Compound Interest

Compound Interest
COMPOUND INTEREST
Anwesha bought a new scooty with the help of loan from a bank she had to repay bank the amount in yearly installments. She
managed to repay the loan in three years. After repaying she calculated the amount and found that she paid more money than
what she had borrowed. She discussed the matter with her father. Her father made her understand that as bank had lent money so
bank charged interest.
It can be understood from the above passage that as Anwesha used money so she paid rent.
As person who are staying in other's house, pay rent to the owner because property of other's is being used for his purpose. In
case of money, borrower uses lender's money for his purpose so he pays interest.
DEFINITION
Interest - A fee paid for the use of another party's money. To the borrower, it is the cost of renting money to the lender it is
income for renting money.
TYPES OF INTEREST
 There are two types of interest 1. SIMPLE INTEREST 2. COMPOUND INTEREST SIMPLE INTEREST - When interest
charged on initial given or taken amount, it is called simple interest. Calculation of interest when amount lent at simple interest-
5000 10%
500 1 st year Initial

Rate of
year Amount
500 2 nd
Interest
As in case of simple interest, calculation of interest is done on initial amount so it is same for every period.
Maths' Mirror
2.1
COMPOUND INTEREST - When interest charged on total outstanding amount, it is called compound interest. Suppose a person
borrowed Rs. 5000 at 10% per annum for two years.
Calculation of interest when amount lent at compound interest -5000 10% 500
1 year 500
st
50 2 nd
Rate
year Initial Amount
of Interest
Amit Kr. Verma Interest
As in first year total outstanding amount or unpaid balance is Rs. 5000, so interest calculated only on Rs. 5000 . But for the
second year outstanding amount are Rs. 5000 and Rs. 500, so interest calculated on both the amount.
 Principal - Initial given or taken amount is called
principal.  Rate of interest (ROI)- Interest to be paid for a year
on Rs. 100 is called rate of interest.  Amount -Principal with interest or total paid money
is called amount.
TYPES OF QUESTIONS
There are 9 types of questions which have been asked in previous years one-day examinations and which may be asked in
upcoming examinations.
1. Simple questions. 2. Different rate of interest based questions. 3. When time period is in fraction. 4. When interest calculated
annually, half yearly,
quarterly or monthly basis. 5. When interest calculated for long period. 6. Ratio of interest based questions.
2.2 Percentage and its Applications
7. Finding ROI, principal etc.
Compound interest for 3rd year = 3000 + 150 + 150 + 7.5 8. When amount become double, tripple.
= Rs. 3307.5 9. Distribution of principal in two parts.
(Note : There is difference between 3 years and 3rd year.) TYPE-1
Ex1.5: Radha invested an amount of Rs. 1,80,000 at compound rate of interest 10% p.a for a period of 4 years.  SIMPLE
QUESTIONS
How much amount will Radha get after 4 years? When compound interest is calculated for 2 years, 3
Sol. 180000 10% 18000 years or 4 years, try to solve questions by forming
P ROI 18000 1800 tables. Table helps in developing a good and lucid concept of this chapter. Ex.1.1 Calculate compound interest
on Rs. 40,000 at 5% p.a. for 2 years, when interest compounded annually.
Sol.
18000 1800 1800 180 18000 1800 1800 180 1800 180 180 18  Amount at the end of 4 years = 1,80,000+83538
= Rs. 2,63,538 40,000 5% 2,000
P
ROI 2,000 100 TYPE-2
 Compound Interest for 2 years = 4000 + 100
= Rs. 4100 Ex.1.2 Calculate compound interest for 3 years on Rs. 5,12,000 at 12.5% p.a, when interest compounded annually.
 WHEN ROI ARE DIFFERENT FOR DIFFERENT
TIME PERIOD. Ex.2.1 Calculate compound interest for 2 years on Rs. 80,000 when rate of interest is 5% p.a for 1st year and
10% p.a. for 2nd year where interest compounded annually. Sol.
5,12,000 12.5%
ROI
64,000 P
64,000 8000 Sol. 80000 5% 4000
P
10% 8000 400
ROI 64,000 8000 8000 1000

 Compound interest for 2 years
Compound interest for 3 years = Rs. 2,17,000 Ex.1.3 Find compound interest for second year on Rs. 1,20,000 at 5% per annum,
when interest compounded annually.
= 4000 + 8000 + 400 = Rs. 12400 Ex.2.2 A farmer borrowed Rs. 80,000 for 3 years. Rate of interest for 1st, 2nd and 3rd year are
1%, 2% and 3% respectively. Find how much amount farmer will return after time period when interest compounded annually?
Sol. 120,000 5% 6000
P ROI 6000 300 2nd year
Sol.
80000 1% 800
P 2%1600 16 Compound interest for 2nd year = 6000+300
3% 2400 24 48
0.48 ROI
= Rs. 6300
Amount at the end of 3 years = 80,000+4888.48 (Note : There is difference between 2 years and 2nd year, 2 year means one and
two year both but 2nd year means 2nd position.) Ex.1.4 Find compound interest for the third year on Rs. 60,000 at 5% p.a when
interest compounded annually.
Sol. = Rs. 84888.48
Ex.2.3 A person borrowed Rs. 24,000 for three years. Rate of interest for the 1st, 2nd and 3rd year are 5%, 1% and 10%
respectively. How much amount he will return at the end of 3 years when interest compounded annually.
Sol.
60,000
5%3,000
24000 5% 1200 P
ROI
3,000 150 3,000 150 150 7.5 3rd year
1%
240 12 10% 2400 120 24
1.20
aths' Mirror
Amit Kr. Verma M
Compound Interest
Required amount
= 24000 +1200+240+12+2400+120+1.20+24 = Rs. 27997.20 Ex.2.4 A farmer borrowed Rs. 64000 for 3 years. Rate of interest
for the 1st, 2nd and 3rd year are 2.5%, 5% and 10% respectively. Calculate amount at the end of 3 years, if compounding is done
annually.
Sol. 64,000 1600
3200 80 6400 160 320 8
 Amount at the end of 3 years = 64000 + 11768
= Rs. 75768 TYPE-3
 WHEN GIVEN TIME PERIOD IS IN FRACTION. In this type we will learn , how to calculate compound interest when time
period is in fraction eg. 2.5 years,
1 years, 2 years 4 months,1 year 3 weeks , 2 years
1 7 73 days etc. Fraction of time period may be given in six different ways -1.
It may be in decimal e.g., 2.3 years, 1.5 years.

1 years,
2. It may be in "upon form" e.g., 2 3
1 years
1 5 3. It may be in months e.g., 2 years 4 months. 4. It may be in weeks e.g., 1 year 6 weeks. 5. It may be in days e.g., 2
years 73 days. 6. It may be in date wise e.g., 17Feb 2015 to 10
Aug 2018. While solving this type of question we should find interest for next integer period.
Suppose interest of 2 years 3 months is to be find. 2 years 3 months means 2 years complete and 3 months from next year. So we
should calculate interest for 3 years and
1 part from 3rd year.
then consider 2 years complete and 3
With the help of table it can be done easily.
Maths' Mirror
2.3
Ex.3.1A person lends Rs. 80,000 for 1.5 years at 4% p.a compounding annually. How much amount he will receive after time
period?
1
Sol. Interest for 1 2 years
means 1 year complete and
0.5 of 2nd year.
80,000 4% 3200
1 (3200+128)
1
2 (3200 128) Required amount = 80,000 + 3200 + 2 = 80,000 + 3200 + 1664 = Rs. 84864 Ex.3.2 Find
compound interest on Rs. 20,000 at 3% p.a for 2 years 3 months when interest is being calculated annually. Sol. Interest for 2
years and 3 months means 2 years
3of 3rd year.
complete and 12
20000 3% 600
3(600+18+18+0.54)
312 600
(600 18

