COMPOUND INTEREST In case of compound interest, the interest will be added to the initial principal after every compounding period Hence, compound interest keeps on increasing after every compounding period, Differences between Simple Interest and Compound Interest st a Principal remains fixed for Principal keeps on the whole period increasing Interestis not added to the Interest remains fixed principal ‘Amount follows simple Interest for next yearis interest. calculated over the original principal Interest is added to the principal after every compounding period, Interest keeps on increasing. Amount follows geometric progression. Interest for next year is calculated over the last year's amount, In Case of SI For example, ifthe rate of interest = 10% and the principal = Rs.1000, then: Interest for Ist year = 10% of Rs.1000 = Rs.100 Interest for 2nd year = 10% of Rs.1000 = Rs,100 Interest for 3rd year = 10% of Rs.1000 = Rs.100 Itcan be seen that interest generated every year = Rs.100 Principal Rate Interest 1tyear 1000 10% 100 2tyear 1000 10% 100 3myear 1000 10% 100 In Case of CI Principal of 1st year (initially) = P Principal of 2nd year Principal of 3rd year = 2nd year For example, ifthe rate of interest = 10% and the prin: = Rs,1000, then Interest for Ist year = 10% of Rs.1000 = Rs.1 + interest of Ist year + interest of 1st year + interest of q Principal Rate Interest 1year 1000 10% 100 2e¢year 1000+100=1100 10% 110 3Myear 1000+100+100=1210 10% 121 Expression for Simple Interest and Compound Interest sy = rete of meresbatine i= Principal x [1 +2" — Principal Principal = Sum invested or lent te of interest per annum N= Number of years It should be noted that the unit of rate of interest and time should be same, So, frate of interest is ‘per year’, then time should also be in ‘year’ In case of CI, if the compounding is not done annually, then formula changes like the following: 1, Half yearly compounding: It means that interest is given alter every 6 months. In this case, after every 6 ‘months, interest will be added to the principal. Rate Compounding Time No. of period (6months) compounding period R% Halfyearly ——R/2 2(12/6) ci=Princpa [1 +22)" — principal 2, Quarterly compounding: _ It means that interest is, given after every three months, In this case, after every three months, interest will be added to the principal. Rate Compounding Time No. of period (6months) compounding period R% Quaterly R/4 4(12/3) C1= Principal x [1 +4]"" — Principal Remember 1. Ifthe rate of interest = R% per annum for both Cl and Sl, then the difference between Cl and SI for 2 yr will be equal to (6 of) of principal = £2 % of principal Inthe above ase R= 10% othe diference between Cl andSlior2yrie 1% 2 asim doubles itselinn years at [Link] ate of interest = 2% 3. AtSI, if sum of money amount to n times in t years, 100%, then rate of interest = Comparison between Cl and SI Assume two different sums are getting double at their respeffective rates of SI and Clin 5 yr. Following table gives us the mechanism of getting money n times in the above situation Syr 10yr —-1Syr_— 20 yr st 2 3 4 5 ca 2 4 8 16 ithappens because in case of SI, the amount follows arithmetic progression, and in case of CI, the amount follows geometric progression.MASTER SSC TYPES TYPE A sum of Rs, 2000 is given on at the rate of 10% compound. interest, compounded annually for 2 years, Find the Compound Interest? Solution: 10 1 11 11)? 1331 331 = 35 B, co) ”To00 * To00"” ooo 2000” 331 *? = 662 ans Alternate 10% -¥1/10 Assume P = 1000 (10x10x10) a] Ea 8100 10 sooo = a Be 300 331 30 1 sp ~ Compare now ‘As given in question 1000-2000 1392 331-»662 TYPE A sum of Rs, 2000 is given on at the rate of 10% compound interest, compounded annually for 2 years, Find the total amount received at the end of 2 years? Solution: 1 11)5 331 10% = 7576 > Ga) >i00 So 31931 x2 = 2662 7000-2000 ” ~ ans TYPE ‘Acertain sum amounts to Rs, 2662 in 2 years at the rate of 10% compound interest, compounded annually. Find the Solution: 1 11 11)? 1331 10% = 75-79 > (Ga) > iao0 819 2667, 1000 x 2 = 2000 1000? ~ ans TYPE Ifa sum of Rs. 2000 amounts to Rs. 2662 in 2 years at the rate of compound interest, compounded annually. Then find the rate of interest per annum? Solution: 26621331 M1 ayy 2000 1000” |i000 10 10” TYPE Ifa sum of Rs. 2000 amounts to Rs, 2662 in certain years at ‘the rate of 10% per annum compounded annually, Find the number of years? Solution: 1 ou 2662 1331 10% = 35 7p eauilvalent osTT5 + a555 1 1331 so zybecome 55 I 3 years TYPE certain amount of money atr% compounded annually after two and three years becomes Rs, 1440 and RS, 1728 respectively, ROis Solution: P1440 1728 eee, 1440 = 1728 FR i> 20% TYPE ‘Accertain amount of money earns Rs. 540 as simple interest in 3 years. Ifit earns a compound interest of Rs 376.20 at the same rate of interest in 2 years, find the amount (in Rupees). Solution: 540 P+ 180 S11 92) Si=360 (2 yr) l= 376.2 (2 yn) Difference = Cl-SI 376.2 -260= 16.2 162 isinterest on SI of [Link], 32,2 96 TYPE A principal of Rs, 10000 after 2 years compounded annually, the rate of interest being 10% per annum during. the first year and 12 % per annum during the second year Cin rupees ) will amount to oH aie 38 vera E28 308, 2002277? spp 10 250 250+ 10000 TYPE ‘Asum borrowed under compound interest doubles itself in 10 years, When will it become fourfold of itself at the same rate of interest?Solution: TYPE Find the difference between the compound interest and the simple interest on 32,000 at 10% p.a. for 4 years. Solution: c910% aly’ 14641 OTS 75 7G) 70000 stv10% 92. 4, 4000080 710% > 75 79” “To000 Difference = Cl -SI = 4641 - 4000 = 641 10000 -» 32000 132/10 641-9 x 641 = 2081.2 ‘Solution: Rate % = 10%, time= 2 years Effective Rate% of CI for 4 years = 46.41% Effective Rate % of SI for 4 years = 40% According to the question, Required difference = 32000 (46.41 -40)/100 = Rs. 2051.20 TYPE Ifthe difference between the compound and simple interests on a certain sum of money for 3 years at 5% per annum is Rs, 15.25, then the sum Solution: 2) 400 400 20 cae”, (4000) (40) i 709 roa oo 4 Gh (cl) Difference = 61 units 61 units = Rs, 15.25, 2000 units = (15.25 x 8000)/61 =Rs, 2000 Hence, required sum = Rs, 2000 Pervious year questions 4. Abuilder borrows Rs. 2550 to be paid back with compound interest atthe rate of 4% of per annum by the end of2 years in two equal yearly Installments How much wil each installment be? (aynsi3s2 (b) Rs 1377 (nsi275 (a) Ret283 10. 1 Acertain amount of money at r% compounded annually after two and three years becomes Rs. 1440 and Rs. 1728 respectively 1440 and Rs, 1728 respectively. R% is, (5 (by10 (915 (a)20 A certain amount of money earns Rs. 540 as simple interest in 3 years. Ifit earns a compound interest of Rs.376.20 at the same rate of interest in 2 years, find the amount ( in Rupees) (a) 1600 (1800 (92100 (2000 Acertain sum amounts to Rs, 5832 in 2 years at 8%, per annum compound interest, the sums (a) Rs.5000 () Rs. 5200 (Q)Rs.5280 (d) Rs.5400 Acertain sum of money amounts to Rs. 2420 in 2 years and Rs. 2662 in 3 years at same rate of compound interest, compounded annually the rate of interest per (a) Rs.6% —(b) Rs. 8% ()Rs.9% — (d) Rs. 10% A certain sum will amount to Rs. 12,100 in 2 years at 10% per annum of compound interest, interest being, compounded annually. The sum is (a) Rs.12000 () Rs. 6000 (Rs. 8000 (a) Rs. 10000 Acertain sum, invested at 4% per annum compound interest compounded half yearly amounts is Rs. 7803 at the end of one year. The sum is: (a)Rs.9000 (0) Rs. 8400 (2) Rs.7500 (d) Rs 8000 A certain sum, invested at 4% per annum compound interest compounded half yearly, amounts is Rs. 7803 at the end of one year. The sum is (a) Rs.7000 (b) Rs. 7200 (€)Rs.7500 _ (d) Rs.7700 Aloan of Rs, 12300 at 5% per annum compound interest, is to be repaid in two equal annual Installments at the end of every year. Find the amount of each installment, (a) Rs.6651 (b) Rs. 6615 (Q)Rs.6516 —(d) Rs.6156 Aman borrows Rs. 21000 at 10% compound interest. How much he has to pay annually at the end of each ‘year, to settle his loan in two years? (a) Rs. 12000 (b) Rs. 12100 (c) Rs. 12200 (a) Rs. 12300 Aman buys scooter on making a cash down payment of Rs, 16223 and promises to pay two more yearly installments of equivalent amount in next two years. Ifthe rate of interest is 4% per annum. Compounded yearly, the cash value of the scooter, is: (a) Rs.40000 (b) Rs. 46824 (€)Rs.46000 (4) Rs. 5000012. 