Compound Interest

Compound Interest 2.
COMPOUND INTEREST COMPOUND INTEREST - When interest charged

on total outstanding amount, it is called compound interest.
Anwesha bought a new scooty with the help of loan Suppose a person borrowed Rs. 5000 at 10% per
annum for two years.
from a bank she had to repay bank the amount in yearly
installments. She managed to repay the loan in three years. Calculation of interest when amount lent at compound
After repaying she calculated the amount and found that she interest -
paid more money than what she had borrowed. She discussed
the matter with her father. Her father made her understand
st
that as bank had lent money so bank charged interest. 5000 10% 500 1 year
nd
500 50 2 year
It can be understood from the above passage that as Initial
Anwesha used money so she paid rent. Rate Interest
Amount
of
As person who are staying in other's house, pay rent Interest
to the owner because property of other's is being used for
his purpose. In case of money, borrower uses lender's money As in first year total outstanding amount or unpaid balance
for his purpose so he pays interest. is Rs. 5000, so interest calculated only on Rs. 5000 . But for
DEFINITION the second year outstanding amount are Rs. 5000 and Rs.
500, so interest calculated on both the amount.
Interest - A fee paid for the use of another party's  Principal - Initial given or taken amount is called
money. To the borrower, it is the cost of renting money to principal.
the lender it is income for renting money.  Rate of interest (ROI)- Interest to be paid for a year
TYPES OF INTEREST on Rs. 100 is called rate of interest.
 Amount -Principal with interest or total paid money
 There are two types of interest is called amount.
1. SIMPLE INTEREST
TYPES OF QUESTIONS
2. COMPOUND INTEREST
SIMPLE INTEREST - When interest charged on initial There are 9 types of questions which have been asked
given or taken amount, it is called simple interest. in previous years one-day examinations and which may be
Calculation of interest when amount lent at simple asked in upcoming examinations.
interest- 1. Simple questions.
st
2. Different rate of interest based questions.
5000 10% 500 1 year
nd
3. When time period is in fraction.
Initial Rate of 500 2 year 4. When interest calculated annually, half yearly,
Amount Interest quarterly or monthly basis.
As in case of simple interest, calculation of interest is done 5. When interest calculated for long period.
on initial amount so it is same for every period. 6. Ratio of interest based questions.
Maths' Mirror Amit Kr. Verma

2.2 Percentage and its Applications
7. Finding ROI, principal etc. Compound interest for 3rd year = 3000 + 150 + 150 + 7.5
8. When amount become double, tripple. = Rs. 3307.5
9. Distribution of principal in two parts. (Note : There is difference between 3 years and 3rd year.)
TYPE-1 Ex1.5: Radha invested an amount of Rs. 1,80,000 at
compound rate of interest 10% p.a for a period of 4 years.
 SIMPLE QUESTIONS How much amount will Radha get after 4 years?
When compound interest is calculated for 2 years, 3 Sol. 180000 10% 18000
years or 4 years, try to solve questions by forming P ROI 18000 1800
tables. Table helps in developing a good and lucid 18000 1800 1800 180
concept of this chapter.
18000 1800 1800 180
Ex.1.1 Calculate compound interest on Rs. 40,000 at 5% 1800 180 180 18
p.a. for 2 years, when interest compounded annually.
 Amount at the end of 4 years = 1,80,000+83538
Sol. = Rs. 2,63,538
40,000 5% 2,000
P ROI 2,000 100
TYPE-2
 WHEN ROI ARE DIFFERENT FOR DIFFERENT
 Compound Interest for 2 years = 4000 + 100 TIME PERIOD.
= Rs. 4100
Ex.2.1 Calculate compound interest for 2 years on Rs.
Ex.1.2 Calculate compound interest for 3 years on Rs. 80,000 when rate of interest is 5% p.a for 1st year and 10%
5,12,000 at 12.5% p.a, when interest compounded annually. p.a. for 2nd year where interest compounded annually.
Sol. Sol. 80000 5% 4000
5,12,000 12.5% 64,000
P ROI P 10% 8000 400
64,000 8000 ROI
64,000 8000 8000 1000  Compound interest for 2 years
= 4000 + 8000 + 400 = Rs. 12400
Compound interest for 3 years = Rs. 2,17,000
Ex.2.2 A farmer borrowed Rs. 80,000 for 3 years. Rate of
Ex.1.3 Find compound interest for second year on Rs. interest for 1st, 2nd and 3rd year are 1%, 2% and 3%
1,20,000 at 5% per annum, when interest compounded respectively. Find how much amount farmer will return after
annually. time period when interest compounded annually?
Sol.
Sol. 120,000 5% 6000
P ROI 6000 300 2nd year 80000 1% 800
P 2% 1600 16
3% 2400 24 48 0.48
Compound interest for 2nd year = 6000+300 ROI
= Rs. 6300 Amount at the end of 3 years = 80,000+4888.48
(Note : There is difference between 2 years and 2nd year, 2 = Rs. 84888.48
year means one and two year both but 2nd year means 2nd
Ex.2.3 A person borrowed Rs. 24,000 for three years. Rate
position.)
of interest for the 1st, 2nd and 3rd year are 5%, 1% and 10%
Ex.1.4 Find compound interest for the third year on Rs. respectively. How much amount he will return at the end of
60,000 at 5% p.a when interest compounded annually. 3 years when interest compounded annually.
Sol. Sol.
60,000 5% 3,000 24000 5% 1200
P ROI 1% 240 12
3,000 150
3,000 150 150 7.5 3rd year 10% 2400 120 24 1.20
Amit Kr. Verma Maths' Mirror

Compound Interest 2.3
Required amount Ex.3.1 A person lends Rs. 80,000 for 1.5 years at 4% p.a
= 24000 +1200+240+12+2400+120+1.20+24 compounding annually. How much amount he will receive
= Rs. 27997.20 after time period?
Ex.2.4 A farmer borrowed Rs. 64000 for 3 years. Rate of 1
interest for the 1st, 2nd and 3rd year are 2.5%, 5% and 10% Sol. Interest for 1 years means 1 year complete and
2
respectively. Calculate amount at the end of 3 years, if
compounding is done annually. 0.5 of 2nd year.
80,000 4% 3200
Sol. 1
(3200 128)
64,000 1600 2
3200 80
6400 160 320 8 1
Required amount = 80,000 + 3200 + (3200+128)
2
 Amount at the end of 3 years = 64000 + 11768 = 80,000+ 3200+ 1664= Rs. 84864
= Rs. 75768
Ex.3.2 Find compound interest on Rs. 20,000 at 3% p.a for
TYPE-3 2 years 3 months when interest is being calculated annually.
 WHEN GIVEN TIME PERIOD IS IN FRACTION. Sol. Interest for 2 years and 3 months means 2 years
In this type we will learn , how to calculate compound 3
interest when time period is in fraction eg. 2.5 years, complete and of 3rd year..
12
1
1 years, 2 years 4 months,1 year 3 weeks , 2 years 20000 3% 600
7 600 18
73 days etc. 3
12
(600 18 18 0.54)
Fraction of time period may be given in six different
ways - 3
1. It may be in decimal e.g., 2.3 years, 1.5 years. Required amount = 1218 + (600+18+18+0.54)
12
1 = 1218 + 159.135
2. It may be in "upon form" e.g., 2 years,
3 = Rs. 1377.135
1 Ex.3.3 Calculate compound interest on Rs. 7,30,000 at 10%
1 years p.a for 2 years 2 days, interest compounded annually.
5
Sol. Interest for 2 years and 2 days means 2 years
3. It may be in months e.g., 2 years 4 months.
4. It may be in weeks e.g., 1 year 6 weeks. 2
complete and of 3rd year..
5. It may be in days e.g., 2 years 73 days. 365
6. It may be in date wise e.g., 17Feb 2015 to 10 730000 10% 73000
Aug 2018. 73000 7300
2
While solving this type of question we should find 365
(73000 7300 7300 730)
interest for next integer period.
Suppose interest of 2 years 3 months is to be find. 2 2
years 3 months means 2 years complete and 3 months from Required amount = (73000 +73000 +7300) + × (88330)
365
next year. So we should calculate interest for 3 years and
= 1,53,300 + 484
1 = Rs. 1,53,784
then consider 2 years complete and part from 3rd year..
3 Ex. 3.4 Calculate compound interest on Rs. 10400 at 5% p.a
With the help of table it can be done easily. for 1 year 6 weeks, interest compounded annually.
10,400 5% 520 4000 2.5% 100 1st 6 months
6 P ROI 100 2.5 2nd 6 months
52
(520 26)
 CI at the end of a year = 200 + 2.5 = Rs. 202.5
6 Ex.4.2 Calculate compound interest on Rs. 5000 at 8% p.a
Interest for 1 year and 6 weeks means 1 year and for 9 months when interest is calculated on quarterly basis.
52
of 2nd year. Sol. As calcualtion is being done on quarterly basis.
6 8
Required amount = 520 + × 546 = 520 + 63 = Rs. 583  Effective ROI = = 2%
52 4
5000 2% 100 1st 3 months
P ROI 100 2 2nd 3 months
TYPE - 4 100 2 2 0.04 3rd 3 months
 WHEN INTEREST IS CALCULATED ANNUALLY,  CI at the end of 9 months = 300 + 6 + 0.04
HALF YEARLY, QUARTERLY OR MONTHLY
= Rs. 306 .04
BASIS.
Ex.4.3 Calculate compound interest on Rs. 60,000 at 4%
Think of a situation, Nisha has saving account in SBI,
rate of interest offered by bank is 4% p.a. She deposited Rs. 1
10,000 in the account. After 6 months she received interest. p.a for 7 months when compounded quarterly..
2
Did she get 4% interest? She didn't?
As her money is deposited with the bank for 6 months Sol. ROI when interest is calculated on quarterly
so bank will not pay interest for complete year. In this 4
situation bank will pay her only 2% interest. basis = = 1%
4
Basically standard rate of interest is decided for a year,
but period of calculation and time for making payment may 60000 1% 600 1st 3 months
be different.
600 6 2nd 3 months
1
Yearly rate of interest 2
(600 6 6 0.06) 3rd 3 months
Effective rate of interest =
Period of calculation in year
1
Compound interest for 7 months means 1st 3
Annual Rate Calculation Period of Effective Rate 2
of Interest Basis Calculation in a year of interest
36% 2 18% 1
months complete, 2nd 3 months complete and of
36% 4 months 3 12% 2
3 months or
4 9%
3rd 3 months.
36% Quarterly
36% 2 months 6 6% 1
Required interest = 1206 + × 612.06= 1206+306.03
36% 1 month 12 3% 2
= Rs. 1512.03
VARIETY - 1 VARIETY - 2
Ex.4.1 What will be compound interest on Rs. 4000 at 5% Ex.4.4 Find effective annual rate of interest corresponding
p.a in a year when interest is calculated half yearly. to a nominal rate of 8% p.a calculated half yearly.
Sol. As calcualtion being done on half yearly basis.
Sol. ROI, when interest is calculated yearly = 8%
5
Sol.  Effective ROI = = 2.5%
2
8 60000 5% 3000 1st 6 months
ROI, when interest is calculated half yearly = = 4% 3000 150 2nd 6 months
2 3000 150 150 7.5 3rd 6 months
As interest to be calculated for 1 year on half yearly basis so
table will be made in 2 rows. Amount received by Keshav = Rs. 69457.50
Required amount = 69457.5-69300 = Rs. 157.50
100 4% 4
P 4 0.16 TYPE - 5
 Applicable ROI = 8.16 % p.a VARIETY-1
Ex.4.5 Find effective annual rate of interest corresponding
to a nominal rate of 16% p.a payable half yearly.  WHEN COMPOUND INTEREST IS CALCU-
LATED FOR LONG PERIOD.
16 Suppose compound interest for 4 years is given, with
Sol. ROI when interest is calculated half yearly = = 8%
2 the help of table we may find compound interest for 8
years, 10 years, 12 years etc.
100 8% 8 Ex.5.1 In 7 years, Rs. 2000 becomes Rs. 2400 at certain
8 0.64 rate of compound interest. How much it would be in 14
 Applicable ROI = 16.64 % p.a years?
Sol. Compound Interest in 7 years = 2400- 2000
VARIETY - 3 = Rs. 400
Ex.4.6 Keshav borrowed Rs. 60,000 from his friend at 10% 400 1
ROI in 7 years =  100 = 20 % =
1 2000 5
p.a for 1 years. He lends same amount to his another
2 2000 20% 400
friend at same rate of interest and for same time period. Find 400 80
difference between amount paid and received by Keshav if
interest paid by him is calculated on yearly basis and received  Amount at the end of 14 years = 2000+880 = Rs. 2880.
by him is calculated on half yearly basis. Ex.5.2 Rs. 1800 becomes Rs. 2700 in 6 years at a certain
rate of compound interest. How much it would be in 18
Sol. Case I : Yearly calculation -
years?
60000 10% 6000 1st year Sol. Compound Interest in 6 years = 2700-1800 = Rs. 900
1
(6000 600) 2nd year
2 900 1
ROI in 6 years =  100 = 50% =
Amount paid by Keshav 1800 2
1800 50% 900 1st 6 years
1
= 60000+ 6000+ (6000+600) = Rs. 69300 900 450 2nd 6 years
2
900 450 450 225 3rd 6 years
Case II : Half yealy calculation -  Amount at the end of 18 years = 1800+4275
= Rs. 6075
10
ROI on half yearly basis =  5% Ex.5.3 Rs. 1600 becomes Rs. 2000 in 9 years at a certain
2
rate of compound interest. What will be the amount after
As interest to be calculated for 6 months so table will be 27 years?
made in 3 rows. Sol. Compound Interest = 2000-1600 = Rs. 400

