COMPOUND INTEREST

TYPE – I -- BASIC  r 
3
 r 
3

(c) Rs. S 1 +  (d) Rs. 3 S 1 + 

1. At what percent per annum will Rs. 3000/-  50   100 
amounts to Rs. 3993/- in 3 years if the interest is 7. Find the amount which Shyam will get on Rs.

compounded annually? 4096, if he gives it for 18 months at 12½ % per

(a) 9% (b) 10% annum, interest being compounded half yearly.

(c) 11% (d) 13% (a) Rs. 5,813 (b) Rs. 4,515

2. The compound interest on 16,000 for 9 months (c) Rs. 4,913 (d) Rs. 5,713

at 20% per annum, interest being compounded

quarterly, is : TYPE – II -- SI & CI Combined
(a) 2,520 (b) 2,524 8. Compound interest on a sum of money for 2
(c) 2,522 (d) 2,518 years at 4 per cent per annum is Rs. 2, 448.
3. If the rate of interest be 4% per annum for first Simple interest of the same sum of money at the
year, 5% per annum for second year and 6% per same rate of interest for 2 years will be :
annum for third year, then the compound (a) Rs. 2,500 (b) Rs. 2,400
interest of Rs. 10,000 for 3 years will be : (c) Rs. 2,360 (d) Rs. 2,250
(a) Rs. 1,600 (b) Rs. 1,625.80 9. At a certain rate per annum, the simple interest
(c) Rs. 1,575.20 (d) Rs. 2,000 on a sum of money for one year is Rs. 260 and
4. The compound interest on Rs. 8,000 at 15% per the compound interest on the same sum for two
annum for 2 years 4 months, compounded years is Rs. 540.80. The rate of interest per
annually is: annum is :
(a) Rs. 2980 (b) Rs. 3091 (a) 4% (b) 6%
(c) Rs. 3109 (d) Rs. 3100 (c) 8% (d) 10%
5. A sum of 3,200 invested at 10% p.a. compounded 10. The compound interest on a certain sum of
quarterly amounts to Rs. 3,362. Compute the money for 2 years at 5% per annum is Rs. 410.
time period. The simple interest on the same sum at the same
(a) ½ year (b) 1 year rate and for the same time is :
(c) 2 years (d) 3/4 years (a) 400 (b) 300
6. When principal Rs. = S, rate of interest = 2r % p.a, (c) 350 (d) 405
then a person will get after : 11. If the compound interest on a sum for 2 years at
3
6Sr  r  12½ p.a is Rs. 510, the simple interest on the
(a) Rs. (b) Rs. S 1 + 
100  100  same sum at the same rate for the same period
of time is :
 (a) Rs. 400 (b) Rs. 450 annum according as the interest is compounded
(c) Rs. 460 (d) Rs. 480 yearly or half yearly?
(a) Rs. 2.04 (b) Rs. 3.06
12. A man borrowed some money from a private (c) Rs. 8.30 (d) Rs. 4.80
organisation at 5% simple interest per annum. 17. The difference between the simple and
He landed this money to another person at 10% compound interest on a certain sum of money at
compound interest per annum, and made a 5% rate of interest per annum for 2 years is Rs.
profit of Rs. 26,410 in 4 years. The man borrowed 15. Then the sum is :
: (a) Rs. 6,500 (b) Rs. 5,500
(a) Rs. 200000 (b) Rs. 150000 (c) Rs. 6,000 (d) Rs. 7,000
(c) Rs. 132050 (d) Rs. 100000 18. The difference between the compound interest
13. If the simple interest on a sum of money for 2 (compounded annually) and the simple interest
years at 5% per annum is Rs. 50, the compound on a sum of Rs. 1000 at a certain rate of interest
interest on the same at the same rate and for the for 2 years is Rs. 10. The rate of interest per
same time is : annum is :
(a) Rs. 50.50 (b) Rs. 51.25 (a) 5% (b) 6% (c) 10% (d) 12%
(c) Rs. 51.50 (d) Rs. 50.05 19. If the difference between the compound and
14. There is 40% increase in an amount in 8 years at simple interests on a certain sum of money for 3
simple interest. What will be the compound years at 5% per annum is Rs. 15.25, then the sum
interest (in rupees) of Rs 30000 after 2 years at is :
the same rate ? (a) Rs. 2,000 (b) Rs. 1,000
(a) 6150 (b) 7687.5 (c) Rs. 1,500 (d) Rs. 2,500
(c) 4612.5 (d) 3075 20. The difference between compound and simple
interest on a certain sum for 3 years at 5% per

