Compound Interest

Rule 1
years at 3 - per cent
lfPrincipal = R s P
Time = t years
Rate = r per cent per annum and
Interest is compounded annually, then,
Amount =

6.

r
100

Illustrative Example
Ex.:

Rs 7500 is borrowed at CI at the rate of 4% per

annum. What will be the amount to be paid after 2
years?
Soln: Applying the above formula,
.

Amount = 7500 1 + 100

n2

a) Rs 2979.10
b)Rs2997.10
c) Rs 2797.10
d) None of these
What is the amount at compound interest for 2 years at
2 per cent?
a) 2.0404 times the principal
b) 1.0404 times the principal
c) 1.404 times the principal
d) Data inadequate

Answers
l.d;Hint: Amount = 10000 1 +

7500x26x26

Exercise

5.

100

= lOOOOx j i x j ^ x j ^ =Rsl3310

25x25

Rs 8112.
I.

10

Raviraj invested an amount of Rs 10,000 at compound

interest rate of 10 per cent per annum for a period of
three years. How much amount will Raviraj get after 3
years?
|SBI Associates PO, 1999]
a)Rs 12340 b)Rs 13210 c)Rs 13320 d)Rs 13310
Seema invested an amount of Rs 16000 for two years at
compound interest and received an amount of Rs 17640
on maturity. What is the rate of interest?
|SBI Associates PO, 1999|
a) 8 pcpa
b) 5 pcpa
c)4pcpa d) None of these
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?
|GuwahatiPO,1999]
a) Rs 18000 b)Rs 18500 c)Rs 17000 d)Rs 18150
Find the amount at compound interest of Rs 625 in 2
years at 4 per cent.
a)Rs676
b)Rs756
c)Rs767
d)Rs675
Find the amount at compound interest of Rs 2700 in 3

2.b;Hint:^= 1 +

17640
or 16000

111025 ,
r
or il
H
' 10000
100
Al

105-100
or,
3.d

100

100

4. a

5.a

or
'

100 J
r

5x7x3
100

"Too

or,r = 5%
6.b

Rule 2
When interest is compounded half-yearly
r

l2l

Amount = P i + i
100

i+-

200

Illustrative Example
Ex.:

Rs 7500 is borrowed at CI at the rate of 4% per annum.

What will be the amount to be paid after 1 year, i f
interest is compounded half-yearly?

294

PRACTICE B O O K O N QUICKER M A T H S

Soln: Applying the above formula,

Find the compound interest on Rs 10000 in 9 months at

4 per cent interest payable quarterly.
a) Rs 303 (Approx)
b) Rs 313 (Approx)
c) Rs 203 (Approx)
d) None of these
Find the compound interest on Rs 8000 in 3 months at 5
per cent interest payable quarterly.
d)Rsl00
c)R 5 150
a)Rs250
b)Rs200

Amount =

1+200 _

7500x102x102
Ton x 100

= Rs7803.

Exercise
1.

Find the amount of Rs 1000 in 1 year at 5 per cnet compound interest payable half-yearly,
a) Rs 1050 (Approx)
b) Rs 950 (Approx)
c) Rs 1125 (Approx)
d) Rs 1025 (Approx)
2..-Find the amount of Rs 6400 in 1 year 6 months at 5 per
cent compound interest, interest being calculated half
yearly.
a) Rs 6882.10
b)Rs6892.10
c) Rs 6982.10
d) None of these
3. Find the compound interest on Rs 350 for 1 year at 4 per
cent per annum, the interest being payable half yearly.
a)Rs364.14 b)Rs365.15 c)Rs 14.14 d)Rs 15.15

Answers
l.a

2.b

3. c; Hint: Amount =

204 204
^ " ^ " =Rs364.14
0

Answers

i .d S S L -

1. b; Hint: Amount - 200o| +

400

= 2000|
I 40

2. a

Compound interest = 2262.81 - 2000 = Rs 262.81

3.d

Rule 4
Let Principal = R s P
Time = t years
Rate = r per cent per annum
CI (Compound Interest) = A - P = P

.-. Compound interest = Rs 364.14 - Rs 350 = Rs 14.14

When interest is compounded quarterly

r
100

1+^
100x J

-1

Where, n = 1, when the interest is compounded yearly

n = 2, when the interest is compounded half-yearly
n = 4, when the interest is compounded quarterly
n = 12, when the interest is compounded monthly
When, interest is compounded yearly, n = 1

Rule 3 ^ 0

Amount = P

Rs 2262.81

=P 1+400

1+ r

CI= P

Too

Illustrative Example

Note: Rule 1,2 and 3 are special cases of this general rule.

Ex.:

Illustrative Example

Rs 7500 is borrowed at CI at the rate of 4% per annum.

What will be the amount to be paid after 6 months, i f
interest is compounded quarterly?
Soln: Applying the above formula,

Amount = 7500

7500x101x101

400

100x100

Ex.:

If the interest is compounded annually, find the

compound interest on Rs 2000 for 3 years at 10%
per annum.
Soln: Applying the above formula,
CI= 2000

= Rs 7650.75.

1.

10 per cent per annum, the interest being payable quarterly.

a) Rs 2262.81
b)Rs 262.81
c) Rs 262.18
d) None of these

io

i +

IOOJ

fill
- i = 2000 - 1
Uo,

= Rs662.

Exercise
1
Find the compound interest on Rs 2000 for 1 years at

Exercise
1.

2.

The compound interest on any sum at the rate of 5% for

two years is Rs 512.50. Find the sum.
[BSRB Hyderabad PO, 1999|
a)Rs5200
b)Rs4800
c)Rs5000
d)Rs5500
Find the amount on Rs 60,000, i f the interest is com-

Compound Interest

years.
[NABARD, 1999]
a) Rs 63672.48
b) Rs 62424.00
c)Rs 67491.84
d)Rs 64896.00
3. What will be the compound interest acquired on a sum
of Rs 12000 for 3 years at the rate of 10% per annum?
[BSRBBhopalPO,2000]
a)Rs2652
b)Rs3972
c)Rs3960
d)Rs3852
4. Find the compound interest on Rs 4000 for 3 years at 5
per cent per annum.
a)Rs630
b)Rs 620.50
c) Rs 630.50
d) None of these
\d the compound interest on Rs 1600 for 3 years at

