Compound Interest Practice Test Set 5

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:
$A/P = 14,580 / 12,500 = 729 / 625 = (27/25)^2 = (1.08)^2$. Rate R = 8%.

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

Apply the formula and calculate:
Effective CI % = 6,620 / 20,000 = 33.1%. 10% p.a. compounding gives 33.1% in 3 years.

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

Apply the formula and calculate:
64 = $2^6$. Time = 6 * 6 = 36 years.

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

Apply the formula and calculate:
Effective CI % = 5 + 5 + 0.25 = 10.25%. CI = 40,000 * 10.25% = Rs 4,100.

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

Apply the formula and calculate:
Effective CI % = 8 + 8 + 0.64 = 16.64%. P * 16.64% = 1,664 => $P = Rs 10,000$.