Assignment On Compound Interest
SOME PROBLEMR ON COMPOUND INTEREST
Rule 1
If Principal = Rs. P
Time = t years
Rate = r per cent per annum and interest is compounded annually, then
r t
Amount = P 1 + ——
100
Rule 2
If Principal = Rs. P
Time = t years
Rate = r per cent per annum
r nxt
CI (Compound Interest = A – P = P 1 + ——— - 1
100 x n
Rule 3
When rate of interest is r1 %, r2 % and r3 % for 1st year, 2nd year, and 3rd year respectively, then Amount = P
r1 r2 r3
1 + —— x 1 + —— x 1 + ——
100 100 100
Rule 4
If Principal = P
Rate = r% per annum
Amount = A and
Time is given in the form of fraction like 2½ years.
r
—
r 2 2
Amount (A) = P 1 + ——— x 1 + ———
100 100
Rule 5
Theorem : If a certain sum becomes ‘m’ times in ‘t’ years, the rate of compound interest r is equal to 100 [(m)l/t -1].
SOME PROBLEMS
1. Amit Kumar invested an amount of Rs. 15000 at compound interest rate of 10 pcpa for a period of 2 years. What amount will he receive at the end of two years?
2. Find the amount at compound interest of Rs. 6325 in 2 years at 4 per cent.
3. Find the compound interest on Rs. 350 for 1 year at 4 per cent compound interest, interest being calculated half yearly.
4. Find the compound interest on Rs. 8000 for 3 months at 5 per cent compound interest payable quarterly.
5. What will be the compound interest acquired on a sum of Rs. 12000 for 3 years at the rate of 10% per annum?