of interest per annum is
r 2662
` 7000 after 4 years and to ` 10000 after (SSC CHSL DEO & LDC Exam. 2012) 1+ =
1 100 2420
8 years at a certain compound interest (a) 7 % (b) 5%
compounded annually. The initial amount 2 ⇒ r = 10%
/ss

of money was (c) 10% (d) 6%

Hence, the correct option is (d).
(SSC Multi-tasking Staff Exam. 2013)
Explanation: Simple interest on ` 225 7. A sum of money amounts to ` 4840 in
(a) ` 4700 (b) ` 4900
for 1 year = 238.50 – 225 = ` 13.50 2 years and to ` 5324 in 3 years at com-
(c) ` 4100 (d) ` 4300
s:/

Therefore, pound interest compounded annually.

Explanation: We have, 13.50 × 100 The rate of interest per annum is
Rate = = 6%
⎛ r ⎞
4 225 × 1 (SSC CPO S.I. Exam. 2007)
7000 = P ⎜ 1 +
⎝ 100 ⎟⎠
from (1) (a) 10% (b) 9%
Hence, the correct option is (d).
tp

(c) 11% (d) 8%

5. An amount of money at compound
And interest grows up to ` 3840 in 4 years and Explanation: We have,
8
⎛ r ⎞ up to ` 3936 in 5 years. Find the rate of ⎛ r ⎞
2
10000 = P ⎜ 1 +
ht

⎝ 100 ⎟⎠
from (2) 4840 = P ⎜ 1 +
⎝ 100 ⎟⎠
interest. (1)
By dividing equation (2) and (1) , we have (SSC GL Tier-II Exam. 2012)
And
(a) 2.5% (b) 2% 3
⎛
4
r ⎞ 10000 10 ⎛ r ⎞
5324 = P ⎜ 1 +
⎝ 100 ⎟⎠
(2)
⎜⎝ 1 + ⎟ = = (c) 3.5% (d) 2.05%
100 ⎠ 7000 7
Explanation: We have, By dividing equations (2) and (1), we have
From equation (1), we have 4
⎛ r ⎞ r 5324
3840 = P ⎜ 1 + 1+ =
⎝ 100 ⎟⎠
7000 10 (1)
= 100 4840
P 7
and
⇒ P = ` 4900 5 ⇒ r = 10%
⎛ r ⎞
3936 = P ⎜ 1 +
⎝ 100 ⎟⎠
(2) Hence, the correct option is (a).
Hence, the correct option is (b).

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11.16 Chapter 11

8. A sum of money invested at compound 9. A sum of money invested at compound (a) ` 4000 (b) ` 2500
interest amounts to ` 650 at the end of interest amounts in 3 years amounts to (c) ` 3000 (d) ` 3050
first year and ` 676 at the end of second ` 2400 and in 4 years to ` 2520. The inter-
year. The sum of money is est rate per annum is Explanation: We have,
(SSC CPO Prelim Exam. 2002 & SSC CPO SI. (SSC CGL Prelim Exam. 2002) 2
⎛ r ⎞
4500 = P ⎜ 1 +
⎝ 100 ⎟⎠
Exam. 2003)
(a) 5% (b) 6% (1)
(a) ` 600 (b) ` 540 (c) 10% (d) 12% And
(c) ` 625 (d) ` 560 4
Explanation: Simple interest for 1 year = ⎛ r ⎞
6750 = P ⎜ 1 +
⎝ 100 ⎟⎠
(2)
Explanation: Interest for 1 year = 676 – 2520 – 2400 = ` 120
650 = ` 26

/
Therefore, By dividing equations (2) and (1), we have
Therefore,

m
120 × 100 ⎛ r ⎞
2
6750
26 Rate = = 5% ⎜⎝ 1 + ⎟ =
rate = r = × 100 = 4% 2400 × 1 100 ⎠ 4500
650
Hence, the correct option is (a). From equation (1) , we have

.co
And so,
650 650 10. A sum becomes ` 4500 after two years 4500 6750
P= 1
= = ` 625 and ` 6750 after four years at compound = ⇒ P = ` 3000
⎛ 4 ⎞ 26 P 4500
⎜⎝ 1 + ⎟ interest. The sum is
100 ⎠ 25 (SSC CGL Prelim Exam. 2002 & SSC CGL exam. ⇒ P = ` 3000
Hence, the correct option is (c). 2000) Hence, the correct option is (c).

