Compound Interest Questions

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 difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 18% per annum is Rs 81. The sum is ____.

A) Rs 2500 B) Rs 5000
C) Rs 10000 D) Rs 7500
 
Answer & Explanation Answer: A) Rs 2500

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

6 1496
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

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

0 1490
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 12% per annum is Rs 900. What is the value of given sum (in Rs)?

A) 125000 B) 250000
C) 62500 D) 187500
 
Answer & Explanation Answer: C) 62500

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest

4 1489
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

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

0 1461
Q:

If the amount received at the end of 2nd and 3rd year at compound Interest on a certain Principal is Rs 9,600 and Rs 10,272 respectively, what is the rate of interest (in %)?

A) 7 B) 8
C) 6 D) 5
 
Answer & Explanation Answer: A) 7

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

2 1460
Q:

The amount (in Rs) received at 10% per annum compound interest after 3 yrs is Rs 1,19,790. What was the principal?

A) 90000 B) 1,00,000
C) 80000 D) 75000
 
Answer & Explanation Answer: A) 90000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

0 1441
Q:

What is the difference (in Rs) between the compound interests on Rs. 1000 for 1 year at 10% per annum compounded yearly and half-yearly?

A) 1.5 B) 0.5
C) 2.5 D) 3.5
 
Answer & Explanation Answer: C) 2.5

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

3 1420
Q:

Calculate the principal if an amount of Rs. 441 is received on compound interest at the rate of 5% per annum after 2 years.

 

A) Rs.400 B) Rs.390
C) Rs.380 D) Rs.350
 
Answer & Explanation Answer: A) Rs.400

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Compound Interest
Exam Prep: Bank Exams

6 1414