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:
Effective CI % = 21%. P * 21% = 1,050 => $P = Rs 5,000$. SI for 2 years at 10% = 20% of 5,000 = Rs 1,000.

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:
Time = 3 half-years. $A/P = 18,522 / 16,000 = (21/20)^3$. Half-yearly rate = 5%. Annual rate = 10%.

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

Apply the formula and calculate:
Effective CI % = 10.25%. CI = 24,000 * 10.25% = Rs 2,460.

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 * (12/100)^2 = 0.0144 P = 144 => $P = Rs 10,000$.

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

Apply the formula and calculate:
Amount = 30,000 * (1.1)^3 = 30,000 * 1.331 = Rs 39,930.