Section VI — Installments
dy
tu
1. The income of a company increases Therefore, (a) 8280 (b) 8410
20% per year. If the income is ` 2664000 x × 10 × 1 (3 − x ) × 6 × 1 2000 1 (c) 8820 (d) 8000
in the year 2012, then its income in the + = =
100 × 12 100 × 12 100000 50
year 2010 was Explanation: If elder brother’s share is
cs
After solving above equation, we get x, then the share of younger brother is
[SSC CHSL (10+2) LDC, DEO & PA/BA Exam
2015] x = 1.5 lakhs (16820 – x).
Therefore, required difference is 0.
(a) ` 2855000 (b) ` 1850000 Therefore,
Hence, the correct option is (c).
/ss

13 15
(c) ` 2820000 (d) ` 2120000 ⎛ 5 ⎞ ⎛ 5 ⎞
3. A sum of money is paid back in two x ⎜1 +
⎝ 100 ⎟⎠
= (16820 − x ) ⎜⎝ 1 + ⎟
Explanation: We have, 100 ⎠
annual instalments of ` 17640 each, allow- 2
ing 5% compound interest compounded ⎛ 21 ⎞
x = (16820 − x ) ⎜ ⎟
2
⎛ 20 ⎞ ⇒
2664000 = P ⎜ 1 + ⎝ 20 ⎠
⎝ 100 ⎟⎠
annually. The sum borrowed was
s:/

(SSC CGL Tier-II Exam 2015) 441 441

= 16820 × − x
2664000 × 5 × 5 (a) ` 32800 (b) ` 32200 400 400
⇒ P= = ` 1850000
6×6 (c) ` 32000 (d) ` 32400 16820 × 441
⇒ x= = ` 8820
tp

Hence, the correct option is (b). Explanation: 841

2. Mr Dutta desired to deposit his retire- Sum borrowed Hence, the correct option is (c).
ment benefit of ` 3 lace partly to a post ⎡ 17640 17640 ⎤ 5. A sum of ` 210 was taken as a loan.
= ⎢ + = ` 32800
ht

office and partly to a bank at 10% and 6% 2⎥

⎛ 5 ⎞ ⎛ 5 ⎞ This is to be paid back in two equal instal-
interests respectively. If his monthly ⎢ ⎜1 + ⎟ ⎜1 + ⎟ ⎥
⎣⎢ ⎝ 100 ⎠ ⎝ 100 ⎠ ⎥⎦
ments. If the rate of interest be 10% com-
interest income was ` 2000, then the dif- pounded annually, then the value of each
ference of his deposits in the post office Hence, the correct option is (a). instalment is
and in the bank was (SSC CHSL DEO & LDC Exam. 2014)
4. An amount of ` 16820 is divided
[SSC CHSL (10+2) LDC, DEO SI PA/SA Exam
2015]
between two brothers of age 27 years and (a) ` 127 (b) ` 121
25 years. They invested their money at (c) ` 210 (d) ` 225
(a) ` 50000 (b) ` 40000
5% per annum compound interest in such
(c) Nil (d) ` 100000 a way that both will receive equal money Explanation: If each instalment is x, then
at the age of 40 years. The share (in `) of x x
Explanation: If amount deposited in post 210 = +
elder brother is ⎛ 10 ⎞ ⎛ 10 ⎞
2
office is x then amount in bank is 3 – x. ⎜⎝ 1 + ⎟⎠ ⎜ 1 +
(SSC CGL Tier-II Exam 2014, 2015) 100 ⎝ 100 ⎟⎠

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Compound Interest 11.17

10 100 9 16224 × 625

= x+ x ⇒ x = P1 × i.e., P2 = = ` 15000
11 121 8 676
⇒ x = ` 121 8 Cash value = 16224 + 15600 + 15000 =
⇒ P1 = x
Hence, the correct option is (b). 9 ` 46824
Similarly, Hence, the correct option is (b).
6. A loan of ` 12,300 at 5% per annum 64
compound interest is to be repaid in two P2 = x 9. A builder borrows ` 2550 which is to
81
equal annual instalments at the end of Therefore, be paid back with compound interest at
every year. Find the amount of each the rate of 4% per annum by the end of
8 64
instalment. (SSC CPO SI Exam. 2009) x + x = 6800 2 years in two equal yearly instalments.
9 81

