Compound Interest


  1. A sum of money becomes Rs. 6690 after three years and Rs. 10035 after six years on compound interest. The sum is ?









  1. View Hint View Answer Discuss in Forum

    Let the principal be P,then
    P(1 + R/100)3 = 6690
    And P(1 + R/100)6 = 10,035
    Now, dividing (ii)by (i),we get
    ⇒ (1 + R/100)3 = 10035/6690 = 3/2

    Correct Option: C

    Let the principal be P,then
    P(1 + R/100)3 = 6690
    And P(1 + R/100)6 = 10,035
    Now, dividing (ii)by (i),we get
    ⇒ (1 + R/100)3 = 10035/6690 = 3/2
    ⇒ P x 3/2 = 6690
    ∴ P = (6690 x 2/3 ) = Rs. 4460


  1. What will be the compound interest of Rs. 8000 at 10% p.a. for 11/2 years. When compound interest is payable half yearly ?









  1. View Hint View Answer Discuss in Forum

    Yearly interest = 10%
    Half yearly = 5%
    Time = 11/2 = (3/2) x 2 half yearly = 3 half yearly
    Amount = 8000(1 + 5/100)3
    = 8000 x (21/20)3
    = 8000 x 21/20 x 21/20 x 21/20
    = Rs. 9261

    Correct Option: A

    Yearly interest = 10%
    Half yearly = 5%
    Time = 11/2 = (3/2) x 2 half yearly = 3 half yearly
    Amount = 8000(1 + 5/100)3
    = 8000 x (21/20)3
    = 8000 x 21/20 x 21/20 x 21/20
    = Rs. 9261

    Compound interest = Amount - Principal = 9261 - 8000
    = Rs. 1261



  1. If the interest of a certain sum for the first year at 8% p.a. compound interest is Rs. 48. What will be the interest for the second years ?









  1. View Hint View Answer Discuss in Forum

    S.I. or C.I. for first year are always equal
    Principle = (S.I. x 100)/(Rate x Time)
    = (48 x 100)/(8 x 1) = Rs. 600
    Interest for second year = Amount of second year - Amount of the first year
    = 600 (1 +8/100)2 - 600(1 +8/100)

    Correct Option: B

    S.I. or C.I. for first year are always equal
    Principle = (S.I. x 100)/(Rate x Time)
    = (48 x 100)/(8 x 1) = Rs. 600
    Interest for second year = Amount of second year - Amount of the first year
    = 600 (1 +8/100)2 - 600(1 +8/100)
    = 600(27/25)2 - 600(27/25)
    = 600(27/25) {27/25 - 1}
    = 600(27/25) (2/25)
    = Rs. 51.84


  1. If the compound interest of a certain sum of money for 2 years at 5 % p.a. is Rs. 328. what will be the simple interest on the same time and at the same rate ?









  1. View Hint View Answer Discuss in Forum

    ∵ 328 = Principal {(1 +5/100)2 - 1}
    ⇒ 328 = Principal (441/400 - 1)
    ⇒ 328 =Principal 41/400
    ⇒ Principal = (328 x 400)/41 = Rs. 3200
    ∴ Simple interest = (3200 x 5 x 2) / 100 = Rs. 320

    Correct Option: A

    ∵ 328 = Principal {(1 +5/100)2 - 1}
    ⇒ 328 = Principal (441/400 - 1)
    ⇒ 328 =Principal 41/400
    ⇒ Principal = (328 x 400)/41 = Rs. 3200
    ∴ Simple interest = (3200 x 5 x 2) / 100 = Rs. 320



  1. Find the least number of complete years in which a sum of money put out at 20 percent compound interest will be more than doubled ?









  1. View Hint View Answer Discuss in Forum

    Here P(1+20/10)t > 2P
    ⇒ (6/5)t > 2

    Correct Option: C

    Here P(1 + 20/10)t > 2P
    ⇒ (6/5)t > 2
    ∵ (6/5)3 = 1.728, and
    (6/5)4 = 2.0736
    By trial (6/5) x (6/5) x (6/5) x (6/5) > 2
    ∴ The required time is 4 years.