Compound Interest


  1. An amount at the rate of 5% pa becomes ₹ 10 more at compound interest than that of simple interest after 2 yr. Calculate the principal.









  1. View Hint View Answer Discuss in Forum

    Here, CI - SI = 10, R = 5%, n = 2 yr and P = ?
    According to the formula,
    CI - SI = PR2/1002
    ⇒ 10 = (P x 25)/10000

    Correct Option: A

    Here, CI - SI = 10, R = 5%, n = 2 yr and P = ?
    According to the formula,
    CI - SI = PR2/1002
    ⇒ 10 = (P x 25)/10000
    ∴ P = (400 x 10) = ₹ 4000


  1. The principal amount which yields a compound interest of ₹ 208 in the second year at 4% is









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    Let the principal be ₹ P.
    Amount after first year = (P x 104)/100 and
    amount after second year P x (104/100) x (4/100)
    According to the question.
    (P x 104 x 4)/(100 x 100) = 208

    Correct Option: A

    Let the principal be ₹ P.
    Amount after first year = (P x 104)/100 and
    amount after second year P x (104/100) x (4/100)
    According to the question.
    (P x 104 x 4)/(100 x 100) = 208
    ∴ P = ₹ 5000



  1. Find the compound interest for a sum of ₹ 9375 in 2 yr, if the rate of interest for the first year is 2% and for the second year is 4%.









  1. View Hint View Answer Discuss in Forum

    Given, P = ₹ 9375, R1 = 2% and R2 = 4%
    According to the formula,
    A = P (1 + R1/100) (1 + R2/100)
    = 9375 (1 + 2/100) (1 + 4/100)

    Correct Option: A

    Given, P = ₹ 9375, R1 = 2% and R2 = 4%
    According to the formula,
    A = P (1 + R1/100) (1 + R2/100)
    = 9375 (1 + 2/100) (1 + 4/100)
    = 9375 x (51/50) x (26/25)
    = 7.5 x 51 x 26
    = ₹ 9945

    Now CI = A - P = 9945 - 9375 = ₹ 570


  1. The population of a country is 100 crore and it is the possibility that the population will become 13.31 crore in 3 yr. What will be the annual rate percent on this growth?









  1. View Hint View Answer Discuss in Forum

    Given, P = 10 crore
    and population after 3 yr = 13.31 crore
    According to the formula,
    Population after n yr = P (1 + R/100 )n

    Correct Option: C

    Given, P = 10 crore
    and population after 3 yr = 13.31 crore
    According to the formula,
    Population after n yr = P (1 + R/100 )n
    ⇒ 13.31 = 10 (1 + R/100 )3
    ⇒ 1331/1000 = (1 + R/100 )3
    ⇒ (11/10)3 = (1 + R/100 )3
    ⇒ 1 + R/100 = 11/10
    ⇒ R/100 = 11/10 - 1 = 1/10
    ∴ R = 10%



  1. The difference between simple interest and compound interest of a certain sum of money at 20% per annum for 2 years is ₹ 48. Then the sum is









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    Given that , Difference = C.I. - S.I. = ₹ 48 , Time = 2 years , Rate = 20%
    Using the given formula ,

    Difference of two years = P
    r2
    10000

    Correct Option: B

    Given that , Difference = C.I. - S.I. = ₹ 48 , Time = 2 years , Rate = 20%
    Using the given formula ,

    Difference of two years = P
    r2
    10000

    ⇒ 48 = P
    400
    10000

    ⇒  48 =
    P
    25

    ⇒  P = 48 × 25 = ₹ 1200