/
(a) ` 6651 (b) ` 6615 How much will each instalment be?
⇒ x = ` 4050 (SSC CGL Prelim Exam. 2000)

m
(c) ` 6516 (d) ` 6156
Hence, the correct option is (c). (a) ` 1352 (b) ` 1377
Explanation: If each instalment is x, then (c) ` 1275 (d) ` 1283
8. A man buys a scooter on making a cash
x x
+ = 12300

.co
down payment of ` 16224 and promises to Explanation: Let each instalment be x.
⎛ 5 ⎞ ⎛ 5 ⎞
2

⎜⎝ 1 + ⎟ 1+ pay two more yearly instalments of equiv-

100 ⎠ ⎜⎝ 100 ⎟⎠ alent amount in next two years. If the rate Instalment
Present worth = n
20 ⎛ 20 ⎞
2 of interest is 4% per annum, compounded ⎛ r ⎞
⇒ x + ⎜ ⎟ x = 12300 yearly, the cash value of the scooter is ⎜⎝ 1 + ⎟
21 ⎝ 21 ⎠ 100 ⎠
(SSC CGL Prelim Exam. 2007)

dy
⇒ x = ` 6615 We have,
(a) ` 40000 (b) ` 46824
Hence, the correct option is (b). x 25
(c) ` 46000 (d) ` 50000 P1 = = x
⎛ 4 ⎞ 26
7. Kamal took ` 6800 as a loan which ⎜⎝ 1 + ⎟
along with interest is to be repaid in two
Explanation: If principal for the first 100 ⎠
tu
year is P1 and for two years be P2 .
equal annual instalments. If the rate of Similarly,
1 Therefore, 2
interest is 12 % , which is compounded ⎛ 4 ⎞ 26P1 ⎛ 25 ⎞ 625
2 16224 = P1 ⎜ 1 + = P2 = ⎜ ⎟ x = x
⎝ 100 ⎟⎠ ⎝ 26 ⎠
cs
annually, then the value of each instal- 25 676
ment is (SSC CGL Prelim Exam. 2008) 16224 × 25 Therefore,
(a) ` 8100 (b) ` 4150 i.e., P1 = = ` 15600
26 25 625
(c) ` 4050 (d) ` 4000 Again, x+ x = 2550
/ss

26 676
2
Explanation: If annual instalment is x, ⎛ 4 ⎞ ⇒ x = ` 1352
16224 = P2 ⎜ 1 +
then ⎝ 100 ⎟⎠
Hence, the correct option is (a).
⎛ 25 ⎞ ⎛ 26 ⎞
2
676P2
x = P1 ⎜ 1 +
⎝ 200 ⎟⎠ = P2 ⎜ ⎟ =
s:/

⎝ 25 ⎠ 625

Section VII — Miscellaneous Questions

tp

1. The amount on ` 25000 in 2 years at 2. The sum of money which when given Therefore,
annual compound interest, if the rates for on compound interest at 18% per annum ⎡⎛ 9 ⎞
4
⎤
C.I. = P ⎢⎜ 1 + − 1⎥
ht

the successive years be 4% and 5% per would fetch ` 960 more when the interest ⎝ ⎟
⎠
⎣ 100 ⎦
annum respectively is is payable half yearly than when it was
= P ⎣(1.09) − 1⎦ = ` 0.4116P
⎡ ⎤
4
[SSC CHSL (10+2) LDC, DEO & PA/BA Exam payable annually for 2 years is
2015] [SSC CHSL (10+2) LDC, DEO&PA/SA Exam
2015] Based on question,
(a) ` 30,000 (b) ` 26,800
⎡⎛ 18 ⎞
2
⎤
(c) ` 27,300 (d) ` 28,500 (a) ` 60000 (b) ` 30000 C.I. (payable yearly ) = P ⎢⎜ 1 + ⎟ − 1⎥
(c) ` 40000 (d) ` 50000 ⎣ ⎝ 100 ⎠ ⎦
Explanation: We have,
= 0.3924P
Amount Explanation: Rate = 18% per annum = Therefore,
⎛ 4 ⎞⎛ 5 ⎞ 9% per half year 0.4116P − 0.3924P = 960
= 25000 ⎜ 1 + 1+ = ` 27300
⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠ Time = 4 half years ⇒ P = ` 5000 P = `5000
Hence, the correct option is (c). Hence, the correct option is (d).