18 18 0.54) Required
amount = 1218 + 1 2
= 1218 + 159.135 = Rs. 1377.135 Ex.3.3 Calculate compound interest on Rs. 7,30,000 at 10% p.a for 2 years 2 days, interest
compounded annually.
Sol. Interest for 2 years and 2 days means 2 years
2of 3rd year.
complete and 365
730000 10% 73000
2
365
2× (88330)
73000 (73000 7300 7300 7300 730) Required amount = (73000 +73000 +7300) + 365
= 1,53,300 + 484 = Rs. 1,53,784 Ex. 3.4Calculate compound interest on Rs. 10400 at 5% p.a for 1 year 6 weeks, interest
Amit Kr. Verma
10,400 5% 520
6
52 (520 26) 4000 2.5% 100
1st 6 months P ROI
100 2.5 2nd 6 months CI at the end of a year = 200 + 2.5 = Rs. 202.5
Interest for 1 year and 6 weeks means 1 year and 52
6
Ex.4.2 Calculate compound interest on Rs. 5000 at 8% p.a for 9 months when interest is calculated on quarterly basis.
of 2nd year.
Sol. As calcualtion is being done on quarterly basis.
6× 546 = 520 + 63 = Rs. 583
Required amount = 520 + 52
8 = 2%
 Effective ROI = 4
5000 2% 100
1st 3 months TYPE -4
P
ROI 100 2
2nd 3 months 100 2 2 0.04
3rd 3 months  WHEN INTEREST IS CALCULATED ANNUALLY,
HALF YEARLY, QUARTERLY OR MONTHLY BASIS. Think of a situation, Nisha has saving account in SBI,
 CI at the end of 9 months = 300 + 6 + 0.04
= Rs. 306 .04 Ex.4.3 Calculate compound interest on Rs. 60,000 at 4%
rate of interest offered by bank is 4% p.a. She deposited Rs. 10,000 in the account. After 6 months she received interest. Did she
get 4% interest? She didn't?
As her money is deposited with the bank for 6 months
1
p.a for 7 2 months
when compounded quarterly.
Sol. ROI when interest is calculated on quarterly
so bank will not pay interest for complete year. In this situation bank will pay her only 2% interest.
Basically standard rate of interest is decided for a year,
4 = 1%
basis = 4
but period of calculation and time for making payment may be different.
Effective rate of interest
=
Yearly rate of interest
Period of calculation in year 60000 1% 600
1
1st 3 months 2 600 (600 6 6 6 0.06) Annual Rate of Interest
aths' Mirror
Amit Kr. Verma M
3rd 3 months
2nd 3 months
Calculation
1
Compound interest for 7 2 months
means 1st 3 Basis
1 of
months complete, 2nd 3 months complete and 2 3rd 3 months.
1 × 612.06= 1206+306.03
Required interest = 1206 + 2
= Rs. 1512.03 VARIETY -2
Ex.4.4 Find effective annual rate of interest corresponding to a nominal rate of 8% p.a calculated half yearly.
Sol. ROI, when interest is calculated yearly = 8% Period of Calculation in a year
Effective Rate of interest 36%
36%
36%
36%
36%
234612
18%
4 months
12% 3 Quarterly months or 9%2 months 6%1 month 3%
VARIETY - 1
Ex.4.1 What will be compound interest on Rs. 4000 at 5% p.a in a year when interest is calculated half yearly. Sol. As calcualtion
being done on half yearly basis.
5 = 2.5%
Sol.  Effective ROI = 2
Compound Interest
8 = 4%
ROI, when interest is calculated half yearly = 2
As interest to be calculated for 1 year on half yearly basis so table will be made in 2 rows.
100 4% 4P4 0.16 Applicable ROI = 8.16 % p.a Ex.4.5

Find effective annual rate of interest corresponding to a nominal rate
of 16% p.a payable half yearly.
16 = 8%
Sol. ROI when interest is calculated half yearly = 2
100 8% 88 0.64

 Applicable ROI = 16.64 % p.a
VARIETY - 3
Ex.4.6 Keshav borrowed Rs. 60,000 from his friend at 10%
1 years. He lends same amount to his another
p.a for 1 2
friend at same rate of interest and for same time period. Find difference between amount paid and received by Keshav if interest
paid by him is calculated on yearly basis and received by him is calculated on half yearly basis.
Sol. Case I : Yearly calculation -
60000 10% 6000
1
2 (6000 600) Maths' Mirror
1st year 2nd year
Amount paid by Keshav
1 (6000+600) = Rs. 69300
= 60000+ 6000+ 2
Case II : Half yealy calculation -
10
ROI on half yearly basis = 5% As interest to be calculated for 6 months so table will be made in 3 rows.
2
2.5
60000 5% 3000
1st 6 months 3000 150
2nd 6 months 3000 150 150 7.5
3rd 6 months
Amount received by Keshav = Rs. 69457.50 Required amount = 69457.5-69300 = Rs. 157.50
TYPE - 5
VARIETY-1
 WHEN COMPOUND INTEREST IS CALCU-
LATED FOR LONG PERIOD. Suppose compound interest for 4 years is given, with the help of table we may find compound
interest for 8 years, 10 years, 12 years etc. Ex.5.1 In 7 years, Rs. 2000 becomes Rs. 2400 at certain rate of compound interest.
How much it would be in 14 years?Sol. Compound Interest in 7 years = 2400- 2000
= Rs. 400
400 1
ROI in 7 years = 2000  100 = 20 % = 5
2000 20% 400
400 8 0
Amount at the end of 14 years = 2000+880 = Rs. 2880. Ex.5.2 Rs. 1800 becomes Rs. 2700 in 6 years at a certain rate of
compound interest. How much it would be in 18 years?Sol. Compound Interest in 6 years = 2700-1800 = Rs. 900
900 1
ROI in 6 years = 1800  100 = 50% = 2
1800 50% 900 1st 6 years
900 450 2nd 6 years 900 450 450 225 3rd 6 years  Amount at the end of 18 years = 1800+4275
= Rs. 6075 Ex.5.3 Rs. 1600 becomes Rs. 2000 in 9 years at a certain rate of compound interest. What will be the amount after 27
years?
Sol. Compound Interest = 2000-1600 = Rs. 400
Amit Kr. Verma
400 1
ROI in 9 years= 1600  100 = 25% = 4
Ex.5.4 At certain rate of compound interest sum becomes Rs. 1800 in 7 years while it becomes Rs. 2700 in 14 years. How much
it would be at the end of 21 years, also find
1600 25% 400
1st 9 years
principal?
400 100
2nd 9 years 400 100 100 25 3rd 9 years
2700
Sol. Ratio of amounts in 7 years gap = 1800
= 3
2  Required Amount
= 1600+1200+300+25 = Rs. 3125
3 = Rs. 4050
Amount at the end of 21 years = 2700 × 2
VARIETY - 2
2 = Rs. 1200
Principal = 1800 × 3
This variety is extension of previous one. See previous Q.5.2
Ex.5.5:A sum of money invested at compound interest carefully and think that if principal is not given and amounts
amount to Rs. 4000 in 6 years while it becomes Rs. 5000 in at the end of 6 years and at the end of 12 years are given
9 years. Find the amount at the end of 15 years and also find then, can we find principal or amount at the end of 18 years?
principal invested.
First we have to find change pattern in given time period.
atio of amount to principal in 3 years In previous question amount at the end of 6 years = 2700 and at the end of 12 years =
Sol. R
4050
5000 
= 4000
5 
4  In 6 years amount grew by = 4050 2700
3 2
As there is 3 years gap so, we have to multiply twice to find the amount at the end of 15 years.
As ratio is 3:2, it means if principal is 2 then
Amount at the end of 9 years = 5000 interest is 1 and ROI for 6 years = 50%  We may get next amount by multiplying
previous
amount by 3 2.
Now suppose question asks amount for 18 years
5
Amount at the end of 12 years = 5000× 4
5 × 5
Amount at the end of 15 years = 5000 × 4 4
= 6075, we may also get previous

then = 4050× 3 2
2 .
amount or principal by multiplying amount by 3
= Rs. 7812.50
4 × 4 = Rs. 2560
Principal = 4000× 5 5
4000 2 = 1800
5000 3200 2560 Principal = 2700× 3
Amount 9yrs ×

4= Amount 6 yrs =

Amount 3yrs × Principal Ex.5.6
54 = A sum becomes Rs. 900 at the end of 10 years while it becomes Rs. 1080 at
the end of 15 years. Find principal
     
1800 Principal 32 Amount 2700 6yrs 32 Amount 4050 1 2yrs 32
Amount 6075
18yrs 6075 and amount at the end of 20 years.
1080
Sol. Ratio of amount to principal in 5 years =
= 6
900 5 Amount 18yrs As there is 5 years gap so, we have to multiply once
again to find the amount at the end of 20 years.
aths' Mirror
Amit Kr. Verma M
   