Ex.5.4 At certain rate of compound interest sum becomes
400 1
ROI in 9 years=  100 = 25% = Rs. 1800 in 7 years while it becomes Rs. 2700 in 14 years.
1600 4 How much it would be at the end of 21 years, also find
principal?
1600 25% 400 1st 9 years
400 100 2nd 9 years 2700 3
400 100 100 25 3rd 9 years Sol. Ratio of amounts in 7 years gap = =
1800 2
 Required Amount
= 1600+1200+300+25 3
Amount at the end of 21 years = 2700 × = Rs. 4050
= Rs. 3125 2
2
VARIETY - 2 Principal = 1800 × = Rs. 1200
3
This variety is extension of previous one. See previous Q.5.2 Ex.5.5:A sum of money invested at compound interest
carefully and think that if principal is not given and amounts amount to Rs. 4000 in 6 years while it becomes Rs. 5000 in
at the end of 6 years and at the end of 12 years are given 9 years. Find the amount at the end of 15 years and also find
then, can we find principal or amount at the end of 18 years? principal invested.
First we have to find change pattern in given time period. Sol. Ratio of amount to principal in 3 years
In previous question amount at the end of 6 years = 2700 5000 5
and at the end of 12 years = 4050 = 
4000 4
4050 3 As there is 3 years gap so, we have to multiply twice to find
 In 6 years amount grew by = 
2700 2 the amount at the end of 15 years.
As ratio is 3:2, it means if principal is 2 then Amount at the end of 9 years = 5000
interest is 1 and ROI for 6 years = 50%
5
 We may get next amount by multiplying previous Amount at the end of 12 years = 5000×
4
3
amount by . 5 5
2 Amount at the end of 15 years = 5000 × ×
Now suppose question asks amount for 18 years 4 4
= Rs. 7812.50
3
then = 4050× = 6075, we may also get previous
2 4 4
Principal = 4000× × = Rs. 2560
5 5
2
amount or principal by multiplying amount by . 4000
3 5000
× =
3200 5 2560
= × =
Amount 9yrs 4 Amount 6 yrs Amount 3yrs 4 Principal
2
Principal = 2700× = 1800 Ex.5.6 A sum becomes Rs. 900 at the end of 10 years while
3
it becomes Rs. 1080 at the end of 15 years. Find principal
1800 3 2700 3 4050 3 6075 and amount at the end of 20 years.
     
Pr incipal 2 Amount 6yrs 2 Amount 12yrs 2 Amount 18yrs
1080 6
Sol. Ratio of amount to principal in 5 years = =
6075 2 4050 2 2700 2 1800 900 5
     
Amount 18yrs 3 Amount 12yrs 3 Amount 6yrs 3 Pr incipal As there is 5 years gap so, we have to multiply once
again to find the amount at the end of 20 years.
Amount at the end of 15 years = 1080
100 Simple Interest
6 Compound Interest
Amount at the end of 20 years = 1080 × = Rs. 1296 100 6
5
5 5
Principal = 900 × × = Rs. 625 206
6 6
Required ratio = = 103 : 100
200
Ex.6.3 Find ratio between compound interest and simple
interest for 3 years at 20% p.a compounded annually.
Sol. Suppose interest for first year is Rs. 100
TYPE - 6
ROI = 20%
RATIO OF INTEREST BASED QUESTIONS.
Ex.6.1 Find ratio between compound interest and simple
Simple Interest for 2 years
interest for 2 years at 8% p.a compounded annually. 100
Compound Interest for 3 years
100 20
100 20 20 4
Simple Interest
Sol. 100 8% 8
P 8 0.64
364
Required ratio = = 364 : 300
88 16 300
Required ratio =   25 : 27
8  8  0.64 16.64 Ex.6.4 Find ratio between 2 years and 3 years compound
Alternatively interest at 20% p.a compounded annually.
Suppose interest for first year is Rs. 100 Sol. Suppose interest for first year is Rs. 100
and given ROI is 8% p.a.
100 Compound Interest for 2 years

Now,
Compound Interest for 3 years
100 Simple Interest 100 20
Compound Interest 100 20 20 4
100 8
220 55
200 Required ratio = = = 55:91
Required ratio = = 25 : 27 364 91
208
Ex.6.2 Find ratio between compound interest to simple Ex.6.5 Find ratio of difference between 2 years simple interest
interest for 2 years at 6% p.a compounded annually. and compound interest and that of 3 years simple interest
Sol. Suppose interest for first year is Rs. 100 and compound interest at 8% p.a compounded annually.
ROI = 6% Sol.

Sol. 8% 8%
Difference between
CI and SI for 2 years P R 3.20
100 Difference between  8% of 1st year SI = 3.20
100 100 8 CI and SI for 3 years
3.20
 SI for 1st year =  100% = 40
8%
100 40
Required ratio = = 25 : 77  Principal = ×100% = 500
308 8%
Ex.7.2 Difference between compound interest and simple
Ex.6.6 Find ratio of difference between SI and CI for 2
interest received on certain sum in two years at 3% p.a. is
years and 3 years at 5.5% p.a compounded annually.
Rs. 3.60. Find principal?
Difference between
Sol. CI and SI for 2 years Sol. 3% 3%
P R 3.60
100 Difference between
100 100 5.5 CI and SI for 3 years  3% of 1st year SI = 3.60
3.60
 SI for 1st year = 100% = 120
3%
100 200
Required ratio =  = 200 : 611
305.5 611 120
 Principal interest = ×100% = 4000
Ex.6.7 Find ratio between 2nd year difference of CI and SI 3%
and 3rd year difference of CI and SI at 6.5% p.a compounded Ex.7.3 Compound interest received on certain sum in 2 years
annually. is Rs. 153 and simple interest received on same sum at same
rate of interest and same time period is Rs. 150. Find rate of
Difference between
CI and SI for 2 years interest?
Sol.
100 Difference between 150
100 100 6.5 CI and SI for 3 years Sol.  SI for 1 year = = Rs. 75
2
Difference between CI and SI = 153-150 = Rs. 3
100 75
Required ratio = = 200 : 613 P R 75 3
306.5
TYPE - 7 3
ROI = × 100 = 4% p.a
75
 FINDING PRINCIPAL, RATE OF INTEREST ETC.
Ex.7.4 Difference between compound interest and simple
Try to understand distribution of two years compound
interest on a certain sum for 2 years is Rs. 2 and simple
interest-
interest for same time period is Rs. 200. Find rate of
interest.
Simple Interest
Sol. 1000 10% 100
P ROI 100 10
200
Sol. SI for 1 year = = Rs. 100
2
Total CI = 200+2 = 202
Ex.7.1 Difference between simple interest and compound
interest received on certain sum in two years at 8% p.a is Rs.
3.20. Find sum.
100 5
P R 100 2 Rate of interest per annum =  100  10%
50
2
ROI = × 100 = 2% p.a 100%
100 Principal = 50   Rs. 500
10%
Ex.7.5 The compound interest on certain sum for 2 years is
Rs. 25.75 and the simple interest on the same sum at same Ex.7.8 The compound interest on a certain sum for 2 years
rate for same time period is Rs. 25. What is the rate of is Rs. 60.60 and simple interest is Rs. 60. Find rate of interest
interest? per annum and the sum.
12.50 60
Sol. 12.50 0.75 Sol. SI for a year = = 30
P R
2
Difference between CI and SI = 25.75 - 25 = 0.75
Difference between CI and SI = 60.60-60 = 0.60
0.75
ROI =  100 = 6% 30
12.50 P R 30 0.60
Ex.7.6 If the simple interest on a certain sum for 2 years is
Rs. 50 and compound interest for the same time period is 0.60
Rate of interest per annum =  100  2 %
Rs. 51. Find principal? 30
50 100%
Sol. SI for a year = = 25 Principal = 30   Rs.1500
2 2%
Difference between CI and SI = 51-50 = 1 Ex.7.9 At what rate percent per annum at compound interest,
the ratio of simple interest and compound interest for 2
25 years will be 25:26.
P R 25 1
25
1 Sol. SI for 1 year = = 12.5
ROI = ×100 = 4% 2
25
Difference between CI and SI = 26-25 = 1
4% of principal = 25
12.5
100% P R
Principal = 25× = Rs. 625 12.5 1
4%
Ex.7.7 The compound interest on a certain sum for 2 years
is Rs. 105 and simple interest is Rs. 100. Find rate of 1  100
interest per annum and also find principal. .  Rate of interest = = 8% p.a
12.5
100 Ex.7.10 Compound interest received on Rs. 1200 in 2 years
Sol. SI for a year = = 50 is Rs. 123. Find annual rate of interest.
2
Sol. Interest charged is Rs.123 on Rs. 1200.
Difference between CI and SI = 105-100 = 5
Ratio between principal to amount for two year
50
P R
1 3 2 3 441
50 5 = =
1 2 0 0 400
As this ratio is for two years so we need to take square root
of the ratio.(See Type 5, Variety 2 )
21 26
Ratio of amounts for one year = Ratio of amounts for one year =
20 25
1 1
ROI = ×100 = 5% ROI = ×100 = 12.5%
20 25
Ex.7.11 The difference between compound interest and Alternatively
simple interest on a certain sum of money at 3% per annum As interest is charged on Rs.6250 in two year is 510, which
for 3 years is Rs. 27.27. Find principal? is little bit more than 8%
Sol. So rate of interest per annum = 4%
P R 9 Ex.7.14 At what rate of compound interest per annum
9 9 0.27 will a sum of Rs. 1250 becomes Rs. 1458 in 2 years.
0.27 1458
ROI =  100  3% Sol. Ratio of amounts for two year=
9 1250
As this ratio is for two years so we need to take
100 square root of the ratio.
Simple Interest for the first year = 9  = Rs. 300
3
27
100% Ratio of amounts for one year =
Principal = 300  = Rs. 10000. 25
3%
Ex.7.12 The difference between compound interest and 2
ROI = ×100 = 8%
simple interest on a certain sum of money at 5% p.a. for 3 25
years is Rs. 61. Find principal.
Alternatively
Sol.
P R 20 As interest is charged on Rs.1250 in two year is 208, which
is little bit more than 16%.
20 20 1
So rate of interest per annum = 8%
1 Ex.7.15 At what rate of annual compound interest a sum of
ROI =  100  5%
20 Rs. 1920 becomes Rs. 2430 in 2 years.
100% 2430
Simple Interest for the first year = 20  = Rs. 400 Sol. Ratio of amounts for two year=
5% 1920
As this ratio is for two years so we need to take
100% square root of the ratio.
Principal = 400  = Rs. 8000
5%
9
Ex.7.13 At what rate per cent compound interest a sum of Ratio of amounts for one year =
Rs. 6250 become Rs. 6760 in 2 years.
8
67 60 1
Sol. Ratio of amounts for two year= ROI = ×100 = 12.5%
62 50 8
As this ratio is for two years so we need to take Alternatively
square root of the ratio. As interest is charged on Rs.1920 in two year is 510, which
is little bit more than 25%.
So rate of interest per annum = 12.5 %
Ex.7.16: The difference between compound interest and
simple interest on Rs. 64000 for 3 years is Rs 3125. Find Principal = Rs. 1820
rate of interest per annum. Interest for a year = 1911-1820 = Rs. 91
Sol. Let odd value = 125
64000 ___ ___ 91
Rate of interest per annum =  100  5%
R ___ 1000 1820
___ 1000 1000 125 Ex.7.19 A certain amount of money at compound interest
grows up to Rs. 1764 in 37 years and upto Rs. 1808.10 in
125 38 years. Find the rate percent per annum .
ROI =  100  12.5%
1000 Sol. Principal = Rs. 1764
Simple Interest for the first year Interest for a year = 1808.10-1764 = Rs. 44.10
1000 44.10
= 100% = Rs. 8000 Rate of interest =  100  2.5%
12.5% 1764
8000 Ex.7.20: A sum becomes Rs. 1200 at the end of 23 years and
Principal = 100% = Rs. 64000 the same sum becomes Rs. 1728 at the end of 25 years. Find
12.5%
rate of interest per annum.
 Our distribution of interest is correct.
 ROI = 12.5% 1728 144
Sol. Ratio of amounts for two year= =
Ex.7.17: At what rate of compound interest per annum will 1200 100
a sum of Rs. 1250 becomes Rs. 1574.64 in 3 years. As this ratio is for two years so we need to take
square root of the ratio.
1574.64
Sol. Ratio of amounts for three year=
1250 6
Ratio of amounts for one year =
5
157464
=
125000 1
ROI = ×100 = 20%
As this ratio is for three years so we need to take cube 5
root of the ratio. Alternatively
54 As interest is charged on Rs.1200 in two year is 528, which
Ratio of amounts for one year = is 44 %.
50
So rate of interest per annum = 20 %
4 Ex.7.21 If a sum becomes double in 3 years then find approax
ROI = ×100 = 8%
50 rate of compound interest.
Alternatively Sol. Amount = 2 times = 1 (Principal) +1 (Interest)
As interest is charged on Rs.1250 in three years is  Amount of interest = Rs. 100
Rs.324, which is little bit more than 25%. Suppose ROI = 25%
100 25% 25
Ex.7.18 A sum of money invested at compound interest P R 25 6.25
amounts to Rs. 1820 in 17 years while in 18 years it becomes
25 6.25 6.25 1.5625
Rs.1911. Find rate of interest per annum.
Sol.  In case of Compound interest amount of each When ROI = 25%
year is principal for next year. Total interest = 75+20.31 = 95.31(Less than 100)