13. 14. 15. 16. 17. 18, 19. 20. 21. 22. Aman invests Rs, 2000 at 5% compound interest. At the end of 3 years he will have (a) Rs 2316.25, (b) Rs. Rs. 2305 (Rs. 2205 (a) Rs. 2315.25 A money-lender borrows money at 4% per annum and pays the interest at the end of the year. He lends it at {6% per annum compound interest compounded half yearly and receives the interest at the end of the year. In this way, he gains Rs. 104.50 a year. This amount of money he borrows is: (a)Rs.6000 — () Rs. 5500 (Q)Rs.5000 (d) Rs. 4500 Aperson deposited a sum of Rs, 6000 in a bank at 5% per annum simple interest, Another person deposited Rs, 5000 at 8% per annum compound interest. After two years, the difference of their interest will be: (@)Rs.230 (Bb) Rs. 232 ()Rs.832 (4) Rs. 600 Aprincipal of Rs, 10000 after 2 years compounded annually, the rate of interest being 10% per annum during the first year and 12 % per annum during the second year (in rupees } will amount to (a) Rs.12000 (b) Rs.12320 (912500 —_(a)21000 A sum becomes Rs. 1352 in 2 years at 4% per annum compound interest. The sum is: (a) Rs, 1225 (b) Rs. 1270 (Rs.1245 (4) Rs. 1250 A sum becomes Rs. 2916 in 2 years at 8% per annum compound interest. The simpie interest at 9% per annum for 3 years on the same amount will be (a) Rs. 600 (b) RS675, (Q)Rs650 (a) Rs. 625 ‘Assum becomes Rs. 4500 after two years and Rs, 6750 after four years at the same compound interest. The (a) Rs.4000 (b) Rs. 2500 {Rs.3000 (d) Rs, 3050 Asim borrowed under compound interest doubles itselfin 10 years. When will it become fourfold of itself at the same rate of interest? (a) 15 yrs, (b) 20yrs, (24yrs. (a) 40 yrs. A sum of money amounts to Rs. 4840 in 2 years and to Rs, 9324 in 3 years at compound interest. The rate of Interests per annum is: (a) 10% (b) 9% (9.11% (4) 8% ‘A sum of money at compound interest amounts to thrice itselfin 3 years. In how many years will it be 9 times itself (a) 9 years (b) 27 years (c) 6 years (d)3 years sum of money at compound interest doubles itself in 415 years. will become eight times of itself in. (a) 45 years (b) 48 years (6) S4years (4) 60 years 23, 24. 25. 26. 27. 28. 29, 30, 31. 32, 33, ‘Asum of money becomes double in 3 years at compound interest compounded annually. At the same rate, In how many years will it become four times of, itself? (a)4year ——() 6year (64year — (d) 75 year Assum of money becomes eight times in 3 years, ifthe rate is compounded annually. In how much time will the same amount at the same compound rate become sixteen times? (a) 6years—(b)4years (O8years —(d) Syears A sum of money becomes eight-times of itself in 3 years at compound interest. The rate of interest per annum is: (2)100% (>) 80% (9.20% (4) 10% Assum of money doubles itself in 4 years compound interest. It will amount to 8 times itself at the same rate of interest in (a) 18 years (b) 12 years (16 years (d) 24 years Asum of money invested at compound interest amounts in 3 years to Rs. 2400 and in 4 years to Rs. 2520. The interest rate per annum is (a) 5% (b) 6% (9) 10% (a) 12% Asum of money invested at compound interest amounts to Rs, 650 at eh end of first year and Rs, 676 at the end of second year. The sum of money is: (a)Rs.600 — (b) Rs. 540 ()Rs.625 (A) Rs. 560 Asum of money invested at compound interest doubles itself in 6 years. At the same rate of interest, it will amount to eight times of itself in: (a) 12years— (b) 12 years (©) 18years (a) 10 years A sum of money is paid is paid back in two annual installments of Rs, 17,640 each, allowing 5% compound interest compounded annually, The sum borrowed was (a) Rs32800 (b) Rs 32400 (2) Rs. 32000 (a) Rs. 32200 Asum of money on compound interest amounts to Rs. 110648 in 3 years and Rs. 9680 in 2 years. The rate of interest per annum is (a)5% (b) 10% (915% (a) 20% ‘Asum of money placed at compound interest double itself at 2 years. The year it will take to amount 4 times itselfis. @3 (4 (8 We sum of money placed at compound interest double itself in 4 years. In how many years will it amount to four times itself? (a)12 years (b) 13 years34, 35. 36. 37. 38. 39, 40. 1. 42. 43. 44, (Q8years (a6 years ‘A sum of money placed at compound interest doubles itselfin 15 years. In how many years, it would amount to eight times of itselfat the same rate of interest ? (@) 30 years (b) 45 years (©) 2years (4) 60 years sum of money placed at compound interest doubles itselfin 5 years. t will amount to eight times itself at the same rate of interest in (a)15 years (b)10 years (©) 12years (a) 20 years A sum of Rs. 12000 deposited at compound interest becomes double after 5 years. How much will it be after 20 years? (a) Rs.144000 (b) Rs. 120000 ()Rs.150000 (a) Rs.192000 Asum of Rs. 13360 was borrowed at 35/4% per annum compound interest and paid in two years in two equal annual installments, What was the amount of each installments? (a) Rs. 5679 (b) Rs. 7569 ()Rs.7009 (4) Rs. 7500 ‘A sum of Rs. 210 was taken as a loan. Thisis to be paid back in two equal installments. Ifthe rate of interest bbe 10% compounded annually, then the value of each installment is (a)Rs127—(b) Rs. 124 (QRs.210 (a) Rs225 A sum of Rs, 3200 invested at 10% p.a, compounded quarterly amounts to Rs, 3,362. Compute the time period. (a)l/2years (b) Lyear ()2year (4) 3/4 years A sum of Rs. 6000 is deposited for 3 years at 5% per annum compound interest compounded annually. The difference of interests for 3 and 2 years will be: (@)Rs.75 (Bb) Rs. 30.75 () Rs. 330.75 (a) Rs. 375.00 Assum of Rs, 8000 will amount to Rs, 8820 in 2 years if the interest is calculated every year. The rate of compound interest is (a) 6% (b) 7% (93% (5% An amount of money at compound interest grows up to Rs. 3840 in 5 years, Find the rate of interest. (a)2.5% (b)2% (03.5% (42.05% An amount of money appreciates to Rs. 7,000 after 4 years and to Rs. 10000 after 8 years at a certain ‘compound interest compounded annually, The initial amount of money was (a) Rs.4700 (b) Rs. 4900 {Q)Rs4100 (4) Rs. 4300 ‘An amount of Rs, 6000 lent at 5% per annum compound interest for 2 years will become 45. 46. 47. 48. 49. 50. 51. 52. 53, 54, 55. (@)Rs600 —(b) Rs.6600 (2)Rs.6610 (4) Rs.6615 Ata certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. the rate of interest per annum is (2) 49% (b) 6% (08% (4) 10% ‘At what percent per annum will Rs, 3000 amounts to Rs, 3993 in 3 years if the interest compounded annually? (a) 9% (b) 10% (911% (4)13% At what rate of compound interest per annum will a sum of Rs, 1200 become Rs, 1348.32 in 2 years? 