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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:

If compound interest received on a certain amount in the 3rd year is Rs. 1,240, what will be the compound interest (in Rs) for the 4th year on the same amount at 9% rate of interest?

A) 1245.6 B) 1521.6
C) 1351.6 D) 1220.6
 
Answer & Explanation Answer: C) 1351.6

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0 1413
Q:

A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of Rs.2522. Find the Principal?

A) Rs. 12,522 B) Rs. 15,200
C) Rs. 16,000 D) Rs. 17,200
 
Answer & Explanation Answer: C) Rs. 16,000

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6 1410
Q:

A sum of Rs 10000 becomes Rs 14641 when invested at compound interest at the yearly interest rate of 20% per annum. If the compounding is done half yearly, then for how many years was the sum invested?

 

A) 1 B) 2
C) 3 D) 4
 
Answer & Explanation Answer: B) 2

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2 1410
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 1407
Q:

There is 40% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 25000 after 3 years at the same rate?

A) Rs 6492.8 B) Rs 12985.6
C) Rs 16232 D) Rs 9739.2
 
Answer & Explanation Answer: A) Rs 6492.8

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0 1404
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 1402
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 1392
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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