 ROI = 26% (approx) How many times it would be in 24 years.
Ex.7.22 At what possible rate per cent of compound Sol. 100 200% 200
interest does a sum of money becomes double in 4 years? P 200 400
Sol. Amount = 2 times = 1 (Principal) +1 (Interest) 200 400 400 800
 Amount of interest = Rs. 100 In 8 years sum becomes = 31 = 3 times
Suppose ROI = 20%
In 16 years sum becomes = 32 = 9 times
20
In 24 years sum becomes = 33 = 27 times
20 4
In 32 years sum will be = 34 = 81 times
20 4 4 0.8
If a sum becomes t times in x years then
20 4 4 4 0.8 0.8 0.8 0.0016
x years = t1 = t times
 When ROI = 20%
Total interest = 107.2016 (More than 100) 2x years = t2 = t2 times
 ROI = 19% (approax) 3x years = t3 = t3 times
nx years = tn times.
TYPE - 8
VARIETY - 1
 WHEN AMOUNT BECOME DOUBLE
OR TRIPPLE. Ex.8.1:A sum becomes double in 6 years at compound
Think of a situation, Oriental Bank of Commerce offers that interest. How many times it would be in 30 years.
any amount deposited in the bank will be doubled in 7 years. Sol. 6 years = 2 times
Vikas, who has 1 year old daughter named Ruhi, deposited 12 years = 22 = 4 times
Rs. 2 lac for his daughter's marriage. How much amount 18 years = 23 = 8 times
Vikas will receive, when Ruhi will be 22 years old?
24 years = 24 = 16 times
As amount becomes double in 7 years, means interest
30 years = 25 = 32 times.
received in 7 years is equal to principal.If principal is Rs.
100 then interest at the end of 7 years is Rs. 100 and applicable Alternatively
rate of interest in 7 years is 100%.
6 years = 2 times
Sol. 100 100% 100 5×
P R 100 100 5
100 100 100 100
Now,  It would become 32 times in 30 years.

Amount in 7 years = 100+100 = 200 Ex.8.2:A sum becomes thrice in 9 years at compound
Amount in 14 years = 100+100+100+100 = 400 interest. How many times it would be in 36 years.
Amount in 21years = Sol. 9 years = 3 times
100+100+100+100+100+100+100+100 = 800 18 years = 32 = 9 times
It can be infer from above explanation that - 27 years = 33 = 27 times
In 7 years, Principal becomes = 21 = 2 times 36 years = 34 = 81 times
In 14 years, Principal becomes = 22 = 4 times Alternatively
In 21 years, Principal becomes = 23 = 8 times
9 years = 3 times
In 28 years, Principal will be = 24 = 16 times
4×
Lets see one more example. 4
Ex. A sum becomes 3 times in 8 years at compound interest.
 It would become 81 times in 36 years. Ex.8.8: At what rate of interest a sum becomes 4.096 times
Ex.8.3:A sum yields 3 times interest in 7 years at compound in 3 years?
interest. How many times it would be in 28 years. Sol. 3 years = 4.096 times = (1.6)3
Sol. Amount = 3+1 = 4 times  1 year = 1.6 times
Amount = 1(principal)+ 0.6 (interest)
7 years = 4 times ROI = 60%
4× At 600% interest it would become 4.096 times.
4
28 years = 4 = 256 times TYPE - 9
Amount = 256 times  DISTRIBUTION OF PRINCIPAL IN TWO
 Interest would become 255 times in 28 years. PARTS.
Think of a situation, Mr. Vibhuti wants to deposit Rs.
Ex.8.4: A sum of money placed at compound interest thrice 2,05,000 in the name of his two grand daughters Pihu and
itself in 4 years. In how many years will it amount to 243 Pakhi. He wants that when his grand daughters when attain
times itself. 18 years of age they may get equal amounts. Rate of interest
offered by Bank is 5% p.a. compounded annually. Present
Sol. 3 times = 4 years ages of grand daughters are 3 years and 2 years.
5
3 Suppose Mr. Vibhuti deposit half - half amount in both
243 times = 4×5 = 20 years accounts then, amount deposited in the name of elder grand
daughter will be in the bank account for 15 years and amount
 === In 20 years it will yield 243 as interest. deposited in the name of younger grand daughter will be in
Ex.8.5:At what rate of compound interest, a sum becomes the bank account for 16 years, so they will not receive equal
8 times in 3 years? amount. If amount to be received equally then at present it
Sol. 3 years = 8 times = 23 should not be deposited equally.
2 years = 22 times Let at present, amount deposited in the name of elder
grand daughter be Rs. x and that of younger grand daughter
1 year = 2 times
be Rs. y
When an amount becomes 2 times, so rate of
interest is 100% Amount received to elder grand daughter on attaining
15
 At 100 % interest it would becomes 8 times.  5 
18 years of age = x 1 
Ex.8.6:At what rate of interest a sum becomes 9 times in 2  100 
years?
Amount received to younger grand daughter on attaining
Sol. 2 years = 9 times = 32
16
1 year = 3 times  5 
18 years of age = y 1 
 Amount = 1(principal)+2 (interest)  100 
 ROI = 200%
15 16
At 200% interest it would become 9 times.  5  5 
Ex.8.7: At what rate of interest a sum becomes 1.96 times in As both amounts are equal= x 1  = y 1  
 100  100 
2 years?
Sol. 2 years = 1.96 times = 1.42 16
1 year = 1.4 times  5 
1  100  1615
 Amount = 1(principal)+ 0.4(interest) x  5  21
 y =  5 
15
= 1
 100  = = 21: 20
 ROI = 40% 20
1  100 
At 40% interest it would become 1.96 times.
Total amount = 4,05,000

= Rs. 176400
405000
 x=  21 = 1,05,000 Ex.9.3:Hari Prasad left Rs. 2,33,10,000 in his will. According
41
to will, 50% of the amount is to be given to his wife and rest
405000 amount should be deposited in the name of his two daughters
y= 10 = 1,00,000 who are at present 12 years and 9 years old such that when
41
they become 18 years old, they may get equal amount at
t  t1 compound interest. Rate of interest offered by bank is 10%
Pr incipal  r 2
 Pr incipal  1  100 
1
p.a. Find share of each one.
2
50
Ex.9.1: Divide Rs. 45,900 such that share at the end of 18 Sol. Amount given to his wife = 2,33,10,000×
100
years may equal to the share at the end of 19 years,
compound interest being at 4% p.a. Find present share. = Rs. 1,16,55,000
Sol. Distribute Rs. 45,900 at 4% p.a such a way that Remaining amount = 2,33,10,000 - 1,16,55,000
at the end of 18 years and 19 years amount become = 1,16,55,000
equal. Difference of ages of both daughters = 12–9 = 3 years
Difference in years = 19–18 =1 3 3
 10   10  1 
1 Ratio of distribution of amount = 1      =
 4  26 100  10 
Ratio of distribution of amount = 1   
 100  25 3
 11  1331
 51 units = 45900   
10 1000
45900  2331 units = 1,16,55,000
 1 unit = = 900
51
1,16,55, 000
 26 units = 26×900 = Rs. 23400  1 unit = = 5000
2331
 25 units = 25×900 = Rs.22500
Ex.9.2: A person has a son and a daughter. The age of son is  Share of younger daughter = 5000×1331
5 years and daughter is 3 years. The person wants to deposit = Rs. 66,55,000
Rs. 3,36,400 such a way that when they attain 21 years  Share of elder daughter = 5000×1000
they may get equal amount. Rate of interest offered by bank = Rs. 50,00,000
is 5% p.a at compound interest Find at present how much
amount should be deposited?
Sol. Difference between both age = 5-3 = 2 years
Ratio of distribution of amount
2 2
 5   21  441
= 1    =
 100   20  400
 841 units = 336400
336400
 1 unit = = 400
841
Amount to be deposited for son = 400×400
= Rs. 160000
Amount to be deposited for daughter = 441×400