23 Amount 4050 12yrs 23 Amount 2700 6yrs
 
23
Principal 1800
Compound Interest
Amount at the end of 15 years = 1080
6 = Rs. 1296
Amount at the end of 20 years = 1080 × 5
5 × 5 = Rs. 625
Principal = 900 × 6 6
TYPE - 6
RATIO OF INTEREST BASED QUESTIONS. Ex.6.1 Find ratio between compound interest and simple interest for 2 years at
8% p.a compounded annually.
Sol.
Simple Interest
100 8% 8 P
8 0.64

Required ratio = 8  Maths'
Mirror 8 8 
8 0.64  16.64

16 25:27 Alternatively Suppose interest for first year is Rs. 100 and given ROI is 8% p.a.
Now,
100 100 8
Simple Interest
Compound Interest
200
Required ratio =
= 25 : 27
208 Ex.6.2 Find ratio between compound interest to simple interest for 2 years at 6% p.a compounded annually.
uppose interest for first year is Rs. 100
Sol. S
ROI = 6%
2.7
100 100 6
Simple Interest
Compound Interest
206
Required ratio =
= 103 : 100
200
Ex.6.3 Find ratio between compound interest and simple interest for 3 years at 20% p.a compounded annually.
Sol. S
ROI = 20%
100 100 20
Simple Interest for 2 years
Compound Interest for 3 years
100 20 20 4
364
Required ratio =
= 364 : 300
300
Ex.6.4 Find ratio between 2 years and 3 years compound interest at 20% p.a compounded annually.
Sol. S
100 100 20
100 20 20 4
220
Required ratio = 364
= 55 = 55:91
91
Ex.6.5 Find ratio of difference between 2 years simple interest and compound interest and that of 3 years simple interest and
compound interest at 8% p.a compounded annually.
Sol.
Amit Kr. Verma
Difference between CI and SI for 2 years
8%
%
Sol. 8
P R 3.20 100

Difference between
 8% of 1st year SI = 3.20 100 100 8
3.20
CI and SI for 3 years  SI for 1st year = 8%  100% = 40
100
Required ratio =
= 25 : 77
308
40
 Principal = 8%
×100% = 500
Ex.6.6 Find ratio of difference between SI and CI for 2 years and 3 years at 5.5% p.a compounded annually.
Ex.7.2 Difference between compound interest and simple interest received on certain sum in two years at 3% p.a. is Rs. 3.60.
Find principal?
Sol.
Difference between CI and SI for 2 years
3% 3%
Sol.
100 100 5.5
P R 3.60 100
 3% of 1st year SI = 3.60
3.60
 SI for 1st year = 100% = 120
3% 
120
 Principal interest =
×100% = 4000
3% Ex.7.3 Compound interest received on certain sum in 2 years is Rs. 153 and simple interest received on same
sum at same rate of interest and same time period is Rs. 150. Find rate of interest?
150 = Rs. 75
Sol.  SI for 1 year = 2
Difference between CI and SI = 153-150 = Rs. 3
3× 100 = 4% p.a
75P R 75 3 ROI
= 75 Ex.7.4 Difference between compound interest and simple interest on a certain sum for 2
years is Rs. 2 and simple interest for same time period is Rs. 200. Find rate of interest.
200 = Rs. 100
I for 1 year =
Sol. S 2
Total CI = 200+2 = 202
aths' Mirror
Amit Kr. Verma M
100  200
Difference between CI and SI for 3 years Required ratio = 305.5
= 200 : 611
611 Ex.6.7 Find ratio between 2nd year difference of CI and SI and 3rd year difference of CI and SI at 6.5% p.a
Difference between Sol.
CI and SI for 2 years
100
100 100 6.5
100
Difference between CI and SI for 3 years Required ratio = 306.5
= 200 : 613
TYPE - 7
 FINDING PRINCIPAL, RATE OF INTEREST ETC. Try to understand distribution of two years compound interest-
Sol.
Simple Interest
1000 10% 100 P
ROI
100 10 Ex.7.1 Difference between simple interest and compound interest received on certain sum in two years at 8% p.a is Rs.
3.20. Find sum.
Compound Interest
100 2× 100 = 2% p.a
P R 100 2 ROI = 100 Ex.7.5 The compound interest on certain sum for 2 years is Rs. 25.75 and the
simple interest on the same sum at same rate for same time period is Rs. 25. What is the rate of interest?
12.50

Sol. P
R 12.50 0.75 Difference between CI and SI = 25.75 - 25 = 0.75
0.75
ROI = 12.50  100 = 6%
Ex.7.6 If the simple interest on a certain sum for 2 years is Rs. 50 and compound interest for the same time period is Rs. 51. Find
principal?
50 = 25
I for a year =
Sol. S 2
Difference between CI and SI = 51-50 = 1
1×100 = 4%
25P R 25 1 ROI
= 25
4% of principal = 25
100%
Principal = 25×
= Rs. 625
4%
Ex.7.7 The compound interest on a certain sum for 2 years is Rs. 105 and simple interest is Rs. 100. Find rate of interest per
annum and also find principal. .
100 = 50
I for a year =
Sol. S 2
P R Maths' Mirror5050 5
2.9
5 100%
Rate of interest per annum = 50  100  10% Principal = 50  Rs. 500 Ex.7.8 The compound interest on
10% 
a certain sum for 2 years is Rs. 60.60 and simple interest is Rs. 60. Find rate of interest per annum and the sum.
60 = 30
I for a year =
Sol. S 2
Difference between CI and SI = 60.60-60 = 0.60
PR
Amit Kr. Verma 3 030 0.60

0.60 100%
Rate of interest per annum = 30  100  2% Principal = 30  2%  Rs.1500 Ex.7.9 At what rate percent per
annum at compound interest, the ratio of simple interest and compound interest for 2 years will be 25:26.
25 = 12.5
Sol. SI for 1 year = 2
PR
12.5 12.5 1
1
 Rate of interest = 12.5
100

= 8% p.a
Ex.7.10 Compound interest received on Rs. 1200 in 2 years is Rs. 123. Find annual rate of interest.
Sol. I nterest charged is Rs.123 on Rs. 1200.
Ratio between principal to amount for two year
1323
= 1200
= 441
400
As this ratio is for two years so we need to take square root of the ratio.(See Type 5, Variety 2 )
21
Ratio of amounts for one year = 20
26
1 ×100 = 5%
ROI = 2 0
1 ×100 = 12.5%
ROI = 2 5
Ex.7.11 The difference between compound interest and
Alternatively simple interest on a certain sum of money at 3% per annum
As interest is charged on Rs.6250 in two year is 510, which for 3 years is Rs. 27.27. Find principal?
is little bit more than 8% Sol.
So rate of interest per annum = 4% P R
9Ex.7.14 At what rate of compound interest per annum 9 9 0.27
0.27
will a sum of Rs. 1250 becomes Rs. 1458 in 2 years. ROI = 100 
9
1458
3% Sol. R
atio of amounts for two year= 1250
100
Simple Interest for the first year = 9  3=
Rs. 300
As this ratio is for two years so we need to take square root of the ratio.
100%
Principal = 300  3% =
Rs. 10000.
27
Ex.7.12 The difference between compound interest and simple interest on a certain sum of money at 5% p.a. for 3
2 ×100 = 8%
ROI = 2 5 years is Rs. 61. Find principal.
Sol.
PR
2020 20 1
Alternatively As interest is charged on Rs.1250 in two year is 208, which is little bit more than 16%.
1
So rate of interest per annum = 8% ROI = 20  100 
5% Ex.7.15 At what rate of annual compound interest a sum of
Rs. 1920 becomes Rs. 2430 in 2 years.
100%
Simple Interest for the first year = 20  5% = Rs. 400
2430
atio of amounts for two year= 1920
Sol. R
100%
Principal = 400  5% =
Rs. 8000 Ex.7.13 At what rate per cent compound interest a sum of Rs. 6250 become Rs. 6760
in 2 years.
9
6760
atio of amounts for two year=
Sol. R 6250
1 ×100 = 12.5%
ROI = 8
As this ratio is for two years so we need to take
Alternatively
square root of the ratio.
As interest is charged on Rs.1920 in two year is 510, which is little bit more than 25%. So rate of interest per annum = 12.5 %
Ex.7.16: The difference between compound interest and Amit Kr. Verma Maths' Mirror
Compound Interest s imple interest on Rs. 64000 for 3 years is Rs 3125. Find rate of interest per annum.
et odd value = 125
Sol. L
64000 ___ ___
R ___ 1000
___ 1000 1000 125
125
ROI = 1000  100  12.5% Simple Interest for the first year
1000
= 12.5%  100% = Rs. 8000
8000
Principal = 12.5%  100% = Rs. 64000
 Our distribution of interest is correct.  ROI = 12.5% Ex.7.17: At what rate of compound interest per annum will a sum of
Rs. 1250 becomes Rs. 1574.64 in 3 years.
1574.64
atio of amounts for three year=
Sol. R
1250
157464
= 125000
As this ratio is for three years so we need to take cube root of the ratio.
54
4 ×100 = 8%
ROI = 5 0
Alternatively
As interest is charged on Rs.1250 in three years is Rs.324, which is little bit more than 25%. So rate of interest per annum = 8%
Ex.7.18 A sum of money invested at compound interest amounts to Rs. 1820 in 17 years while in 18 years it becomes Rs.1911.
Find rate of interest per annum.
Sol.  In case of Compound interest amount of each
year is principal for next year.
Maths' Mirror
2.11 Principal = Rs. 1820 Interest for a year = 1911-1820 = Rs. 91
91
Rate of interest per annum = 1820  100  5% Ex.7.19 A certain amount of money at compound interest grows up to Rs.
1764 in 37 years and upto Rs. 1808.10 in 38 years. Find the rate percent per annum .
rincipal = Rs. 1764
Sol. P
Interest for a year = 1808.10-1764 = Rs. 44.10
44.10
Rate of interest = 100  2.5% Ex.7.20: A sum becomes Rs. 1200 at the end of 23 years and the same sum
1764 
becomes Rs. 1728 at the end of 25 years. Find rate of interest per annum.
1728
atio of amounts for two year=
Sol. R
= 144
1200 100
6
1 ×100 = 20%
ROI = 5
Alternatively As interest is charged on Rs.1200 in two year is 528, which is 44 %.
So rate of interest per annum = 20 % Ex.7.21 If a sum becomes double in 3 years then find approax rate of compound interest.
Amount of interest = Rs. 100
Sol. Amount = 2 times = 1 (Principal) +1 (Interest) 
Suppose ROI = 25%
100
25% 25P R
25 6.25 25
6.25 6.25 1.5625
When ROI = 25% Total interest = 75+20.31 = 95.31(Less than 100)
Amit Kr. Verma
ROI = 26% (approx)
How many times it would be in 24 years. Ex.7.22 At what possible rate per cent of compound interest does a sum of money
becomes double in 4 years?
00 200% 200 P
Sol. 1
l. Amount = 2 times = 1 (Principal) +1 (Interest)

