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Compound Interest

The document provides formulas and calculations related to compound interest, including how to compute it for different compounding periods (half-yearly, quarterly, annually). It also outlines the differences between compound interest and simple interest, along with various example problems to illustrate the application of these concepts. Additionally, it includes specific scenarios for calculating compound interest based on given principal amounts, rates, and time periods.

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30 views8 pages

Compound Interest

The document provides formulas and calculations related to compound interest, including how to compute it for different compounding periods (half-yearly, quarterly, annually). It also outlines the differences between compound interest and simple interest, along with various example problems to illustrate the application of these concepts. Additionally, it includes specific scenarios for calculating compound interest based on given principal amounts, rates, and time periods.

Uploaded by

puntevlliana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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RISE UP ACADEMY

COMPOUND INTEREST

Important formula
𝑟
C.I = P[(1+ )n – 1]
100
𝒓
Amount = P(1+ )n
𝟏𝟎𝟎

C.I = Amount – Principal


Amount = CI + P
Compound Interest – when Interest is compounded half-yearly
Rate= r/2; time= 2n
𝑟
Amount = P(1+ )2n
2𝑥100

Compound Interest – when Interest is compounded quarterly


Rate= r/4; time= 4n
𝑟
Amount = P(1+ )4n
4𝑥100

Compound Interest – when Interest is compounded annually but time is in fraction


𝑝
R= rate; Time = n years
𝑞
𝑝
𝑟 𝑟
n 𝑞
Amount = P(1+ ) (1+ )
100 100

Difference between Compound Interest & Simple Interest


When Time = 2yrs
𝑅
CI - SI = P( )2
100
𝑅 𝑋 𝑆𝐼
CI - SI =
2 𝑋 100

When Time = 3yrs


CI - SI = PR2/104. (300+R)/100
CI - SI = SI/3. [(R2/100) + 3 (R/100)]
1. John invested an amount of ₹8000 in a fixed deposit scheme for 2 yr at the rate of 5% pa
compound interest. How much amount will John get on maturity of the fixed deposit?

2. An amount of ₹6000 lent at 5% pa compound interest for 2 yr will become:

3. What will be the compound interest on a sum of ₹46875 after 3 yr at the rate of 12% pa?
4. Find the compound interest in ₹50000 in 1 yr at 4% pa if the interest being compounded half-
yearly.

5. Mark invested ₹16000 at rate of 10% pa for 1 yr. If the interest is compounded semi-annually,
then find the amount received by Mark at the end of the year.

6. Find the compound interest on ₹8000 at 20% pa for 9 months, compounded quarterly.
7. What amount will be received on a sum of ₹150000 in ½ yr at 12% pa, if interest is compounded
quarterly?

8. Find the compound interest on ₹8000 at 15% pa for 2 yr 4 months, compound annually.

9. What amount will be received on a sum of Rs. 15625 in 5/2 yr, if the interest is compounded at
the rate of 8% pa?
10. David invested ₹1600 at the rate of compound interest for 2 yr. She got ₹1764 after the specified
period. Find the rate of interest.

11. The compound interest on a sum of ₹4000 becomes ₹630.50 in 9 months. Find the rate of
interest, if interest is compounded quarterly.

12. The compound interest on ₹30000 at 7% pa for a certain time is ₹4347. The time is:
13. In how many years ₹100000 will become ₹133100 at compound interest rate of 10% pa?

14. The difference between compound interest and simple interest for 2 yr at rate of 5% pa is ₹5,
then find the sum.

15. What is the difference between compound interest and simple interest for 2 yr on the sum of
₹1250 at 4% pa?
17. The difference between CI and SI for 3 yr at the rate of 20% pa is ₹152. What is the principal
lent?

18. If the simple interest for a certain sum for 2 yr at 5% pa is ₹200, then what will be the
compound interest for same sum for same period and at the same rate of interest?

19. The simple interest for certain sum in 2 yr at 4% pa is ₹80. What will be the compound interest
for same sum, if conditions of rate and time period are same?
20. A sum amounts to ₹2916 in 2 yr and ₹3149.28 in 3 yr at compound interest. The sum is:

21. A sum of money invested at compound interest amounts to ₹800 in 2 yr and ₹840 in 3 yr. Find
the rate of interest.

22. At what percent annual compound interest rate, a certain sum amounts to its 27 times in 3 yr

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