Exercise
LEVEL - 1 (a) 100% (b) 150%
(c) 75% (d) 200%
1. Rs. 2000 is invested at annual rate of interest of
10%. What is the amount after two years if 8. At what rate per cent compound interest will
compounding is done annually? Rs 400 amount to Rs 441 in 2 years?
(a) Rs. 5000 (b) Rs. 2420 (a) 4% (b) 5%
(c) Rs. 3000 (d) Rs. 3200 (c) 6% (d) 3%
2. Sheela invested Rs.8000 for 3 years at 5% CI in 9. At what rate per cent will the compound interest
a post office. If the interest is compounded once does a sum of money become four fold in 2
in a year, what sum will she get after 3 years? years?
(a) Rs. 10000 (b) Rs. 7000 (a) 150% (b) 100%
(c) Rs. 9261 (d) None of these (c) 200% (d) 75%
3. Raviraj invested an amount of Rs. 10,000 at 10. A certain amount of money at compound
compound interest rate of 10 per cent per annum interest grows up to Rs 7520 in 15 years and
for a period of three years. How much amount upto Rs. 7896 in 16 years. Find the rate per cent
will Raviraj get after 3 years? per annum.
(a) Rs. 12340 (b) Rs. 13210 (a) 10% (b) 8%
(c) Rs. 13320 (d) Rs. 13310 (c) 5% (d) 7%
4. Rs.2400 becomes Rs.3000 in 3 years at a certain 11. A sum of money invested at compound
rate of compound interest. What will be the sum interests amounts to Rs. 800 in 3 years and to
after 6 years? Rs 840 in 4 years. The rate of interest per annum
is
(a) Rs. 4750 (b) Rs. 3750
(a) 10% (b) 7%
(c) Rs. 3570 (d) Rs. 3850
(c) 6% (d) 5%
5. Rs. 1200 becomes Rs. 1500 in 2 years at a certain
rate of compound interest. What will be the sum 12. At what rate of compound interest per annum
after 6 years? will a sum of Rs. 1200 becomes Rs. 1348.32 in 2
years?
(a) Rs. 2433.25 (b) Rs. 2334.75
(a) 6% (a) 8%
(c) Rs. 2343.75 (d) Rs. 2343.25
(c) 9% (d) 10%
6. Rashi invested Rs 16,000 for two years at
compound interest and received an amount of 13. At what rate percent per annum of compound
Rs 17,640 on maturity. What is the rate of interest, compounded annually, will a sum of
interest? money become 16 times of itself in 4 years?
(a) 6% p.a. (b) 8% p.a. (a) 400% (b) 200%
(c) 7% p.a. (d) 5% p.a. (c) 125% (d) 100%
7. At what rate per cent will the compound interest 14. An amount of money at compound interest
does a sum of money become 27 times in 3 grows upto Rs. 3,840 in 4 years and up to Rs.
years? 3,936 in 5 years. Find the rate of interest.

(a) 3.5% (b) 2.05% 22. The compound interest on Rs.3000 for 3 years
(c) 2.5% (d) 2% at 12% per annum compounded annually is
15. The compound interest on a sum for 2 yr is Rs. (a) Rs. 1266.18 (b) Rs.1200
832 and the simple interest on the same sum at (c) Rs. 1250 (d) Rs. 1214.78
the same rate for the same period is Rs. 800. 23. The compound interest on Rs.2000 for 2 years
What is the rate of interest? at 5% per annum compounded annually is
(a) 6% (b) 8% (a) Rs. 300 (b) Rs. 205
(c) 10% (d) 12% (c) Rs. 400 (d) Rs. 405
16. The effective annual rate of interest 24. What will be the compound interest on a sum
corresponding to a nominal rate of 6% per of Rs.25, 000 after 3 years at the rate of 12% per
annum payable half-yearly is: annum?
(a) 6.06% (b) 6.07% (a) Rs. 10123.20 (b) Rs. 11000
(c) 6.08% (d) 6.09% (c) Rs. 12000 (d) Rs. 13000
17. The effective annual rate of interest 25. Find the compound interest on Rs.10000 at 10%
corresponding to a nominal rate of 12% per per annum for 3 years, compounded annually.
annum payable half-yearly is: (a) Rs. 3300 (b) Rs. 3310
(a) 12.06% (b) 12.12% (c) Rs. 3500 (d) Rs. 4000
(c) 12.36% (d) 12.48% 26. The compound interest on a sum of money at
18. The effective annual rate of interest 8% per annum for first year is 48. Find the
corresponding to a nominal rate of 8% per compound interest in second year.
annum payable half- yearly is: (a) Rs. 48 (b) Rs. 51.84
(a) 8.06% (b) 8.88% (c) Rs. 56.44 (d) Rs. 96.44
(c) 8.03% (d) 8.16% 27. The simple interest on a sum of money at 10%
19. The simple interest on a certain sum of money per annum for 2 years is Rs. 200. Find the
for 2 years at 5% per annum is Rs 100. Find the compound interest same sum of money, the rate
compound interest at the same rate and for the of interest and time same in both cases.
same time. (a) Rs. 210 (b) Rs. 220
(a) Rs 102.50 (b) Rs l03 (c) Rs. 240 (d) Rs. 205
(c) Rs 103.50 (d) Rs 309 28. The simple interest on a certain sum of money
20. If the simple interest on a sum of money for 2 for 2 years at 6 p.c.p.a is Rs. 300. Find the
years at 5% per annum is Rs.500, then what is compound interest at the same rate and for the
the compound interest on the same sum at the same time.
same rate and for the same time? (a) Rs. 310 (b) Rs. 308
(a) Rs. 512.5 (b) Rs. 560.25 (c) Rs. 307 (d) Rs. 309
(c) Rs. 500 (d) None of these 29. A sum of money placed at compound interest
21. The present worth of Rs. 176.4 due in 2 years at doubles itself in 6 y ears. In how many years
5% per annum compound interest is will it amount to 16 times itself?
(a) Rs. 150.25 (b) Rs. 160 (a) 24 years (b) 26 years
(c) Rs. 170 (d) None of these (c) 22 years (d) 20 years

30. A sum of money placed at compound interest 38. If the compound interest on a certain sum for 2
thrice itself in 4 years. In how many years will it years is Rs.105 and simple interest is Rs. 100,
amount to 27 times itself? then the sum is
(a) 12 years (b) 15 years (a) Rs. 700 (b) Rs. 600
(c) 14 years (d) 10 years (c) Rs. 800 (d) Rs. 500
31. A sum of money placed at compound interest 39. The compound interest on a certain sum for 2
doubles itself in 4 years. In how many years years is Rs 105 and simple interest is Rs 100.
will it amount to four times itself? Find the rate of interest per annum and the sum.
(a) 12 years (b) 13 years
(a) 10%; Rs 500 (b) 10%; Rs 1000
(c) 8 years (d) 16 years
(c) 20%; Rs 1000 (d) 15%; Rs 1200
32. If a sum of money placed at compound interest,
40. On a certain sum of money, the simple interest
compounded annually, doubles itself in 5 years,
for 2 years is Rs. 150 at the rate of 3% per annum.
then the same amount of money will be 8 times
Find the difference in CI and SI.
of itself in?
(a) 25 years (b) 20 years (a) Rs 5 (b) Rs 4.5
(c) 15 years (d) 10 years (c) Rs 2.5 (d) Rs 2.25
33. An amount at compound interest doubles itself 41. Find the difference between the compound
in 4 years. In how many years will the amount interest and the simple interest for the sum Rs.
become 8 times itself? 625 at 8% per annum for 2 years.
(a) 8 years (b) 12 years (a) Rs 3 (b) Rs 4
(c) 16 years (d) 24 years (c) Rs 4.5 (d) Rs 1.5
34. If a sum of money at compound interest 42. Find the difference between the compound
amounts to thrice of itself in 3 years, then in interest and the simple interest for the sum Rs.
how many years will it be 9 times itself? 2500 at 6% per annum for 2 years.
(a) 12 years (b) 6 years
(a) Rs. 9 (b) Rs. 8
(c) Rs. 7.5 (d) Rs. 6
35. The difference between the compound interest
and the simple interest on a certain sum of 43. Find the difference between the simple and
money at 4% per annum for 2 years is Rs. 1.40. compound interest on Rs. 10000 for 3 years at
Find the sum. 3 per cent.
(a) Rs 875 (b) Rs 857 (a) Rs 27.8 (b) Rs 27.27
(c) Rs 785 (d) Rs 865 (c) Rs 37.27 (d) Rs 37.8
36. On what sum will the difference between the 44. Find the difference between the simple and
simple and compound interest for 3 years at 5 compound interest on Rs 8000 for 3 years at 5
per cent per annum amount to Rs 12.20? per cent.
(a) Rs 1600 (b) Rs 800
(a) Rs 61 (b) Rs 60
(c) Rs 1200 (d) Rs 1500
(c) Rs 51 (d) Rs 59
37. The difference between the compound interest
and simple interest on a certain sum at 5% for 2 45. Find the ratio of CI to SI on a certain sum at 5%
years is Rs. 1.50. The sum is per amount for 2 years.
(a) Rs. 700 (b) Rs. 800 (a) 41:40 (b) 42:41
(c) Rs. 900 (d) Rs. 600 (c) 43:40 (d) 41:35
46. The difference between simple interest and
compound interest on a certain sum of money
for 2 years at 4 per cent annum is Re. 1. The
sum of money is
(a) Rs 600 (b) Rs 625
(c) Rs 560 (d) Rs 650
47. The difference between simple and compound
interest on Rs. 1250 for 2 years at 4% per annum
is
(a) Rs. 3 (b) Rs. 4
(c) Rs. 5 (d) Rs. 2
48. The difference between the simple interest and
the compound interest compounded annually
at the rate of 12% per annum of Rs. 5000 for
two years will be
(a) Rs. 72 (b) Rs. 100
(c) Rs. 300 (d) Rs. 400
49. On a certain sum of money, the simple interest
for 2 years is Rs. 200 at the rate of 7% per
annum. Find the difference in CI and SI.
(a) Rs. 7 (b) Rs. 6
(c) Rs. 3.5 (d) Rs. 45
50. Find the difference between the compound
interest and the simple interest for the sum of
Rs. 2500 at 6% p.a for 2 years.
(a) Rs. 9 (b) Rs. 8
(c) Rs. 7.5 (d) Rs. 6
ANSWERS
1. (b) 2. (c) 3. (d) 4. (b) 5. (c)
6. (d) 7. (d) 8. (b) 9. (b) 10. (c)
11. (d) 12. (a) 13. (d) 14. (c) 15. (b)
16. (d) 17. (c) 18. (d) 19. (a) 20. (a)
21. (b) 22. (d) 23. (b) 24. (a) 25. (b)
26. (b) 27. (a) 28. (d) 29. (a) 30. (a)
31. (c) 32. (c) 33. (b) 34. (b) 35. (a)
36. (a) 37. (d) 38. (d) 39. (a) 40. (d)
41. (b) 42. (a) 43. (b) 44. (a) 45. (a)
46. (b) 47. (d) 48. (a) 49. (a) 50.(a)

