Compound Interest Practice Test Set 5

Compare the required amount with the principal using the compound-growth factor to determine the number of compounding periods.

Apply the formula and calculate:
$A/P = 15,972 / 12,000 = 1.331 = (1.1)^3$. Time = 3 years.

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 % = 10.25%. P * 10.25% = 820 => $P = Rs 8,000$. SI for 2 years at 5% = 10% of 8,000 = Rs 800.

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:
Diff = P * (5/100)^2 = 100,000 * 0.0025 = Rs 250.

Use the principal and amount (or the given interest information) to determine the annual growth factor and hence the rate.

Apply the formula and calculate:
$A/P = 25,000 / 16,000 = 25/16$. Annual multiplier = sqrt(25/16) = 5/4 = 1.25. Rate R = 25%.

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

Apply the formula and calculate:
Effective CI % = 15 + 15 + 2.25 = 32.25%. CI = 18,000 * 32.25% = Rs 5,805.