512.50x400

= Rs 5000
41

x=

pounded half-yearly at 4 per cent per annum for 1

4
3'
2. a; Hint: Here r = - = 2% and t = - x 2 =3 years

Amount = 60000 1 +

10
-12000
3. b; Hint: Compound interest = 12000 1 + Too
v
= 15972-12000 = Rs 3972
4. c
5. a
6. c; Hint: Let Rs P be the principal
.2

a) Rs 186.83 b)Rs 168.83 c)Rs 186.38 d)Rs 168.38

6. What principal will amount to Rs 13 52 in 2 years at 4 per
cent compound interest?
a)Rsl520
b)Rsl260
c)Rsl250
d)Rsl220
7. On what principal will the compound interest for 3 years
at 5 per cent amount to Rs 63.05?
a)Rs400
b)Rs500
c)Rs450
d)Rs550
CS^A^ property decreases in value every year at the rate of
6 per cent on its value at the beginning of that year. I f
its value at the end of 3 years be Rs 21093.75, what was
it worth at the beginning of these three years?
a) Rs 25600 b)Rs 26500 c)Rs 25500 d)Rs 25800
9. One man offers Rs 80000 for an estate and another Rs
84270 to be paid in 3 year's time, allowing 6 per cent
compound interest. Which is the better offer.
a) first
b) second
c) both
d) None of these
10. A merchant commences with a certain capital and gains
annually at the rate of 25 per cent. At the end of 3 years
he is worth Rs 10,000. What was his original capital.
a)Rs5120
b)Rs5220
c)Rs5210
d)Rs5130
11. What sum put out for 1 years at 4 per cent compound
interest, payable half-yearly will amount to Rs 6632.55?
a)Rs6250
b)Rs6520
c)Rs6350 d) None of these
12. Rs 800 at 5% per annum compound interest amount to
Rs 882 in
[Clerical Grade 1991]
a) 4 years
b) 3 years
c) 2 years
d) 1 year

Answers

ThenP|l +

25
p

-H52

25

1352x25x25

26x26
.-. the required principal is Rs 1250
7. a; Hint: Let Rs P be the principal

ThenRsP jf

^j

21 21 21^_
x

{20

20

_ 1

20

f=Rs63.05
6305
100

P = Rs400
the required principal is Rs 400

8. a; Hint: Here P 1
100

.-. P I

= 21093-

84375

vl6y

_
'

84375x16x16x16
A
k i< i<
=Rs25600
4x15x15x15

.-. Original value of the property = Rs 25600

9. a; Hint: Rs 80000 after 3 years will become

1. c; Hint: Let the sum be Rs x

441-400

100J

60000x x x
50 50 50

= Rs 63672.48

per cent per annum.

512.50 =

100

400

106 106 106
80000 ^ ^ " J ^ = R s 95281.28, which is greater
x

PRACTICE B O O K O N QUICKER M A T H S

296
than Rs 84270. Hence, first one is a better offer.
10. a; Hint: Original capital =

10000x100x100x100
~~z
= 80
I ^ j X

4.

X l j

x64 = Rs5120

5.

6<J23.SS~ 1 0 0~ l O O ^ l O O

11. a;Hint:Sum=

a)Rs28119 b)Rs29118 c)Rs28129 d)Rs28117

What sum will amount to Rs 15916.59 in 3 years at compound interest, the interest for 1st, 2nd and 3rd years
being 3,2 and 1 per cent respectively.
a) Rs 15900 b) Rs 15000 c) Rs 16000 d) None of these
What sum of money will amount to Rs 699.66 in 2 years,
reckoning compound interest for 1 year at 4 per cent and

=Rs6250
102x102x102

for the other at 3 per cent per annum.

4

6632.55 = Sum l

-2100

a)Rs560

882

00

2.d

800

21
P =

20

1591659x100x100
103x102x101

5. b; Hint: Sum =

t = 2 years

= Rs 15000

= Rs 650

104x207

Rule 6

When rate of interest is r %, r % and r % for 1st year,

2

2nd year, and 3rd year respectively, then Amount = P

X"i 4-" X
100

100

699.66x100x200

Rule 5
x

d)Rs580

3.a

P\
4 b-Hinf 15916.59 '== P\x

'
UOO 100

12. c; Hint: Let time be t years

882 = 800 1 +

c)Rs670

Answers
Lb

it

b)Rs650

Let, Amount = Rs A
Principal = R s P
Time = t years

100

100

Rate of interest (r) = n x 100

% per annum.

Illustrative Example
Ex.:

Rs 7500 is borrowed at CI at the rate of 2% for the first

year, 4% for the second year and 5% for the third
year. Find the amount to be paid after 3 years.
Soln: Applying the above theorem,
Amount

1+100

1+100

1 + _5_
100

Where, n = 1, when the interest is compounded yearly

n = 2, when the interest is compounded half-yearly
n=4, when the interest is compounded quarterly
n = 12, when the interest is compounded monthly
If the interest is compounded yearly, then n = 1
._ 100

% per annum.

7500x102x104x105
100x100x100

= Rs 8353.8.

Exercise
1.

2.

3.

Rs 50000 is borrowed at CI at the rate of 1 % for the first

year, 2% for the second year and 3% for the third year.
Find the amount to be paid after 3 years,
a) Rs 50355.3 b)Rs 53055.3 c)Rs 53505.3 d)Rs 53053.5
Rs 125000 is borrowed at CI at the rate of 2% for the first
year, 3% for the second year and 4% for the third year.
Find the amount to be paid after 3 years,
a) Rs 135678 b)Rs 136587 c)Rs 163578 d)Rs 136578
Rs 25000 is borrowed at CI at the rate of 3% for the first
year, 4% for the second year and 5% for the third year.
Find the amount to be paid after 3 years.

Illustrative Examples
Ex. 1: At what rate per cent per annum will Rs 1000 amount
to Rs 1331 in 3 years? The interest is compounded
yearly.
Soln: Applying the above formula,

r = 100

Ex.2:

[1331]

t1000J

1/3

100

iir*-,
10

= 10% per annum

At what rate per cent compounded yearly will Rs
80,000 amount to Rs 88,200 in 2 years?

Compound Interest

297
,
1 t
annum, compounded yearly for - years.
1

Soln: Detail Method: We have 80,000 | 1 +

100

or,

1+100

or, 1+-

88200

441

80000

400

Rs88200

,,\

Soln: We know that, compound interest = Amount - Principal

CI = A - P
Now, using the above formula,

21
00

r = 5%
Quicker Method: Applying the above formula,
= 2000
100

f88200Y
1,80000 J

,
- 1 = 100

2 1

_20~

_100_

"205"
200 _

100x100x200

Rs 2260.12

.-. CI = 2260.12-2000 = Rs260.12.

At what rate per cent compound interest, will Rs 400

amount to Rs 441 in 2 years?
a) 4%
b)5%
c)6%
d)3%
At what rate per cent compound interest will Rs 625
amount to Rs 676 in 2 years?
a) 3%
b)Rs2%
c)4%
d)5%
At what rate per cent will the compound interest on Rs
2500 amount to Rs 477.54 in 3 years?
a) 6%
b)4%
c)5%
d) None of these

Exercise
1.