200 400 So
200 400 400 800  Amount of interest = Rs. 100
In 8 years sum becomes = 31 = 3 times Suppose ROI = 20% 2020 4 20 4 4 0.8 20 4 4 4 0.8 0.8 0.8 0.0016  When ROI = 20%
Total interest = 107.2016 (More than 100)
In 16 years sum becomes = 32 = 9 times In 24 years sum becomes = 33 = 27 times In 32 years sum will be = 34 = 81 times If a sum
becomes t times in x years then x years = t1 = t times 2x years = t2 = t2 times
 ROI = 19% (approax)
3x years = t3 = t3 times TYPE -8
 WHEN AMOUNT BECOME DOUBLE
nx years = tn times.
VARIETY - 1
OR TRIPPLE. Think of a situation, Oriental Bank of Commerce offers that
Ex.8.1:A sum becomes double in 6 years at compound interest. How many times it would be in 30 years. any amount deposited
in the bank will be doubled in 7 years.
Sol. 6 years = 2 times Vikas, who has 1 year old daughter named Ruhi, deposited
12 years = 22 = 4 times Rs. 2 lac for his daughter's marriage. How much amount Vikas will receive, when Ruhi will be 22 years
old?
As amount becomes double in 7 years, means interest received in 7 years is equal to principal.If principal is Rs. 100 then interest
at the end of 7 years is Rs. 100 and applicable
18 years = 23 = 8 times 24 years = 24 = 16 times 30 years = 25 = 32 times. Alternativelyr ate of interest in 7 years is 100%.
6 years = 2 times Sol.

00 100% 100
1
100 100 100 100 100 100 P R
5×
30 years = 2 5 = 32 times Now,
 It would become 32 times in 30 years. Amount in 7 years = 100+100 = 200
Ex.8.2:A sum becomes thrice in 9 years at compound Amount in 14 years = 100+100+100+100 = 400
interest. How many times it would be in 36 years.
Amount in 21years =
Sol. 9 years = 3 times
100+100+100+100+100+100+100+100 = 800
18 years = 32 = 9 times
It can be infer from above explanation that -
In 7 years, Principal becomes = 21 = 2 times
In 14 years, Principal becomes = 22 = 4 times
Alternatively
In 21 years, Principal becomes = 23 = 8 times In 28 years, Principal will be = 24 = 16 times Lets see one more example.
9 years = 3 times 4×
36 years = 3 4 = 81 times Ex. A sum becomes 3 times in 8 years at compound interest. Amit Kr. Verma Maths' Mirror
Compound Interest
 It would become 81 times in 36 years. Ex.8.3:A sum yields 3 times interest in 7 years at compound interest. How many times
it would be in 28 years.
mount = 3+1 = 4 times
Sol. A
7 years = 4 times 4×
28 years = 4 4 = 256 times Amount = 256 times  Interest would become 255 times in 28 years. Ex.8.4: A
sum of money
placed at compound interest thrice itself in 4 years. In how many years will it amount to 243 times itself.
5
Sol. 3
3 times = 4 years
243 times = 4×5 = 20 years
=== In 20 years it will yield 243 as interest. Ex.8.5:At what rate of compound interest, a sum becomes 8 times in 3 years?
Sol. 3 years = 8 times = 23 2 years = 22 times 1 year = 2 times When an amount becomes 2 times, so rate of interest is 100%  At
100 % interest it would becomes 8 times. Ex.8.6:At what rate of interest a sum becomes 9 times in 2 years?Sol. 2 years = 9 times
= 32
1 year = 3 times  Amount = 1(principal)+2 (interest)  ROI = 200%
At 200% interest it would become 9 times. Ex.8.7: At what rate of interest a sum becomes 1.96 times in 2 years?
Sol. 2 years = 1.96 times = 1.42
1 year = 1.4 times  Amount = 1(principal)+ 0.4(interest) 
ROI = 40%
At 40% interest it would become 1.96 times.
Maths' Mirror
2.13
Ex.8.8: At what rate of interest a sum becomes 4.096 times in 3 years?
Sol. 3 years = 4.096 times = (1.6)3
 1 year = 1.6 times Amount = 1(principal)+ 0.6 (interest) ROI = 60% At 600% interest it would become 4.096 times.
TYPE - 9
D ISTRIBUTION OF PRINCIPAL IN TWO
PARTS. Think of a situation, Mr. Vibhuti wants to deposit Rs. 2,05,000 in the name of his two grand daughters Pihu and Pakhi.
He wants that when his grand daughters when attain 18 years of age they may get equal amounts. Rate of interest offered by
Bank is 5% p.a. compounded annually. Present ages of grand daughters are 3 years and 2 years.
Suppose Mr. Vibhuti deposit half - half amount in both accounts then, amount deposited in the name of elder grand daughter will
be in the bank account for 15 years and amount deposited in the name of younger grand daughter will be in the bank account for
16 years, so they will not receive equal amount. If amount to be received equally then at present it should not be deposited
equally.
Let at present, amount deposited in the name of elder grand daughter be Rs. x and that of younger grand daughter be Rs.
yAmount received to elder grand daughter on attaining
18 years of age =
 
x 100 5
  1   15
Amount received to younger grand daughter on attaining
18 years of age =
 
y 100 5
  1 As both amounts are equal=
  16
 
x 100 5
  1   15
=
 
y 100 5
  1 
  16 x y=
  1 1005   1 100 5   16

Amit Kr. Verma     15
=
1

 100 5   16 20= 21: 20
 15 = 21
Total amount = 4,05,000
405000
 x = 21 = 1,05,000
41 
= Rs. 176400 Ex.9.3:Hari Prasad left Rs. 2,33,10,000 in his will. According to will, 50% of the amount is to be given to his wife
405000
and rest y = 10 = 1,00,000
41 
amount should be deposited in the name of his two daughters who are at present 12 years and 9 years old such that when they
become 18 years old, they may get equal amount at

Principal Principal 12
1


100 r
t t
   2 
1 compound interest. Rate of interest offered by bank is 10%
p.a. Find share of each one.