65% = (b) 45% (96% (75% At what rate of percent of compound interest on Rs 10000 amounts to become Rs. 13310 in 3 years is: (213% (b)11% (910% (412% At what rate per annum will Rs. 32000 yield a compound interest of Rs. 5044 in 9 months interest being compounded quarterly? (2) 20% (b) 32% (950% (4) 80% ‘At what rate per cent per annum will Rs.2304 amount to Rs, 2500 in 2 years at compound interest? (a)9/2% —— (b)21/5% (6) 25/6% (a) 13/3% ‘At what rate percent per annum of compound interest will asum of money become four times of itself in two years? (2) 100% — (0)75% (9.50% (4)20% ‘At what rate percent per annum will asum of Rs. 1000 amounts to Rs. 1102.50 in 2 years at compound interest? (a) 5% (6) 5.5% (6% (4) 65% Compound interest on a sum of money for 2 years at 4 per cent per annum is Rs, 2448, Simple interest on the same sum of money at the same rate of interest for 2 years willbe: (@)Rs.2500 (b) Rs. 2400 (Q)Rs.2360 (4) Rs. 2250 Find the difference between the compound interest and the simple interest on 32,000 at 10% pa. for 4 years. (a) Rs.2051.20 (b) Rs. 2050.50 (c)Rs. 2025.20 (a) Rs. 2501.20 Find the rate percent per annum if Rs. 2,000 amounts to Rs. 2315.25 in a year and, interest being compounded half yearly. (a)10% (b)11.5% (95% (€)20%56. 87. 58. 59, 60. 61. 62. 63. 64, 65. 66. Ifthe amount is 2.25 times of the sum after 2 years at compound interest( compounded annually), the rate of interest per annum is: (225% (b) 30% (0) 45% (a)50% Ifthe amount is 27/8 times the sum after 3 years at compound interest compounded annually, then the rate of interest per annum is: (a)25% (b) 50% (0) 50/3% — (4)100/3% Ifthe compound interest on a certain sum for 2 years at 3% per annum is Rs. 101.50, then the simple interest on the same sum at the same rate and for the same time will be: (@)Rs.90.00 (b) Rs. 95.50 (Rs. 100.00 (a) Rs. 98.25 Ifthe compound interest on a certain sum for two years at 12% per annum is Rs. 2,544, the simple interest on it at the same rate for 2 year will be (a)Rs.2400 —_ (b) Rs. 2500 (QRs2480 (a) Rs. 2440 Ifthe compound interest on a sum for 2 years at 25/2 5 per annum is Rs. 510 the simple interest on the same sum at eh same rate for the same period of time is: (@)Rs.400 —(b) Rs. 480 ()Rs.450 (a) Rs. 460 Ifthe compound interest on a sum for 2 years at 25/2 pa. is Rs. 510 the simple interest on the same sum of the same rate for the same period of time is, (a) Rs.400 (b) Rs450 ()Rs.460 (a) Rs. 480 Ifthe compound interest on a sum of money for3 years at the rate of 5% per annum is Rs, 252.20, the simple interest on the same sum at the same rate and, for the same time is: (b) Rs, 240 (a) Rs. 220 (JRs245 (4) Rs. 250 Ifthe compound interest on certain sum for 2 years at 4% pa. is Rs. 102, the simple interest at the same rate of interest for two years would be: {a)Rs200(b) Rs.S0 (QRs.150 (a) Rs.100 Ifthe difference between Si and C. for 2 years ona sum of money lent at 5% is Rs. 6, then the sum is: (@)Rs2200— (b) Rs.2400 ()Rs2600 (4) Rs.2000 Ifthe difference between the compound and simple interests on a certain sum of money for 3 years at 5% per annum is Rs. 15.25, then the sum is: (a)Rs.2000 — (b) Rs. 1000 ()Rs.1500 (a) Rs.2500 Ifthe difference between the compound interest and simple interest on a sum of 5% rate of interest per annum for three years is Rs. 36.60, then sum is {a) Rs. 8000 (b) Rs. 8400 ()Rs.4400 (4) Rs. 4800 67. 68, 69. 70. 1. 72. 73. 74. 75. 76. 77. If the difference between the compound interest, compounded every six months, and the simple interest ona certain sum of money at 12% of rate per annum for one year is Rs. 36, the sum is: (a)Rs,10000 (b) Rs, 12000 ()Rs.15000 (a) Rs. 9000 If the difference between the simple and compound interests on a sum of money for 2 years at 4% per annum is Rs, 800, the sum is (a) Rs.50000 (b) Rs. 500000 (c)Rs. 100000 (4) Rs. 10000 Ifthe rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per annum for third year, then the compound interest of Rs. 10000 for 3 years will be: (@) Rs.1600 (b) Rs, 1625.80 (0) Rs. 1575.20 (4) Rs. 2000 In how many years will a sum of Rs. 800 at 10% per annum compound interest, compounded semi annually becomes Rs. 926.10? (a)3/2years (b) 5/3 years (9) 7/Syears (A) 5/2 years In how many years will Rs. 2,000, amounts to Rs. 2420 at 10% per annum compound interest? (a) 3years —(b) 5/2 years (Q2years —_(d)3/2 years In what time will Rs. 1000 amounts to Rs, 1331 at 20% per annum, compounded half yearly? (a) 3/2 years (b) 2 years ( tyear (a) 5/2 years In what time will Rs. 1000 becomes Rs. 1331 at 10% per annum compounded annually? (a)3 years (b) 5/2 years ()2years (a) 7/2 years In what time will Rs, 64,000 amount to Rs, 68921 at 5% per annum interest being compounded half yearly? (a)3/2years (bJ2 years (Q3years —(d) 5/2 years Kamal took Rs. 6800 as a loan which along with interest is to be re paid in two equal annual installment. If the rate of interests is 25/2 %, compounded annually, then the value of each installment is: (@)Rs.8100 —(b) Rs. 4150 (QRs.4050 (a) Rs. 4000 Ona certain principal the compound interest compounded annually for the second year at 10% per annum is Rs 132. The principal is (a)Rs. 1250 (b) Rs. 1200 (QRs.1000 (d) Rs. 1320 On a certain sum of money the compound interest for 2 years is Rs. 282.15 and the simple interest for the same period of time is Rs, 270. The rate of interest per (a) 6.07% (99% (b) 10% (a) 12.15%78. 79. 80. a1 82. 83, a4, as. 86. a7. Ona certain sum of money, the difference between the compound interest for a year, payable half yearly. And the simple interest for a year is Rs, 56. Ifthe rate of interest in both cases is 16%, then the sum is: (a) Rs.1080—(b) Rs.7805 ()Rs.8750 (4) Rs 5780 Ona certain sum of money, the difference between the compound interest for a year, payable half yearly, and the simple interest for a year is Rs. 180. Ifthe rate of interest in both the cases is 10%, then the sum is (a) Rs.60000 (b) Rs.72000 (ERs. 62000 (d) Rs. 54000 On what sum does the difference between the compound interest and the simple interest for 3 ‘years at 10% is Rs. 31? (a) Rs1500— (b)_Rs.1200 (9 Rs.1100 _ (d) Rs.1000 On what sum of money will the different between S1 and Cl for 2 years at 5% per annum be equal to RS25 (a) Rs.10000 (b) Rs. 10500 {Q)Rs.9500 (a) Rs. 9000 On what sum of money will the difference between simple interest and compound interest for 2 years at 5% per annum be equal to Rs 63 (a)23200——_(b)29200 (©) 25200 (4)31200 Sita deposited Rs, 5000 at 10% simple interest for 2 years. How much more money will Sita have in her account at the end of two years. fits compounded semiannually. (@Rs.50 (Bb) Rs. 40 ()Rs.77.50 (a) Rs. 85.50 ‘The amount on Rs. 25000 in 2 years at annually compound interest. Ifthe rates for the successive years be 4% and 5% per annum respectively is: (a) Rs 26800. (b) Rs.27300 ()Rs.28500 (4) Rs.30000 The compound interest on 12000 for 9 months at 205 per annum, interest being compounded quarterly is (a) Rs.1891,30 (b) Rs.2089.70 (o) Rs2130 (a) Rs.1750 The compound interest on a certain sum for two successive years are Rs, 225 and Rs. 238.50. The rate of interest per annum is: (a) 15/2% (05% (<)10% (260% ‘The compound interest on a certain sum of money at 5% per annum for 2 years is Rs. 246, The simple interest on the same sum for 3 years at 6% per annum (a) Rs.435 —(b) Rs. 450 (0) Rs.430 (4) Rs. 432 ‘The compound interest on a certain sum of money ata certain rate for 2 years is Rs. 40.80 and the simple interest on the same sum is Rs. 40 at the same rate and for the same time, The rate of interest is: 89. 90. 91. 92. 93. 94, 95. 96. 97. 98. 