Find the amount of Rs 800 at compound interest in 2years at 5 per cent.

a) Rs 904.05 b)Rs 904.50 c)Rs904

d)Rs 905.04

On what sum will the compound interest for 2 years

at 10% amount to Rs 6352.50?
a)Rs4900
b)Rs5500
c)Rs5000

Answers
l.b
2.c

3 a: Hint: rate % = 100

2000x105x105x205

Exercise

"105"

= 5% per annum.

1+200

A= P 1 +100

20

d)Rs5800

' 1
Find the amount of Rs 4000 for 2 years at 6% com[

pound interest,
a) Rs 4629.23
c)Rs 4639.32

( 2977.54 V
i

2500

V Here compound interest = Rs 477.54 (given)

Amount (A) =Rs 2500+ Rs 477.54 = Rs 2977.54
< -1
.50

6.,

Answers
1. a
2. c;Hint: Sum =

6352.50x100x100x100

= Rs5000
110x110x105

3.a

Rule 7
Let Principal = P
Rate = r% per annum
Amount = A and

b)Rs 4692.32
d) None of these

Rule 8
Theorem: A sum of money, placed at compound interest,
becomes n times in tyears andm times in xyears. We calculate the value of x from the equation given below

Time is given in the form of fraction like 2 years.

r
\mount(A)= P 1 + 100

100

Illustrative Examples
Ex. 1: A sum of money placed at compound interest doubles
itself in 4 years. In how many years will it amount to
eight times itself?
Soln: Detail Method:

Illustrative Example
Ll:

Find the compound interest on Rs 2000 at 5% per

We have P

100 J

2P

1+100,

= ?

PRACTICE B O O K O N Q U I C K E R M A T H S

298

itself in 5 years. In how many years will it amount to 8

times itself?
a) 18 years b) 15 years c) 16 years d) 12 years
2. A sum of money placed at compound interest doubles
itself in 6 years. In how many years will it amount to 16
times itself?
a) 24 years b) 26 years c) 22 years d) 20 years
3. A sum of money placed at compound interest thrice itself in 4 years. In how many years will it amount to 27
times itself?
a) 12 years b) 15 years c) 14 years d) 10 years
^ 4 ^ " l f a sum o f money at compound interest amounts to
thrice itself in 3 years, then in how many years will it be
9 times itself?
| Bank PO Exam, 19811
a) 12 year
b) 6 years
c) 9 years
d) 15 years

Cubing both sides, we get

1+100J

= 2=8

(
V
= 8P
Or P
'
1, 100 ^
Hence, the required time is 12 years.
Quicker Method-1:
x becomes 2x in 4 years
2x becomes 4x in next 4 years
4x becomes 8x in yet another 4 years
Thus, x becomes 8x in 4 + 4 + 4 = 1 2 years
Quicker Method - II
Applying the above formula, we have
2

Answers
2

./4

= 8

l/,

I / 4

3 / * ^ I

l.b

:.x = \2 years.
Quicker Method - III: Remember the following conclusion:
If a sum becomes n times in t years at CI then it will
be (n) times in mt years. Thus, i f a sum becomes 2
times in 4 years it will be (2) times in 3 x 4 = 12 years.
Ex.2: A sum of money at compound interest amounts to
thrice itself in three years. In how many years will it
be 9 times itself?
Soln: Detail Method:
Suppose the sum = Rs x
Then, we have
m

4.c

Rule 9
Theorem: If a certain sum becomes'm' times in 7' yean,
the rate of compound interest r is equal to 100 [(/w) ' - l i
17

Illustrative Example
Ex.:

At what rate per cent compound interest does a sum

of money become nine-fold in 2 years?
Soln: Detail Method: Let the sum be Rs x and the rate of
compound interest be r% per annum, then
9x =

or, 3

>3

3x = x 1 + 100

3.a

2. a

or, 3 = 1 + 100

x(]+-^~)
K lOOj

1 +

or, 9

Too;or'ioo

100
200%

Quicker Method: Applying the above rule, we ha'

r = 1 Oo[(9) -1] = 100(3 - 1 ) = 200% .

Squaring both sides

1/2

Exercise

fi+1
Now multiply both sides by x; then 9x = x\ +

1.

100 J

2.

the sum x will be 9 times in 6 years.

Quicker Method: Remember the following conclusion:
If a sum becomes n times in (years at CI then it will
be (n)

3.

times in mt years.

Thus, i f a sum becomes 3 times in 3 years it will be

4.

(3) times in 2 x 3 = 6 years.

2

At what rate per cent compound interest, does a sum

9
money become times itself in 2 years?
a) 50%
b)100%
c)25%
d)40%
At what rate per cent will the compound interest, does
sum of money become four fold in 2 years?
IBank PO Exam, 19"
a) 150%
b)100%
c)200%
d)75%
At what rate per cent will the compound interest, does
sum of money become 27 times in 3 years?
a) 100%
b) 150%
c)75% '
d)200%
At what rate per cent will the compound interest, does
sum of money become 16 times in 4 years?
a) 100%
b) 150%
c)50%
d)75%

Exercise

Answers

1.

La

A sum of money placed at compound interest doubles

2.b

I d

4. a

Compound Interest

\
Quicker Method II: Here, t = 2

Rule 10
Theorem: If the CI on a certain sumfor t years atr%be Rs
C, then the SI is given by the following formula, Simple
rt

Interest (SI) =

x Compound Interest

100 , 1 +
v
100

SI=

Exercise
I f the CI on a certain sum for 2 years at 5% be Rs 410.
what would be the SI?
a)Rs200
b)Rs300
c)Rs350
d)Rs400
I f the CI on a certain sum for 2 years at 4% be Rs 510,
what would be the SI?
a)Rs500
b)Rs505
c)Rs400
d)475
I f the CI on a certain sum for 2 years at 6% be Rs 25.75,
what would be the SI?
a)Rs25
b)Rs24
c)Rs20
d)Rsl5
If the compound interest on a certain sum for 3 years at
5 per cent be Rs 50.44, what would be the simple interest?
a)Rs49
b)Rs48
c)Rs44
d)Rs40
The compound interest on a sum of money for 3 years at
5 percent is Rs 1324.05. What is the simple interest?
a)Rsl260
b)Rsl560 c ) R s l l 6 0
d)Rsl360
The compound interest on a certain sum of money for 2
years at 10% per annum is Rs 420. The simple interest on
the same sum at the same rate and same time will be:
|Clerical Grade Exam, 1991]
a)Rs350
b)Rs375
c)Rs380
d)Rs400

-1
2.

(CI).
Note: Whent = 2
SI=

2r

3.

xCI

- 1+ +
100
100
'00

4.

