Learn and practice Problems on compound interest with easy explaination and shortcut tricks. All questions and answers covered for various Competitive Exams

Solve Problems on compound interest:

1) What is the compound interest on Rs. 2500 for 2 years at rate of interest 4% per annum?

6) The simple interest on a certain sum of money at rate of interest 5% per annum for 2 years is Rs. 500. What is the compound interest on the same sum for the same period and at the same rate of interest?

8) The difference between Simple Interest and Compound Interest on a certain sum of money for 2 years is Rs.200. If the rate of interest is 12 %, what is the sum?

If the difference between the C.I. and S.I. on a certain sum of money for 2 years at rate of interest r % is Rs. X, then the sum is given by;

Sum = X(100/r)^2

We have;

X = Rs. 200

t = 2 years

r = 12/2=25/2 % Therefore, Sum = 200{100/(25/2)}^2

= 200 * (200/25)^2

= 200 *200/25 * 200/25

= 200 * 64

= Rs. 12800 (Option C)

9) If the difference between Simple Interest and Compound Interest on a sum of money for 3 years is Rs. 200 and the rate of interest is 10%, what is the sum?