TYPE – III – Difference in SI & CI annum is Rs. 122. The sum is :

15. If the difference between the compound (a) Rs. 16,000 (b) Rs. 15,000

interest, compounded every six months, and the (c) Rs. 12,000 (d) Rs. 10,000

simple interest on a certain sum of money at the 21. On a certain sum of money, the difference
between the compound interest for a year,
rate of 12% per annum for one year is Rs. 36, the
sum is : payable half-yearly, and the simple interest for a

(a) Rs. 10,000 (b) Rs. 12,000 year is Rs. 180. If the rate of interest in both the
cases is 10%, then the sum is :
(c) Rs. 15,000 (d) Rs. 9,000
16. What is the difference between compound (a) Rs. 60,000 (b) Rs. 72,000

interest on Rs. 5,000 for 1½ years at 4% per (c) Rs. 62,000 (d) Rs. 54,000
22. What sum will give Rs. 244 as the difference (a) 4 years (b) 6 years
between simple interest and compound interest (c) 6.4 years (d) 7.5 years
at 10% in 1½ years compounded half yearly ? 28. A sum of money becomes 1.331 times in 3 years
(a) Rs. 40,000 (b) Rs. 36,000 as compound interest. The rate of interest is :
(c) Rs. 32,000 (d) Rs. 28,000 (a) 8% (b) 7.5%
23. The difference between compound interest and (c) 10% (d) 50%
simple interest on a certain sum of money for 2 3
29. If the amount is 3 times the sum after 3 years
years at 5% per annum is Rs. 41. What is the sum 8

of money? at compound interest compounded annually,

(a) Rs. 7200 (b) Rs. 9600 then the rate of interest per annum is :

(c) Rs. 16400 (d) Rs. 8400 (a) 25% (b) 50%
2 1
(c) 16 % (d) 33 %
3 3
TYPE – IV -- Amount becomes 'n' times
of the sum after 't' years
TYPE – V -- Sum of money amounts to
24. If the amount is 2.25 times of the sum after 2
x1 in t 1 years and to x2 in t 2 years
years at compound interest (compound
30. A sum of money amounts to Rs. 4,840 in 2 years
annually), the rate of interest per annum is :
and to Rs. 5,324 in 3 years at compound interest
(a) 25% (b) 30%
compounded annually. The rate of interest per
(c) 45% (d) 50%
annum is :
25. A sum of money placed at compound interest
(a) 10% (b) 9%
doubles itself in 5 years. In how many years, it
(c) 11% (d) 8%
would amount to eight times of itself at the same
31. A certain amount of money at r%, compounded
rate of interest ?
annually after two and three years becomes Rs.
(a) 10 years (b) 15 years
1440 and Rs. 1728 respectively. r is :
(c) 7 years (d) 20 years
(a) 5 (b) 10
26. A sum of money at compound interest doubles
(c) 15 (d) 20
itself in 15 years. It will become eight times of
32. A sum becomes Rs. 4500 after two years and Rs.
itself in :
6750 after four years at compound interest. The
(a) 45 years (b) 48 years
sum is :
(c) 54 years (d) 60 years
(a) Rs. 4000 (b) Rs. 2500
27. A sum of money becomes double in 3 years at
(c) Rs. 3000 (d) Rs. 3050
compound interest compounded annually. At
33. A certain amount grows at an annual interest
the same rate, in how many years will it become
rate of 12%, compounded monthly. Which of the
four times of itself ?
 following equations can be solved to find the (c) Rs. 32,000 (d) Rs. 32,400
number of years, y, that it would take for the 38. Mr. Dutta desired to deposit his retirement
investment to increase by a factor of 64 ? benefit of Rs. 3 lacs partly to a post office and
partly to a bank at 10% and 6% interests
= (1.04) y
1 12
(a) 64 = (1.01)12y (b)
64 respectively. If his monthly interest income was
(c) 64 = (1.04)12y (d) 8 = (1.01)6y Rs. 2000, then the difference of his deposits in
the post office and in the bank was :
TYPE – VI -- Installments (a) Rs. 50,000 (b) Rs. 40,000
34. A builder borrows 2550 to be paid back with (c) Nil (d) Rs.1,00,000