99. (a) 2% perannum —_(b) 3% per annum (6) 4% annum (4) 5% per annum The compound interest on a certain sum of money ata certain rate per annum for two years is Rs. 2,050 and. the simple interest on the same amount of money at the same rate for 3 years is Rs. 3000. Then the sum of money is (@)Rs20000 (b) Rs. 18000 (Q)Rs. 21000 (a) Rs. 25000 The compound interest on a certain sum of money for 2 year at 5% is Rs. 328, then the sum is (@)Rs.3000 (b) Rs, 3600 (Q)Rs3200 (a) Rs. 3400 The compound interest on a certain sum of money for 2 years at 10% per annum is Rs. 420. The simple interest on the same sum at the same rate and for the same time will be: (Rs. 350 (b) RS375 (Q)Rs380 (4) Rs400 The compound interest on a certain sum of money for 2 years at 5% per annum is Rs. 410, The simple interest on the same time is (@)Rs.400 —(b) Rs. 300 (ORs. 350 (a) Rs405 ‘The compound interest on a certain sum of money Invested for 2 years at 5% per annum is Rs. 328. The simple interest on the sum, at the same rate and for the same period willbe: (@)Rs.320 —(b) Rs. 308 (Q)Rs.300(a)Rs. 287 ‘The compound interest on a sum of money for 2 years Js Rs. 615 and the simple interest for the same period is Rs. 600. Find the principal. (a)Rs.6500 —(b) Rs.6000 (Q)Rs.8000 (a) Rs. 9500 The compound interest on Rs, 10000 in2 years at 49% per annum, the interest being compound half-yearly (@)Rs.636,80 _(b) Rs, 824.32 () Rs. 912.86 (a) Rs. 825.82 The compound interest on Rs, 16000 for 9 months at 20% per annum, interest being compounded quarterly (@)Rs.2520 (b) Rs. 2524 (Q)Rs.2522 (4) Rs. 2518 The compound interest on Rs. 2000 in 2 years ifthe rate of interest is 4% per annum for the first year and 3% per annum for the second year, will be: (2) Rs. 142.40 (b) Rs, 140.40 (c) Rs. 141.40 (a) Rs. 143.40 The compound interest on Rs. 30000 at 7% per annum for a certain time is Rs. 4347. The time is: (a)3years —(b) 4years (© 2years _(a)2.5 years The compound interest on Rs, 5,000 for 3 years at 10% pa will amount to.(a) Rs.1654 —(b) Rs 1655 (ORs. 1600 (a)Rs. 1565 100. The compound interest on Rs. 6000 at 10% per annum for 3/2 years, when the interest being compounded annually is: (@)Rs.910 —(b)Rs.870 (QRs.930 (a) Rs.900 101. The compound interest on Rs, 8000 at 15% per annum for 2 years 4 months, compounded annually is? (@)Rs.2800 (b) Rs. 3091 (Q)Rs.3109 (4) Rs. 3100 102. ‘The difference between compound and simple interest on a certain sum for 3 years at 5% per annum is Rs. 122. The sum is: (@)Rs.16000 (bj Rs, 15000 (E)Rs.12000 (a) Rs. 10000 103, The difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 768. The sumis: (a) Rs. 100000 (b) Rs. 110000 {)Rs. 120000 (a) Rs. 170000 104. "The difference between compound interest and simple interest on a certain sum of money at 10% per annum for 2 years is Rs. 40. The sum is: (@)Rs.4000 (by Rs, 3600 ()Rs.4200 (a) Rs. 3200 105. ‘The difference between compound interest and simple interest on Rs. 2500 for 2 years at 4% per annum is (@)Rs.40—(b) RS.45 (R14 (ARS 106, The difference between simple and compound interest compounded annually on a sum of money for 2years at 10% per annum is Rs. 65. The sum is: (@) Rs. 65650 (b) Rs. 65065 ()Rs.6565 (4) Rs. 6500 107. The difference between simple and compound interest compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 1. The sum in Rs. Is: (a) 650 (b) 630 (0) 625 (@ 640 108. The difference between simple and compound interest on a certain sum of money for 2 years at 4% annum is Rs. 10. The sum of money is: (@Rs, 6000 (b) Rs, 6250 (€)Rs.5600 (d) Rs.6500 109. The difference between simple and compound, Interest on a sum of money at 4% per annum for 2 years is Rs. 8. The sum is: (a)Rs.400 (b) Rs. 800 (Q)Rs.4000 (4) Rs. 5000 110, The difference between simple interest and, compound interest of a certain sum of money at 20% per annum for 2 years is Rs. 48, Then the sum is: (a)Rs.1000 —(b) Rs:1200 (Q)Rs.1500 (a) Rs.2000 111. ‘The difference between the compound and the simple interest of a sum for 2 years at 10% per annum, when the interest is compounded annually, is Rs.28. If the yearly interest were compounded half yearly, the difference in the two interest will be: G)Rs.44 —— (b)Rs. 2835 (Q)Rs.43.41 (A) RS. 43.29 112. ‘The difference between the compound interest and simple interest on Rs. 10000 for 2 years is 25, The rate of interest per annum is: (5% (6) 7% (910% (412% 143. The difference between the compound interest and simple interest for the amount Rs, 5000 in 2 years is, Rs, 32, The rate of interest is: (25% — (b)8% (9.10% (412% 114, "The difference between the compound interest and simple interest on a certain sum for 2 years at 10% per annum is Rs. 300, Find the sum. (a) Rs. 31000 (b)31500 (230000 (4)30500 115, The difference between the compound interest and ‘the simple interest on a certain sum at 5% per annum for 2 years is Rs. 1.50."The sum is (@)Rs. 600 (b) Rs. 500 (QRs. 400 (4)Rs. 300 116. ‘The difference between the compound interest compounded annually and the simple interest on a sum of Rs, 1000 ata certain rate of interest for 2 years is Rs, 10. The rate of interest per annum is (5% (0) 6% (9.10% (4) 12% 117. The difference between the simple and compound interest on a certain sum of money at 5% rate of interest per annum for 2 yearsis Rs. 15. Then the sum (@) 6500 (b) 5500 (6000 (a) 7000 118. ‘The difference between the simple and compound interest on a certain sum of the money for 2 years at 4% per annum is Rs. 4. The sum is: (@)Rs.2500 (b) Rs, 2400 (Q)Rs.2600 (a) Rs. 2000 119. The principal, which will amount to Rs. 270.40 in 2 ‘years at the rate of 4% per annum compound interest (@)Rs.200(b) Rs.225 ()Rs.250 (4) Rs.220 120. ‘The simple interest and compound interest on a certain sum of money with a given rate for a period of 2 years are Rs. 900 and Rs. 954 respectively. The sum of money is: (a)Rs.3700 (b) Rs. 3650 (Q)Rs.3850 — (d) Rs. 3750121, The simple interest on a sum of money at 4% per annum for 2 years is Rs. 80. The compound interest in the same sum forthe same period i: (a) Rs. 82.60 (b) Rs. 82.20 (QRs.81.80 (4) Rs. 81.60 122. The sum of money which becomes Rs. 2420 at 10% rate of compound interest after two years is (a@)Rs.2000 —(b)Rs. 2500 {c)Rs.1000 — (d) Rs. 1500 123, The time in which Rs. 80,000 amounts to Rs, 92,610 38 10% pa, compound interest, interest being compounded semiannually is: (23/2 years (b) 2years (©) 5/2 years (4) 3 years 124, Two years ago, the value of my motorbike was Rs 662500. Ifthe value decreases by 4% every year, now its values: (a)Rs, 56700 (b) Rs, $7600 (957500 («)55700 125. What does Rs. 250 amounts to in 2 years with compound interest at the rate of 4% in the 1 st year and 8% in the second year? (a)Rs. 280 (b) Rs 280.80 (Q)Rs.468 (A) Rs. 290.80 126, What is the difference between compound interest, on Rs, $000 for 3/2 years at 4% per annum accor as the interest is compounded yearly or half yearly? {a)Rs204 —b) Rs3.06 ()Rs803—(d) Rs. 4.80 127. What sum will give Rs, 244 as the difference between simple interest and compound interest at 10% in 3/2 years compounded half yearly? (2) Rs. 40000 (b) Rs. 36000 () Rs. 32000 (a) Rs. 28000 128. When principal = Rs.