Compound Interest


  1. A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself in ?









  1. View Hint View Answer Discuss in Forum

    Let the principal be P and rate be r%.Then
    2P = P(1 + r/100)5
    ⇒ (1 + r/100)5 = 2
    Let it be 8 times in t years, then
    ∵ 8P = P(1 + r/100)t

    Correct Option: A

    Let the principal be P and rate be r%.Then
    2P = P(1 + r/100)5
    ⇒ (1 + r/100)5 = 2
    Let it be 8 times in t years, then
    ∵ 8P = P(1 + r/100)t
    ⇒ (1 + r/100)t = 8
    ⇒ (2)3 ⇒ (1 + r/100)15
    ∴ t =15 year.


  1. The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 420. The simple interest on the same sum at the same rate and for the same time will be ?









  1. View Hint View Answer Discuss in Forum

    Let the principal be P. Then,
    ∵ P(1 +10/100)2 - P =420
    ⇒ P(121 - 100/100) =420
    ⇒ P = Rs. 2000

    Correct Option: D

    Let the principal be P. Then,
    ∵ P(1 +10/100)2 - P =420
    ⇒ P(121 - 100/100) =420
    ⇒ P = Rs. 2000
    ∴ Requared S.I.= Rs.(2000 x 2 x 10)/100
    = Rs. 400



  1. Rs. 1600 at 10% per annum compounded half yearly amount to Rs. 1944.81 in ?









  1. View Hint View Answer Discuss in Forum

    1600(1 +5/100)t = 1944.81
    ⇒ (21/20)t =194481/160000 =(441/400)2 = (21/20)4
    ∴ T = 4( half years)
    ⇒ Required time =2 years

    Correct Option: A

    1600(1 +5/100)t = 1944.81
    ⇒ (21/20)t =194481/160000 =(441/400)2 = (21/20)4
    ∴ T = 4( half years)
    ⇒ Required time =2 years


  1. What will be the approximate compound interest on Rs. 101005 at 10% p.a. for 3 years ?









  1. View Hint View Answer Discuss in Forum

    Compound interest = P {(1 + r/100)t - 1}
    = 10105 { (1 +10/100)3 - 1}

    Correct Option: C

    Compound interest = P {(1 + r/100)t - 1}
    = 10105 { (1 +10/100)3 - 1}
    =10105 {(11/10)3 - 1}
    =10105 {1331/1000 - 1}
    =10105(331/1000)
    = 3344.755
    = Rs. 3300(app.)



  1. If the compound interest of a certain sum of money for two successive years be Rs, 225 and Rs. 238.50. What is the rate of interest per annum ?









  1. View Hint View Answer Discuss in Forum

    From question it is clear that the simple interest of rupees 225 for one year is 238.50 - 225.

    Correct Option: B

    From question it is clear that the simple interest of rupees 225 for one year is 238.50 - 225.
    So Rate = (simple interest x 100 )/( time x principle)
    = {(238.50 - 225) x 100}/(225 x 1) % = 6%