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### Question 1

What is compound interest on Rs. 80000 after 2 years, invested at a rate of 6% compounded annually?

### Question 2

The compound amount after 2 years on a principal of Rs. P is same as that on a principal of Rs. (1035 - P) after 3 years, then what is P if the rate of interest is 7% p.a. compounded yearly?

### Question 3

When a certain amount is invested in a simple interest scheme, it increases by 30% in 3 years. What will be compound interest after 3 years on an amount of Rs. 8000, at the same interest rate, and annual compounding?

**A**

Rs. 2648.

**B**

Rs. 2748.

**C**

Rs. 2548.

**D**

Rs. 2848.

**Soln.**

**Ans: a**

Simple interest on Rs. 100 in 3 years is Rs. 30, so rate is 30/3 = 10%. Compound interest for 3 years would be 8000 × $(1 + 10/100)^3$ = 8000 × $(11/10)^3$ = $(8000 × 11 × 11 × 11)/1000$ = Rs. 10648. Interest = A - P = 10648 - 8000 = Rs. 2648.

### Question 4

What is the difference between the simple interest and compound interest at the rate of 8% for 1 year? The compounding is half-yearly, and the principal is Rs. 30000.

**A**

Rs. 48.

**B**

Rs. 148.

**C**

Rs. 98.

**D**

Rs. 248.

**Soln.**

**Ans: a**

The simple interest SI = (P × r)/100 = (30000 × 8)/100 = Rs. 2400. Compound interest will have half interest rate and n = 2. By shortcut formula, we have CI = ${P × R × (R + 200)}/10000$ = ${30000 × 4 × (4 + 200)}/10000$ = Rs. 2448. The difference = Rs. 48.

### Question 5

What is the difference between the simple interest and compound interest at the rate of 8% for 1 year? The compounding is half-yearly, and the principal is Rs. 70000.

**A**

Rs. 112.

**B**

Rs. 212.

**C**

Rs. 162.

**D**

Rs. 312.

**Soln.**

**Ans: a**

The simple interest SI = (P × r)/100 = (70000 × 8)/100 = Rs. 5600. Compound interest will have half interest rate and n = 2. By shortcut formula, we have CI = ${P × R × (R + 200)}/10000$ = ${70000 × 4 × (4 + 200)}/10000$ = Rs. 5712. The difference = Rs. 112.

### More Chapters | See All...

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This Blog Post/Article "Compound Interest Quiz Set 001" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Updated on 2017-06-24.