Compound Interest Problems
The Compound Interest formula is used to solve financial problems related to price or numbers. By solving Compound Interest Problems, you are become expert and used to solve problems based on Compound Interest formula. Here, on this page, we are providing some Shortcuts for Problem Solving related to this formula through which you can get idea of solving and can practice from these problems. Compound Interest Problems examples are available on this page which helps a lot to become expert to solve these formulas.
Compound Interest is used when interest has to find not only on initial state but also on any interest. This formula is used when we have given interest, a particular time limit and principal. On the page of www.recruitmentinboxx.com, we have given Compound Interest Problems in proper manner through which you can practice and learn to method of using this formula.
Compound Interest Problems
What Is Compound Interest Formula?
Simple Interest Formula:
Simple Interest = Principal * Time * Rate of interest / 100
Abbreviated as SI = PTR/100
Sometimes, the interest is also calculated half-yearly or quarterly.
When compounded semi-annually or half-yearly,
Amount = P [1 + (R/2)/100]2t
When compounded quarterly,
Amount = P[1 + (R/4)/100]4t
Present worth of Principal P due t years hence is given by:
P/ [1+ R/100] t
Shortcuts for Problem Solving:
Find Simple Interest using formula
SI = (P x T x R / 100)
Here, P = Principal
R = Rate per annual
T = Number of years
What would be the simple interest of Rs.18600/- in 8 months at the rate of 22/2% per annum?
8 months = 8 / 12 = 2 / 3
SI = 18600 x 2 x 22 x 1 / 3 x 2 x 100 = 1364
So, the Simple Interest of Rs.18600/- in 8 months would be Rs.1364/-.
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What would be the simple interest of Rs.20/- for 5 months at the rate of 6 paise per rupee per month?
SI = 20 x 5 x 6 / 100 = 6
So, the Simple Interest of Rs.20/- for 5 months would be Rs.6/-.
Find the simple interest of Rs.75000/- at 4% per annum for 4 years.
Here, P = 75000
R% = 4 per annum
T = 4 years
SI = (P x T x R / 100) = 75000 x 4 x 4 / 100 = 12000
So, the Simple Interest of Rs.75000/- would be Rs.12000/-.
So, we hope, you have learned properly compound interest formula. In below section of the page, we have given a quick test related to this, through which you can analyze and get practice.
Ques 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:
- Rs. 120
- Rs. 121
- Rs. 122
- Rs. 123
Ques 2) 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:
Ques 3) 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?
- Rs. 2160
- Rs. 3120
- Rs. 3972
- Rs. 6240
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What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?
- Rs. 2.04
- Rs. 3.06
- Rs. 4.80
- Rs. 8.30
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
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