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:
$A/P = 18,150 / 15,000 = 1.21 = (1.1)^2$. Rate R = 10%.

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 * (R/100)^2 = 50,000 * (8/100)^2 = 50,000 * 0.0064 = Rs 320.

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 = 5%. Time = 3 half-years. Effective CI = 15.7625%. CI = 10,000 * 15.7625% = Rs 1,576.25.

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

Apply the formula and calculate:
$A/P = 10,648 / 8,000 = 1,331 / 1,000 = (1.1)^3$. Time = 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:
27 = $3^3$. Time = 3 * 4 = 12 years.