2rxC/xlQQ

200r

r +200r

r(r+ 200)

[
S

xCI
5.

200

-xCI
r + 200
6.

Illustrative Example
Ex.:

If the CI on a certain sum for 2 years at 3% be Rs

101.50, what would be the SI?
Soln: Detail Method:
/imA

3 \

103

1 =

CI on 1 rupee = | 1 +

100 J
Re

Answers

-1

l.d

609
10000

10000
-x100
609
200
I

mple Interest

X l 0 1

rt
x

5 = R s 1 0 0

210
CI= ^

1.
xl01.50
100

10000
100

"

=Rs420.

Exercise

X101.50:

IOOJ

'TY

The simple interest on a certain sum of money for 2

years at 10% per annum is Rs 400. Find the compound
interest at the same rate and for the same time.
Soln: Using the above formula,

Compound Interest

100 1 + 100

;oo

6.d

Ex.:

3x2

5.a

Illustrative Example

^
203Quicker Method I: Applying the above formula, we
have,
S

4.b

r + 200
-xS
200

203
t

3.a

Rule 11

200

200

2. a

Theorem: IftheSIon a certain sumfor 2 years atr% beRs

'S' then the CI is given by the following formula, CI =

SIonlrupee^Re^Re^
si
"CI

101.50 = Rsl00 (SeeNotel

609

103 Y _
100 J

2.

xl01.50 = R s l 0 0
3.

The simple interest on a certain sum of money for 2 years

at 5% per annum is Rs 100. Find the compound interest
at the same rate and for the same time.
a) Rs 102.50 b)Rsl03
c)Rs 103.50 d)Rs 102.25
The simple interest on a certain sum of money for 2 years
at 6% per annum is Rs 300. Find the compound interest
at the same rate and for the same time.
a)Rs310
b)Rs308
c)Rs307
d)Rs309
The simple interest on a certain sum of money for 2 years

300

4.

5.

PRACTICE B O O K O N QUICKER M A T H S

at 4% per annum is Rs 350. Find the compound interest

at the same rate and for the same time.
a)Rs387
b)Rs367
c)Rs357 d) None of these
The simple interest on a certain sum of money for 2 years
at 20% per annum is Rs 200. Find the compound interest
at the same rate and for the same time.
a)Rs320
b)Rs220
c)Rs210
d)Rs225
SI on a sum at 4% per annum for 2 years is Rs 80. The CI
on the same sum for the same period is:
[Asstt. Grade 1987]
a) Rs 1081.60 b)Rs 81.60 c ) R s l 6 0 d) None of these

50.50 and simple interest is Rs 50. Find the rate of interest per annum and the sum.
a) 4%, Rs 1000
b) 2%, Rs 1150
c) 2%, Rs 1250
d) 4%, Rs 1250
The compound interest on a certain sum for 2 years is Rs
105 and simple interest is Rs 100. Find the rate of interest
per annum and the sum.
a) 10%, Rs 500
b) 10%, Rs 1000
c) 20%, Rs 1000
d) None of these
The compound interest on a certain sum for 2 years is Rs
60.60 and simple interest is Rs 60. Find the rate of interest per annum and the sum.
a) 2%, Rs 1600
b) 2%, Rs 1400
c) 3%, Rs 1500
d) 2%, Rs 1500

2.

3.

Answers
l.a

2.d

3.c

4.b

5.b

Rule 12

Answers

Theorem: If the compound interest on a certain sum for 2

years isRs'C and simple interest is Rs 'S', then the rate of
interest per

annum

is

"2x(C-S)
-xlOO 0/
/ 0

per

or

2xDiff. xlOO
SI

l.c

2.a

3.d

Rule 13
Theorem: If on a certain sum of money, the simple interest
for 2 years at the rate of r% per annum is Rs X, then the
difference in compound interest and simple interest is given
(Xr

Illustrative Example

^* Uoo,

Ex.:

Note: This formula is applicable only for 2 years.

The compound interest on a certain sum for 2 years is

Rs 40.80 and simple interest is Rs 40.00. Find the rate
of interest per annum and the sum.
Soln: Detail Method: A little reflection will show that the
difference between the simple and compound interests for 2 years is the interest on the first year's interest.

Illustrative Example
Ex.:

On a certain sum of money, the simple interest for 2

years is Rs 50 at the rate of 5% per annum. Find the
difference in CI and SI.
Soln: Applying the above formula, we have
50x5

40
First year's SI = Rs = Rs 20

difference in CI and SI =

CI - SI = Rs 40.8 - Rs 40 = Re 0.80
Interest on Rs 20 for 1 year = Re 0.80
.'. Interest on Rs 100 for 1 year = Rs

Exercise
80x100

1.

100x20

= Rs4
.-. rate = 4%
Now, principal P is given by

2.

100x1 100x40
P = = . . =Rs500
tr
2x4
Quicker Method: Applying the above rule, we have
2x0.8
- x l 0 0 = 4%
the rate =
40

3.

40x100
and sum = -;- = Rs 500.
4x2

4.

Exercise
1.

= Rs 1.25.

On a certain sum of money, the simple interest for 2 \a

is Rs 140 at the rate of 4% per annum. Find the differer.a
in CI and SI.
a)Rs3
b)Rsl.5
c)Rs2.8
d)Rsl.8
On a certain sum of money, the simple interest for 2 1
is Rs 160 at the rate of 5% per annum. Find the differeia
in CI and SI.
a)Rs4
b)Rs5
c)Rs6
d)Rs8
On a certain sum of money, the simple interest for 2 \a
is Rs 150 at the rate of 3% per annum. Find the different
in CI and SI.
a)Rs5
b)Rs4.5
c)Rs2.5
d)Rs2.25
On a certain sum of money, the simple interest for 2 y
is Rs 200 at the rate of 7% per annum. Find the differn^
in CI and SI.
a)Rs7

The compound interest on a certain sum for 2 years is Rs

b)Rs6

c)Rs3.5

Answers
l.c

2. a

3.d

4. a

d) None of the!

C o m p o u n d Interest

301

Illustrative Example

Rule 14
Theorem: When difference between the compound interest
and simple interest on a certain sum of moneyfor 2 years at
r% rate is Rs x, then the sum is given by
Sum =

Difference x 100x100

x{\00)

Rate x Rate

100

Ex:

Find the difference between the compound interest

and the simple interest for the sum Rs 1500 at 10% per
annum for 2 years.
Soln: Using the above theorem, we have

= x

Difference = Sum

1500 I_
100

Too

Rs 15.

Illustrative Example
Ex.:

The difference between the compound interest and

the simple interest on a certain sum of money at 5%
per annum for 2 years is Rs 1.50. Find the sum.
Soln: Using the above theorem:
100
Sum = 1.5

= 1.5 x 400 = Rs 600.