Ex.9.1: Divide Rs. 45,900 such that share at the end of 18 years may equal to the share at the end of 19 years,
50
Sol. Amount given to his wife = 2,33,10,000× 100
compound interest being at 4% p.a. Find present share.
istribute Rs. 45,900 at 4% p.a such a way that
= Rs. 1,16,55,000 Sol. D
Remaining amount = 2,33,10,000 - 1,16,55,000 at the end of 18 years and 19 years amount become
= 1,16,55,000 equal.
Difference of ages of both daughters = 12–9 = 3 years Difference in years = 19–18 =1
Ratio of distribution of amount =
Ratio of distribution of amount =    1  100 10    Amit
  3   aths' Mirror 10
Kr. Verma M 10 1 
  3 
 
  1  100 4 
1
 26 25
 51 units = 45900
11 3 1331 10
1000
=
45900
 1 unit =
= 900
51
 26 units = 26×900 = Rs. 23400  25 units = 25×900 = Rs.22500 Ex.9.2: A person has a son and a daughter. The age of son
is 5 years and daughter is 3 years. The person wants to deposit Rs. 3,36,400 such a way that when they attain 21 years they may
get equal amount. Rate of interest offered by bank is 5% p.a at compound interest Find at present how much amount should be
deposited?
ifference between both age = 5-3 = 2 years
Sol. D
Ratio of distribution of amount
=
    2331 units = 1,16,55,000

   
1,16,55,000
 1 unit =
= 5000
2331
 Share of younger daughter = 5000×1331
hare of elder daughter = 5000×1000
= Rs. 66,55,000  S
= Rs. 50,00,000
   1  100 5 
  2  
  20
441
  2 =
21  400
 841 units = 336400
336400
 1 unit =
= 400
841 Amount to be deposited for son = 400×400
= Rs. 160000 Amount to be deposited for daughter = 441×400
Exercise
Compound Interest
LEVEL - 1
1. Rs. 2000 is invested at annual rate of interest of 10%.
What is the amount after two years if compounding is done cent compound interest will
annually? (a) Rs. 5000 (b) Rs. 2420 (c) Rs. 3000 (d) Rs. Rs 400 amount to Rs 441 in 2 years? (a) 4% (b) 5% (c) 6%
3200 2. Sheela invested Rs.8000 for 3 years at 5% CI in a (d) 3% 9. At what rate per cent will the compound interest
post office. If the interest is compounded once in a year, does a sum of money become four fold in 2 years? (a)
what sum will she get after 3 years? (a) Rs. 10000 (b) Rs. 150% (b) 100% (c) 200% (d) 75% 10. A certain amount of
7000 (c) Rs. 9261 (d) None of these 3. Raviraj invested an money at compound interest grows up to Rs 7520 in 15
amount of Rs. 10,000 at compound interest rate of 10 per years and upto Rs. 7896 in 16 years. Find the rate per cent
cent per annum for a period of three years. How much per annum. (a) 10% (b) 8% (c) 5% (d) 7% 11. A sum of
amount will Raviraj get after 3 years? (a) Rs. 12340 (b) Rs.money invested at compound interests amounts to Rs. 800
13210 (c) Rs. 13320 (d) Rs. 13310 4. Rs.2400 becomes in 3 years and to Rs 840 in 4 years. The rate of interest per
Rs.3000 in 3 years at a certain rate of compound interest.
What will be the sum after 6 years? (a) Rs. 4750 (b) Rs. annum is(a) 10% (b) 7% (c) 6% (d) 5% 12. At what rate of
3750 (c) Rs. 3570 (d) Rs. 3850 5. Rs. 1200 becomes Rs. compound interest per annum will a sum of Rs. 1200
1500 in 2 years at a certain rate of compound interest. Whatbecomes Rs. 1348.32 in 2 years? (a) 6% (a) 8% (c) 9% (d)
will be the sum after 6 years? (a) Rs. 2433.25 (b) Rs. 10% 13. At what rate percent per annum of compound
2334.75 (c) Rs. 2343.75 (d) Rs. 2343.25 6. Rashi invested interest, compounded annually, will a sum of money
Rs 16,000 for two years at compound interest and received become 16 times of itself in 4 years? (a) 400% (b) 200%
an amount of Rs 17,640 on maturity. What is the rate of (c) 125% (d) 100% 14. An amount of money at compound
interest? (a) 6% p.a. (b) 8% p.a. (c) 7% p.a. (d) 5% p.a. 7. interest grows upto Rs. 3,840 in 4 years and up to Rs.
At what rate per cent will the compound interest does a 3,936 in 5 years. Find the rate of interest.
sum of money become 27 times in 3 years?
Amit Kr. Verma
Maths' Mirror
2.15
(a) 100% (b) 150% (c) 75% (d) 200% 8. At what rate per
(a) 3.5% (b) 2.05%
22. The compound interest on Rs.3000 for 3 years (c) 2.5% (d) 2%
at 12% per annum compounded annually is
15. The compound interest on a sum for 2 yr is Rs.
(a) Rs. 1266.18 (b) Rs.1200 832 and the simple interest on the same sum at
(c) Rs. 1250 (d) Rs. 1214.78 the same rate for the same period is Rs. 800.
23. The compound interest on Rs.2000 for 2 years What is the rate of interest?
at 5% per annum compounded annually is (a) 6% (b) 8%
(a) Rs. 300 (b) Rs. 205 (c) 10% (d) 12%
(c) Rs. 400 (d) Rs. 405 16. The effective annual rate of interest
24. What will be the compound interest on a sum corresponding to a nominal rate of 6% per
of Rs.25, 000 after 3 years at the rate of 12% per annum payable half-yearly is:
annum? (a) 6.06% (b) 6.07%
(a) Rs. 10123.20 (b) Rs. 11000 (c) 6.08% (d) 6.09%
(c) Rs. 12000 (d) Rs. 13000 17. The effective annual rate of interest
25. Find the compound interest on Rs.10000 at 10% corresponding to a nominal rate of 12% per
per annum for 3 years, compounded annually. annum payable half-yearly is:
(a) Rs. 3300 (b) Rs. 3310 (a) 12.06% (b) 12.12%
(c) Rs. 3500 (d) Rs. 4000 (c) 12.36% (d) 12.48%
26. The compound interest on a sum of money at 18. The effective annual rate of interest
8% per annum for first year is 48. Find the corresponding to a nominal rate of 8% per
compound interest in second year. annum payable half- yearly is:
(a) Rs. 48 (b) Rs. 51.84 (a) 8.06% (b) 8.88%
(c) Rs. 56.44 (d) Rs. 96.44 (c) 8.03% (d) 8.16%
27. The simple interest on a sum of money at 10% 19. The simple interest on a certain sum of money
per annum for 2 years is Rs. 200. Find the for 2 years at 5% per annum is Rs 100. Find the
compound interest same sum of money, the rate compound interest at the same rate and for the
of interest and time same in both cases. same time.
(a) Rs. 210 (b) Rs. 220 (a) Rs 102.50 (b) Rs l03
(c) Rs. 240 (d) Rs. 205 (c) Rs 103.50 (d) Rs 309
28. The simple interest on a certain sum of money 20. If the simple interest on a sum of money for 2
for 2 years at 6 p.c.p.a is Rs. 300. Find the years at 5% per annum is Rs.500, then what is
compound interest at the same rate and for the the compound interest on the same sum at the
same time. same rate and for the same time?
(a) Rs. 310 (b) Rs. 308 (a) Rs. 512.5 (b) Rs. 560.25
(c) Rs. 307 (d) Rs. 309 (c) Rs. 500 (d) None of these
29. A sum of money placed at compound interest 21. The present worth of Rs. 176.4 due in 2 years at
doubles itself in 6 y ears. In how many years 5% per annum compound interest is
will it amount to 16 times itself? (a) Rs. 150.25 (b) Rs. 160
(a) 24 years (b) 26 years (c) Rs. 170 (d) None of these
(c) 22 years (d) 20 years
Amit Kr. Verma Maths' Mirror
Compound Interest
30. A sum of money placed at compound interest thrice itself in 4 years. In how many years will it amount to 27 times itself?
(a) 12 years (b) 15 years (c) 14 years (d) 10 years 31. A sum of money placed at compound interest doubles itself in 4 years.
In how many years will it amount to four times itself? (a) 12 years (b) 13 years (c) 8 years (d) 16 years 32. If a sum of money
placed at compound interest, compounded annually, doubles itself in 5 years, then the same amount of money will be 8 times
of itself in? (a) 25 years (b) 20 years (c) 15 years (d) 10 years 33. An amount at compound interest doubles itself in 4 years. In
how many years will the amount become 8 times itself? (a) 8 years (b) 12 years (c) 16 years (d) 24 years 34. If a sum of
money at compound interest amounts to thrice of itself in 3 years, then in how many years will it be 9 times itself? (a) 12
years (b) 6 years (c) 9 years (d) 15 years 35. The difference between the compound interest and the simple interest on a certain
sum of money at 4% per annum for 2 years is Rs. 1.40. Find the sum. (a) Rs 875 (b) Rs 857 (c) Rs 785 (d) Rs 865 36. On what
sum will the difference between the simple and compound interest for 3 years at 5 per cent per annum amount to Rs 12.20? (a)
Rs 1600 (b) Rs 800 (c) Rs 1200 (d) Rs 1500 37. The difference between the compound interest and simple interest on a
certain sum at 5% for 2 years is Rs. 1.50. The sum is (a) Rs. 700 (b) Rs. 800 (c) Rs. 900 (d) Rs. 600 Maths' Mirror
2.17
38. If the compound interest on a certain sum for 2 years is Rs.105 and simple interest is Rs. 100, then the sum is (a) Rs. 700
(b) Rs. 600 (c) Rs. 800 (d) Rs. 500 39. The compound interest on a certain sum for 2 years is Rs 105 and simple interest is Rs
100. Find the rate of interest per annum and the sum. (a) 10%; Rs 500 (b) 10%; Rs 1000 (c) 20%; Rs 1000 (d) 15%; Rs 1200
40. On a certain sum of money, the simple interest for 2 years is Rs. 150 at the rate of 3% per annum. Find the difference in
CI and SI. (a) Rs 5 (b) Rs 4.5 (c) Rs 2.5 (d) Rs 2.25 41. Find the difference between the compound interest and the simple
interest for the sum Rs. 625 at 8% per annum for 2 years. (a) Rs 3 (b) Rs 4 (c) Rs 4.5 (d) Rs 1.5 42. Find the difference
between the compound interest and the simple interest for the sum Rs. 2500 at 6% per annum for 2 years. (a) Rs. 9 (b) Rs. 8
(c) Rs. 7.5 (d) Rs. 6 43. Find the difference between the simple and compound interest on Rs. 10000 for 3 years at 3 per cent.
(a) Rs 27.8 (b) Rs 27.27 (c) Rs 37.27 (d) Rs 37.8 44. Find the difference between the simple and compound interest on Rs
8000 for 3 years at 5 per cent. (a) Rs 61 (b) Rs 60 (c) Rs 51 (d) Rs 59 45. Find the ratio of CI to SI on a certain sum at 5%
per amount for 2 years. (a) 41:40 (b) 42:41 (c) 43:40 (d) 41:35
Amit Kr. Verma