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11.18 Chapter 11

3. A sum of money placed at compound Explanation: Amount with sons = Explanation: If each instalment is x, then
interest doubles itself in 5 years. It will ⎛ 1⎞ x x
84100 × ⎜ ⎟ = ` 42050 + = 13360
amount to eight times of itself at the same ⎝ 2⎠ ⎛ 35 ⎞
2
⎛ 35 ⎞
rate of interest in ⎜⎝ 1 + ⎟ ⎜ 1 + ⎟
If amount given to B is x then amount 400 ⎠ ⎝ 400 ⎠
(SSC CGL Tier-II Exam 2015)
given to A is 42050 – A.
(a) 20 years (b) 10 years Therefore, 6400 80
3 5
⇒ x + x = 13360
(c) 12 years (d) 15 years ⎛ 5 ⎞ ⎛ 5 ⎞ 7569 87
( 42050 − x ) ⎜⎝ 1 + ⎟ = x ⎜⎝ 1 + ⎟
Explanation: We have, 100 ⎠ 100 ⎠ ⇒ x = ` 7569
2
⎛ R ⎞
5
⎛ 21 ⎞ ⎛ 441 ⎞ Hence, the correct option is (b).
⇒ 42050 − x = x ⎜ ⎟ = x ⎜
2P = P ⎜ 1 +
⎝ 100 ⎟⎠ ⎝ 20 ⎠ ⎝ 400 ⎟⎠

/
9. A money-lender borrows money at 4%
⇒ x = ` 20000

m
5 15
⎛ R ⎞ ⎛ R ⎞ per annum and pays the interest at the
⇒ 2 = ⎜1 + ⎟ ⇒ 8 = ⎜1 +
⎝ 100 ⎠ ⎝ 100 ⎟⎠ Hence, the correct option is (a). end of the year. He lends it at 6% per
annum compound interest compounded
Required time = 15 years 6. What does ` 250 amounts to in 2 years
half yearly and receives the interest at the

.co
Hence, the correct option is (d). with compound interest at the rate of 4%
end of the year. In this way, he gains
in the first year and 8% in the second
4. Find the rate per cent per annum, if ` 104.50 for a year. The amount of money
year? [SSC Constable (GD) Exam. 2013]
` 2000 amounts to ` 2315.25 in a year and he borrows is
(a) ` 280 (b) ` 280.80
a half, the interest is being compounded (SSC CGL Prelim Exam. 2007)
half yearly. (c) ` 468 (d) ` 290.80
(a) ` 6000 (b) ` 5500

dy
(SSC CAPFs SI, CISF ASI & DP SI Exam 2015) Explanation: We have, (c) ` 5000 (d) ` 4500
(a) 11.5% (b) 10%
⎛ 4 ⎞⎛ 8 ⎞
A = 250 ⎜ 1 + 1+ = ` 280.80 Explanation: If the borrowed amount is
(c) 5% (d) 20% ⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠ x, then based on question,
tu
Explanation: Time = 1.5 years = 3 half Hence, the correct option is (b).
years ⎡⎛ 3 ⎞
2
⎤ x × 4 ×1
7. Sita deposited ` 5000 at 10% simple x ⎢⎜ 1 + ⎟ − 1⎥ − = 104.50
Rate = R% per half year interest for 2 years. How much more ⎣⎝ 100 ⎠ ⎦ 100
cs
money will Sita have in her account at the
Therefore, x ⎡⎣(1.03) − 1⎤⎦ − 0.04 x = 104.50
2
⇒
Time end of two years, if it is compounded
⎛ Rate ⎞
Amount = Principal ⎜ 1 + ⎟ semi-annually.
⎝ 100 ⎠ 104.50
(SSC GL Tier-II Exam. 2012) ⇒ x= = ` 5000
/ss

⎛ R ⎞
3 0.0209
⇒ 2315.25 = 2000 ⎜ 1 + (a) ` 50 (b) ` 40
⎝ 100 ⎟⎠ (c) ` 77.50 (d) ` 85.50 Hence, the correct option is (c).
3 3
⎛ R ⎞ 231525 9261 ⎛ 21 ⎞ 10. A person deposited a sum of 6000 in
⇒ ⎜1 + ⎟ = = =⎜ ⎟ Explanation: Rate = 5%, Time = 4 half
⎝ 100 ⎠ 200000 8000 ⎝ 20 ⎠ a bank at 5% per annum simple interest.
years
s:/