and that of 2 years is 25 : 8. The rate of interest
LEVEL - 2 per annum is:
1. Mohan invested an amount of Rs 15,000 at (b) 10% (b) 11%
compound interest rate 5% p.a. for a period of 2 1
years. What amount will be received at the end (c) 12% (d) 12 %
2
of 2 years?
8. Kaya invests Rs 5,000 in a bond which gives
(a) Rs 16,537.50 (b) Rs 18, 543 50 interest at 4% per annum during the first year,
(c) Rs 20,302.75 (d) Rs 12,421.50 5% during the second year and 10% during the
2. Rs 50000 is borrowed at CI at the rate of 1% for third year. Find total savings with interest.
the first year, 2% for the second year and 3% (a) Rs 6,006 (b) Rs7,216
for the third year. Find the amount to be paid (c) Rs 3,001 (d) Rs 5,216
after 3 years.
9. What will be the compound interest on a sum
(a) Rs 50353.3 (b) Rs 53055.3 of Rs. 24,000 after 3 years at the rate of 12% per
(c) Rs 53505.3 (d) Rs 53053.3 annum ?
3. Find the amount on Rs. 20,000 for 3 years at (a) Rs. 9718.272 (b) Rs. 10000.20
10% for first year, 5% for second year and 4% (c) Rs. 9500.20 (d) Rs. 9618.272
for third year?
10. The compound interest on Rs.20,480 at 6.25%
(a) Rs. 24,000 (b) Rs. 24,024 per annum for 2 years 73 days , is
(c) Rs. 25,000 (d) Rs. 25,024 (a) Rs. 3000 (b) Rs. 2929
4. Find the amount of Rs. 1000 in 1 year at 5 per (c) Rs. 4500 (d) Rs. 4600
cent per annum compound interest payable half- 11. Find the compound interest on Rs.15, 625 for 9
yearly. months at 16% per annum compounded
(a) Rs. 1050 (Approx) quarterly.
(b) Rs. 950 (Approx) (a) Rs. 1760 (b) Rs. 1800
(c) Rs. 1125 (Approx) (c) Rs. 1500 (d) Rs. 1951
(d) Rs. 1025 (Approx) 12. The principal that amounts to Rs 5624.32 in 3
5. Find the amount of Rs. 6400 in 1 year 6 months years at 4% per annum compound interest
at 5 pcpa compound interest, interest being compounded annually is
calculated half yearly. (a) Rs. 5096 (b) Rs. 5000
(a) Rs. 6882.10 (b) Rs. 6892.10 (c) Rs. 6000 (d) None of these
(c) Rs.6982.10 (d) Rs. 7282.05 13. A bank offer's 5% compound interest calculated
on half-yearly basis. A customer deposits Rs.
6. Find the amount of Rs. 4000 for 2.5 years at 10
1600 each on 1st January and 1st July of the
p.c.p.a compound interest.
year. At the end of the year, the amount he
(a) Rs. 4629.23 (b) Rs. 4692.32 would have gained by way of interest is
(c) Rs. 4639.32 (d) Rs. 5082 (a) Rs. 150 (b) Rs. 244
7. A person lent out a certain sum on simple interest (c) Rs.400 (d) Rs. 121
and the same sum on compound interest at a 14. The compound interest on Rs. 16,000 at 20%
certain rate of interest per annum. He noticed per annum for 9 months, compounded
that the ratio between the difference of quarterly is
compound interest and simple interest of 3 years
(a) Rs. 3000 (b) Rs. 2522

(c) Rs. 3500 (d) Rs. 4000
1
15. Find the compound interest on Rs. 10000 in 2 (c) 2 years (d) 2 years
2
years at 4% per annum, the interest being
compounded half-yearly. 22. A certain sum invested at 4% per annum
(a) Rs. 824.321 (b) Rs. 832.42 compounded semi-annually amounts to Rs.
78030 at the end of one year. The sum is
(c) Rs. 800 (d) Rs. 824.62
(a) Rs. 78000 (b) Rs.65000
16. The simple interest on a sum of money at 5%
per annum for 2 years is Rs. 500. Find the (c) Rs. 72000 (d) Rs. 75000
compound interest same sum of money the rate 23. The difference between the compound interest
of interest and time same in both cases. and the simple interest on a certain sum at 15%
(a) Rs. 512.5 (b) Rs. 550 per annum for 3 years is Rs. 283.50. Find the
sum.
(c) Rs. 520 (d) Rs. 540
(a) Rs. 6,000 (b) Rs. 3,000
17. Find the compound interest on Rs. 10000 in 9
months at 4 p.c.p.a interest payable quarterly. (c) Rs. 4,000 (d) Rs. 5,000
(a) Rs. 303 (Approx) 24. The difference between simple interest and
compound interest of a certain sum of money
(b) Rs.313 (Approx)
at 20% per year for 2 years is 96. Then the sum
(c) Rs. 203 (Approx) is:
(d) Rs. 204 (Approx) (a) Rs. 2000 (b) Rs. 2400
18. Find the compound interest on Rs. 8000 :n 3 (c) Rs. 3000 (d) Rs. 4000
months at 5 pcpa a interest payable quarterly.
25. The difference between simple interest and
(a) Rs. 250 (b) Rs. 200 compound interest on a certain sum of money
(c) Rs. 150 (d) Rs. 100 for three years at 10% per annum is Rs. 15 and
19. The compound interest in Rs.30,000 at 7% per paise 50. The sum is:
annum is Rs.4347. The period is (a) Rs. 5,000 (b) Rs. 550
(a) 3 years (b) 5 years (c) Rs. 5,500 (d) Rs. 500
(c) 6 years (d) 2 years 26. What will be the difference between simple and
20. In what time will 1000 become Rs. 1331 at 10% compound interest at the rate 10% per annum
per annum compounded annually? on a sum of Rs. 1000 after 4 years?
(a) Rs. 65(aprox) (b) Rs. 80 (aprox)
1
(a) 1 years (b) 3 years (c) Rs. 90 (aprox) (d) Rs. 95 (aprox)
2
27. The difference between simple and compound
1 interest on Rs.1200 for one year at 10% per
2 annum reckoned half-yearly is
21. In what time will Rs. 2000 become Rs. 2420 at (a) Rs. 5 (b) Rs. 3
10% per annum compounded annually? (c) Rs. 7 (d) Rs. 10
1 28. What will be the difference in the compound
(a) 1 years (b) 3 years interest on Rs.50, 000 at 12% for one year when
2
the interest is paid yearly and half yearly?
(a) Rs. 180 (b) Rs. 200
(c) Rs. 300 (d) Rs. 500
29. The compound interest on a sum of money at investment in 2 years?
4% per annum for 2 years is Rs. 102. Find the (a) 20% (b) 50%
simple interest same sum of money the rate of (c) 40% (d) 44%
interest and time same in both cases.
36. A sum of money is borrowed and back in two
(a) Rs. 90 (b) Rs. 100 annual installments of Rs. 882 each allowing
(c) Rs. 98 (d) Rs. 96 5% compound interest. The sum borrowed was:
30. The compound interest on a sum of money at (a) Rs. 1,640 (b) Rs. 1, 600
5% per annum for 2 years is Rs. 328. Find the
(c) Rs. 1,700 (d) Rs. 1, 750
simple interest same sum of money the rate of
interest and time same in both cases. 37. A sum of money is borrowed and back in two
(a) Rs.320 (b) Rs. 322 annual installments of Rs. 338 each allowing
(c) Rs. 375 (d) Rs. 300 1
8 % compound interest. The sum borrowed
31. The compound interest on a sum of money at 3
4% per annum for 2 years is Rs. 510. Find the
was:
simple interest same sum of money the rate of
interest and time same in both cases. (a) Rs. 600 (b) Rs. 640
(a) Rs. 400 (b) Rs. 500 (c) Rs. 700 (d) Rs. 750
(c) Rs. 460 (d) Rs. 440 38. A sum of money is borrowed and back in two
32. Myra made an investment of Rs. 8000 at simple annual installments of Rs. 676 each allowing
interest of 8% per annum for 3 years. How much 4% compound interest. The sum borrowed was:
more would have been hs return, had she (a) Rs. 1,250 (b) Rs. 1,270
1 (c) Rs. 1,300 (d) Rs. 1,275
invested it at compound interest at 7 % per
2 39. The difference between the compound interest
anuum for the same period? and the simple interest on a certain sum of
money at 10% per annum for 2 years is Rs. 2.50.
6 Find the sum.
(a) Rs. 12 (b) Rs. 18
7 (a) Rs. 350 (b) Rs. 275
3 (c) Rs. 250 (d) Rs. 325
(c) Rs. 18 (d) Rs. 22 40. 0n what sum will the difference between the
8
simple and compound interests for 3 years at 4
33. The compound interest on a certain sum for 2
per cent per annum amount to Rs. 3.04?
years is Rs 60.60 and simple interest is Rs 60.
Find the rate of interest per annum and the sum. (a) Rs. 1250 (b) Rs. 625
(a) 2%; Rs 1600 (b) 2%; Rs 1400 (c) Rs. 650 (d) Rs. 675
(c) 3%; Rs 1500 (d) 2%; Rs 1500 41. What sum of money at compound interest will
34. What sum will amount to Rs.6655 at 10% per amount to Rs. 480 at the end of the first year
annum compounded yearly for 3 years? and Rs. 576 at the end of the second year?
(a) Rs.5000 (b) Rs. 3000 (a) Rs. 420 (b) Rs. 450
(c) Rs. 2500 (d) Rs. 4500 (c) Rs. 400 (d) None of these
35. What annual rate of interest compounded 42. Find the compound interest on Rs. 8000 in 2
annually a sum becomes 1.44 times of
years, the rate of interest being 5% for the first (a) Rs. 228.48 (b) Rs. 336.45
year and 10% for the second year. (c) Rs. 207.5625 (d) Rs. 138.48
50. A merchant commences with a certain capital and
(a) Rs. 1340 (b) Rs. 1420
gains annually at the rate of 25 p.c. At the end of
(c) Rs. 1240 (d) Rs. 1350 3 years he has Rs. 10,000. What was his original
43. Find the ratio of CI to SI on a certain sum at 8% capital?
per annum for 2 years. (a) Rs. 5120 (b) Rs. 5230
(a) 27 : 26 (b) 26 : 25 (c) Rs. 5340 (d) Rs. 5550
(c) 26 : 21 (d) 25 : 24
44. The difference between compound interest and ANSWERS
simple interest on a sum of Rs. 4000 for 2 years
1. (a) 2. (b) 3. (b) 4. (a) 5. (b)
at 5% payable yearly is:
6. (d) 7. (d) 8. (a) 9. (a) 10. (b)
(a) Rs.20 (b) Rs.10 11. (d) 12. (b) 13. (b) 14. (b) 15. (a)
(c) Rs. 50 (d) Rs. 60 16. (a) 17. (a) 18. (d) 19. (d) 20. (b)
45. Kamal purchased a scooter car 3 years ago for 21. (c) 22. (d) 23. (c) 24. (b) 25. (d)
Rs 2 lakh. Its value depreciated each year at the 26. (a) 27. (b) 28. (a) 29. (b) 30. (a)
rate of 5% p.a. What is the present value of the 31. (b) 32. (c) 33. (d) 34. (a) 35. (a)
car? 36. (a) 37. (a) 38. (d) 39. (c) 40. (b)
(a) Rs 178245 (b) Rs. 85242 41. (c) 42. (c) 43. (b) 44. (b) 45. (d)
(c) Rs 84375 (d) Rs. 171475 46. (c) 47. (a) 48. (d) 49. (c) 50. (a)
46. The population of a village decreases at the
rate of 20% per annum. If its population 2 years
ago was 10,000, what is its present population?
(a) 6,000 (b) 9,000
(c) 6,400 (d) 7,600
47. 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 sum at the same
rate and for the same time?
(a) Rs. 51.25 (b) Rs. 100.25
(c) Rs. 125 (d) Rs. 130
48. If the amount is 2.25 times of the sum after 2
years at compound interest (compounded
annually), the rate of interest per annum is
(a) 25% (b) 30%
(c) 45% (d) 50%
49. I give a certain person Rs. 12000 at simple interest
1
for 3 years at 7 % . How much more should I
2
have gained had I given it at compound interest?

