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### Question 1

What is the difference in compound interest and simple interest on an amount of Rs. 90000 for a period of 2 years if the rate is 2% p.a. compounded annually?

### Question 2

What is the amount receivable on Rs. 40000 after 6 months, invested at a rate of 28% compounded quarterly?

### Question 3

The amount of Rs. 3000000 earns an interest of Rs. 278181 @3% compounded annually. What is the investment period in years?

### Question 4

The interest earned by an amount of Rs. 40000 @5% compounded annually is Rs. 4100. What is the period in years?

### Question 5

The difference between compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 175. What is the rate p.a. if principal is Rs. 70000?

**A**

5%.

**B**

7%.

**C**

6%.

**D**

8%.

**Soln.**

**Ans: a**

If d is the difference, r is the rate and P is the principal, then the shortcut formula for the difference between compound and simple interest over a period of 2 years is d = P × $(r/100)^2$. So rate = 100 × $√{d/P}$ = 100 × $√{175/70000}$ = 5%.

This Blog Post/Article "Compound Interest Quiz Set 013" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Updated on 2019-08-18.