Compound Interest
- In what time will ₹ 15625 amount to ₹ 17576 at 4% per annum, compounded yearly?
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Here , A = ₹ 17576 , P = ₹ 15625 , r = 4% per annum
We can find required answer with the help of given formula ,A = P 
1 + r 
t 100 ⇒ 1 + r t = A 100 P ⇒ 1 + 4 t = 17576 100 15625
Correct Option: C
Here , A = ₹ 17576 , P = ₹ 15625 , r = 4% per annum
We can find required answer with the help of given formula ,A = P 1 + r t 100 ⇒ 1 + r t = A 100 P ⇒ 1 + 4 t = 17576 100 15625 26 t = 17576 = 26 3 25 15625 25
Equating powers on both sides , we get
∴ t = 3 years.
- Find the ratio of simple interest to compound interest for 2 years at 4% per annum, compounded yearly in case of compound interest.
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Given that , Rate ( r ) = 4% , Time ( t ) = 2 years
Using the given formula ,SI/CI = rt 100 
1 + r t − 1 
100 Required ratio = 4 × 2 100 1 + 4 2 − 1 100 Required ratio
=2 25 676 − 1 625
Correct Option: B
Given that , Rate ( r ) = 4% , Time ( t ) = 2 years
Using the given formula ,SI/CI = rt 100 1 + r t − 1 100 Required ratio = 4 × 2 100 1 + 4 2 − 1 100 Required ratio
=2 25 676 − 1 625 ; Required ratio = 2 × 625 25 × 51 SI = 50 = 50 : 51 CI 51
- Find the present worth of ₹ 9261 due 3 years hence at 5% per annum compounded yearly.
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Here, A = ₹ 9261 , r = 5% per annum , t = 3 years
We can find required answer with the help of given formula ,P = A 1 + r t 100 P = 9261 1 + 5 3 100
Correct Option: A
Here, A = ₹ 9261 , r = 5% per annum , t = 3 years
We can find required answer with the help of given formula ,P = A 1 + r t 100 P = 9261 1 + 5 3 100 P = 9261 9261 8000
P = ₹ 8000.
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compounded yearly.Find compound interest on ₹ 10,000 for 3 1 years at 10% per annum, 2
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Given in question , Principal ( P ) = ₹ 10,000 , Rate ( r )= 10% , Time = 3.5 years
A = P 1 + r 3 = 1 + r/2 100 100 A = 10,000 1 + 10 3 = 1 + 5 100 100
Correct Option: D
Given in question , Principal ( P ) = ₹ 10,000 , Rate ( r )= 10% , Time = 3.5 years
A = P 1 + r 3 = 1 + r/2 100 100 A = 10,000 1 + 10 3 = 1 + 5 100 100 A = 10,000 × 1331 × 21 1000 20
A = ₹ 13975.5
Compound Interest ( CI ) = Amount ( A ) - Principal ( P )
CI = ₹ (13975.5 – 10,000)
∴ CI = ₹ 3975.5
- Find compound interest on ₹ 5000 for 2 years at 10% per annum, compounded half-yearly.
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Using the given formula ,
A = P 1 + r 2t 200
Interest is compounded half-yearly ,
Here, P = ₹ 5000 , r = 10% per annum , t = 2 yearsSo, A = 5000 1 + 10 4 200 A = 5000 1 + 5 4 100
Correct Option: A
Using the given formula ,
A = P 1 + r 2t 200
Interest is compounded half-yearly ,
Here, P = ₹ 5000 , r = 10% per annum , t = 2 yearsSo, A = 5000 1 + 10 4 200 A = 5000 1 + 5 4 100 A = 5000 × 194481 = 194481 160000 32
A = ₹ 6077.5
∴ CI = A - P
CI = ₹ (6077.5 – 5000) = ₹ 1077.5.
