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 Compound Interest Questions

Popular Latest Rated Important Formulae

FACTS  AND  FORMULAE  FOR  COMPOUND  INTEREST  QUESTIONS

 

 

Let Principal = P, Rate = R% per annum, Time = n years.

I.

1.  When interest is compound Annually:

Amount =P1+R100n

2.  When interest is compounded Half-yearly:

Amount = P1+(R2)1002n

3.  When interest is compounded Quarterly:

Amount = P1+R41004n

 

II.

1.  When interest is compounded Annually but time is in fraction, say 325 years.

Amount = P1+R1003×1+25R100

2.  When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year respectively.

Then, Amount = P1+R11001+R21001+R3100

 

III.  Present worth of Rs. x due n years hence is given by:

Present Worth = x1+R100n

Q:

The maturity value of a certain sum after two years at 20% p.a. interest compounded annually is Rs. 14,400/-. Find the Principal amount.

A) Rs.9000 B) Rs.9500
C) Rs.10,000 D) Rs.10,500
 
Answer & Explanation Answer: C) Rs.10,000

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Q:

At what rate of compound interest (in %) per annum will a sum of Rs. 15,000 become Rs. 18,150 in 2 years?

A) 11 B) 10
C) 9 D) 12
 
Answer & Explanation Answer: B) 10

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4 1715
Q:

A sum of Rs 6000 becomes Rs 7200 in 2 years, when invested in a scheme of simple interest. If the same sum is invested in a scheme of compound interest with same yearly interest rate (compounding of interest is done yearly), then what will be the amount (in Rs) after 3 years?

 

A) 7434   B) 8244  
C) 7864   D) 7986
 
Answer & Explanation Answer: D) 7986

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4 1691
Q:

In what time(in years) will Rs. 8000 amount to Rs. 9261 at 5% per annum, compounded annually?

A) 3 B) 3.5
C) 4 D) 4.5
 
Answer & Explanation Answer: A) 3

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1 1644
Q:

The compound interest on Rs. 24000 at 10% per annum for 11⁄2 years, interest being compounded semi­annually is

A) Rs.3783 B) Rs.3777
C) Rs.3780 D) Rs.3781
 
Answer & Explanation Answer: A) Rs.3783

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2 1643
Q:

What is the compound interest on Rs. 48,000 for 2 years at 20% p.a., if interest is compounded annually?

A) Rs. 69,120 B) Rs. 21,120
C) Rs. 76,800 D) Rs. 72,000
 
Answer & Explanation Answer: B) Rs. 21,120

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5 1634
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 5% per annum is Rs 45. The sum is

A) Rs 36000 B) Rs 72000
C) Rs 18000 D) Rs 54000
 
Answer & Explanation Answer: C) Rs 18000

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2 1631
Q:

The amount received at 10% per annum compound interest after 3 yrs is Rs 10,648. What was the principal (in Rs)?

A) 8000 B) 9000
C) 8500 D) 7500
 
Answer & Explanation Answer: A) 8000

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1 1630