§, rate of interest = 2r % pa. then a person will get after 3 years at compound interest (a) Rs. 6sr/100 (ORs. s(1+(r/100)}* (b) Rs. s(1+(r/50))" (@) Rs, 3 s(1+(r/100))* 1. (a) Principal = Rs. 2550, Rate% = 4% = 26/25 (26 Installment, 25> Principal) Time = 25.26 26.2 Ind year 625: 676 Note: Installment will be same in both cases. Principal Installment 650 676 + 625 ‘ 616 According to the question, 1275 units = Rs. 2550 1 unit= Rs, 2550/1275 676 units = Rs, 2550/1275 * 676 Rs, 1352 {d) Let Principal = Rs. P Rs, 1440(A;) Rs. 1728 (An) Difference = Rs. 288 Required Rate % = 28/1440% 100 = 20% @ 540= PxRx3/100 PR== 18000 vesronnn (i) CL =P [(1 + R/100)2- 1] 376.20 =P {(1+R/100)*- 1] = P [R¢/(100)2 + 2PR/100] 18000 x R/(100)? + 2x (18000/100) 376,20 =18*R/10 +360 = 376,20 - 360 = 18R/10 R= 162/18 =9% From (i) PxR = 18000 Px9 = 18000 P =Rs, 2000 (a) Rate 8% = 35/4% = 7/80 =2/25 Principal Amount 6 Be os 79 prs fxs [5000] 5832 Hence, Required Sum = Rs. 5000 (@) Amount after three years = Rs. 2662 Amount after two years = Rs. 2420 — Net interest earned in the 3°, = 2662-2420 = Rs. 242 — Rate ofinterest (r) = 242/2420x 100 = 10% Thus 2»! year’s amount is principal for 3" year (4) Given Amt. = Rs, 12100 RY% = 10% = 1/10 Time = 2 years cu 1A ato 1 18 oc Total amount for 2 year = 10+10+1+10 =121 > 121 units + Rs, 12100 > Lunit +100 = Principal = 100 unit = 100x100 = 10000 (@) Compound Interest = Rs. 1361, Time = 3 years, Rate % = 59 = 1/2010. Principal Amount 20 at 20 aa 20 2 8000 9261 Neve ‘According tothe question, 1261 units = Rs. 11261 1 unit= Rs. 1261/1261 =Rs. 1 8000 units = 8000 x1 =Rs. 8000 Thus, Hence Required Principal = Rs. 8000 (0) Rate% =4% time= (t= 1 year ‘Amount= Rs, 7803 ‘When interest is compounded half-yearly New Rate =4/2 = 2% Time = 1 x2= 2 years Required Rate% for 2 years Cl =2424(2x2)/100 =4.04% ‘According tothe question, (100+ 4.04)% ofsum=Rs, 7803 Sum = 7803/104.04 x 100 =Rs, 7500 Alternat Time = 2 years, Rate% = 4/2, 2% = 1/50 Principal Amount 50 51 50 2500 2601 a units According to the question, 2601 units = Rs. 7803/2601 =Rs. 3 2500 units=Rs, 3 2500 = 7500 Rs. Thus, Hence Sum = Rs, 7500 b {Di = 1/20 «21/20 (21-> instalment, 20= Fini Year Principal Installment so 2 Aa 0 > Wl 400002 a) Since Installment is equal hence multiply equation (i) by 21 = total principal = 420 + 400 = 820 units » 820 units -» Rs, 15 » 441 units ~> Rs, 6615 Each installment 12. » Principal) 51 1. Principal Installment 10.0 flew 100 121 Note: Installment will be equal in both cases. So equate the installment,| Principal Instaliment 10x32 Vass + 100 121 210 121 According to the question, 210 units = Rs. 21000 i unit = Rs, 21000/210 121 units= 121 « 100 =Rs. 12100 Alternat Rate» 10% =1/10 Each installment of 2 years » 10/11 (10 + 11)/11 » Installment 21000 ich installment = 12100 Method R= 10% =1/10 > 10/(10+1) > 10/11 (10=a, 11 Installment for 2 year = a/b x (a+ b)/b x Installment = P.A. Note: Each installment for three years = a/b? (a? + ab +b?) x Installment = P.A, (b) Time=2 years Rate % = 4% =1/25. = 26/25 (26> Installment, 25 = Amount) "Amount instalimer i year > 25.28 26. 2 year > 625 676 Note: Installment is same in both cases. Hence, equal the installment Hence, after that new ratio, ‘Amount Installmer 1 year > 650 : 676 2” year > 625 676 1275 According to the question, 676units=Rs. 16224 Tunit = Rs. 24 1275 units = 24% 1275 = Rs, 30600 Total amount = Rs. (30600 + 16224) 46824 (@) Principal Rate % = 5% = 1/20 Time = 3 years Amount 2. 2. 21 8000 9261 According to the question,13, 14. 15. 16. 17. 8000 units = Rs, 2000 1 unit = Rs, 2000/8000 9261 units = Rs. 2000/8000 x 9261 Rs, 2315.25 (0) Rate (Ri) = 4%, Case I: Rate (%) % Case Il: When interest is compounded half-yearly New Rate% =6/2=3% Time (t:) =1%2 =2 years Effective Rate % for 2 years =3+3+ (3 « 3)/100 = 6.09% Difference in Rates = (6.09 - 4)% = 2.09% According to the question, 2.09% ofsum=Rs. 104.50 Sum = 104.50/2.09 x 100 = Rs. 5000 (b) Principal (P:) =Rs. 6000 Rate % =5% t= 2years Simple Interest = (6000 «5 x 2)/100 Rs. 600 Principal (P:) = 5000, Rate% = 8%, t=2 years 2 years effective Rate for Cl +84 (8 «8)/100 = 16.64% mpound interest = 5000 x 16.64/100 = Rs. 832 Difference = Rs. (832 - 600) = Rs. 232 (b) P =Rs. 10000 (= 2years Ri=10% , Re=12% 10% 7 12% 19. — \ ves Choo S— year C20) C00 > ‘Amount Principal +c ‘Amount = 10000 + (1000 + 1200 +120) wi2sz0 (@) 496 1/25 =26/25(26- Amount, 25 > Principal) 20. Principal Amount = me 28 26 sae PT 2s) as Hence, Required sum =1250 (b) Amount =Rs. 2916 Time = 2 years Rate % = 8% Effective Rate % of Cl for 2 years =84+8+(Bx8)/10 = 16.64% Lyears 18. Required sum = 2916/(100 + 16.64)x 100 = Rs. 2500 Required Simple Interest = (2500 x9 x3)/100 = Rs, 675 () Amount (A:) =Rs, 4500 t= 2years Amount (Az) = Rs, 6750 t= 4 years Let the Rate % = R% Principal = Rs. P According to the question, Case (i) 4500 =P (1+ R/100)? .. Case (ii) 6750 = P (1 +R/100)°.... By dividing equation (li), by equation 6750/4500 = (1+R/100)? 3/2 = (1+ R/100)? From equation (i) & (i) 4500 =P x 3/2 P =Rs,3000 Hence, Required Principal = Rs Alternate: Note: In such type of questions to save your valuable time follow the given below method. Let principal = Rs. P According to the question, Amount (A:) Amount (As) Amount (A) R 4500 6750 Sa Dears 2 years Px 3/2 =4500 , P = 4500x2/3 = 3000 Hence, Required principal = Rs, 3000 (B) Note: For detailed follow the previous question solution. @ ci iii) s. 3000 Principal : Amount — Time (years) 1 2 10 2 [20 years] Alternate: 10 yrs 10yrs —_ P—* 27 —> oP Time = 2x10 = 20 years Hence, Principal amount will be four times itself in 20 years, (@) Amount (A;) = Rs4840 Amount (Az) = Rs, 5324 Let the principal = Rs. P Principal Amount (A,) Amount (As) P 4840 5324 Required Rate% = (5324 - 4840)/4840 «100 = 10%22. 23, 24, Amount Time (years) 238 1 9=3°7 — [eyears) Hence, Required time = 6 years (a) Note: In such type of questions to save your valuable time follow the given below method. 1 or (yan Hence, required time = 45 years ‘Alternate: (1) Let Principal = P Amount =2P Case (I) By using formula, 2P =P (1+R/100)' 0 Case (II): Let after n years it will become 8 times 8P =P (1+R/100)" Gi) From equation (i) 2 =(1+R/100)5 Cubing both sides (2) =(1 + R/100) thus, Here n = 45 years ‘Alternate : (il) 15 yrs. isyrs 15 yrs - an an P—» 2? —» 4p» bP = 15*3 =45 years Note: Amount will be same in the same period of time, (6) Year Principal-Amount 31> 2 62> 4 > The amount Becomes four times in Gyears Atenate: syears years Oe 1 2 4 NN > Treamount becomes fourtimes in 3+ 3 years (@) Let the principal =P, 27. Case l: Time =3 years, ‘Amount=8P aP = P(1 +R/100) (= (+ R/100)8 Talking cube root of both sides, 2 =(1+R/100) + R = 100% Case Il Let after t years it will be 16 times 16P (1 +R/100)* 1 2)" @y=@ t= Ayears Hence, Required time (t) = 4 years Alternate Note: In such type of questions to save your valuable Tinea) 25. 26. 28. ‘time follow the given below method, Principal Amount —_Time (years) 1 B=?) 3 1 16-24 3/3%4 = [4 years] (@) LetPrincipal = 1 unit Thus, Amount = 1x8 = 8 units According to the question, Principal Amount for 3 year> 1 8 for 1" year > a Ye ft 2 No Required Rate % = 1/1» 100 = 100% (b) Let Principal Rate = R%,t= 4 years Thus, Amount = 2P, Case(I): 2P =P (1+ R/100)* 2 = (14 R/100)¥ sonsonnenall) Case (li): Let after tyears it will be 8 times ap =P(1+R/100)! (2)8= (1 R/100)° wee (i) By using equation (i) & equation (ti) (1+R/100}! = (1+ R/100)° By comparing both sides, t= 12 years Alternate: Note: In such type of questions to save your valuable ume follow the given below method. Principal ‘Amount time (years) a: & 2 4 Ju 1 B=(2) — E2years] Alternate() 4 yrs ays ayrs NN FE P 2P oP ap 4x3 = 12 years (2), Amount (Ar) Amount (A2) 2409 2520 +120 Required Rate % =120/2400% 100 (©) Let the principal = P According to the question, ipal_ Amount (A.)__ Amount (A) P 650 676 Nels 326/257 2Years: 2 years Note: In compound interest amount increase in same ratio, Px 26/25 = 650 P = (650 25)/26 = Rs. 62529, 30. 31. 32, 33. 34, 35. 36. Hence, Required Principal = Rs, 625 a7, (c) Principal: Amount: ‘time (years) 1 ? ° { ' Ba8 [18 years] (3) 5% «170 mount tlre ser Tien Blane CS a ayer Sao Maan ‘Sane sem Intaliest wer a0 tas 2 year 400. 44: 38. 