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### Question 1

The interest earned by an amount of Rs. 90000 @5% compounded annually is Rs. 9225. What is the period in years?

### Question 2

What is the difference in compound interest and simple interest on an amount of Rs. 60000 for a period of 2 years if the rate is 2% p.a. compounded annually?

### Question 3

How much interest does an amount of Rs. 9000000 earn @5% compounded annually for 3 years?

### Question 4

The difference in compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 252. What is the principal amount if the rate is 6% p.a.?

**A**

Rs. 70000.

**B**

Rs. 80000.

**C**

Rs. 60000.

**D**

Rs. 90000.

**Soln.**

**Ans: a**

The shortcut formula for the difference between compound and simple interest over a period of 2 years is $Difference = Principal × (\text"rate"/100)^2$. So Principal = $(Difference × 10000)/(rate × rate)$ = $(252 × 10000)/(6 × 6)$ = Rs. 70000.

### Question 5

An amount P is invested for 1 year @4% p.a. The simple interest is Rs. 3000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

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This Blog Post/Article "Compound Interest Quiz Set 005" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Updated on 2017-04-07.