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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:

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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4 853
Q:

Mr. Devesh borrowed Rs.4,500 at 4% per annum compound interest. The compound interest compounded annually for 2years is

A) Rs. 367.2 B) Rs. 4867.2
C) Rs. 4876.2 D) Rs.376.2
 
Answer & Explanation Answer: A) Rs. 367.2

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5 849
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

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6 848
Q:

A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is

A) Rs 6803 B) Rs 850
C) Rs 3402 D) Rs 1701
 
Answer & Explanation Answer: C) Rs 3402

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1 841
Q:

If the interest is compounded half-yearly, then what will be the compound interest (in Rs) on a sum of Rs 10000 for 1 year at the rate of 10% per annum?

A) 1250 B) 525
C) 1000 D) 1025
 
Answer & Explanation Answer: D) 1025

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3 836
Q:

The difference between simple and compound interest (compounded annually) on a sum of money for 3 years at 10% per annum is Rs. 93. The sum (in Rs.) is:

A) 30000 B) 30300
C) 3000 D) 3030
 
Answer & Explanation Answer: C) 3000

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1 833
Q:

What would be the compound interest of Rs. 25000 for 2 yrs. at 5% per annum?

A) 2500 B) 2562.5
C) 2425.25 D) 5512.5
 
Answer & Explanation Answer: B) 2562.5

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2 808
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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2 805