Another person deposited 5000 at 8% per

⎛ R ⎞ ⎛ 21 ⎞ We have,
⇒ ⎜⎝ 1 + ⎟ =⎜ ⎟ annum compound interest. After two
100 ⎠ ⎝ 20 ⎠ years, the difference of their interests will
⎡⎛ 5 ⎞
4
⎤
⇒ R = 5% per half year C.I. = 5000 ⎢⎜ 1 + ⎟ − 1⎥ = ` 1077.5 be
⎣ ⎝ 100 ⎠ ⎦
tp

(SSC CPO S.I. Exam. 2006)

Therefore, required rate = 10 % per
annum 5000 × 10 × 2 (a) ` 230 (b) ` 232
Simple interest = = ` 1000
Hence, the correct option is (b). 100 (c) ` 832 (d) ` 600
ht

5. A man gave 50% of his savings of Difference = 1077.5 – 1000 = ` 77.50 Explanation: We have,
` 84100 to his wife and divided the Hence, the correct option is (c).
6000 × 5 × 2
remaining sum among his two sons A and 3 Simple interest = = ` 600
B of 15 and 13 years of age respectively. 8. A sum of 13360 was borrowed at 8 % 100
4
He divided it in such a way that each of per annum compound interest and paid Compound interest
his sons, when they attain the age of back in two years in two equal annual ⎡⎛ 2
⎤
8 ⎞
18 years, would receive the same amount installments. What was the amount of = 5000 ⎢⎜ 1 + ⎟ − 1⎥ = ` 832
at 5% compound interest per annum. The each installment? ⎣⎝ 100 ⎠ ⎦
share of B was (SSC CGL Tier-I Exam. 2014) (SSC CGL Prelim Exam. 2008) Required difference = 832 – 600 = ` 232
(a) ` 20000 (b) ` 20050 (a) ` 5769 (b) ` 7569 Hence, the correct option is (b).
(c) ` 22000 (d) ` 22050 (c) ` 7009 (d) ` 7500

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Compound Interest 11.19

Test Yourself
1. Since, interest is payable quarterly, ⎛
t
4 ⎞ 17576 If C.I. – S.I. = x, then
therefore ⇒ ⎜⎝ 1 + ⎟ =
100 ⎠ 15625 ⎡ R2 2R ⎤ 2PR
⎡⎛ R ⎞ ⎤ 3 ⇒ P⎢ 2 + ⎥− =x
5044 = 32000 ⎢⎜ 1 + ⎟⎠ − 1⎥
t
⎛ 26 ⎞ ⎛ 26 ⎞
3
⎣ 100 100 ⎦ 100
⎣ ⎝ 400 ⎦ ⇒ ⎜⎝ ⎟⎠ = ⎜⎝ ⎟⎠
25 25 PR 2
⇒ x=
⎛ R ⎞
3
5044 1002
⇒ t = 3 years
i.e., ⎜⎝ 1 + ⎟⎠ − 1 = 2 2
400 32000 ⎛ 100 ⎞ ⎛ 100 ⎞
Hence, the correct option is (c). ⇒ P = x⎜ ⎟ = 25 ⎜ ⎟ = ` 15625
⎝ R ⎠ ⎝ 4 ⎠

/
After solving the above equation, we get
R = 20% per annum. 8. We have, Hence, the correct option is (d).

m
2. We have, ⎡⎛ 4 ⎞
2
⎤ 12. We have,
100 ⎢⎜ 1 + ⎟ − 1⎥
⎝ ⎠ Difference × (100 )
3
C.I. ⎣ 100 ⎦
D × 1003 48 × 1003 = Sum =
P= = = ` 375 r 2 (300 + r )

.co
r (r + 300 ) 400 (20 + 300 )
2 S.I. 4×2
⎡ 51 ⎤ 608 × 1000000
Hence, the correct option is (b). 100 ⎢ = = ` 125000
⇒
C.I.
= ⎣ 625 ⎥⎦ 16 × 304
3. We have, 125 8 Hence, the correct option is (a).
4
⎛ 10 ⎞ ⇒ C.I. = ` 127.50 13. Interest on ` 9680 for 1 year = 10648 –