LEVEL – 3 period. At the end of 2 years, she received Rs.
4200 as compound interest but paid Rs. 4000
1. A man saves Rs.200 at the end of each year and only as simple interest. Find the rate of interest.
lends the money at 5% compound interest. How
(a) 3% (b) 5%
much will it become at the end of 3 years?
(c) 4% (d) 10%
(a) Rs. 655.02 (b) Rs. 630.50
8. On what sum will the compound interest at 5%
(c) Rs. 231.525 (d) Rs. 600
per annum for two years compounded annually
2. In how many years will a sum of Rs. 800 at 10% be Rs. 1640?
per annum compounded semi- annually
(a) Rs. 15000 (b) Rs. 16000
becomes Rs. 926.10?
(c) Rs. 14000 (d) Rs. 12000
(a) 1.5 years (b) 3 years
9. What sum of money at compound interest will
amount to Rs. 2893.8 in 3 years, if the rate of
3. The simple interest on a certain sum of money interest is 4% for the first year, 5% for the second
for 3 years at 8% per annum is half the year and 6% for the third year?
compound interest on Rs. 4,000 for 2 years at
(a) Rs. 2500 (b) Rs. 2400
10% per annum. What is the sum placed on
simple interest? (c) Rs. 2200 (d) Rs. 2250
(a) Rs. 550 (b) Rs. 1,650 10. A sum of money at compound interest amounts
in two years to Rs. 2809, and in three years to
(c) Rs. 1,750 (d) Rs. 2,000
Rs. 2977.54. Find the rate of interest and the
4. The compound interest on a sum of money for original sum.
2 years is Rs.832 and the simple interest on the
(a) Rate 4%, Original sum Rs. 1500
same sum for the same period is Rs.800. The
difference between the compound interest and (b) Rate 5%, Original sum Rs. 2000
the simple interest for 3 years will be (c) Rate 6%, Original sum Rs. 2500
(a) Rs. 100 (b) Rs. 98.56 (d) Rate 8%, Original sum Rs. 3000
(c) Rs. 125 (d) Rs. 125 11. What principal will amount to Rs. 1352 in 2 years
5. The compound interest on a certain sum of at 4 p.c.p.a compound interest?
money at 5% per annum for 2 years is Rs. 246. (a) Rs. 1520 (b) Rs. 1260
The simple interest on the same sum for 3 years (c) Rs. 1250 (d) None of these
at 6% per anuum is: 12. On what principal will the compound interest
(a) Rs. 435 (b) Rs. 450 for 3 years at 5 p.c.p.a amount to Rs. 63.05?
(c) Rs. 430 (d) Rs. 432 (a) Rs. 400 (b) Rs. 500
6. A man saves Rs. 2000 at the beginning of each (c) Rs. 450 (d) Rs. 550
year and invests the money at 5% compound 13. On what sum will the amount for 2.5 years at 10
interest. At the end of 3 years he will have : p.c.p.a becomes Rs. 6352.50?
(a) Rs. 6000 (b) Rs. 6620.5 (a) Rs. 4900 (b) Rs. 5500
(c) Rs. 620.5 (d) Rs. 4220 (c) Rs. 5000 (d) Rs. 5800
7. Rashi borrowed certain sum from Priyanka from 14. The difference between the simple and the
certain rate of simple interest for 2 years. She compound interest compounded every six
lent this sum to Nupur at the same rate of months at the rate of 10 per cent per annum at
interest compounded annually for the same the end of two years is Rs. 124.05. What is the

sum? interest at the rate of 6 per cent per annum
(a) Rs. 10000 (b) Rs. 6000 earning Rs. 900 as an interest at the end of three
(c) Rs. 12000 (d) Rs. 8000 years. Had the interest been compounded every
year, how much more interest would he have
15. Find the compound interest on Rs. 9375 in 2 earned on the same amount with the same
years, the rate of interest being 2% for the first interest rate after three years?
year and 4% for the second year.
(a) Rs. 38.13 (b) Rs. 25.33
(a) Rs. 570 (b) Rs. 1140
(c) Rs. 55.08 (d) Rs. 35.30
(c) Rs. 1155 (d) Rs. 670
21. Divide Rs.1301 between A and B, so that the amount
16. Divide Rs. 2708 between A and B, so that A’s of A after 7 years is equal to the amount of B after 9
share at the end of 6 years may equal B’s share years, the interest being compounded at 4% per
at the end of 8 years, compound interest being annum. Find the part A.
at 8%.
(a) Rs. 676 (b) Rs. 650
(a) Rs. 1458, Rs. 1250
(c) Rs. 600 (d) Rs. 500
(b) Rs. 1448, Rs. 1260
22. Divide Rs. 5204 between A and B, so that the
(c) Rs. 1438, Rs. 1270 amount of A after 5 years in equal to the amount
(d) Rs. 1468, Rs. 1240 of B after 7 years, the interest being
17. Divide Rs.1105 between A and B, so that A’s compounded at 4% per annum. Find the part A.
share at the end of 5 years may equal B’s share (a) Rs. 2704 (b) Rs. 2,646
at the end of 7 years, compound interest being (c) Rs. 3,000 (d) Rs. 2,046
at 10%.
23. Find the percentage per annum if Rs. 2000
(a) Rs. 505, Rs. 600
1
(b) Rs. 605, Rs. 500 amount to Rs. 2662 in 1 years, interest being
2
(c) Rs. 705, Rs. 400 compounded half yearly?
(d) Rs. 625, Rs. 480 (a) 10% (b) 20%
18. Divide Rs. 6100 between A and B, so that A’s (c) 15% (d) 25%
share at the end of 3 years may equal B’s share 24. Find the present worth of Rs.9261 due 3 years
at the end of 5 years, compound interest being hence at 5% per annum compounded yearly.
at 20%.
(a) Rs.7000 (b) Rs. 900
(a) Rs. 3600, Rs. 2500
(c) Rs. 10000 (d) Rs. 8000
(b) Rs. 3500, Rs. 2600
25. The difference between the simple interest and
(c) Rs. 3400, Rs. 2700 the compound interest on Rs. 60 for 1 year at
(d) Rs. 3450, Rs. 2650 10% per annum, reckoned half-yearly is
19. A man borrows Rs. 3000 at 30% compound rate (a) Rs. 2 (b) Rs. 1.5
of interest. At the end of each year he pays
(c) Rs. 3.5 (d) Rs. 0.15
back Rs. 1000. How much amount should he
pay at the end of the third year to clear all his 26. If the compound interest on a certain sum at
dues? 16.66% for 3 years is Rs. 1270, the simple interest
on the same sum at the same rate and for the
(a) Rs. 3602 (b) Rs.3601
same period is :
(c) Rs. 3603 (d) Rs. 3604
(a) Rs. 1080 (approx)
20. A person invested a certain amount at simple
(b) Rs. 1100 (approx)

(c) Rs. 1000 (approx) Find the sum.
(d) Rs. 1200 (approx) (a) Rs, 20,000 (b) Rs. 22,000
27. The compound interest on a certain sum for 2 years (c) Rs. 24,000
at 10% per annum is Rs.525. The simple interest on (d) Can't be determined
the same sum for double the time at half the rate per
34. The simple interest accrued on an amount of Rs
cent per annum is
25,000 at the end of three years is Rs 7,500. What
(a) Rs. 600 (b) Rs. 500
would be the compound interest accrued on the
(c) Rs. 800 (d) Rs. 900 same amount at the same rate in the same period?
28. A sum of 10,000 deposited of compound interest (a) Rs 7,750 (b) Rs 8,275
becomes double after 3 years. After 15 years, it
(b) Rs 8,500 (d) Rs 8,250
will become:
(a) 3,20,000 (b) 15,0000 35. What will be the difference in the interest obtained
by investing Rs. 500 for two years at the rate of
(c) 3,00000 (d) None of these
10% p.a. compounded yearly and Rs. 800 at the
29. The compound interest on a sum for 2 years is
rate of 10% p.a. compounded half-yearly for one
Rs. 696.30 and the simple interest on the same
year?
sum at the same rate for the same period is Rs.
660. What is the rate of interest? (a) Rs. 20 (b) Rs. 27
(a) 6% (b) 8% (c) Rs. 30 (d) Rs. 23
(c) 11% (d) 12%
30. Anil deposited some amount in a bank in order ANSWERS
to earn compound interest at the rate of 10%. If
the difference between the interest of third year 1. (b) 2. (a) 3. (c) 4. (b) 5. (d)
and second year Rs. 1100, how much did he 6. (b) 7. (d) 8. (b) 9. (a) 10. (c)
deposit in the bank? 11. (c) 12. (a) 13. (c) 14. (d) 15. (a)
(a) Rs. 10000 (b) Rs. 11000 16. (a) 17. (b) 18. (a) 19. (b) 20. (c)
(c) Rs. 9900 (d) Rs. 100000 21. (a) 22. (a) 23. (a) 24. (d) 25. (d)
31. What sum of money at compound interest will 26. (a) 27. (b) 28. (a) 29. (c) 30. (d)
amount to Rs. 562.38 in 3 years, if the rate of 31. (c) 32. (a) 33. (a) 34. (b) 35. (d)
interest is 3% for the first year, 4% for the second
year and 5% for the third year?
(a) Rs. 400 (b) Rs. 450
(c) Rs. 500 (d) Rs. 520
32. Find the present value of Rs. 4913 due in 3 years
1
hence at 6 % per annum compound interest.
4
(a) Rs. 4096 (b) Rs. 4296
(c) Rs. 4568 (d) Rs. 4896
33. A sum of money is lent out at compound interest
rate of 20% per annum for 2 years. It would fetch
Rs. 482 more if interest is compounded half-yearly.

LEVEL – 1
1. 2000 10 % 200
2 years = 9 = 32
200 20
1 year = 3= 31
 Amount after 2 years = 2000+420 = Rs. 2420
 3 times = 2 (Interest)+1(Principal)
2. 8000 5% 400
 ROI = 200%
400 20
400 20 20 1 441
8. Ratio of amounts for two year=
 Amount after 3 years = 8000+1261 = Rs. 9261 400
3. 10000 10% 1000 As this ratio is for two years so we need to take
1000 100 square root of the ratio.
1000 100 100 10 21
 Amount at the end of 3 years = Rs. 13310 Ratio of amounts for one year =
20
3000 5
4. Ratio of amount to principal = = 1
2400 4 ROI = ×100 = 5%
20
5 Alternatively
 Sum after 6 years = 3000  4 = Rs. 3750
As interest is charged on Rs.400 in two year is 41,
which is little bit more than 10%.
1500 5
5. Ratio of amount to principal =  So rate of interest per annum = 5%
1200 4
9. 2 years = 4 = 22
5 5 37500 1 year = 2 = 21
 Sum after 6 years = 1500× × =
 2 times = 1(Principal)+1(Interest)
4 4 16
= Rs. 2343.75  ROI = 100%
10. Interest = 7896-7520 = Rs. 376.
6. Interest = 17640-16000 = Rs. 1640.
16000 x% 800 376
 ROI =  100 = 5%
800 40 7520
100 11. Interest = 840-800 = Rs. 40