Exercise
1.

2.

Exercise

The difference between the compound interest and the

simple interest on a certain sum of money at 4% per
annum for 2 years is Rs 2. Find the sum.
a)Rsl260
b)Rsl225
c)Rsl250
d)Rsl230
The difference between the compound interest and the
simple interest on a certain sum of money at 5% per
annum for 2 years is Rs 3. Find the sum.
a)Rs600
b)Rsl200
c)Rsl400
d) Data inadequate
The difference between the compound interest and the
simple interest on a certain sum of money at 8% per
annum for 2 years is Rs 4. Find the sum.
a)Rs625
b)Rsl260
c)Rs312.5
d) None of these
The difference between the compound interest and the
simple interest on a certain sum of money at 10% per
annum for 2 years is Rs 2.50. Find the sum.
a)Rs350
b)Rs275
c)Rs250
d)Rs325
The difference between the compound interest and the
simple interest on a certain sum of money at 4% per
annum for 2 years is Rs 1.40. Find the sum.
a)Rs875
b)Rs857
c)Rs785 d) None of these
The difference between the compound interest and
simple interest on a certain sum at 5% for 2 years is Rs
1.50. The sum is
[Bank PO 1987]
a)Rs600
b)Rs500
c)Rs400
d)Rs300
2.b

4.

a)Rs9

3.a

4.c

5.a

l.a

100

d)Rs6

2,c

3.b

4.a

Rule 16

Difference x(lQO)

/- (300 + r )
2

Illustrative Example
Ex.:

If the difference between CI and SI on a certain sum

of money for 3 years at 5% per annum is Rs 122, find
the sum.
Soln: By the above theorem:
Sum.

=Rs 16,000.

5 (300 + 5)
2

Exercise

Rule 15

rate is given by sum

c)Rs7.5

Theorem: If the difference between CI and SI on a certain

sum for 3 years at r% is Rs x, the sum will be

6. a

n keorem: On a certain sum of money, the difference bemKen compound interest and simple interestfor 2 years at

b)Rs8

Answers

1.

Answers
JLc

3.

Find the difference between the compound interest and

the simple interest for the sum Rs 1250 at 4% per annum
for 2 years.
a)Rs2
b)Rs2.5
c)Rsl.5
d)Rel
Find the difference between the compound interest and
the simple interest for the sum Rs 1500 at 5% per annum
for 2 years.
a)Rs3.25
b)Rs7.5
c)Rs3.75
d)Noneofthese
Find the difference between the compound interest and
the simple interest for the sum Rs 625 at 8% per annum
for 2 years.
a)Rs3
b)Rs4
c)Rs4.5
d)Rsl.5
Find the difference between the compound interest and
the simple interest for the sum Rs 2500 at 6% per annum
for 2 years.

2.

3.

On what sum will the difference between the simple and

compound interests for 3 years at 5 per cent per annum
amount to Rs 12.20?
a)Rsl600
b)Rs800
c)Rs 1200 d)Rs 1500
On what sum will the difference between the simple and
compound interests for 3 years at 4 per cent per annum
amount to Rs3.04?
a)Rsl250
b)Rs625
c)Rs650
d)Rs675
On what sum will the difference between the simple and

PRACTICE B O O K O N QUICKER MATHS

302

4.

compound interests for 3 years at 6 per cent per annum

amount to Rs 13.77?
a)Rsl250
b)Rsl320
c)Rsl520
d)Rsll50
On what sum will the difference between the simple and
compound interests for 3 years at 3 per cent per annum
amount to Rs 27.27?

4. a

3.b

Rule 18
Theorem: If an amount of money grows upto Rs A, in n
years and upto RsAin(n +1) years on compound interest,
{a -a
2

a)Rs5000

b)Rs 10000 c)Rs8000

d) None of these

)100

then the rate per cent is given by

Answers
l.a

2.b

3.a

Difference of amount after n years and (n + \) years x 100

4.b

or

Rule 17
Theorem: On a certain sum of money, the difference between compound interest and simple interestfor 3 years at
Sum xr (300 + r)
2

r% per annum is given by difference

(100)

Illustrative Example
Ex.:

Find the difference between CI and SI on Rs 8000 for

3 years at 2.5% pa.
Soln: Using the above theorem,
Sumxr (300 + r )
2

Difference =

(100)

8000x2.5x2.5(300 + 2.5)

Amount after n years

Illustrative Examples
Ex. 1: An amount of money grows upto Rs 4840 in 2 years
and upto Rs 5324 in 3 years on compound interes:
Find the rate per cent.
Soln: Detail Method: We have,
P + CI of 3 years = Rs 5324 .... (1)
P + CI of 2 years = Rs 4840 ... (2)
Subtracting (2) from (1), we get
CI of 3rd year = 5324 - 4840 = Rs 484
Thus, the CI calculated in the third year which is
484 is basically the amount of interest on the amo
generated after 2 years which is Rs 4840.
484x100
4840x1
Quicker Method (Direct Formula):

100x100x100

Difference of amount after n years and (n +1) years

8x25x25x3025

121

100x100x100

Rate =
In this case, n = 2

Exercise
1.

2.

3.

4.

Amount after n years

= Rs 15.125.

Difference of amount after 2 years and 3 years i

Find the difference between the simple and compound

interest on Rs 500 for 3 years at 4 per cent.
a) Rs 2.432 b)Rs 3.432 c)Rs 2.342 d)Rs 2.423
What is the difference between the simple and compound
interest for 3 years at 5 per cent?
a) 0.0007625 times the principal
b) 0.07625 times the principal
c) 0.007625 times the principal
d) Data inadequate
Find the difference between the simple and compound
interest on Rs 10000 for 3 years at 3 per cent.
a)Rs27.8
b)Rs 27.27 c)Rs 37.27
d)Rs37.8
Find the difference between the simple and compound
interest on Rs 8000 for 3 years at 5 per cent.
a)Rs6l
b>Rs60
c)Rs51
d)Rs59

Rate =

Amount after 2 years

(5324-4840)

484x100

4840
4840
Note: The above generalised formula can be used for.
positive value of n. See in the following example
Ex.2: A certain amount of money at compound intc
grows upto Rs 51168 in 15 years and upto Rs 51
16 years. Find the rate per cent per annum.
Soln: Using the above formula:
Rate

(51701-51168)xlOQ _ 533x100
51168
96

Answers

24

24

51168
'

Exercise

1. a
2. c; Hint: Let P be the principal
Difference between CI and SI

1.