46. The difference between simple interest and compound
interest on a certain sum of money for 2 years at 4 per cent
annum is Re. 1. The sum of money is (a) Rs 600 (b) Rs
625 (c) Rs 560 (d) Rs 650 47. The difference between
simple and compound interest on Rs. 1250 for 2 years at
4% per annum is(a) Rs. 3 (b) Rs. 4 (c)
Rs. 5 (d) Rs. 2 48.
The difference between the simple interest and the
compound interest compounded annually at the rate of
12% per annum of Rs. 5000 for two years will be (a) Rs.
72 (b) Rs. 100 (c) Rs. 300 (d) Rs. 400 49. On a certain sum
of money, the simple interest for 2 years is Rs. 200 at the
rate of 7% per annum. Find the difference in CI and SI. (a)
Rs. 7 (b) Rs. 6 (c) Rs. 3.5 (d) Rs. 45 50. Find the
difference between the compound interest and the simple
interest for the sum of Rs. 2500 at 6% p.a for 2 years. (a)
Rs. 9 (b) Rs. 8 (c) Rs. 7.5 (d) Rs. 6
ANSWERS
1. (b) 2. (c) 3. (d) 4. (b) 5. (c) 6. (d) 7. (d) 8. (b) 9. (b)

10. (c) 11. (d) 12. (a) 13. (d) 14. (c) 15. (b) 16. (d) 17.
(c) 18. (d) 19. (a) 20. (a) 21. (b) 22. (d) 23. (b) 24. (a)
25. (b) 26. (b) 27. (a) 28. (d) 29. (a) 30. (a) 31. (c) 32.
(c) 33. (b) 34. (b) 35. (a) 36. (a) 37. (d) 38. (d) 39. (a)
40. (d) 41. (b) 42. (a) 43. (b) 44. (a) 45. (a) 46. (b) 47.
(d) 48. (a) 49. (a) 50.(a)
1. Mohan invested an amount of Rs 15,000 at compound

interest rate 5% p.a. for a period of 2 years. What amount
will be received at the end of 2 years? (a) Rs 16,537.50 (b)
Rs 18, 543 50 (c) Rs 20,302.75 (d) Rs 12,421.50 2. Rs
Compound Interest 50000 is borrowed at CI at the rate of 1% for the first year,
LEVEL - 2 2% for the second year and 3% for the third year. Find the
amount to be paid after 3 years. (a) Rs 50353.3 (b) Rs Rs 5,000 in a bond which gives interest at 4% per annum
53055.3 (c) Rs 53505.3 (d) Rs 53053.3 3. Find the amount during the first year, 5% during the second year and 10%
on Rs. 20,000 for 3 years at 10% for first year, 5% for during the third year. Find total savings with interest. (a)
second year and 4% for third year? (a) Rs. 24,000 (b) Rs. Rs 6,006 (b) Rs7,216 (c) Rs 3,001 (d) Rs 5,216 9. What
24,024 (c) Rs. 25,000 (d) Rs. 25,024 4. Find the amount ofwill be the compound interest on a sum of Rs. 24,000 after
Rs. 1000 in 1 year at 5 per cent per annum compound 3 years at the rate of 12% per annum ? (a) Rs. 9718.272 (b)
interest payable half- yearly. (a) Rs. 1050 (Approx) (b) Rs.Rs. 10000.20 (c) Rs. 9500.20 (d) Rs. 9618.272 10. The
950 (Approx) (c) Rs. 1125 (Approx) (d) Rs. 1025 (Approx)compound interest on Rs.20,480 at 6.25%
5. Find the amount of Rs. 6400 in 1 year 6 months at 5 pcpaper annum for 2 years 73 days , is (a) Rs. 3000 (b) Rs.
compound interest, interest being calculated half yearly. (a)2929 (c) Rs. 4500 (d) Rs. 4600 11. Find the compound
Rs. 6882.10 (b) Rs. 6892.10 (c) Rs.6982.10 (d) Rs. 7282.05interest on Rs.15, 625 for 9 months at 16% per annum
6. Find the amount of Rs. 4000 for 2.5 years at 10 compounded quarterly. (a) Rs. 1760 (b) Rs. 1800 (c) Rs.
p.c.p.a compound interest. (a) Rs. 4629.23 (b) Rs. 4692.32 1500 (d) Rs. 1951 12. The principal that amounts to Rs
(c) Rs. 4639.32 (d) Rs. 5082 7. A person lent out a certain 5624.32 in 3 years at 4% per annum compound interest
sum on simple interest and the same sum on compound compounded annually is (a) Rs. 5096 (b) Rs. 5000 (c) Rs.
interest at a certain rate of interest per annum. He noticed 6000 (d) None of these 13. A bank offer's 5% compound
that the ratio between the difference of compound interest interest calculated on half-yearly basis. A customer
and simple interest of 3 years deposits Rs. 1600 each on 1st January and 1st July of the
year. At the end of the year, the amount he would have
Maths' Mirror gained by way of interest is (a) Rs. 150 (b) Rs. 244 (c)
Rs.400 (d) Rs. 121 14. The compound interest on Rs.
2.19
16,000 at 20% per annum for 9 months, compounded
and that of 2 years is 25 : 8. The rate of interest per annum quarterly is (a) Rs. 3000 (b) Rs. 2522
1
is: (b) 10% (b) 11% (c) 12% (d) 12 2 %
8. Kaya invests Amit Kr. Verma
(c) Rs. 3500 (d) Rs. 4000 15. Find the compound interest on Rs. 10000 in 2
(c) 2 years years at 4% per annum, the interest being
1
(d) 2 2 years

