Compound Interest
- The compound interest on ₹ 10,000 in 2 years at 4% per annum, the interest being compounded half-yearly, is :
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We find interest on compounded half-yearly,
Here , P = ₹ 10000, r = 4 / 2 = 2%, n = 2 × 2 = 4 years
Using the given formula ,A = P 
1 + r 
n 100 A = 10,000 1 + 2 4 100 A = 10,000 51 4 = 10824.3216 50
Correct Option: B
We find interest on compounded half-yearly,
Here , P = ₹ 10000, r = 4 / 2 = 2%, n = 2 × 2 = 4 years
Using the given formula ,A = P 1 + r n 100 A = 10,000 1 + 2 4 100 A = 10,000 51 4 = 10824.3216 50
∴ Compound Interest = Amount - Principal
Compound Interest = 10,824.3216 – 10,000 = ₹ 824.32
- At what percent per annum will ₹ 3000 amounts to ₹ 3993 in 3 years if the interest is compounded annually?
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Here , P = ₹ 3000, A = ₹ 3993, n = 3 years
Using the given formula ,A = P 1 + r n 100 ∴ 1 + r n = A 100 P 1 + r 3 = 3993 = 1331 100 3000 1000 1 + r 3 = 11 3 100 10
Correct Option: B
Here , P = ₹ 3000, A = ₹ 3993, n = 3 years
Using the given formula ,A = P 1 + r n 100 ∴ 1 + r n = A 100 P 1 + r 3 = 3993 = 1331 100 3000 1000 1 + r 3 = 11 3 100 10 ⇒ 1 + r = 11 100 10 ⇒ r = 11 − 1 100 10 ⇒ r = 1 ⇒ r = 100 100 10 10
∴ r = 10%