100
ROI(x) = 40  = 5%, 800× = 5%
800 16000 40
 ROI = 800  100  5%
So, our distribution of interest is correct.
 ROI = 5% 1348.32 2803
Alternatively 12. Ratio of amounts for two year= =
1200 2500
As interest is charged on Rs.16000 in two year is 1640, As this ratio is for two years so we need to take
which is little bit more than 10%. square root of the ratio.
53
7. 3 years = 27 = 33 Ratio of amounts for one year =
50
3 20. 250
ROI = ×100 = 6% 250 12.5
50
Alternatively 5
Interest on Rs. 250 at 5% p.a = 250× = Rs. 12.50
As interest is charged on Rs.1200 in two year is 148.32, 100
which is little bit more than 12%. CI at the end of 2 years = Rs. 512.50
So rate of interest per annum = 6% 21. Go through option.
13. 4 years = 16 = 24 Suppose principal = Rs. 160
1 year = 2 = 21 160 5% 8
 2 times = 1(Principal)+1(Interest) 8 0.4
 ROI = 100% Amount at the end of 2 years = 160+16.4 = Rs. 176.4
14. Interest = 3936–3840 = Rs.96.  It is proved that principal = Rs. 160
96 22. 3000 12% 360
 ROI =  100 = 2.5% 360 43.2
3840
15. 400 360 43.2 43.2 5.182
400 32  Compound interest at the end of 3 years
= Rs. 1214.78
100
 ROI = 32× = 8% 23. 2000 5% 100
400 100 5
6  Compound interest at the end of 2 years = Rs. 205
16. ROI calculated half yearly =  3%
2 24. 25000 12% 3000
3% 3000 360
3% 0.09% 3000 360 360 43.2
 Effective rate of interest = 6.09%  Compound interest at the end of 3 years
= Rs. 10123.20
12
17. ROI calculated half yearly = = 6% 25. 10000 10% 1000
2
1000 100
6%
1000 100 100 10
6% 0.36%
 Compound interest at the end of 3 years = Rs. 3310
 Effective rate of interest = 12.36%
8 8
26. Interest on Rs. 48 at 8% p.a = 48  = Rs. 3.84
18. ROI calculated half yearly = = 4% 100
2
4%  Compound interest in second year
4% 0.16% 48+3.84 = Rs. 51.84
 Effective rate of interest = 8.16% 200
27. Simple Interest in the first year =  100
19. 50 2
50 2.5 100
5 100 10
Interest on Rs. 50 at 5% = 50   Rs.2.5
Compound interest on Rs. 100 for 2nd year
100
10
 CI at the end of 2 years = Rs. 102.50 = 100   10
100
 Total compound interest the end of 2 year 3rd year  ___ 4 4 0.20
= 200+10 = Rs. 210 We have to distribute Rs. 12.20 such a way that the
odd one comes on 4th part of 3rd year and remaining part
300 of 2nd and 3rd year are same.
28. Simple interest in 1 year = = Rs. 150
2
100
150 ROI = 0.20× = 5%
4
150 9  Our distribution of interest is correct.
Compound interest at 6% on Rs. 150 Now,
6 100
= 150  = Rs. 9 Interest in 1st year = 4× = Rs. 80
100 5
 Compound interest at the end of 2 years = 300+9
100
= Rs. 309  Principal amount = 80× = Rs. 1600
5
29. 2 times = 6 years.
24 times = 6×4 = 24 years 37.
600 30 5%
 In 24 years, the amount will become 16 times. 30 1.50
30. 3 times = 4 years Compound interest for the first year
33 times = 4×3 = 12 years
100
 In 12 years, the amount will become 27 times. = 1.50× = Rs 30
5
31. 2 times = 4 years
22 times = 4×2 = 8 years. 100
 Principal = 30× = Rs. 600
 In 8 years, the amount will become four times. 5
32. 2 times = 5 years 38. 50
23 times = 5×3 = 15 years 50 5
 In 15 years, the amount will become 8 times. 100
33. 2 times = 4 years ROI = 5  = 10%
50
23 times = 4×3 = 12 years
 In 12 years, the amount will become 8 times. 100
Now, Principal = 50  = Rs. 500
34. 3 times = 3 years 10
32 times = 3×2 = 6 years 39. 50
 In 6 years, the amount will become 9 times. 50 5
100 100
35. Interest for the 1st year = 1.40× = 35 ROI = 5 = 10%
4 50
100 100
The sum = 35× = 875  Principal = 50  = Rs. 500
4 10
40. 75
875 4% 35 4% 75 ___
35 1.40 Compound interest at the end of the first year
36. 1st year  ___ 150
2nd year  ___ 4 = = Rs. 75
2
100
3
 Difference in CI and SI = 75× = Rs. 2.25 100 7
100
41. 625 8 % 50 7
CI in the 2nd part of 2nd year = 100× = Rs. 7
50 4 100
 The first part of CI is same as SI for every years  Difference between CI and SI = Rs. 7
 Difference between CI and SI = Rs. 4 50. 150
42. 2500 6 %150 150 9
150 9  Difference between CI and SI = Rs. 9.
 Difference between CI and SI = Rs. 9
43. 10000 3 % 300
300 9
LEVEL – 2
300 9 9 0.27 1. 15000 5% 750
 Difference between CI and SI = 9+9+9+0.27 750 37.5
= Rs. 27.27  Amount at the end of 2 years = 15000 + 1537.5
44. 8000 5 %400 = Rs. 16537.50
400 20 2. 50000 1 % 500
400 20 20 1 2% 1000 10
 Difference between CI and SI = 20+20+20+1 3% 1500 15 30 0.3
= Rs. 61.  Amount at the end of 3 years = 50000+3055.3
45. Assume principal = Rs. 100 = Rs. 53055.3
Now, 3. 20000 10% 2000
100 5% 5 5% 1000 100
5 0.25 4% 800 80 40 4
 Ratio of CI to SI = 10.25 : 10 = 41 : 40  Amount at the end of 3 years = Rs. 24024
46. ___
4. 1000 2.5% 25
___ 1
25 0.625
100  Amount at the end of 1 year = Rs. 1050.625
Interest in the first year = 1× = Rs. 25
4 5. 6400 2.5% 160
160 4
100
 Sum of the money = 25× = Rs. 625 160 4 4 0.1
4
 Amount at the end of 1 year 6 months
47. 1250 4% 50 = Rs. 6892.1
50 2 6. 4000 10% 400
So, difference between SI and CI for 2 years = Rs. 2 400 40
48. 5000 12% 600 400 40 40 4
600 72  Amount at the end of 2.5 years = Rs.5082
So, difference between SI and CI for 2 years = Rs. 72 7. ____
200 ____ 8
49. SI in the first year = = Rs. 100 ____ 8 8 1
2
1 1 years will be more than 12% . Now analysing

ROI =  100  12 % principal we may answer 5000.
8 2
13. Interest on Rs. 1600 deposited on 1st Jan :-
8. 5000 4% 200
5% 250 10 1600 5% 80
10% 500 20 25 1 80 4
 Amount at the end of 3 years = 5000 +1006 Interest on Rs. 1600 deposited on 1st July-
= Rs. 6006. 1600 5% 80
9. 24000 12% 2880  Total interest at the end of a year = Rs. 244
2880 345.6
2880 345.6 345.6 41.472 20
14. Rate of interest = = 5%
 Compound interest at the end of 3 years 4
= Rs. 9718.272 16000 5% 800
10. 20480 6.25% 1280 800 40
1280 80
800 40 40 2
73  Compound interest at the end of 9 months
(1280 80 80 5)
365 = Rs. 2522.
 Compound interest at the end of 2 years 73
months 4
15. ROI = = 2%
2
73  1495
= 2640  10000 2% 200
365
= 2640+289 = Rs. 2929 200 4
200 4 4 0.08
16
11. Rate of Interest quarterly = = 4% 200 4 4 4 0.08 0.08
4 0.08 0.0016
15625 4% 625  Compound interest at the end of 2 years
625 25 = Rs. 824.3216
625 25 25 1
 Compound interest at the end of 9 months 500
16. Simple Interest in the first year = = 250
= Rs. 1951 2
12. Go through option.
250
Suppose principal = Rs. 5000
250 12.5
5000 4% 200
Compound interest on Rs. 250 for 2nd year
200 8
200 8 8 0.32 5
So, amount at the end of 3 years = 250× = 12.5
100
= 5000+624.32 = Rs. 5624.32
 It is proved that principal = Rs 5000.  Total compound interest at the end of 2 years
Alternatively = 500+12.5 = Rs. 512.5
As rate of interest is 4%, so total interest in 3

