Compound Interest
- The difference between compound interest and simple interest on a certain sum of money for 2 years at 5% per annum is Rs. 41. What is the sum of money ?
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Here , Difference = C.I. - S.I. = Rs. 41 , Time = 2 years , Rate = 5%
We can find required answer with the help of given formula ,Difference = PR2 10000 ⇒ 41 = P × 5 × 5 10000
Correct Option: C
Here , Difference = C.I. - S.I. = Rs. 41 , Time = 2 years , Rate = 5%
We can find required answer with the help of given formula ,Difference = PR2 10000 ⇒ 41 = P × 5 × 5 10000 ⇒ 41 = P 400
⇒ P = 41 × 400 = Rs. 16400
- 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 :
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Given that , Principal = ? , Difference = C.I. - S.I. = Rs. 93 , Time = 3 years , Rate = 10%
Using the given formula ,Difference between C.I. and S.I. for 3 years = Pr2(r + 300) 1000000 ⇒ 93 = P × 100(10 + 300) 1000000
Correct Option: A
Given that , Principal = ? , Difference = C.I. - S.I. = Rs. 93 , Time = 3 years , Rate = 10%
Using the given formula ,Difference between C.I. and S.I. for 3 years = Pr2(r + 300) 1000000 ⇒ 93 = P × 100(10 + 300) 1000000 ⇒ 93 = P × 100 × 310 1000000 ⇒ 31P = 93 1000 ⇒ P = 93000 = Rs. 3000 31
- The difference between C I and S I for 2 years at 10% rate of interest is Rs. 4. Find the sum of money.
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Given in question , Difference = C.I. - S.I. = ₹ 4 , Time = 2 years , Rate = 10%
Using the given formula ,Difference = PR2 10000
Correct Option: A
Given in question , Difference = C.I. - S.I. = ₹ 4 , Time = 2 years , Rate = 10%
Using the given formula ,Difference = PR2 10000 ⇒ 4 = P × 10 × 10 10000
⇒ P = Rs. 400
- On what sum of money will the difference between simple interest and compound interest for 2 years at 5% per annum be equal to Rs. 63?
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Given that , Difference = C.I. - S.I. = ₹ 63 , Time = 2 years , Rate = 5%
Using the given formula ,Difference = PR2 10000
Correct Option: C
Given that , Difference = C.I. - S.I. = ₹ 63 , Time = 2 years , Rate = 5%
Using the given formula ,Difference = PR2 10000 ⇒ 63 = P × 5 × 5 10000
⇒ P = 400 × 63 = ₹ 25200
- Find the difference between the compound interest and the simple interest on ₹ 32,000 at 10% p.a. for 4 years.
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Given Here , Principal = ₹ 32,000 , C.I. - S.I. = ? , Time = 4 years , Rate = 10%
S.I. = Principal × Time × Rate 100 S.I. = 32000 × 4 × 10 = ₹ 12800 100 C.I. = P 
1 + R 
4 − 1 
100
Correct Option: A
Given Here , Principal = ₹ 32,000 , C.I. - S.I. = ? , Time = 4 years , Rate = 10%
S.I. = Principal × Time × Rate 100 S.I. = 32000 × 4 × 10 = ₹ 12800 100 C.I. = P 1 + R 4 − 1 100 C.I. = 32000 1 + 10 4 − 1 100
C.I. = 32000 [(1.1)4 – 1]
C.I. = 32000 (1.4641 – 1)
C.I. = 32000 × 0.4641= 14851.2
∴ Required difference = C.I. - S.I.
Required difference = 14851.2 – 12800 = ₹ 2051.2
