Compound Interest Practice Test Set 3

Step 1: Identify what the question asks and note the relevant values from the question.
Step 2: Apply the appropriate compound-interest or simple-interest relationship.
A/P = 68,921 / 64,000 = (41/40)^3. Annual multiplier = 41/40 = 1 + R/100 => R/100 = 1/40 => R = 2.5%.

Step 3: Match the calculated result with the options.
The matching value is the correct answer.

Correct Answer: Option B.

Step 1: Identify what the question asks and note the relevant values from the question.
Step 2: Apply the appropriate compound-interest or simple-interest relationship.
A/P = 13,310 / 10,000 = 1.331 = (1.$1)^3$. Growth factor per year = 1.1 => Rate R = 10%.

Step 3: Match the calculated result with the options.
The matching value is the correct answer.

Correct Answer: Option C.

Step 1: Identify what the question asks and note the relevant values from the question.
Step 2: Apply the appropriate compound-interest or simple-interest relationship.
Effective rate for 2 years at 10% = 21%. Amount = 1.21 P = 11,712.80 => P = 11,712.80 / 1.21 = Rs 9,680.

Step 3: Match the calculated result with the options.
The matching value is the correct answer.

Correct Answer: Option D.

Step 1: Identify what the question asks and note the relevant values from the question.
Step 2: Apply the appropriate compound-interest or simple-interest relationship.
Diff = P * (R/100)^2 => 96 = 15,000 * (R/100)^2 => (R/100)^2 = 96 / 15,000 = 16 / 2,500 => R/100 = 4/50 => R = 8%.

Step 3: Match the calculated result with the options.
The matching value is the correct answer.

Correct Answer: Option A.

Step 1: Identify what the question asks and note the relevant values from the question.
Step 2: Apply the appropriate compound-interest or simple-interest relationship.
Half-yearly rate = 10%. Time = 2 half-years. Effective CI = 10 + 10 + (10*10)/100 = 21%. CI = 16,000 * 21% = Rs 3,360.

Step 3: Match the calculated result with the options.
The matching value is the correct answer.

Correct Answer: Option B.