4 when 4% of the number is added,

17. ROI quarterly = =1%
4 Assume principal = Rs. 75000
10000 1% 100
4
100 1 ROI = =2%
2
100 1 1 0.01
Semi annually-
 Compound interest at the end of 9 months
75000 2% 1500
= Rs. 303 (approx.)
1500 30
5  Amount at the end of a year = 75000+3030
18. ROI quaterly = = 1.25%
4 = Rs. 78030
8000 1.25% 100 So, assumption is right.
 Compound interest at the end of 3 months  Sum = Rs 75000
= Rs. 100 23. ____
19. 30000 7% 2100 ____ 90
2100 147 ____ 90 90 13.50
 In 2 years, interest = Rs. 4347 100
Alternatively ROI = 13.50× = 15%
90
As interest on Rs.30000 at 7% is Rs.4347 which
is between 14% - 15%, so time period must be  Our distribution of interest is correct.
2years. Now,
20. 1000 10% 100
100
100 10 Interest for the 1st year = 90× = Rs. 600
15
100 10 10 1
 Amount at the end of 3 years = 1000+331 100
= Rs. 1331  Sum = 600× = Rs. 4000
15
 In 3 years, Rs. 1000 will become Rs. 1331. 24. ____
Alternatively ____ 96
As interest on Rs. 1000 at 10% is Rs.331 which
is between 33%- 34%, so time period must be 100
3years. 20
21. 2000 10% 200
200 20 100
 Sum = 480× = Rs. 2400
Amount at the end of 2 years = 2000+420 = Rs. 2420 20
 In 2 years Rs. 2000 will become Rs. 2420 25. ___
Alternatively ___ 5
As interest on Rs.2000 at 10% is Rs.420 which ___ 5 5 0.50
is 21%, so time period must be 2years.
100
ROI = 0.50× = 10%
As ROI is 4 pcpa, try to find the option which 5
is nearby and less than Rs.78030 and in which  Our distribution interest is correct.
Now, 31. 250
100 250 10
Interest in the first year = 5× = Rs.50
10 100
ROI = 10× = 4%
250
100
 Sum = 50× = Rs. 500  Distribution of interest is correct.
10
26. 1000 10% 100
 SI for 2 years = 250× 2 = Rs. 500.
100 10 8
100 10 10 1 32. SI at 8% p.a =8000× ×3 = Rs. 1920
100
100 10 10 10 1 1 1 0.1
8000 15/2% 600
600 45
 Difference between SI and CI = Rs. 65
(approx.) 3
600 45 45 3
10 8
27. ROI half yearly = = 5%
2 1 3
1200 5% 60 CI at 7 % = 1938
2 8
60 3
 Difference between SI and CI = Rs. 3 3
More amount she will receive = 1938 – 1920
28. Case I : When interest is calculated yearly. 8
50000 12 % 6000
3
Case II : When interest is calculated half yearly. = 18
8
12 33. 30
ROI = = 6%
2 30 0.60
50000 6% 3000 3000 180
100
 Difference in the interest calculated yearly ROI = 0.60  =2%
and half yearly = 6180-6000= Rs. 180
30
29. 50 100
50 2 Sum = 30   Rs.1500
2
100 34. Go through option.
ROI = 2  =4 %
50 Assume principal = 5000
So, our distribution of interest is correct. 5000 10% 500
Simple interest for 2 years = 50× 2 = Rs.100 500 50
30. 160 500 50 50 5
160 8 Amount in 3 years = 5000+1655 = Rs. 6655
So, the sum = Rs. 5000.
100 35. 2 years = 1.44 = 1.22
ROI = 8  = 5%
160 1 year = 1.2
 Our distribution is correct. 1.2 times = 1(Principal) + 0.2 (Interest)
SI for 2 years = 160×2 = Rs. 320 .  ROI = 20%
36. On first EMI there will be 5% interest.  Our distribution is correct.
Total money received = 882 × 2+ 5% of 882 = 1808.1 Now,
Now, go through options.
100
(a) 1640 5% 82 Interest for the first year = 1× = Rs. 25
4
82 4.1
Amount in 2 years = 1640 + (82+82+4.1) = 100
1808.1 Principal = 25× = Rs. 625
4
So, our assumption is right.
Sum borrowed = Rs. 1640 480
41. Principal = 480  = Rs. 400.
37. On first EMI there will be 8.33% interest. 576
Total money received = 338 × 2+ 8.33% of 338
42. 8000 5% 400
= 704.16
10% 800 40
Go through options.
600 8.33% 50  CI at the end of 2 year = Rs. 1240.
50 4.16 43. Let the principal amount br Rs. 100
100 8% 8
Total money given = 600+100+4.16 = 704.16 8 0.64
 Sum borrowed = 600  Ratio of CI to SI = 16.64 : 16 = 26 : 25.
38. On first EMI there will be 4% interest.
Total money received = 676 × 2+ 4% of 676 = 44. 4000 5% 200
1379.04
200 10
Total money received = 676 × 2 = 1352
 Difference between CI and SI = 410-400 = Rs. 10
Now, go through options.
45. Present value of the car
(d) 1275 4% 51
51 2.04 95 95 95
= 200000  × ×
Amount in 2 years = 1275 + (51+51+2.04) 100 100 100
= 1379.04
= Rs. 171475
So, our assumption is right.
Sum borrowed = Rs. 1275 80 80
46. Present population = 10000  ×
39. ___ ___ ___ 100 100
___ 2.50 = 6400
100 50
Interest for the first year = 2.50× = Rs. 25
10 47. Interest for 1 year = = Rs. 25
2
100 25
 Sum = 25× = Rs. 250
10 25 1.25
40. ___ Interest for the second part in the second year
___ 1
5
___ 1 1 0.04 = 25× = 1.25
100
100
ROI = 0.04× = 4%  CI at the end of 2 years = Rs. 51.25
1
48. 2 years = 2.25 = 1.52
10
1 year = 1.5 2. ROI = = 5%
2
1.2 times = 1(Principal) + 0.5 (Interest)
800 5% 40
 ROI = 50%
40 2
15
49. SI for 3 years = 12000×3× = 2700 40 2 2 0.10
200
Amount at the end of 1and half year
12000 15/2% 900
= 800+126.10
900 67.5
= Rs. 926.10
900 67.5 67.5 5.0625
3. 4000 10% 400
CI for 3 years = 2907.5625
Amount gained = 2907.5625 - 2700 = 207.5625 400 40
50. Go through options. Simple Interest at the end of 3 years
Assume capital = Rs. 5120 840
5120 25% 1280 = Rs. = Rs. 420
2
1280 320
1280 320 320 80 420
Simple interest in the first year =
 Amount = 5120 + 4880 = 10000 3
 Our assumption is correct.
= Rs. 140
Alternatively,
So, sum placed on simple interest
10000 25% 2500
2500 625 100
2500 625 625 156.25 = 140× = Rs. 1750
8
4. 400
Since, 19531.25 units = 10000
400 32
 10000 units = 5120
 Capital = Rs. 5120 800
Interest in the first year = = Rs. 400
LEVEL – 3 2
1. As he saves Rs. 200 at the end of each year and 100
total time period is 3years, so he will receive 2 ROI = 32× = 8%
400
year interest on first saving and one year interest
on second savings and as last saving is at the 100
end of 3years, no interest he will receive. Principal = 400× = Rs. 5000
8
200 5% 10
So, CI for 3 years -
10 0.5
5000 8% 400
200 5% 10
400 32
200
400 32 32 2.56
 Amount at the end of 3years = 600+30.5
= Rs. 630.5  Difference between CI and SI for 3 years
(32×3)+2.56 = 96+2.56 = Rs. 98.56
5. 120 9. Go through option.
120 6 Assume sum = 2500
100 Interest = 2893.8-2500 = Rs. 393.8
ROI = 6× =5% 2500 4% 100
120
5% 125 5
 Our distribution is correct.
6% 150 6 7.50 0.30
100 Total amount= 2500+393.8 = Rs. 2893.8
So, principal = 120× = Rs. 2400
5
 Principal = Rs. 2500.
Now, 10. Interest = 2977.54-2809 = Rs. 168.54
6 100
SI for 3 years = 2400× × 3 = Rs. 432 ROI = 168.54× = 6%
100 2809
6. As he saves Rs. 2000 at the beginning of each 100 6% 6
year and total time period is 3years, so he will receive
6 0.36
3 year interest on first saving and 2 year interest on
second savings and 1 year interest on last saving.  112.36% = 2809
2000 5% 100 2809
 100% = ×100 = 2500
100 5 112.36
100 5 5 0.5  Principal = Rs. 2500.
2000 5% 100 11. Go through option.
100 5 Suppose principal = Rs. 1250
2000 5% 100 1250 4% 50
 Amount at the end of 3years 50 2
= 6000+620.5 = Rs. 6620.5 Amount at the end of 2 years = Rs. 1352
7. Simple interest for a year = 4000/2 = 2000 So our assumption is correct.
2000  Principal = Rs. 1250
2000 200 12. 20
200 20 1
 ROI = 100 = 10% 20 1 1 0.50
2000
8. 800 100
ROI 1 = 0.50× = 5%
800 40 1
100 100
ROI = 40× = 5% ROI2 = 1× = 5%
800 20
 Distribution of interest is correct.  Distribution of interest is correct.
100 100
 Principal = 800× = Rs. 16000.  Principal = 20× = Rs. 400.
5 5
2708
Suppose principal = Rs. 5000  1 unit = =2
1354
5000 10% 500
 Share of A = 2×729 = Rs. 1458
500 50
Share of B = 2×625 = Rs. 1250.
500 50 50 5 17. Difference in years = 7-5 = 2 years.
605 Ratio of distribution of amount
Amount at the end of 2.5 years = 5000+1050+
2 2 2
 10   11  121
= Rs. 6352.50 = 1   =  =
100   10  100
So, assumption is right.
 221 units = 1105
 Principal = Rs. 5000
14. ROI, when interest is calculated half yearly 1105
 1 unit = =5
221
10
= =5% So, share of A = 5×121 = Rs. 605
2
Share of B = 5×100 = Rs. 500
___
18. Difference in years = 5-3 = 2 years
___ 20 Ratio of distribution of amount
___ 20 20 1 2 2
 20   6  36
___ 20 20 20 1 1 1 0.5 = 1  = =
 100   5  25
 61 units = 6100
100
ROI = 1 = 5% 6100
20
 1 unit = = 100
61
 Our distribution is correct.
 Share of A = 36×100 = Rs. 3600
100 Share of B = 25×100 = Rs. 2500
5 19. 3000 30% 900
100 2900 30% 870
Principal amount = 400× = Rs. 8000. 2770 30% 831
5
Amount at the end of first year = 3000+900
15. 9375 2% 187.5
= Rs. 3900
4% 375 7.50
Remaining amount after the payment
 CI at the end of 2 years = Rs. 570 = 3900-1000 = Rs. 2900
16. Difference in year = 8-6 = 2 years
Amount at the end of second year = 2900+870
Ratio of distribution of amount = Rs. 3770
2 2 Remaining amount after the payment
 8   27  729
= 1   =  = . = 3770-1000 = 2770
100   25  625
Amount to be paid at the end of 3rd year to clear all
 1354 units = 2708 his dues = 2770 + 831 = Rs. 3601
900 100
20. Interest at the end of first year = = Rs. 300 ROI = 2× = 10%
3 20
100
300 = 20  = 10%
200
300 18
300 18 18 1.08  In both the cases rate of interest are equal
Interest in the second part of second year =  Our distribution of amount is correct.
6
300  = Rs. 18 Assume principal amount = Rs. 8000
100
8000 5% 400
6
Interest in the fourth part of 3rd year = 18× 400 20
100
400 20 20 1
= Rs. 1.08
 Amount at the end of 3 years = 8000+1261
 More interest he would earn at the end of
3rd year = 18+18+18+1.08 = Rs. 55.08 = Rs. 9261
So, our assumption is correct
21. Difference in the year = 9-7 = 2 year
Ratio of distribution of amount  Principal = Rs. 8000
2 2 10
 4   26  676 25. ROI calculated half yearly = = 5%
= 1   =  = 2
100   25  625
60 5% 3
 1301 units = 1301 3 0.15
1301  Difference between S, and C, at the end of 1 year
 1 unit = =1
1301 = 6.15-6 = Rs. 0.15.
 Share of A = 1×676 = Rs. 676 26. P 1/6% 360
22. Difference in the year = 7-5 = 2 years 360 60
2
360 60 60 10
 4  676
Ratio of distribution of amount = 1   = As per table, SI = 360×3 = 1080
100  625
27. 250 250 25
 1301 units = 5204
5204 100
ROI = 25  =10%
 1 unit = =4 250
1301
 Share of A = 4×676 = Rs. 2704.  Our distribution of amount is correct.
23. Interest amount = 2662-2000 = Rs. 662 Principal = 250×100 = Rs. 2500
200 Now,
200 20 10
200 20 20 2 ROI for SI = = 5%
2

Present Value = Rs. 4096
5
 SI for 4 years = 2500× ×4 = Rs. 500 33. 100 20% 20
100
20 4
28. 3 years = 2 times
Total interest = Rs. 44
(3×5) years = 25 = 32 times
When calculated half yearly, r = 10% -
 After 15 year it will become = 10000×32
100 10% 10
= Rs. 320000.
10 1
29. 330
10 1 1 0.01
330 36.30
10 1 1 1 0.1 0.1
100 0.1 0.01
ROI = 36.30× = 11% (approx)
330 Total interest = Rs. 46.41
30. ____ 2.41% = 482
____ ____ 100% = 20000
____ ____ 1000 100 7500
34. SI for a year = = 2500
100 3
ROI = 100× = 10%
1000
100%
ROI = 2500  = 10%
100 25000
Interest in 1st year = 1000× = 10000
10 CI in the second column of 2nd year
100 10
Deposited amount = 10000× = 100000 = 2500  = 250
10 100
31. Go through option. 10

Assume principal = Rs. 500 CI in the 4th column of 3rd row = 250  = 25
100
Now, CI for 3 years = (2500  3)+(250  3)+25 = 8275
500 3% 15 35. CI (yearly) - 500 10% 50
4% 20 0.6
50 5
5% 25 0.75 1 0.03
Total CI = 105
 Amount at the end of 3 years = 500 + 62.38
CI (half yearly) - 800 5% 40
= Rs . 562.38
40 2
 Our assumption is correct.
Total CI = 82
 Principal = Rs. 500
Difference = 105 - 82 = 23
1 1
32. 6 %=
4 16
So the value must be divisibe by 16 and by
going through option 4096 is the only value divisibe
by 16.

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Compound Interest 2.

COMPOUND INTEREST COMPOUND INTEREST - When interest charged

Maths' Mirror Amit Kr. Verma

Amit Kr. Verma Maths' Mirror

Maths' Mirror Amit Kr. Verma

100 Compound Interest for 2 years

Maths' Mirror Amit Kr. Verma

Maths' Mirror Amit Kr. Verma

Now,  It would become 32 times in 30 years.

Total amount = 4,05,000

Amit Kr. Verma Maths' Mirror

Maths' Mirror Amit Kr. Verma

Amit Kr. Verma Maths' Mirror

Amit Kr. Verma Maths' Mirror

Maths' Mirror Amit Kr. Verma

Amit Kr. Verma Maths' Mirror

Maths' Mirror Amit Kr. Verma

Amit Kr. Verma Maths' Mirror

Maths' Mirror Amit Kr. Verma

100 11. Interest = 840-800 = Rs. 40

1 1 years will be more than 12% . Now analysing

Amit Kr. Verma Maths' Mirror

4 when 4% of the number is added,

Maths' Mirror Amit Kr. Verma

31. Go through option. 10

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