0 “at Tuo Peo 32sbo ne 17840 (b) Let Rate = R% Let Principal = Rs. P According tothe question, Principal Amount (A:) Amount (A) P 650 676 1 years P__, 2? ——» 4P = 2x4 =8years (b) Note: For detailed solution of such type of Question follow the solution of previous question, te Principal = 1 unt 2%, AO io) Rs} (4s) [ss] NUN NL” sim Tie Fine Ee sss a snes intisyewsl (64505) Year Principal Amount 5 aoe z 10 a 4 15 45> 8 ( 20 8> 16 4 Amount after 20 years = 16 « 12000 40. =Rs, 192000 (b) Rate of interest = (r) 35/4% 7/80 — 87/80 (87= Installment, 80 = Principal) Year Principal Ins > 1 80.0 >t > 6400 > Thus, Each installment = 7569 () Principal = Rs. 210 Rate% = 10% = 1/10 = (1 Installment, 10 > Principal) Principal Installment 10,1 Was 100 a2 Note: Installment is same in both cases. So equate fhe installment, Principal Installment 110 121 100 121 210 11 According to the question, 210units > Rs, 210 Lunit> Rs. 1 i2Lunits + 1% 121 =Rs 121 Hence, required value of installment =Rs 121 Alternate: Rate of Interest = 10% = 1/10 Each installment for 2 years = 10/11 x (10+ 11)/11 x Installment = P.A, > 10/11 x 21/11 Installment = 210 > Installment = 121 Method: Rate = 10% = 1/10= 11/10 (b> 11, 10a) For 2 years = a/b x (a+b)/b * Installment = PA. For 3 years = a/bs (a? + b? + ab) ~ Installment = P.A, (a) Rate% = 10% Let time = tyears Principal = Rs. 3200 “Amount = Rs, 3362 Note When interest is caleulated quarterly, New Rate % = 10/4 = 25% Time =4t By using formula, 3362 = 3200(1 + 25/100)" 3362/3200 = (41/40)* + 1681/1600 = (41/40)* > 1681/1600 = (41/40)* = (41/40)! = (41/40) On comparing both sides 4t =2t = Yeyears (c) Rate % = 1/20, time =3 years Let Principal = (20}? 8000 units41. 42. 43, 44, 45. 46. > 3" year Difference of interest for 3 years and 2 years (400 + 20+20+1)=441 ‘According to the question, 8000 units = Rs. 6000 ‘Lunit= Rs, 6000/8000 41 units = Rs, 6000/8000 x 441 =Rs, 330.75 (@) Principal = Rs. 8000 Amount = Rs. 8820 Let Rate % =R: ‘Time =2 years By using formula, 8820 = 8000 (1+ R/100)? 8820/8000 = (1 +R/100)? 441/400 = (1+R/100)? Taking square root of both sides 21/20 = (1+R/100) R=5% (2) Let the principal «Rs. P andthe Rate of Interest = F96 Rs 38408) e Rs 3936(A) ~” ea oitterdce = Rs. 96 Required RateX =96/3840%100 =2.5% (BfitetPrincipal= Rs. P Principal ‘Amount (A): Amount (Aa) (Aa/ (Ax) = 10000/7000 = 10/7 Note: Amount will increase in multiple, ‘Thus, P x 10/7 = 7000 P= Rs, 4900 ‘Thus, Hence required principal = Rs. 4900 (@) Amount = 6000 (1 +5/100)? 000 x 21/20 x 21/20 s. 6615 (q) Sl for 1 year = Rs. 260 Slfor 2 years = 26%2 =Rs. 520 Difference in (Cl- SI) 50. (540.80 -520) =Rs. 208 Required Rate% = 20.8/260 x 100 = 8% Rs, (b) Note: For detailed solution of such type of questions, check the solution of previous question. 47. 49. Amount: Principal 3000 3993 3%year> ¥1000 41331 » > 10 1 Rate % = 1/10x 100 = 10% (0 A=P (1+R/100)" 1348.32 = 1200 (1 + R/100)" 134832/120000 = (1+ R/100)? 2809/2500 = (1+R/100)? 53/50 =1+R/100 =R = 6% Or Choose with options 1200 6% A =Rs, 1348.32 Hence "0" 432 (0) A=P (1+ 1/100)3 1331/1000 = (1+R/100)* (11/1op = (1+ R/100)8 11/10-1 =R/100 =1/10 F = 10% ‘Alternate: Affiss1 / #3000 Sorate=1/10%100 (@) Principal = Rs. 32000 CL =Rs, 5044. Amount = (32000 +5044) =Rs. 37044 Time = 9 month, Let Rate =R% Interest is being compounded quarterly Time=9%4/12 =3 Rate% = 42% ‘Accordingtothe question, Principal 32000 3000 coo 20 a 3% year > year > Required Rate% = 1/20 x 100 = 5% New Rate% =4R% =4«5 = 20% (©) Principal = Rs. 2304, Amount = Rs. 2500 ‘Time = 2 years, Let Rate% =R% By using formula, 2500 = 2304 (1 + R/100)2 2500/2304 = (1+R/100)? (25/24)? = (1+ R/100) By taking square root of both sides,si. 52. 53. 54, 55. 56. 25/24 =(1+R/100) R/100 = 25/24-1 = R= 100/24 =25/6% Rate =25/6% Alternate: Principal Amount for 2” year-> 2304 2500 for1year-> 576 625 24 25 IL Required rate% = 1/24 100 =25/6 Required rate% = 1/24 x 100 =25/6 (a) Principal Amount 15 4 34=1(1+ 4/100? 34> (14/100? Alternate: Principal Amount Sn > 1 3 2 > Rate of interest = (2 - 1)/1x 100 = 100% (a) In these type of questions go through options to save your valuable time. Option (a) > Rate of interest = 5 % = Amount = Principal (1+ Rate/100)* > 11025 = 1000 (1 +5/1007 + 11025/1000 = 441/400 > 1.1025 = 1.1025 > LHS. = RHS. Option (a) is correct (b) Time (x) =2 years, Rate % = 4% Effective rate of Cl for 2 years +44 (4x 4/100 =8.16% Effective Rate of SI for 2 years = 8% ‘According to the question, 8.16% of sum = Rs. 2448 1% ofsum=Rs. 2448/8.16 x8 =Rs. 2400 (C) Rate % = 10%, time = 2 years Effective Rate% of Clfor 4 years = 46.41% Effective Rate % of SI for 4 years = 40% ‘According to the question, Required difference = 32000 x (4641-40)/100 = Rs, 2051.20 (a) According to the question, Amount = P [1+ R/(2* 100))] 315,25 = 2000 (1 + R/200)* 315.25 /2000 = (1+ R/200)> =231525/20000 = (1+R/200)° +R/200 =21/20 =R=10% (@) Let the principal Rs P, Time = 2 years Amount = 2,25P 87. 58. 59, 60. Let Rate=R% By using formula = P (1+ R/100)? 225/100 =(1+R/100) (15/10)? = (1 + R/100)? Ry 100 =15/10-1 > R/100 =5/10 Alternate Note: In such type of questions to save your valuable time follow the given below method. 3"year> 1000 $1331 2 > 10: 11 Rate % = 1/10*100 = 10% (b) Let the principal = 8 units Thus, Amount = 8 x 27/8 =27 units Principal Amount si year > 8 Fd Ast year> Ys ‘ar astyear > 2 3 Ss ae Required Rate% = % « 100 = 50% (6) Cl foryear=Rs. 101.50, Rate% = 3% Effective Rate : of Cl for 2 year 3+3+(8x3)/100 = 6.09% Effective Rate% of SI for 2 years 23432 6% ‘According tothe question, Simple interest = 101.50/6.09 x = 100 (a) Rate % = 12% Time = 2 years Effective Rate% of CI for 2 years = 12+12 + (12 12)/100 = 25.44% Effective Rate% of Sifor 2 year = 12 x2 =24% According to the question, Required St = 2544/2544 x24 =Rs, 2400 Required Sum = Rs. 2400 (b) Rate% = 25/2% =1/8 =9/8 (9— Amount, 8+ Principal) Principal Amount 8 9 8 a. 64 81 According to the question, 17 units = Rs, 510 Lunit=Rs, 30 64 units =Rs. 30x64 =Rs, 1920 Hence, Principal = Rs. 1920 Sl for 2 years = 25/22 =25% Required SI = (1920 x 25)/100 = Rs, 480 Hence, Required SI = Rs. 48061. 62. 63. Alternate Note: In such type of questions to save your valuable ‘time follow the given below method, Let principal = (8) = 64 units 1year /- = Principal 2" year lan NP C for2 years =(8+8+ 1) for 2 years = (8 +8) = 16 units ‘According to the question, 174units =Rs. 510 ‘units = Rs. 510/17 16 units = Rs. 30 « 16 Rs, 30 Rs, 30 (@) Rate % = 25/2% = 1/8 Let the principal - (8)? = 64 units i (om ) 1/8 a year —~% 2 18 Ch =(@ +841) = 17 units SI. =(8+8) = 16units ‘According to the question, T7units> Rs, 510 1Unit> Rs.30 16 units + 30 « 16 =Rs. 480 Thus, Simple Interest = Rs. 480 (b) Rate % =5% ‘Time = 3 years Compound Interest = Rs. 252.20 Effective Rate % of Cl for 3 years 5.7625% ctive Rate % of SI for 3 years Required SI = 252.20/15.7625 « 15 (@) Time=2 years, % 17 units years 5x3 = 15% 240 64, 65. Compound Interest = Rs. 102 Note: [Cl for 2 years = R+R + (Rx R)/100] Where R ~ Rate of interest Combined Rate% 0 Cl for 2 years Sheds (4x 4)/ = 8.161% Sl for two years =2x4 =8% According to the question, Sl for 2 years = 102/8.16 «8 =Rs, 100 Alternate: Rate=4% 1/25 Principal = (25)? = 625 Clfor 2 years = (25+ 25 +1) = 51 Units Sl for 2 years = (25 + 25) = 50 According to the question, 51 Units = Rs. 102 1 units= Rs, 102/51 =Rs. 2 2units = Rs.50x 2 =Rs. 100 Hence, SI for 2 years =Rs, 100 (b) Rate of interest= 59% = 1/20 Let principal = (20)? = 400 as om @ “OD 5 3 Lunit Rs. 6 = 400 units + Rs. 2400 = Principal > Rs. 2400 (a) Time =3 years, Rate = 5% Difference between Cl & SI=Rs. 15.25 Effective Rate% Cl in 3 years. = 15.7625% Effective Rate % S1in 3 years =5 x3 = 15% ‘According to the question, (15.7625 15)% of sum =Rs. 15.25 Sum = 15.25/0.7625 x 100 =Rs, 2000 Alternate: Rate% = 5% = 1/20 Let total principal = (20)° = 8000 units66. ro “7. eo Ne 9 Da pha 2 “\ ~~ a. \ S| ete \ e 68. Goto, According tothe question, 61 units = Rs. 15.25 8000 units = (15.25 x 8000)/61 =Rs. 2000 69. Hence, Required sum = Rs. 2000 (@) 5% = 1/20 Let sum = (20}* = 8000 units Time=3 years Note: In this question time is 3 years hence so for making calculation easier we assumed sum 8000 units. 