Correct Answers: | |

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Unattempted: |

### Question 1

An amount P is invested for 2 years @6% p.a. The simple interest is Rs. 6000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

**A**

Rs. 6180.

**B**

Rs. 6280.

**C**

Rs. 6080.

**D**

Rs. 6380.

**Soln.**

**Ans: a**

Let SI, P, r, t have usual meanings. Then, for 2 years, SI = (P × r × 2)/100. So P = $(50 × SI)/r$. The compound interest for 2 years by shortcut formula is ${P × r × (200 + r)}/10000$. Putting P here, it becomes, ${{(50 × SI)/r} × r × (200 + r)}/10000$ = ${SI × (r + 200)}/200$ = ${6000 × (6 + 200)}/200$ = Rs. 6180.

### Question 2

How much interest does an amount of Rs. 1000000 earn @4% compounded annually for 3 years?

### Question 3

An interest rate of 4% compounded half-annually is offered by a bank. An account holder deposits Rs. 10000 in the bank under this scheme. After six months he again deposits Rs 10000. What is the total amount that he will get after 1 year?

**A**

Rs. 20604.

**B**

Rs. 21316.

**C**

Rs. 21116.

**D**

Rs. 21416.

**Soln.**

**Ans: a**

Let P, A, r and n have their usual meanings. For the first deposit n = 2, and for the second deposit n = 1. So total amount is P × $((1 + r/100)^2 + (1 + r/100))$ = $P/10000$ × $((100 + r)^2 + 100(100 + r))$ = $P/10000 × (100 + r)$ × $(100 + r + 100)$ which equals ${P × (100 + r) × (200 + r)}/10000.$ Putting r = 2 and P = 10000 and cancelling 10000, we get 1 × 102 × 202 = Rs. 20604. *Please note that the rate of interest will be 1/2 because the compounding is half yearly.*

### Question 4

The interest earned by an amount of Rs. 90000 @2% compounded annually is Rs. 3636. What is the period in years?

### Question 5

The compound amount after 3 years on a principal of Rs. x is same as that on a principal of Rs. (828 - x) after 4 years, then what is x if the rate of interest is 7% p.a. compounded yearly?

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This Blog Post/Article "Compound Interest Quiz Set 016" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Updated on 2017-05-17.