Compound Interest Practice Test Set 5

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 * (10/100)^2 = 0.01 P = 200 => $P = Rs 20,000$.

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:
SI for 2 years at 10% = 20% = 4,000 => $P = Rs 20,000$. CI for 2 years at 10% = 21% of 20,000 = Rs 4,200.

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

Apply the formula and calculate:
Half-yearly rate = 4% = 1/25. Time = 3 half-years. Amount = 62,500 * (26/25)^3 = 4 * 17,576 = 70,304. CI = 70,304 - 62,500 = Rs 7,804.

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

Apply the formula and calculate:
81 = $3^4$. Time = 4 * 4 = 16 years.

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

Apply the formula and calculate:
Effective rate for 3 years at 10% = (1.1)^3 - 1 = 1.331 - 1 = 0.331 = 33.1%.