Px5x5x(300 + 5)
100x100x100

-0.007625 P

A certain amount of money at compound interest i

upto Rs 6560 in 3 years and upto Rs 7216 in 4 years
the rate per cent per annum,
a) 10%
b)5%
c)8%
d)6%

Compound Interest

303

A certain amount of money at compound interest grows

upto Rs 7520 in 15 years and upto Rs 7896 in 16 years.
Find the rate per cent per annum.
a) 10%
b)8%
c)5%
d) None of these
A certain amount of money at compound interest grows
upto Rs 3840 in 4 years and upto Rs 3936 in 5 years. Find
the rate per cent per annum.
a) 2.05%
b)2.5%
c)2%
d)3.5%
A certain amount of money at compound interest grows
upto Rs 4950 in 19 years and upto Rs 5049 in 20 years.
Find the rate per cent per annum.
a) 2%
b) 2.5%
c) 1 %
d) 1.5%
A certain amount of money at compound interest grows
upto Rs 12960 in 2 years and upto Rs 13176 in 3 years.
Find the rate per cent per annum.

a) Rs

2200

b)Rs800

2500

c)Rs

d) None of these

Answers
l.a

3.a

2.c

4.c

Rule 20
Theorem: To find the ratio of Compound Interest (CI) to
Simple Interest (SI) on a certain sum at r% for 2 years, we
C

use the following formula - TTT + .

1

a)

Answers
l.a
2.c

c) 2 | %

b)

d)

-%

Illustrative Example
Ex.:

5.b

4. a

Find the ratio of CI to SI on a certain sum at 4% per

annum for 2 years.
Soln: Applying the above formula,

5.d

Rule 19

CI _

Theorem: If an amount of money grows upto Rs A in n

years and upto Rs A in (n + l)yearson compound interest,
tit en the sum is given by Rs

i
K2 J

2.

Illustrative Example
An amount of money grows upto Rs 4840 in 2 years
and up to Rs 5324 in 3 years on compound interest.
Find the sum.
Soln: Applying the above theorem,

Ex.:

Sum = 4840 x

Exercise
1.

(4840V
1^5324 J

Rs4000.

3.

4.

What sum of money at compound interest will amount

to Rs 650 at the end of the first year and Rs 676 at the end
of the second year?
a)Rs625
b)Rs630
c)Rs620 d) None of these
What sum of money at compound interest will amount
to Rs 480 at the end of the first year and Rs 576 at the end
of the second year?
a)Rs420
b)Rs450
c)Rs400
d)Rs375
An amount of money grows upto Rs 2750 in 2 years and
upto Rs 3125 in 3 years on compound interest. Find the
sum.
a) Rs 2129.6
b)Rs 1229.6
c)Rs22I9.6
d) Data inadequate
An amount of money grows upto Rs 1200 in 2 years and
upto Rs 1440 in 3 years on compound interest. Find the
sum.

204 _ 51
~ 200 " 50

Exercise
1.

SI ~ 200

5.

Find the ratio of CI to SI on a certain sum at 5% per

annum for 2 years.
a)41:40
b)42:41
c)43:40
d)41:35
Find the ratio of CI to SI on a certain sum at 8% per
annum for 2 years.
a)27:26
b)26:25
c)26:21
d)25:24
Find the ratio of CI to SI on a certain sum at 45% per
annum for 2 years.
a) 49:47
b)49:42
c)49:40
d) None o f
these
Find the ratio of CI to SI on a certain sum at 15% per
annum for 2 years.
a)53:40
b)53:50
c)43:40
d)50:43
Find the ratio of CI to SI on a certain sum at 10% per
annum for 2 years.
a)7:5

b)21:20

c)8:5

d)20: 19

Answers
l.a

2.b

3.c

4.c

5.b

Rule 21
Theorem: If a sum 'A' becomes 'B' in t years at compound
t

rate of interest, then after t,years the sum becomes ^ y / ' , - i

2

rupees.

Illustrative Example
Ex.:

Rs 4800 becomes Rs 6000 in 4 years at a certain rate of

compound interest. What will be the sum after 12
years?

PRACTICE B O O K O N Q U I C K E R MATHS

304
Soln: Detail Method: We have:

Illustrative Examples
Ex. 1: Find the compound interest on Rs 18,750 in 2 years,
the rate of interest being 4% for the first year and 8 |
for the second year.

6000

4800 1 + 100

6000
or,

- T 100 J

4800

1+

100

100

U00;

125x75

9375

64x75

4800

After 2nd year the amount

4 g 0 0

= Rs21060
.-. CI =21060-18750 = Rs 2310.
Ex. 2: Find the compound interest on Rs 10000 for 3 year 1
the rate of interest is 4% for the first year, 5% for 1
second year and 6% for the third year.
Soln: The compound interest on Rs x i n ' t ' years if the rae
of interest is r^/o for the first year, r % for the secca^
year ... and r % for the tth year is given by
2

Exercise

4.

= Rs9375
Rs 2400 becomes Rs 3000 in 3 years at a certain rate of
compound interest. What will be the sum after 6 years?
a)Rs4750
b)Rs3750
c) Rs 3570
d) None of these
Rs 1200 becomes Rs 1500 in 2 years at a certain rate of
compound interest. What will be the sum after 6 years?
a)Rs2433.25 b)Rs2334.75c)Rs2343.75 d)Rs2343.25
Rs 9600 becomes Rs 12000 in 6 years at a certain rate of
compound interest. What will be the sum after 12 years?
a) Rs 15000 b)Rs 14000 c)Rs 16000 d)Rs 18000
Rs 1600 becomes Rs 2000 in 2 years at a certain rate of
compound interest. What will be the sum after 4 years?
a)Rs2500
b)Rs2400
c)Rs2200 d) None of these

100

2.c

3.a

= 10000

pound interest on Rs x for

100

53
50

100

-1000c

-10000

Exercise
1.

years is r %,... and the last t years is r %, then com-

1+-

11575.20-10000 = Rs 1575.2.

years is r %,for the next t years is r %,for the next t

2

11

(II:20

2.

100J

c i = 10000 1 +
100

Theorem: If the compound rate of interest for the first /,

x

r \
1+

In this case

4.a

Rule 22

100 /

Note: Here, t = t

Answers
l.b

25

= 9375

12

3.

27

= 18750

Quicker Method: Applying the above rule, we have

(6000)
(6000) /
(4800)
the required amount = (
y2/4-i

2.

104Y108

= 18750

100 1100

The above equation shows that Rs 4800 becomes Rs

9375 after 12 years.

1.

100,

~64~

02

or, 4800 1 +

18750f^

125

100

1+-

or,

= 18750 M

v4x3

Now,

Soln: After first year the amount

3.