compound interest at the rate of 4% per annum

by the end of 2 years in two equal yearly TYPE – VII -- Miscellaneous
instalments. How much will each instalment be ? 39. A person deposited a sum of Rs. 6,000 in a bank
(a) Rs. 1352 (b) Rs. 1377 at 5% per annum simple interest. Another person
(c) Rs. 1275 (d) Rs. 1283 deposited Rs. 5,000 at 8% per annum compound
35. A man buys a scooter on making a cash down interest. After two years, the difference of their
payment of Rs. 16224 and promises to pay two interests will be :
more yearly instalments of equivalent amount in (a) Rs. 230 (b) Rs. 232 (c) Rs. 832 (d) Rs. 600
next two years. If the rate of interest is 4% per 40. A money-lender borrows money at 4% per
annum, compounded yearly, the cash value of annum and pays the interest at the end of the
the scooter, is : year. He lends it at 6% per annum compound
(a) Rs. 40000 (b) Rs. 46824 interest compounded half yearly and receives
(c) Rs. 46000 (d) Rs. 50000 the interest at the end of the year. In this way, he
36. Kamal took 6800 as a loan which along with gains Rs. 104.50 a year. The amount of money he
interest is to be repaid in two equal annual borrows, is :
instalments. If the rate of interest is 12½%, (a) Rs. 6,000 (b) Rs. 5,500
compounded annually, then the value of each (c) Rs. 5,000 (d) Rs. 4,500
instalment is : 41. A man gave 50% of his savings of Rs. 84,100 to
(a) Rs. 8100 (b) Rs. 4150 his wife and divided the remaining sum among
(c) Rs. 4050 (d) Rs. 4000 his two sons A and B of 15 and 13 years of age
37. A sum of money is paid back in two annual respectively. He divided it in such a way that each
instalments of Rs. 17, 640 each, allowing 5% of his sons, when they attain the age of 18 years,
compound interest compounded annually. The would receive the same amount at 5%
sum borrowed was : compound interest per annum. The share of B
(a) Rs. 32,800 (b) Rs. 32,200 was :
 (a) Rs. 20,000 (b) Rs. 20,050
(c) Rs. 22,000 (d) Rs. 22,050
42. The sum of money which when given on
compound interest at 18% per annum would
fetch Rs. 960 more when the interest is payable
half yearly than when it was payable annually for
2 years is :
(a) Rs.60,000 (b) Rs. 30,000
(c) Rs. 40,000 (d) Rs. 50,000
43. A man borrowed some money and agreed to
pay-off by paying Rs.3150 at the end of the 1st
year and Rs. 4410 at the end of the 2nd year. If
the rate of compound interest is 5% per annum,
then the sum is :
(a) Rs. 5000 (b) Rs. 6500
(c) Rs. 7000 (d) Rs. 9200
44. Rs. 260200 is divided between Ram and Shyam
so that the amount that Ram receives in 4 years
is the same as that Shyam receives in 6 years. If
the interest is compounded annually at the rate
of 4% per annum then Ram’s share is :
(a) Rs. 125000 (b) Rs. 135200
(c) Rs. 152000 (d) Rs. 108200