dy
A = 5000 ⎜ 1 + = ` 6077.50
⎝ 200 ⎟⎠ 9680 = ` 968
Hence, the correct option is (a).
Therefore,
Therefore, compound interest = 6077.50 –
9. We have, 968 × 100
5000 = ` 1077.50 Rate = = 10%
Hence, the correct option is (a). Rt 9680
S.I. = C.I. ×
tu
⎡⎛ r ⎞
t
⎤ Now,
4. We have, 100 ⎢⎜ 1 + ⎟ − 1⎥
⎣ ⎝ 100 ⎠ ⎦
2 2
3 ⎛ 10 ⎞ ⎛ 11 ⎞
⎛ 10 ⎞ ⎛ 5 ⎞ 9680 = P ⎜ 1 + ⎟ =P⎜ ⎟
A = 10000 ⎜ 1 + 1+ 2522 × 5 × 3 ⎝ 100 ⎠ ⎝ 10 ⎠
⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠
cs
= = ` 2400
⎡⎛ 5 ⎞
3
⎤
= ` 13975.50 100 ⎢⎜ 1 + ⎟ − 1⎥ ⇒ P = ` 8000
Therefore, compound interest = ⎣⎝ 100 ⎠ ⎦ Hence, the correct option is (b).
/ss

13975.50 – 10000 = ` 3975.50 Hence, the correct option is (b).

14. If first part is x and second part is y,
Hence, the correct option is (d).
10. We have, then
7 10
5. We have, C.I. – S.I. = ` 5 ⎛ 20 ⎞ ⎛ 20 ⎞
y ⎜1 + = +
⎝ 100 ⎟⎠ ⎜⎝ ⎟
x 1
A 50 100 ⎠
P= Simple interest for first year = = ` 25
s:/

t
⎛ r ⎞ 2 3
⎜⎝ 1 + ⎟ y ⎛ 20 ⎞ 216
100 ⎠ 100 × 5 ⇒ = ⎜1 + ⎟⎠ =
Rate = = 20% per annum x ⎝ 100 125
Therefore, 25 × 1
Now, Now we have,
tp

9261 9261 100 × 50

P= 3
= = ` 8000 Principal = = `125 x + y = 10230
⎛ 5 ⎞ 9261
⎜⎝ 1 + ⎟ 20 × 2
100 ⎠ 8000 216
Hence, the correct option is (c). y= × 10230 = ` 6480
ht

Hence, the correct option is (a). 216 + 125

11. We have,
125
6. We have, PR × 2 2PR x= × 10230 = ` 3750
Simple interest = = 216 + 125
S.I. 4×2 50 100 100
= = = 50 : 51 Compound interest Hence, the correct option is (c).
C.I. ⎡⎛ 4 ⎞ ⎤ 2
51
100 ⎢⎜ 1 + ⎟ − 1⎥ 15. We have,
⎣⎝ 100 ⎠ ⎡⎛ ⎤
2
⎦ R ⎞ ⎡ R2 2R ⎤
= P ⎢⎜ 1 + ⎟ − 1⎥ = P ⎢ 2 + ⎥ 5 3
⎣ ⎝ 100 ⎠ ⎦ ⎣ 100 100 ⎦ ⎛ 5 ⎞ ⎛ 5 ⎞
Hence, the correct option is (b). A ⎜1 + = B ⎜1 +
⎝ 100 ⎟⎠ ⎝ 100 ⎟⎠
Therefore,
7. We have 2
t ⎡ R2 2R ⎤ 2PR B ⎛ 5 ⎞ 441
⎛ r ⎞ A C.I. − S.I. = P ⎢ 2 + ⎥ − 100 ⇒ = ⎜1 + ⎟ =
⎜⎝ 1 + ⎟ = ⎣ 100 100 ⎦ A ⎝ 100 ⎠ 400
100 ⎠ P

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11.20 Chapter 11

16. If interest is compounded annually, After, solving above equation, we get

It is given as A + B = `1682
then P = ` 40000
So, 2
⎡ 10 ⎤ 121 Hence, the correct option is (a).
400 Amount = P ⎢1 + = P
A= × 1682 = ` 800 ⎣ 100 ⎥⎦ 100
400 + 441 17. We have,
If interest is compounded half-yearly,
B=
441
× 1682 = ` 882 then ⎛ 4 ⎞⎛ 5 ⎞⎛ 10 ⎞
A = 5000 ⎜ 1 + 1+ 1+
400 + 441 4 ⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠ ⎜⎝ 100 ⎟⎠
⎡ 5 ⎤ 194481
Amount = P ⎢1 + ⎥ = P = ` 6006
Hence, the correct option is (d). ⎣ 100 ⎦ 160000
Therefore, Hence, the correct option is (c).

/
194481 121
P− P = 220.25

m
160000 100

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