70. n. According to the question, 61 units= Rs, 36.60 2000 units = Rs. 36,60 x 8000/61 Sum = Rs. 4800 Hence, Required sum = Rs. 4800 Alternate: Note: In such type of questions to save your valuable me follow the given below method. Rate % = 5% ffective Rate of Cl for 3 years 5.76.25% tive Rate of SI for 3 years = 5x3 =155 According to the question, (15.7625 -15}% of sum = Rs. 36.60 0.7625% of sum = Rs. 36.60 Sum = 36.60/0.7625 «100 =Rs. 4800 (a) Casel: SI for 1 years = 6 +6 =12% Case ll: Clis compounded half yearly Rate = 12/2 = 6% teix2s Effective Rate% for 2 hal year = 6 + 6 + (6x 6)/100 = 12.36% According to the question, (12.36 - 12)% = Rs. 36 1% of sum = 36/0.36 100% of sum = 36/0:36 x 100 =Rs. 10000 (b) Rate % = 4% Time = 2 years Difference between Cland SI = Rs. 10 Difference = R?/100 = (4)?/100 = 0.16% 0.16% of sum =Rs. 800 Sum = 800/0.16 x 100 = Rs. $0000 (0) Ri= 4%, Ro=5%, R= 6% 4% = 1/25 , 5% = 1/20, 6% =3/50 Principal ‘Amount 25 26 20 2a 50 53 25000 28938 +3938 ‘According to the question, 25000 units = 10000 Tunit = 10000/25000 = 0.4 3938 units = 0.4 x 3938 =Rs. 1575.20 (a) Effective rate for half year = 10/2 =5% Time = 2n years 926.10 = 800 (1+ 5/100) = 926.10/800 = (21/20) = (21/20}*= (21/20) 3 2n=3>n =3/2 > Required time = 3/2 years (0) Principal = Rs, 2000 Amount = Rs. 2420 Rate % = 10% By using formula, 2420 = 2000 (1 + 10/100) 2420/2000: (1 + 1/10)" 121/100 = (11/10)? (11/1072 = (11/10)" =n = 2years Hence, Required time = 2years Alternate Note: In such type of questions to save your valuable time follow the given below method.72. 73. 74. 78. Amount 2420 121 Principal : 2000 100 Rate = 10% = 1/10 Principal : Amount mo: 24. year > 10 11 Ratio > 100 121 Note: Now after 2" year both the principal and amount will be in the same ratio Hence, required time = 2-vears (a) Principal (P} =Rs. 1000 Amount (A) = Rs. 1331 Rate % = 20% Let Required time = t years ‘According to the question, Note: When interest is compounded half-yearly, Rate % =20/2 = 10% Time = 2t years By using formula, 1331= 1000 (1 + 10/100) 1331/1000 = (11/10) (11/1oys = (11/10) By equating both sides 2t =3->t=3/2 years Ratio > 76. 1" year > Let time = n year By using formula, 78. Amount = Principal (1 + R/100)" 1131= 100 (1 + 10/100)" 1331/1000 = (11/10)" (11/10) = (11/10)" n= 3 years Hence, Required time = 3 years Alternate: Rate% = 10% = 11/10 (11>A, 10 P) p ‘Amoun aay ial (10) * 100 =(10)° xaai=(u) [1000] 1331 Total Time = (1.42) =3 veers (a) According to the question, Amount= P [1 +R/(2 « 100)] 2+! = 68921 = 64000 [1 + 5/2 x 100}2*" 18921/64000 = (1+5/40)?*" = (41/40) 3 tt #3 > (c) Rate of interest r= 25/2% = 1/8 ‘Year Principal Installment > I Bis as > ou 64 > aL Since, Installment is equal hence multiply equation (i) by 77. 79. > Total principal = 72 + 64 = 136 units 136 units > 6800 Lunit > 50 B1units > 4050 > Each installment (b) Let the principal ‘According to the question. R=10% =1/10 100 (Principat) Second year C1 ¥ 2 year Cl interest = 11 units units - 132 Tunit - 12 100 units - 12% 100 = 1200 (0) Clfor 2 years = Rs. 282.15 Sl for 2 years = Rs. 270 Sl for 1 years = 270/2 =Rs. 135 Difference between Cl and SI = (282.15 -270 =Rs. 12.15 Required Rate % = 12.15/135 «100 = 9% Note: Always remember for first year Cl and SI will be same. (o) When the money is compounded half yearly the effective rate of interest for 6 months = 16/2 = 8% = 2/25 Let Principal = (25)? = 625 > 4units +56 3 Lunit +14 = Principal + 14 x 625 = Rs. 8750 (b) Rate % = 10%, Time=1 year Case (I): When interest is calculate yearly, Rate% = 10% Case (lI): When interest in calculated half yearly. > New Rate % = 10/2=5% Time=1%2 =2years — Effective Rate % = 5 +5 + (5x 50)/100 = 10.25% Different in rates = (10.25 - 10)% = 0.25%80. a1. 82, According to the question, 0.28% of sum =Rs. 180 Sum = 180/0.25 x 100 = Rs, 72000 (@) Time = 3 years Rate = 10% Clfor 2 years= 10 + 10+ (10x 10)/100 = 21% Clfor 3 years = 10+ 21+ (21% 10)/100 = 33.1% Sl for 3 years =3x10 =30% Difference in Cl and SI= (33.1 -30)% = 3.1% According to the question, 3.1% of sum=Rs. 31 1% ofsum=Rs. 31/31 Sum =Rs, 31/3.1 x 100 =Rs, 1000 Alternate: 10% = 1/10 Lettrinal = (10) = 1000 uns C1000 >) Sw \ aio Sl for 3 years = 100 x3 = 300 units Clfor 3 years = (100 x 3+10x3+1) = 331 units Difference = (331 - 300) = 31 units According to the question, [Link]=Rs, 31 Lunit= Rs, 1 1000 units =Rs, 1x 1000 = Rs. 1000 Hence, Required sum = Rs. 1000 a) Rate % = 5%, time = 2 years Effective Rate % of Cl for 2 years #54 (5% 5)/100 = 10.25% Effective Rate% of SI for 3 years =2x5 = 10% According to the question, (10.25 - 10)% of sum = Rs, 25 Sum =25/0.25/100 = Rs, 10000 (0 For 2 years Difference between Cl and Sl + C1-Su. =P (P/100)? » 63. =Px (5/100) > 63 «20% 20 =P Principal = Rs, 25200 Therefore PA = Rs, 25200 83. 84, as. 86. 87. 88, 89, (c) Principal = Rs. 5000 Rate % = 10% Time = 2 years Slfor 2 years = (5000 x 2x 10)/100 =Rs. 1000 Note: When interest is compounded semi annually. New Rate % = 10/2 = 5% Time=2*2 =4 years Effective Rate% of for 4 years = 21.55% Required Cl = (5000 * 21.55)/100 =Rs, 1077.53 Thus, Required amt, = Rs. (1077.53 - 1000) =Rs. 77.53 (b) With smart approach » Principal Amt, = Rs, 25000 » Time =2 years % Ro =5% Annually =1/25,5% =1/20 P.A. Amount 25 26 20 ral 500 546 x50 x50 25000 [27300] So amount will be Rs, 27300 after 2 years (@) PA. =Rs, 12000 Thus, Interest being compounded quarterly effective R% = 20/4 = 5% 3 Time =9/12 =% «4 =3 years 32900 aN » Total CI will be = Rs. 1891.50 (@) Required Rate % (238.50 - 225)/225 x 100 = 6% (4) Effective Rate of CI for 2 years +54 (5%5)/100 = 10.25% Effective Rate of SI for 3 years = 63 = 18% According tothe question, Required St=246/10.25 «18 = 432 (6) Difference In Cland SI for 2 years = (40.80 -40) = Rs. 0.80 Slforfirstyear=40/2= Rs. 20 Required Rate% = 0.80/20 100 =% (@) Slfor 3 years= Rs, 3000 Slfor 2 years= Rs. 3000/3 x2 = 200090. 1 92. Slfor 1 year=Rs. 1000 Cl for 2 years = Rs. 2050 Required difference = (2050 - 2000) =Rs, 50 Required Rate% = 50/1000 x 100 = 5% According tothe question, 5% of sum = 1000 Sum = 1000/5 x 100 = Rs, 20000 (€) Rate of interest 5% = 1/20 93, Let principal = (20)? = 400 units 94, 95. @ > Total interest = 41 units > Rs, 328 Lunit> Rs 8 400 units > Rs, 3200 > Principal = Rs, 3200 (d) Time= 2 year, Rate % = 10% Effective Rate% of CI for 2 year = 10 +10 + (10 x 10)/100 itive Rate% of SI for 2 years = 2 * 10 = 20% Required SI= 420/21 x 20 = 400 Rs. (a) Rate of interest = 5% = 1/20 Let prineipal = (20)? = 400 units Go) Go 08 = - = Lae (20 5% e a 97. Alternate Total compound interest for 2 years at 5 % pa. =5+ 5+ (5 x5)/100 = 10.25% Total simple interest = 10% > 10.25% + 410 10% ~ 400 » Simple interest = Rs, 400 Rate% =5% Time = 2 years Sl for 2 years=5 *2=10% Clfor 2 years = 10.25 % According to the question, Required SI=328/10.25 x 10 = 320 (b) Compound Interest - Simple Interest 615 - 600 = Rs. 15 Simple interest for one year = 60/2 = Rs. 300 » Rate of interest = 15/300 x 100 =5% » Principal = Rs. 6000 (b) Principal = Rs. 10000 Time =2 years Rate % =4.% ‘When the interest is compounded half-yearly, time =2x2 =4 Rate = 4 /2% =2% By using formula, Amount = 10000 x (1+ 2/100)* Amount: Rs. 10824.32 Compound interest = Amount - Principal CI =Rs, (1082432 - 10000) = 824.32 Alternate Clfor 2 year =2+24(2*2)/100 = 4.04% Cl for 4 year = 4.04 + 4.04 + (4.04 x 4.04)/100 = 8.08 + 0.1632 = 824.32% According to the question, l= 10000 x 8.2432/100 24.32 (©) Principal = Rs. 16000 Rate% Time = When interest is being compounded quarterly, Time =9/12%4=3 Rate = 20/4% = 5% = 1/20 Principal Amount 20 21 20 24 20 24 8900 9261 +1261 According to the question, 8000 units =Rs, 16000 Lunit =Rs, 2 1261 units = Rs, 2* 1261 = Rs, 2522 (a) 4% =1/25, 3% =3/10098. 99. 