compounded half-yearly.
22. A certain sum invested at 4% per annum (a) Rs. 824.321 (b) Rs. 832.42 (c) Rs. 800 (d) Rs. 824.62 16. The simple
interest on a sum of money at 5% per annum for 2 years is Rs. 500. Find the
compounded semi-annually amounts to Rs. 78030 at the end of one year. The sum is (a) Rs. 78000 (b) Rs.65000 (c) Rs.
72000 (d) Rs. 75000 compound interest same sum of money the rate
23. The difference between the compound interest of interest and time same in both cases.
and the simple interest on a certain sum at 15% (a) Rs. 512.5 (b) Rs. 550 (c) Rs. 520 (d) Rs. 540 17. Find the compound
interest on Rs. 10000 in 9 months at 4 p.c.p.a interest payable quarterly.
per annum for 3 years is Rs. 283.50. Find the sum. (a) Rs. 6,000 (b) Rs. 3,000 (c) Rs. 4,000 (d) Rs. 5,000
(a) Rs. 303 (Approx) (b) Rs.313 (Approx) (c) Rs. 203 (Approx)
24. The difference between simple interest and compound interest of a certain sum of money at 20% per year for 2 years is
96. Then the sum is: (d) Rs. 204 (Approx)
(a) Rs. 2000 (b) Rs. 2400 18. Find the compound interest on Rs. 8000 :n 3 months at 5 pcpa a interest payable quarterly.
(a) Rs. 250 (b) Rs. 200
(c) Rs. 3000 (d) Rs. 4000 25. The difference between simple interest and compound interest on a certain sum of money (c)
Rs. 150 (d) Rs. 100
for three years at 10% per annum is Rs. 15 and 19. The compound interest in Rs.30,000 at 7% per
paise 50. The sum is: annum is Rs.4347. The period is
(a) Rs. 5,000 (b) Rs. 550 (a) 3 years (b) 5 years
(c) Rs. 5,500 (d) Rs. 500 (c) 6 years (d) 2 years
26. What will be the difference between simple and 20. In what time will 1000 become Rs. 1331 at 10%
compound interest at the rate 10% per annum per annum compounded annually?
1
on a sum of Rs. 1000 after 4 years? (a) 1 2 years
(a) Rs. 65(aprox) (b) Rs. 80 (aprox)
(b) 3 years
1
(c) Rs. 90 (aprox) (d) Rs. 95 (aprox) 27. The difference between simple and compound (c) 2 years (d) 2 2 years

interest on Rs.1200 for one year at 10% per annum reckoned half-yearly is 21. In what time will Rs. 2000 become Rs.
2420 at
(a) Rs. 5 (b) Rs. 3 10% per annum compounded annually?
1
(c) Rs. 7 (d) Rs. 10 (a) 1 2 years
28. What will be the difference in the compound
(b) 3 years
interest on Rs.50, 000 at 12% for one year when the interest is paid yearly and half yearly? (a) Rs. 180 (b) Rs. 200 (c) Rs.
300 (d) Rs. 500
Compound Interest
29. The compound interest on a sum of money at 4% per annum for 2 years is Rs. 102. Find the simple interest same sum of
money the rate of interest and time same in both cases. (a) Rs. 90 (b) Rs. 100 (c) Rs. 98 (d) Rs. 96 30. The compound interest
on a sum of money at 5% per annum for 2 years is Rs. 328. Find the simple interest same sum of money the rate of interest
and time same in both cases. (a) Rs.320 (b) Rs. 322 (c) Rs. 375 (d) Rs. 300 31. The compound interest on a sum of money at
4% per annum for 2 years is Rs. 510. Find the simple interest same sum of money the rate of interest and time same in both
cases. (a) Rs. 400 (b) Rs. 500 (c) Rs. 460 (d) Rs. 440 32. Myra made an investment of Rs. 8000 at simple interest of 8% per
annum for 3 years. How much more would have been hs return, had she
1 % per
invested it at compound interest at 7 2 anuum for the same period?
6 (b) Rs. 18
(a) Rs. 12 7
3(d) Rs. 22
(c) Rs. 18 8
33. The compound interest on a certain sum for 2 years is Rs 60.60 and simple interest is Rs 60. Find the rate of interest per
annum and the sum. (a) 2%; Rs 1600 (b) 2%; Rs 1400 (c) 3%; Rs 1500 (d) 2%; Rs 1500 34. What sum will amount to Rs.6655
at 10% per annum compounded yearly for 3 years? (a) Rs.5000 (b) Rs. 3000 (c) Rs. 2500 (d) Rs. 4500 35. What annual rate of
interest compounded annually a sum becomes 1.44 times of Maths' Mirror
2.21
investment in 2 years? (a) 20% (b) 50% (c) 40% (d) 44% 36. A sum of money is borrowed and back in two annual
installments of Rs. 882 each allowing 5% compound interest. The sum borrowed was: (a) Rs. 1,640 (b) Rs. 1, 600 (c) Rs.
1,700 (d) Rs. 1, 750 37. A sum of money is borrowed and back in two annual installments of Rs. 338 each allowing
1 % compound interest. The sum borrowed

8 3 was: (a) Rs. 600 (b) Rs. 640 (c) Rs. 700 (d) Rs. 750 38. A sum of money is
borrowed and back in two annual installments of Rs. 676 each allowing 4% compound interest. The sum borrowed was: (a)
Rs. 1,250 (b) Rs. 1,270 (c) Rs. 1,300 (d) Rs. 1,275 39. The difference between the compound interest and the simple interest
on a certain sum of money at 10% per annum for 2 years is Rs. 2.50. Find the sum. (a) Rs. 350 (b) Rs. 275 (c) Rs. 250 (d) Rs.
325 40. 0n what sum will the difference between the simple and compound interests for 3 years at 4 per cent per annum
amount to Rs. 3.04? (a) Rs. 1250 (b) Rs. 625 (c) Rs. 650 (d) Rs. 675 41. What sum of money at compound interest will
amount to Rs. 480 at the end of the first year and Rs. 576 at the end of the second year? (a) Rs. 420 (b) Rs. 450 (c) Rs. 400 (d)
None of these 42. Find the compound interest on Rs. 8000 in 2
Amit Kr. Verma

