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:
$4 = 2^2$. Time = 2 * 8 = 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 CI % = 21%. CI = 50,000 * 21% = Rs 10,500.

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:
$A/P = 11,881 / 10,000 = (1.09)^2$. Rate R = 9%.

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 = 40,000 * 0.01 = Rs 400.

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

Apply the formula and calculate:
Quarterly rate = 4%. Time = 4 quarters. Amount = 20,000 * (1.04)^4 = 23,397.17. CI = Rs 3,397.17.