Find the compound interest on Rs 9375 in 2 years.!

rate of interest being 2% for the first year and 4% fa
second year.
a)Rs570
b)Rsll40 c)Rsll55
d)Rs67
Find the compound interest on Rs 8000 in 2 yean^
rate o f interest being 5% for the first year and 1C
the second year.
a)Rsl340
b)Rsl420 c)Rsl240
d) N o r ;
these
Find the compound interest on Rs 3200 in 2 year^J

(/, +t +t + ...t ) years is

2

rate of interest being 7 j % for the first year and

x 1+100

100

100 J

-x

for the second year.

a)Rs620
b)Rs670

c)Rs770

d)Rs76(

C o m p o u n d Interest
4.

5.

215

Find the compound interest on Rs 50000 for 3 years i f

the rate of interest is 5% for the first year, 6% for the
second year and 10% for the third year.
a) Rs 10632 b)Rs 16032 c)Rs 10362 d)Rs 13062
Find the compound interest on Rs 80000 for 3 years i f
the rate of interest is 5% for the first year, 4% for the
second year and 5% for the third year.
a)Rs 17128 b)Rs 11728 c)Rs 11278 d)Rs 11738

Answers
l.a
2.c

3.b

4.a

a)Rs5000
b)Rs5200
c)Rs5130
d)Rs4910
What sum of money at compound interest will amount
to Rs 1365.78 in 3 years, if the rate of interest is 2% for
the first year, 3% for the second year and 4% for the
third year?
a)Rsl360
b)Rsl250 c ) R s l l 6 0 d)Rsl240
What sum of money at compound interest will amount
to Rs 562.38 in 3 years, i f the rate of interest is 3% for the
first year, 4% for the second year and 5% for the third
year?
a)Rs400
b)Rs450
c)Rs500
d)Rs520
What sum of money at compound interest will amount
to Rs 2893.8 in 3 years, if the rate of interest is 4% for the
first year, 5% for the second year and 6% for the third

5. b

Rule 23
Theorem: Certain sum of money at compound interest will
mmount to Rs A in (t +t +1 +... +1) years. If the rate of
x

year/
a)Rs2500

interest for the first /, years is

%,for the next t years is

2

-_ %,for the next t years is r %... and the last t years is

3

b) Rs 2400

c) Rs 2200

d) None of these

Answers
l.a

2.b

4. a

3.c

. %, then the sum is given by

Rule 24
100

100

100

100

100 + r, ){\00 + r ){\00 + r )

a here t, = / , = / , = . . . = f = 1
2

Theorem: If a man borrows Rs P at r% compound interest

and pays back Rs A at the end of each year, then at the end
of the nth year he should pay

100+7,
nJ

111 ustrative Example

Ex.:

What sum of money at compound interest will amount

to Rs 2249.52 in 3 years, if the rate of interest is 3% for
the first year, 4% for the second year and 5% for the
third year?
Soln: Detail Method: The general formula for such question is
A = P\ +

100

1+-

1+100

100

Rs

2249.52= P\ +

Tl + -

IOOA

100

-A

-T

+1+-

1+-

100

100 J

100 J

Illustrative Example
Ex.:

A man borrows Rs 3000 at 10% compound rate of

interest. At the end of each year he pays back Rs
1000. How much amount should he pay at the end of
the third year to clear all his dues?
Soln: Using the above formula,
the required answer

Where, A = Amount, P = Principal, and r,, r , r are the

rates of interest for different years.
In the above case,
2

1+-

= 3000 1 + L_

1000

100

1 0

1+
100 J

1 0

+ 1+
I
100

1+

IOOA

100

3000flixlixll

or, 2249.52 = P( 1.03) (1.04) (1.05)

Uo

10

1000

10

u
10

2249.59
' = l . 03xl.04xl.05 =
P

R S 2 0 0

Quicker Method: Applying the above rule, we have

principal = 2249.52

100Y100Y100'

103 A 104 A 105

3993-

= Rs2000.

1000x + 1 0 0 0 x 1 1
100
10

= 3993-1210-1100 = Rsl683.

Exercise
I vercise
What sum of money at compound interest will amount
to Rs 5305.53 in 3 years, if the rate of interest "is 1% for
the first year, 2% for the second year and 3% for the
third year?

1.

A man borrows Rs 1500 at 5% compound rate of interest. At the end of each year he pays back Rs 500. How
much amount should he pay at the end of the third year
to clear all his dues?

PRACTICE B O O K O N QUICKER MATHS

306

B's present share = Rs 3903 - Rs 2028 = Rs 1875.

a) Rs 680 7 7
16

b)Rs600 7 7
16

Exercise
1.

3
C)RS660T7
16
2.

3.

d) None of these

A man borrows Rs 4000 at 20% compound rate of interest. At the end of each year he pays back Rs 1500. How
much amount should he pay at the end of the third year
to clear all his dues?
a)Rs2592
b)Rs2852
c)Rs2952
d)Rs2953
A man borrows Rs 3000 at 30% compound rate of interest. At the end of each year he pays back Rs 1000. How
much amount should he pay at the end of the third year
to clear all his dues?
a)Rs3602

b)Rs3601

c)Rs3603

2.

3.

d)Rs3604

Answers
l.c

2.c

3.b

Answers

Rule 25

l.a

Theorem: If a sum of money say Rs x is divided among it

parts in such a manner that when placed at compound interest, amount obtained in each case remains equal while

1.

the rate of interest on each part is r,, r , r

2

, r

respec-

tively and time period for each part is t t , t

t
respectively, then the divided parts of the sum will in the
ratio of
]t

Divide Rs 2708 between A and B, so that A's share at the

end of 6 years may equal B's share at the end of 8 years,
compound interest being at 8%.
a) Rs 1458, Rs 1250
b) Rs 1448, Rs 1260
c)Rs 1438, Rs 1270
d)Rs 1468, Rs 1240
Divide Rs 1105 between A and B, so that A's share at the
end of 5 years may equal B's share at the end of 7 years,
compound interest being at 10%.
a)Rs505,Rs600
b) Rs605, Rs 500
c)Rs705,Rs400
d)Rs625,Rs480
Divide Rs 6100 between A and B, so that A's share at the
end of 3 years may equal B's share at the end of 5 years,
compound interest being at 20%.'
a)Rs3600,Rs2500
b)Rs 3500, Rs 2600
c)Rs 3400, Rs 2700
d) Rs 3450, Rs 2650

lt

r1+Af :f1+if:f,tiY':~yI+i.f.

