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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:

What is the difference between the maturity values, if Rs. 12500 is invested for 2 years at 20% per annum simple interest and compound interest?

A) Rs. 750 B) Rs. 650
C) Rs. 550 D) Rs. 500
 
Answer & Explanation Answer: D) Rs. 500

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2 920
Q:

If the amount received at the end of 2nd and 3rd year as Compound Interest on a certain Principal is Rs 2100, and Rs 2268 respectively, what is the rate (in %) of interest?

A) 7 B) 8
C) 9 D) 10
 
Answer & Explanation Answer: B) 8

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0 913
Q:

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 16854, and Rs 17865.24 respectively, what is the rate of interest?

A) 3 percent B) 12 percent
C) 6 percent D) 10 percent
 
Answer & Explanation Answer: C) 6 percent

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2 909
Q:

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 25088, and Rs 28098.56 respectively, what is the rate of interest?

A) 6 percent B) 24 percent
C) 12 percent D) 19 percent
 
Answer & Explanation Answer: C) 12 percent

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2 902
Q:

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 29160, and Rs 31492.8 respectively, what is the rate of interest?

A) 4 percent B) 8 percent
C) 16 percent D) 13 percent
 
Answer & Explanation Answer: B) 8 percent

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0 885
Q:

The compound interest on Rs. 4000 for 4 years at 10% per annum will be

A) Rs. 1856.40 B) Rs. 1600
C) Rs. 1856 D) Rs. 1756.60
 
Answer & Explanation Answer: A) Rs. 1856.40

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0 880
Q:

Rs. 10000 is being compounded at 20% per annum. Calculate the amount after 2 years if the rate of interest is charged half yearly.

A) 14600 B) 12500
C) 14642 D) 14641
 
Answer & Explanation Answer: D) 14641

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2 871
Q:

A bank offers 10% compound interest per half year. A customer deposits Rs. 2000 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is

A) Rs 1240 B) Rs 310
C) Rs 155 D) Rs 620
 
Answer & Explanation Answer: D) Rs 620

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0 866