Compound Interest Practice Test Set 5

Write down the given values and identify the compound-interest relationship needed to find the required quantity.

Apply the formula and calculate:
Ratio of amount after 6 years to 3 years = 27,900 / 18,600 = 3/2. Therefore, Principal P * (3/2) = 18,600 => $P = 18,600 \cdot 2 / 3 = Rs 12,400$.

Identify the given principal, rate and time, and determine whether the question asks for SI, CI, their difference, or an unknown value.

Apply the formula and calculate:
Effective CI % for 2 yrs at 10% = 21%. P * 21% = 1050 => $P = Rs 5,000$. New time = 4 yrs, New rate = 5%. SI = 5,000 * 4 * 5% = Rs 1,000.

Treat each annual installment as a payment made at the end of its year, and express the loan value at the appropriate time.

Apply the formula and calculate:
Rate = 4% = 1/25. Multiplier = 26/25. Let installment be x. Present value = x/(26/25) + x/(26/25)^2 = 25x/26 + 625x/676 = 1275x / 676 = 25,500 => $x = 20 \cdot 676 = Rs 13,520$.

Write down the given values and identify the compound-interest relationship needed to find the required quantity.

Apply the formula and calculate:
$A/P = 21,952 / 15,625 = (28/25)^3$. Annual multiplier = 28/25. Rate = 3/25 = 12%. For 2 years, Amount = 15,625 * (28/25)^2 = 25 * 784 = 19,600. CI = 19,600 - 15,625 = Rs 3,975.

Identify the given principal, rate and time, and determine whether the question asks for SI, CI, their difference, or an unknown value.

Apply the formula and calculate:
Yearly CI = 10% of 10,000 = Rs 1,000. Half-yearly rate = 5%, effective CI = 10.25%. Half-yearly CI = 10.25% of 10,000 = Rs 1,025. Difference = 1,025 - 1,000 = Rs 25.