Home / Article / Explained – Compound Interest Formula – Monthly/Quarterly/Half Yearly With Example

Explained – Compound Interest Formula – Monthly/Quarterly/Half Yearly With Example

Compound Interest Formula

Compound Interest Formula is basically used to calculate interest on borrowed money. If you want to appear for Bank, SSC, UPSC and other competitive examination, then you must know how to solve Compound Interest Problems. Compound Interest Formula for Monthly, Quarterly, Half Yearly and Annually along with Compound Interest Formula Example are Explained here. If you will know the basics of this topic, you can easily solve all questions based on Formula Of Compound Interest.

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Formulas Of Compound Interest With Example Compound Interest Formulas Pdf
How to calculate Monthly/ Quarterly/ Half Yearly/ Annually Compound Interest? Compound Interest Solved Question and Answer

Compound Interest Formula In Maths is used as following in this article. Compound Interest Formula Calculator India works as given in examples here. Some of us think that it’s impossible to get good score in aptitude section because of this topic. But we are sure, after reading this article you will not think same as before. Here, we the team of www.recruitmentinboxx.com, are describing some Compound Interest Formula Shortcuts, which will save your time while appearing in exam.

Formulas Of Compound Interest

For all the Formulas, Let Principal = P, Rate = R% per annum, Time = n years.

Compound Interest Formula Annually:

Amount = P (1 + R/100)n

Compound Interest Formula Half Yearly:

Amount = P [1 + (R/2)/ 100]2n

Compound Interest Formula Quarterly:

 Amount = P [1 + (R/4)/ 100]4n

Compound Interest Formula Monthly:

Amount = P [1 + (R/12)/ 100]12n

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To calculate Compound Interest Annually but time is in fraction, say 17/5 years:

Amount = P (1 +R/100)3 x (1 + (2R/5)/100)

When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year respectively:

Then, Amount = P (1 +R1/100) (1 + R2/100) (1 +R3/100)

Present worth of Rs. x due n years hence is given by:

Present Worth = x/ (1 + R/ 100)

Compound Interest Formula

How to calculate Monthly/ Quarterly/ Half Yearly/ Annually Compound Interest with Example?

Here Compound Interest Formula With Example are given. You can check Compound Interest Formula For Half Yearly, Compound Interest Formula For Quarterly, Compound Interest Formula For Monthly and Compound Interest Formula For Annually and way to solve questions.

Monthly Calculation of Compound Interest:

  1. Find the compound interest on Rs. 2,000 at 4% per Month for 1 year, compounded monthly?

Formula Used:

Amount = P [1 + (R/12)/ 100]12n

Explanation:

Amount = 2,000 [1 + (4/4)/ 100]12

            = 2000 [1+ 1/100]12

            = 2000 [101/100]12

            = 2253.65

C.I        = 2253.65 – 2000 = 253.65

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Quarterly Calculation of Compound Interest:

  1. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly

Formula Used:

Amount = P [1 + (R/4)/ 100]4n

Explanation:

Half Yearly Calculation of Compound Interest:

  1. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

Formula Used:

Amount = P [1 + (R/2)/ 100]2n

Explanation:

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Annually Calculation of Compound Interest:

  1. Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.

Formula Used:

Amount = P (1 + R/100)n

Explanation:

Compound Interest Formula Pdf

Compound Interest Formula India Download PDF
Compound Interest Formula Derivation Download PDF
Calculation Of Compound Interest Formula Download PDF
Compound Interest Ques and Ans Download PDF

Compound Interest Question and Answer

  1. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
    1. Rs. 2160
    2. Rs. 3120
    3. Rs. 3972
    4. Rs. 6240
    5. None of these

Answer: C

Explanation:

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  1. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
    1. 2
    2. 5/2
    3. 3
    4. 4

Answer: A

Explanation:

  1. What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?
    1. Rs. 9000.30
    2. Rs. 9720
    3. Rs. 10123.20
    4. Rs. 10483.20
    5. None of these

Answer: C

Explanation:

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  1. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
    1. 625
    2. 630
    3. 640
    4. 650

Answer: A

Explanation:

  1. What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?
    1. Rs. 2.04
    2. Rs. 3.06
    3. Rs. 4.80
    4. Rs. 8.30

Answer: A

Explanation:

  1. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
    1. 6%
    2. 6.5%
    3. 7%
    4. 7.5%

Answer: A

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  1. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
    1. Rs. 8600
    2. Rs. 8620
    3. Rs. 8820
    4. None of these

Answer: C

  1. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
    1. 6.06%
    2. 6.07%
    3. 6.08%
    4. 6.09%

Answer: D

  1. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
    1. 3
    2. 4
    3. 5
    4. 6

Answer: B

  1. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
    1. Rs. 1550
    2. Rs. 1650
    3. Rs. 1750
    4. Rs. 2000

Answer: C

  1. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:
    1. Rs. 2.50
    2. Rs. 3
    3. Rs. 3.75
    4. Rs. 4
    5. None of these

Answer: B

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  1. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:
    1. Rs. 400
    2. Rs. 500
    3. Rs. 600
    4. Rs. 800

Answer: B

  1. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
    1. 8
    2. 10
    3. 12
    4. Cannot be determined
    5. None of these

Answer: Option A

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  1. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?
    1. Rs. 51.25
    2. Rs. 52
    3. Rs. 54.25
    4. Rs. 60

Answer: A

  1. The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is Rs.144. Find the principal?
    1. Rs. 3000
    2. Rs. 3300
    3. Rs. 3600
    4. Rs. 3900

Answer: C

Compound Interest Formula

Compound Interest Formula India is used as given above. In Indian Banks when you deposit money in banks, then you can earn on interest on the money. The mathematical formula for calculating compound interest depends on the time on which you are compounding interest. Compound interest depends on money deposited (principal), the annual interest rate, number of times the money is compounded per year and years for which money is left in the bank. Not only in books but also you can check Compound Interest Formula Online and also get Compound Interest Formula Aptitude from here.

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