Compound Interest and its Formula

Q.

The difference between compound interest and simple interest on an amount of Rs.15, 000 for 2 years is Rs. 96. What is the rate of interest per annum?

1. 

2. 

3. 

4. 

Q. The cost of a refrigerator depreciates at the rate of $10\%$ every year. If its present worth is ₹ 14000, find the purchase value of the refrigerator brought 2 years before.

1. ₹ 14982
2. ₹ 16381
3. ₹ 15476
4. ₹ 17284

Q.

Population of a town increases at a certain rate percent per annum. Present population of the town is 3600 and in 5 years it becomes 4800. How much will it be in 10 years?

1. 5000

2. 6000

3. 6400

4. 7000

Q. The present population of a village whose population is increasing at the rate of 25% is 20000. Find the population of the village 2 years ago.

1. 12800
2. 11900
3. 13010
4. 14005

Q. The compound interest on a certain sum of money borrowed at the rate of 20% per annum for 2 years is ₹ 440. Find the original amount borrowed.

1. ₹ 1000
2. ₹ 2000
3. ₹ 500
4. ₹ 300

Q.

What is the compound interest earned on a principal of ₹ 5000 at the rate of 20% p.a in 2 years?

1. ₹ 9740

2. ₹ 6740

3. ₹ 2200

4. ₹ 8740

Q. Shouvik lends ₹1000 to Amit at an interest rate of 10% compounded annually for 2 years. Calculate the amount Amit has to pay to Shouvik at the end of 2 years.

1. 1210

Q. The cost of a bike depreciates at the rate of $20\%$ every year. If its present worth is ₹30000, find the purchase value of the bike after the end of 3 years.

1. ₹ 15470
2. ₹ 16350
3. ₹ 19200
4. ₹ 15360

Q. Question 7 (i)
Maria invested Rs 8, 000 in a business. She would be paid interest at 5% per annum compounded annually. Find:
(i) The amount credited against her name at the end of the second year.

Q.

A principal of ₹40, 000 is compounded annually at the rate of 10% for 2 years. What is the compound interest and is it greater than the simple interest for the same rate and the same time?

1. ₹8400, yes

2. ₹8000, yes

3. ₹7000, no

4. ₹8400, no

Q. Ravi bought a bicycle at ₹4000 and its value depreciates at the rate of 10% per annum. Find its value after one year.

1. ₹ 3600
2. ₹ 2800
3. ₹ 3000
4. ₹ 2400

Q. A scooter was bought at ₹ 42000. If the value of the scooter depreciates at the rate of 8% per annum. Its value after one year will be .

1. ₹ 48640
2. ₹ 48000
3. ₹ 38000
4. ₹ 38640

Q. Question 7 (ii)
Maria invested Rs 8, 000 in a business. She would be paid interest at 5% per annum compounded annually. Find:
(ii) The interest for the third year.

Q.

The cost of a car purchased 2 years ago, depreciates at the rate of $30\%$ every year. If its present worth is ₹ 415600, find its purchase price.

1. ₹ 848173

2. ₹493525

3. ₹ 848163

4. ₹496725

Q. The cost of car, purchased 2 years ago, depreciates at the rate of $20\%$ every year. If its present worth is ₹3, 15, 600, find its purchase price.

Q. Determine the principal if the difference between the compound and simple interest on a certain sum at $13\%$ per annum for $3$ years is Rs. $600$.

1. $12363$
2. $11363$
3. $13363$
4. $14363$

Q.

Find the compound interest earned on ₹ 20, 000 for 3 years at 10% per annum compounded annually.

1. ₹ 6, 620

2. ₹ 6, 000

3. ₹ 26, 620

4. ₹ 26, 000​

Q. Mahesh borrowed a certain sum for two years at simple interest from Bhim. Mahesh lent this sum to Vishnu at the same rate for two years compound interest. At the end of two years, Mahesh received Rs. $410$ as compound interest but paid Rs. $400$ as simple interest. Find the sum and rate of interest.

1. $400,15\%$
2. $5000,10\%$
3. $4000,5\%$
4. $7000,15\%$

Q. Find the amount of money Shekhar will get at the end of 5 years if he invests ₹ 1000 in a bank with an interest rate of 20% compounded annually.

1. ₹ 2488.32
2. ₹ 1374.50
3. ₹ 2886
4. ₹ 2500

Q.

The compound interest on a certain sum of money at $5\%$ per annum for two years is ₹ 246. Calculate the simple interest on the same sum for three years at $6\%$ per annum.

1. Rs.432

2. Rs.442

3. Rs.452

4. Rs.430

Q.

Kamala borrowed ₹ 26, 400 from a bank to buy a scooter at a rate of 15% interest per annum compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?

1. ₹ 36659.7

2. ₹ 46659.7
3. ₹ 36660
4. ₹ 37545

Q. Compound interest is always lesser than simple interest when calculated on the same principal, time period and rate of interest.

1. False
2. True

Q.

A scooter was bought at ₹42000 and its value depreciated at the rate of 8% per annum. Find its value after one year.

1. ₹48640

2. ₹48000

3. ₹38000

4. ₹38640

Q.

The cost of Maruti 800 in the year 1998 was ₹ 2, 50, 000. After the end of one year and four months, the price underwent depreciation by 10% per annum. Its new price is

1. Rs. 2, 25, 000

2. Rs. 2, 17, 500

3. Rs. 2, 40, 000

4. Rs. 2, 23, 000

Q.

The difference between the final amount and the original principal is called _______ .

1. rate of interest

2. principal

3. interest

4. time period

Q. Kamala borrowed ₹26400 from a bank to buy a scooter at a rate of 15% per annum. What amount will she pay at the end of 2 years and 4 months to clear the loan?
[3 marks]
[NCERT-Ex 8.3, Q2]
[Compound interest]

Q. Ram invested a certain amount in the mutual fund and got ₹ 960 as the compound interest on this sum at the interest rate of 40% per annum for 2 years. Find the simple interest on the amount which Ram invested in the bank.

1. ₹ 700
2. ₹ 600
3. ₹ 800
4. ₹ 900

Q.

Kamala borrowed ₹ 26, 400 from a bank to buy a scooter at a rate of 15% interest per annum compounded yearly. What amount will she pay at the end of 2 years and 4 months to clear the loan?

1. ₹ 36660
2. ₹ 37545

3. ₹ 36659.7

4. ₹ 46659.7

Q.

Find the compound interest earned on ₹ 20, 000 for 3 years at 10% per annum compounded annually.

1. ₹ 6, 620

2. ₹ 6, 000

3. ₹ 26, 620

4. ₹ 26, 000​

Q.

The cost of a car depreciates at the rate of $20\%$ every year. If its present worth is ₹315600, find the purchase value of the car, if it was purchased two years back.

1. ₹4, 93, 125

2. ₹2, 01, 984

3. ₹4, 10884

4. ₹2, 22, 884