2.b

3.a

Miscellaneous
The difference between the simple and the compour..:
interest compounded every six months at the rate of I I
percent per annum at the end of two years is Rs 12415
What is the sum?
[SBI PO Exain, 20<*|
a) Rs 10000 b)Rs6000
c)Rs 12000 d)Rs8000
2. A person invested a certain amount at simple interes: x
the rate of 6 per cent per annum earning Rs 900 as 21
interest at the end of three years. Had the interest bea
compounded every year, how much more interest wouM
he have earned on the same amount with the same inta*
est rate after three years?
[N AB ARD, 19 fj
a)Rs38.13
b)Rs25.33 c)Rs55.08 d) Rs 35.30 1
3. Find the effective annual rate of 5 per cent per annua
compound interest paid helf yearly.
a) 1.025%
b) 6.0625% c) 5.0625% d ) N o n e o f t i J
4. Find the effective annual rate of 4 per cent per ar~jm
compound interest paid quarterly,
a) 4.0604% b) 4.604%
c) 5.0605% d) 5.605%
5. In what time will Rs 390625 amount to Rs 456976 at 4 recent compound interest?
a) 2 years
b) 4 years
c) 3 years
d) 5 years
6. Find the least number of complete years in which a SJM
of money put out at 20 per cent compound interest
be more than doubled,
a) 2 years
b) 3 years
c) 4 years
d) Data inadequate
7. In what time will Rs 6250 amount to Rs 6632.55 at 4W
compound interest payable half-yearly?
t

100 J

100 J

100J

100 J

Illustrative Example
Ex.:

Divide Rs 3903 between A and B, so that A's share at

the end of 7 years may equal B's share at the end of 9
years, compound interest being at 4%.
Soln: Applying the above theorem,
A's share : B's share =

_ j 625
4 V

626

100
= 626:625
Dividing Rs 3903 in the ratio 676 :625
As present share = r r ; ^ . . x3903 = R 2 0 2 8 .
7

0 / 0 + 625

a) 3 years

3
b) years c) 1 years

' 5 ^^il^B
d) years

Find what is that first year in which a sum of mone;-

Compound Interest

9.

become more than double in amount i f put out at compound interest at the rate of 10% per annum,
a) 6th year
b) 7th year
c) 8th year
d) Data inadequate
A sum of money put out at compound interest amounts
in 2 years to Rs 578.40 and in 3 years toRs 614.55. Find
the rate of interest.

1
1
b)6-%
c) 6-0/0
d)6-%
4
2
4
10.
Divide Rs 3903 between A and B, so that A's share at the
end of 7 years may equal to B's share at the end of 9
years, compound interest being at 4 per cent.
a)Rs2028,Rsl875
b) Rs 2018, Rs 1885
c) Rs 2008, Rs 1895
d) Rs 2038, Rs 1865
11. Vijay obtains a loan of Rs 64,000 against his fixed deposits. I f the rate of interest be 2.5 paise per rupee per annum, calculate the compound interest payable after 3
years.
a)Rs4921
b)Rs5020 c)Rs4821
d)Rs4920
12. A certain sum is interested at compound. The interest
accrued in the first two years is Rs 272 and that in the
first three years is Rs 434. Find the rate per cent.
a) 6%

a) 1 2 ^ %

b) 7 - %

'

.25;

t=4

25

the required time is 4 years

20
HereP|l + I

> 2P

d)25%

xxl0x2

900x100
;

>2

6 6 6 6
By trial ^ ^ " " J J

124.05

100

>

.-. the required time is 4 years.

f

Rs 5000
7.b;

.-. interest on Rs 5000 by CI

c

26

25 J

Let the sum be Rs x.

(i/;A
26

390625

100
'26

=456976

Arcane.
456976

1+

'6

Certain sum for the person

A (See Rule-1)

390625 l + I
100,

Solving the above eqn, we get x = Rs 8000

2. c;

1+100

5.b;

or,

Then x 1 + 100

-100

104.0604-100 = 4.0604%

Answers
1. d;

= 100 1 + - * 100

6.c;

c) 1 7 1 %

4 '

62501 1+-^100

<>63:.:'
J

= 5000 1 + -5000 = R 955.08

100
.-. More interest = Rs (955.08 - 900) = Rs 55.08.
The amount of Rs 100 in one year at compound interest at 5% per annum payable half-yearly
S

3. c;

2 )
1+100

or,

21

663255

132651

625000

12500

'502T

5 >
2_
1+
= Rsl00
100 = Rs 100(l.025) =Rs 105.0625

or,2t = 3

or, 5 0 y
V

4. a;

Thus the nominal rate of 5% payable half-yearly has

the same effect as the rate 5.0625 per cent would have
if payable yearly.
Hence 5.0625 per cent is calle the effective annual
rate of 5% per annum payable half-yearly
Effective annual rate

t = years

8.c;

10
H e r e P | l + | > 2P

or,

>2

Uo

308

PRACTICE B O O K O N Q U I C K E R M A T H S
llxllxllxllxllxllxllxll

9. b;

t = 3 yrs

Bv trial
>2
*
10x10x10x10x10x10x10x10
Hence, the first year in which a sum of money will
become more than double in amount is 8th year.
Clearly, the difference between Rs 578.40 and Rs
614.55 is the interest on Rs 578.40 for 1 year.
.-. interest on Rs 578.40 for 1 year = Rs 614.55 - Rs
578.40 = Rs 36.15
interest on Rs 100 for 1 year = Rs 36.15 x
3615

1 + 0.025x100

64000

100

6400o[(l + 0.025) - 1 ] = Rs 492

2

.-. The compound interest payable is Rs 4921

Note: Remember that x paise per rupee per annum = Rs x per
cent per annum.

100
578.40

100

_ A
=R
x
= Rs 6
57840
1
4

12. a; Amount A = P 1 + 100

1+100

CI = P

1
.-. the required rate is 6 per cent.
10. a; We have at once

Putting
(A's present share)

100 J

'

100 J

t n e

b o e equation,
v

.-. fortwoyears,t = 2,then,P [ ^ - l j = 2 7 2

2

For three years P [g- - l j =434

(ii)

= (B's present share)

1+

-T

Dividing (ii) by (i)

100 )

(q +q + \)(q-\)

434

(q + \)(q-\)

272

A's present share

676

B's present share

100 J

1,25

625

Dividing Rs 3903 in the ratio 676 : 625

.-. A's present share

676
:

676 + 625

q + q + l _ 217

tl

or,

=>

q+l

136

q + \6

of Rs 3903
or, 136? +81^ + 81 = 0
2

= Rs2028
.-. B's present share = Rs 3903 - Rs 2028 = Rs 1875
11.a; P=Rs64000
r = 2.5 paise per rupee per annum (given)
= 0.025 rupee per rupee per annum.
= 0.025 x 100 rupee per hundred rupee per annum.
= 0.025 x 100 per cent per annum
= 2.5 per cent per annum

or, q =
r

.-. 1 +

9
1
1
= - = > r = - x l 0 0 % = 12-%
100 8
8
2 '

(i)