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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 money is invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more if interest is compounded half-yearly. The sum

A) Rs.15,000 B) Rs.30,000
C) Rs.20,000 D) Rs.7,500
 
Answer & Explanation Answer: B) Rs.30,000

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3 1769
Q:

If the amount on a certain principal in 3 years at 12% rate of interest compounded annually is Rs 12,000, what will be the amount (in Rs) after the 4th year?

A) 14330 B) 15440
C) 13440 D) 14550
 
Answer & Explanation Answer: C) 13440

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1 1695
Q:

What is the least number of complete years in which a sum of money put out at 40% annual compound interest will be more than trebled?

A) 3 B) 4
C) 5 D) 6
 
Answer & Explanation Answer: B) 4

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6 1693
Q:

If Rs. 10000 amounts to Rs. 11664 invested in compound interest(compounded annually) for two years then the annual rate of compound interest is

A) 10% B) 9%
C) 8% D) 6%
 
Answer & Explanation Answer: C) 8%

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1 1667
Q:

Mr. Mike borrowed Rs. 8500 at 4% per annum C.I. The C.I. compounded annally for 2 years is :

A) Rs. 9139.6 B) Rs. 639.6
C) Rs. 9193.6 D) Rs. 693.6
 
Answer & Explanation Answer: D) Rs. 693.6

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6 1651
Q:

A bank offers 15% compound interest per half year. A customer deposits Rs 2400 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 2268 B) Rs 1134
C) Rs 567 D) Rs 283
 
Answer & Explanation Answer: B) Rs 1134

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4 1636
Q:

At what rate of compound interest per annum will a sum of Rs 20000 become Rs 23328 in 2 years?

A) 8 percent B) 16 percent
C) 24 percent D) 12 percent
 
Answer & Explanation Answer: A) 8 percent

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6 1599
Q:

In how many years will Rs 2,000 yield Rs 662 as compound interest at 10% per annum compounded annually?

A) 3 B) 2
C) 4 D) 5
 
Answer & Explanation Answer: A) 3

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6 1584