100 Principal Amount First year > 25 26 2" year > 100 103 2500 2678 According to the question, 2500 units = Rs, 2000 1 unit = Rs, 2000/2500 178 units = Rs. 2000/2500 x 178 =Rs, 142.40 ‘Alternate: Principal = Rs, 2000, Time =2 years 1 year Rate % = 4% lind year % = 3% Total Cl = (80+ 64+2.4) =Rs. 142.40 (©) Principal = Rs. 30000 Cl=Rs, 4347, Rate% = 7% By using formula, = (3000 +4347) = 30000 (1+ 7/100): 34347 = 3000 (1+7/100): > 34347/30000 = (107/100): > (1449/1000) = (107/100)" > (107/100)? = (107/100): t=2 years (6) Principal = Rs, $000 Time = 3 years, Rate % = 10% = 1/10 Principal Amount 10 11 10 11 10 11 RR 331 units 1000 units = Rs. 5000 Lunit=Rs. 5 331 units = 331 * 5 = Rs 1655 (0) P =Rs.6000, Rate% = 10% Time (ti) =3/2 years 6000 10: 10% 101 102 103 21 year Cl = 660 6 months 24 year Cl = 330 Total Cl = (600 + 330) =930 (c) Principal = Rs, 8000, Rate = 15% Time = 2 years 4 months a 13% 15% Ist Cams year Cas >) ro GD 12 month Cl for 3" year = (1200 + 180 x2+27) = (1200+ 360#.27) 12 months Cl for 3" year = 1587/12 *4 =529 Total CI = (1200 x2 + 180 +529) =Rs, 3109 (a) Rate % = 5%, Time = 3 years Let principal = (20}*= 8000 units (C00) way Ne 2 & Diferece inane st ins" year According tothe question, (20+ 20+ 20+ 1) units=Rs, 122 61 unit=Rs.2 8000 units = Rs, 2« 8000 ‘Thus, Hence Required sum (c) Rate % = 8% , Time=2 years Effective Rate% of Cl for 2 year = 8+ B+ (8x8)/100 = 16.64% According tothe question, 0.64% of sum= Rs. 768 Sum =768/0.64 x 100 =Rs. 120000 Alternate: Rate= 8% 8/100 = 2/25 Let sum = (25)? = 625 units104 105 106 107 108 109 110 ) 2 year ct ? > Difference between CI andSt 625 units = Rs. =Rs, 120000 (a) Rate % = 10%, Time = 2 years Effective Rate% of Cl for 2 years = 10+ 10 (10% 10)/100 = 21% Effective Rate % of SI for 2 years = 10+10 = 20% Difference in Rate % = (21 - 20)% = 1% According to the question, 1% of sum = Rs. 40 Sum =Rs, 40/1 * 100 = Rs, 4000 (d) Note: For detailed solution check earlier question solution of same type. Rate% for 2 years Cl 2444+ (4% 4)/100 Rate% for 2 years SI = (4+ 4) = 8% Required difference = (8.16- 8)% = 0.16% Required difference = 2500 x 0.16/100 =Rs, 4 Alternate: For t=2 years cl -SI=P (R/100)* 2500 (4/100)? =Rs. 4 (a) Rate% = 10% Time = 2 years Rate % for 2 year compound interest =10+10+ (10 x 10)/100 = 20% Rate for 2 years SI = 10+10 = 20% Difference in Rate % = (21-20) = 1% 1% ofsum =Rs. 65 Sum = 65/1% 100 =Rs. 6500 (C) Required difference = R?/100% = 42/100% = 0.16% According to the question, 0.16% of sum = Rs. 1 Sum =1/0.16 x 100 =Rs. 625 (b) Rate% = 4% Time = 2 years Difference between Cl and SI = Rs. 10 Difference = R2/100 = (4)2/100 = 0.16% 0.16% of sum=Rs. 10 Sum =10/0.16x 100 =Rs, 6250 Hence, Required sum = Rs. 6250 (@) Required sum = 8/0.16 x 100 = Rs, 5000 (b) Rate of interest = 20% = 1/5 Let Principal = (5)? = 25, 192 x 625 8.16% 14 112 113 114 115 TD) Difference Between Chand) S Lunit Rs, 48 » Principal = 48 x 25 = Rs, 1200 (Time = 2 years, Rate = 10% Case |: When interest compounded annually 2years CI Rate % = 10 + 10 + (10 x 10)/100 2years SI Rate% = 10+10 = 20% According to the question, (21 ~20)% of sum =Rs, 28 Rs, 2800 ‘When interest is compounded half - yearly 10/2 = 5% x2 fective Rate % of Cl for 2 half yearly 5 #5 +(5x5)/100 = 10.25% fective Rate % of Cl for 4 half yearly 10.25 + 10.25 + (10.25 x 10.25)/100 20.50 + 1.050625 fective rate % of SI for 4 years=5 x4 = 20% Difference in Rate% = (21.55 - 20) = 1.55% Required difference = 1.55/100 x 2800 =434 Hence, Required Difference = Rs. 43.4 Sum = 29/1 x 100 Case Il (@) For2 year D/P = (r/100)? Where D = Difference between Cl and SI P= Principal R = Rate of Interest = 25/1000 = r2/10000 3225 4 r=5% (b) Principal = Rs. 5000, Time=2 years Let Rate = R% Difference between Cl and SI Rs, 32 By using formula, Principal = (difference « 100%)/R? 5000 32x 1002/R? 32 x 10000)/5000 = 64 =R =8% Hence, Required Rate% = 8% (0) Rate% = 10%, Time = 2 years Effective Rate% of Cl for 2 years = 10 + 10 (10 x 10}/100 =21% Effective Rate % of SI for 2 year =2*10 = 20% Account to the question, 1% of sum = Rs. 300 Sum = Rs, 30000 (a) Required difference Rate % = R?/100 = 5?/100 = 0.25% Required sum = 1.50/0.25 x 100 = Rs. 600116 417 118 119 120 124 (©) Note: In such type of questions use given below formula, when 2 years Cl and SI difference is given. [Principal = (Difference x 100°)/R?] Where R Principal Time = 2 years, Difference = Rs. 10, Put the value in formula, 1000 = (10 x 1007)/R? 1000 = (100000)/R = 10% Alternate : Note: We can also solve it by using options, Option(c): Rate % = 10% SI for 2 years = 10 x2 = 20% Clfor 2 years = 10 + 10 + (10 x 10)/100 Difference in Rates = (21 - 20) = 1% Required difference = 1000x 1/100 = Rs. 10 Hence, The difference between CI and SI is same as mentioned in question, Hence, Option (c) is correct. (0) Slfor=2years =5 +5 +(5x5)/100 = 10.25% Difference = (10.25 - 10)% = 0.25% 0.25% of sum = Rs. 15 Sum =15/0.25 x 100 = 15x 1000/25 Sum = Rs. 6000 Alternate: Note: In such type of questions always remember. the difference between Cl and SI for 2 years = ¥°/100% Difference = (5)2/100 = 0.25% Hence, Required sum = 15/0.25 « 100 = Rs, 6000 (a) Difference = R2/100 = (4)2/100 = 0.16% According to the question, 0.16% of sum=Rs. 4 Sum =4/0.16 x 100. =Rs. 2500 (©) 4% =1/25 = 26/25 (26- Amount, 25> Principal) Time =2 years Principal Amount 25, 26 25 26 625 676 x04 x04 [250] 270.40 Hence, Required Principal = Rs. 250 (@)_Slfor 2 years = Rs. 900 Slfor I year= 900/2 = Rs. 450 Cl for 2 years = Rs. 954 Difference between Cl for SI = (954-900) =Rs. 54 Required Rate% = 54/450 x 100 = 12% Required sum = 450/12 x 100 = Rs, 3750 (A) Rate% = 4% =Time (ti) =2 years Slfor 2 years = 4x2 =8% Clfor 2 year=4+4-+ (4 4)/100 122 123 124. 128 126 = 8.16% Required Cl = 80/8x8.16 =Rs. 81.6 (a) Let the principal = Rs, 100 According to the question, Rate= 10% =1/10 Principal 100 1/10 1/10 10 10 KS ~ 1 Interest = 21 Principal = 100 Amount = 21+ 100 =121 221 units 2420 Tunit 2420/121 4100 units 2420/121 x 100 = 2000 Thus, Principal = Rs. 2000 (a) Let the time =T years, Rate % = 10% Note: When interest is calculated semi-annually. New time = 2t years Rate % = 10/2 =5% By using formula, 92610 = 80000 (1 + 5/100) = 9261/8000 = (21/20) = (21/20)? = (21/20) Comparing both sides, 2 =33 t =3/2years Rate of depreciation = 4% = 1/25 Year Value at the end ! 25 ———> 24 625 ———> 576 > 625 units > 62500 > Lunits > 100 > 576 units > 57600 Present value of motor bike = Rs. 57600 (b) Principal = Rs. 250 Ry =4%, Ro = 8% Amount after 1** year = 250 (1+ 4/100) =Rs. 260 Amount after IInd year, = 260 (1+ 8/100) =Rs. 280.80 (a) Principal (P) = Rs. 5000 t= 15 years =3/2 years, Rate% = 4% =1/25 Case (I) When interest is compounded annually Value ataps \ 3) 2e4 year CI 00-+8) = Rs. 208 3 months Clin 2% year = 208/12 «6 = 104 Rs, (200 + 104) Case (ll): When interest is compounded half yearly Rate % = 4/2 = 2% Total compound interest, 00 «3 +6 + 0,04) Difference = Rs. (306.04 - 304) =Rs, 2.04 Alternate: Case I: When interest is calculated yearly, tive Rate % = 4+2+(4%2)/100 = 6.08% Case Il. When interest is calculated half-yearly, Rate% = 4/2= 2% Time = 3/2x 2 years 127 128 Effective Rate % = 6.1208% Difference in Rates = (6.1208 - 6.08)% = 0.0408% Required difference = (5000 x 0.0408)/100 = 2.06 (a) Effective Rate % of SI = 10+ 10/2 = 15% Note: When interest is compounded Half-yearly, ‘When interest is compounded Half-yearly, New Rate% = 10/2 =5% Time 3/2*2 =3 years Effective Rate % of CI for 3 years = 15.7625% According tothe question, 0.7625% of sum = Rs, 244 Sum =244/0.7625 x 100 =Rs. 32000 (b) According to the question, Principal = Rs. S Rate = 21% pa. Time = 3 years Thus, A=P (1 + R/100)" = A=S (1+ 2r/100)* A=S(1 +R/100)