 Let Principal = P, Rate = R% per annum, Time = n years.
 When interest is compound Annually:
Amount = P 1 + R n 100  When interest is compounded Halfyearly:
Amount = P 1 + (R/2) 2n 100  When interest is compounded Quarterly:
Amount = P 1 + (R/4) 4n 100  When interest is compounded Annually but time is in fraction, say 3 years.
Amount = P 1 + R 3 x 1 + R 100 100  When Rates are different for different years, say R_{1}%, R_{2}%, R_{3}% for 1^{st}, 2^{nd} and 3^{rd} year respectively.
Then, Amount = P 1 + R_{1} 1 + R_{2} 1 + R_{3} . 100 100 100  Present worth of Rs. x due n years hence is given by:
Present Worth = x . 1 + R 100
1. 
A bank offers 5% compound interest calculated on halfyearly basis. A customer deposits Rs. 1600 each on 1^{st}January and 1^{st} July of a year. At the end of the year, the amount he would have gained by way of interest is:
 
Answer: Option B

2. 
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
 
Answer: Option A

3. 
There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
 
Answer: Option C

4. 
What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and halfyearly?
 
Answer: Option A

5. 
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
 
Answer: Option A
.

No comments:
Post a Comment