## compound Interest 135 Rate% p.a. Find the compound interest on the following: EXERCISE 9 (A) Principal Number

compound Interest

135

Rate% p.a.

Find the compound interest on the following:

EXERCISE 9 (A)

Principal

Number of years

1. * 10000

12%

2

2. 5000

10%

2

3. Find the amount and compound interest on a sum of 15625 at 4% per annum for 3 years compounded

annually

4. Shankar takes a loan of 10,000 at a compound interest rate of 10% per annum (p.a.)

(i) Find the compound interest after one year.

(ii) Find the compound interest for 2 years.

(iii) Find the sum of money required to clean the debt at the end of 2 years.

(iv) Find the difference between the compound interest and the simple interest at the same rate for 2 y

Multiple Choice Questions (MCQs)

6. What is the difference between the com

5. If the simple interest on a sum at 4% per annum

interest and simple interest on 8000 at 1

for 2 years is 80, then the compound interest

annum for 2 years?

on the same sum for the same period is

(a) 86.80

(b) *86.10

(a) * 280

(b) 100

(c) 88.60

(d)*81.60

(c) 180

(d) No differe

Compound Interest Formula

The arithmetic involved in working out compound interest can be quite complicated when th

both are large.

hich

## Answers ( )

Answer:P=Rs. 10000

T=12mon =1 year

R=10% p.a.

Compounded half yearly

n=2

∴A=P[1+

n

R

]

nT

=10000[1+

2

10

]

2×1

=10000[

2

12

]

2

=10000×6×6

A=360000

C.I=A−P

=Rs. (360000−10000)

=Rs. 260000.