years, the rate of interest being 5% for the first
(a) Rs. 228.48 (b) Rs. 336.45 year and 10% for the second year. (a) Rs. 1340 (b) Rs. 1420
(c) Rs. 207.5625 (d) Rs. 138.48 50. A merchant commences with a certain capital and gains annually at the rate of 25 p.c.
At the end of (c) Rs. 1240 (d) Rs. 1350
3 years he has Rs. 10,000. What was his original 43. Find the ratio of CI to SI on a certain sum at 8%
capital? per annum for 2 years.
(a) Rs. 5120 (b) Rs. 5230 (a) 27 : 26 (b) 26 : 25
(c) Rs. 5340 (d) Rs. 5550
(c) 26 : 21 (d) 25 : 24 44. The difference between compound interest and
ANSWERS simple interest on a sum of Rs. 4000 for 2 years at 5% payable yearly is: (a) Rs.20 (b) Rs.10
1. (a) 2. (b) 3. (b) 4. (a) 5. (b) 6. (d) 7. (d) 8. (a) 9. (a) 10. (b) 11. (d) 12. (b) 13. (b) 14. (b) 15. (a) (c) Rs. 50 (d) Rs. 60
16. (a) 17. (a) 18. (d) 19. (d) 20. (b) 45. Kamal purchased a scooter car 3 years ago for
21. (c) 22. (d) 23. (c) 24. (b) 25. (d) Rs 2 lakh. Its value depreciated each year at the
26. (a) 27. (b) 28. (a) 29. (b) 30. (a) rate of 5% p.a. What is the present value of the
31. (b) 32. (c) 33. (d) 34. (a) 35. (a) car?
36. (a) 37. (a) 38. (d) 39. (c) 40. (b) (a) Rs 178245 (b) Rs. 85242
41. (c) 42. (c) 43. (b) 44. (b) 45. (d) (c) Rs 84375 (d) Rs. 171475
46. (c) 47. (a) 48. (d) 49. (c) 50. (a) 46. The population of a village decreases at the rate of 20% per annum. If its
population 2 years ago was 10,000, what is its present population? (a) 6,000 (b) 9,000 (c) 6,400 (d) 7,600 47. If the simple
interest on a sum of money for 2 years at 5% per annum is Rs.50, what is the compound interest on the same sum at the
same rate and for the same time? (a) Rs. 51.25 (b) Rs. 100.25 (c) Rs. 125 (d) Rs. 130 48. If the amount is 2.25 times of the
sum after 2 years at compound interest (compounded annually), the rate of interest per annum is (a) 25% (b) 30% (c) 45%
7 1
(d) 50% 49. I give a certain person Rs. 12000 at simple interest for 3 years at aths' Mirror
2 Amit Kr. Verma M
%
. How much more should I
have gained had I given it at compound interest?
Compound Interest L
EVEL –3
1. A man saves Rs.200 at the end of each year and lends the money at 5% compound interest. How much will it become at the
end of 3 years? (a) Rs. 655.02 (b) Rs. 630.50 (c) Rs. 231.525 (d) Rs. 600 2. In how many years will a sum of Rs. 800 at 10%
per annum compounded semi- annually becomes Rs. 926.10? (a) 1.5 years (b) 3 years (c) 2 years (d) 4 years 3. The simple
interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4,000 for 2 years at 10%
per annum. What is the sum placed on simple interest? (a) Rs. 550 (b) Rs. 1,650 (c) Rs. 1,750 (d) Rs. 2,000 4. The compound
interest on a sum of money for 2 years is Rs.832 and the simple interest on the same sum for the same period is Rs.800. The
difference between the compound interest and the simple interest for 3 years will be (a) Rs. 100 (b) Rs. 98.56 (c) Rs. 125 (d)
Rs. 125 5. The compound interest on a certain sum of money at 5% per annum for 2 years is Rs. 246. The simple interest on
the same sum for 3 years at 6% per anuum is: (a) Rs. 435 (b) Rs. 450 (c) Rs. 430 (d) Rs. 432 6. A man saves Rs. 2000 at the
beginning of each year and invests the money at 5% compound interest. At the end of 3 years he will have : (a) Rs. 6000 (b)
Rs. 6620.5 (c) Rs. 620.5 (d) Rs. 4220 7. Rashi borrowed certain sum from Priyanka from certain rate of simple interest for 2
years. She lent this sum to Nupur at the same rate of interest compounded annually for the same
Maths' Mirror
period. At the end of 2 years, she received Rs. 4200 as compound interest but paid Rs. 4000 only as simple interest. Find the
rate of interest. (a) 3% (b) 5% (c) 4% (d) 10% 8. On what sum will the compound interest at 5% per annum for two years
compounded annually be Rs. 1640? (a) Rs. 15000 (b) Rs. 16000 (c) Rs. 14000 (d) Rs. 12000 9. What sum of money at
compound interest will amount to Rs. 2893.8 in 3 years, if the rate of interest is 4% for the first year, 5% for the second year
and 6% for the third year? (a) Rs. 2500 (b) Rs. 2400 (c) Rs. 2200 (d) Rs. 2250 10. A sum of money at compound interest
amounts in two years to Rs. 2809, and in three years to Rs. 2977.54. Find the rate of interest and the original sum. (a) Rate 4%,
Original sum Rs. 1500 (b) Rate 5%, Original sum Rs. 2000 (c) Rate 6%, Original sum Rs. 2500 (d) Rate 8%, Original sum Rs.
3000 11. What principal will amount to Rs. 1352 in 2 years
at 4 p.c.p.a compound interest? (a) Rs. 1520 (b) Rs. 1260 (c) Rs. 1250 (d) None of these 12. On what principal will the
compound interest
for 3 years at 5 p.c.p.a amount to Rs. 63.05? (a) Rs. 400 (b) Rs. 500 (c) Rs. 450 (d) Rs. 550 13. On what sum will the amount
for 2.5 years at 10
p.c.p.a becomes Rs. 6352.50? (a) Rs. 4900 (b) Rs. 5500 (c) Rs. 5000 (d) Rs. 5800 14. The difference between the simple and
the compound interest compounded every six months at the rate of 10 per cent per annum at the end of two years is Rs.
124.05. What is the
2.23
Amit Kr. Verma
sum?
interest at the rate of 6 per cent per annum 15. 16. (a) Rs. 10000 (b) Rs. 6000 (c) Rs. 12000 (d) Rs. 8000 Find the
compound interest on Rs. 9375 in 2 years, the rate of interest being 2% for the first year and 4% for the second year. (a)
Rs. 570 (b) Rs. 1140 (c) Rs. 1155 (d) Rs. 670 Divide Rs. 2708 between A and B, so that A’s 21. share at the end of 6 years
may equal B’s share at the end of 8 years, compound interest being at 8%. (a) Rs. 1458, Rs. 1250 (b) Rs. 1448, Rs. 1260
(c) Rs. 1438, Rs. 1270
22. earning Rs. 900 as an interest at the end of three years. Had the interest been compounded every year, how much more
interest would he have earned on the same amount with the same interest rate after three years? (a) Rs. 38.13 (b) Rs. 25.33
(c) Rs. 55.08 (d) Rs. 35.30 Divide Rs.1301 between A and B, so that the amount of A after 7 years is equal to the amount
of B after 9 years, the interest being compounded at 4% per annum. Find the part A. (a) Rs. 676 (b) Rs. 650 (c) Rs. 600 (d)
Rs. 500 Divide Rs. 5204 between A and B, so that the amount of A after 5 years in equal to the amount (d) Rs. 1468, Rs.
1240
of B after 7 years, the interest being 17. Divide Rs.1105 between A and B, so that A’s
compounded at 4% per annum. Find the part A. share at the end of 5 years may equal B’s share
(a) Rs. 2704 (b) Rs. 2,646 at the end of 7 years, compound interest being at 10%. (a) Rs. 505, Rs. 600 23. (b) Rs. 605, Rs.
500 (c) Rs. 705, Rs. 400
1
(c) Rs. 3,000 (d) Rs. 2,046 Find the percentage per annum if Rs. 2000 amount to Rs. 2662 in 1 2 years, interest being
compounded half yearly? (d) Rs. 625, Rs. 480
(a) 10% (b) 20% 18. Divide Rs. 6100 between A and B, so that A’s
(c) 15% (d) 25% share at the end of 3 years may equal B’s share at the end of 5 years, compound interest being 24. at 20%.
(a) Rs. 3600, Rs. 2500 (b) Rs. 3500, Rs. 2600 (c) Rs. 3400, Rs. 2700 25. (d) Rs. 3450, Rs. 2650
Find the present worth of Rs.9261 due 3 years hence at 5% per annum compounded yearly. (a) Rs.7000 (b) Rs. 900 (c) Rs.
10000 (d) Rs. 8000 The difference between the simple interest and the compound interest on Rs. 60 for 1 year at 10% per
annum, reckoned half-yearly is 19. 20. A man borrows Rs. 3000 at 30% compound rate of interest. At the end of each year
he pays back Rs. 1000. How much amount should he pay at the end of the third year to clear all his 26. dues? (a) Rs. 3602
(b) Rs.3601 (c) Rs. 3603 (d) Rs. 3604 A person invested a certain amount at simple
(a) Rs. 2 (b) Rs. 1.5 (c) Rs. 3.5 (d) Rs. 0.15 If the compound interest on a certain sum at 16.66% for 3 years is Rs. 1270,
the simple interest on the same sum at the same rate and for the same period is : (a) Rs. 1080 (approx) (b) Rs. 1100
(approx)
Compound Interest
(c) Rs. 1000 (approx) (d) Rs. 1200 (approx) 27. The compound interest on a certain sum for 2 years at 10% per annum is
Rs.525. The simple interest on the same sum for double the time at half the rate per cent per annum is (a) Rs. 600 (b) Rs. 500
(c) Rs. 800 (d) Rs. 900 28. A sum of 10,000 deposited of compound interest becomes double after 3 years. After 15 years, it
will become: (a) 3,20,000 (b) 15,0000 (c) 3,00000 (d) None of these 29. The compound interest on a sum for 2 years is Rs.
696.30 and the simple interest on the same sum at the same rate for the same period is Rs. 660. What is the rate of interest? (a)
6% (b) 8% (c) 11% (d) 12% 30. Anil deposited some amount in a bank in order to earn compound interest at the rate of 10%.
If the difference between the interest of third year and second year Rs. 1100, how much did he deposit in the bank? (a) Rs.
10000 (b) Rs. 11000 (c) Rs. 9900 (d) Rs. 100000 31. What sum of money at compound interest will amount to Rs. 562.38 in 3
years, if the rate of interest is 3% for the first year, 4% for the second year and 5% for the third year? (a) Rs. 400 (b) Rs. 450
(c) Rs. 500 (d) Rs. 520 32. Find the present value of Rs. 4913 due in 3 years
1 % per annum compound interest.

hence at 6 4 (a) Rs. 4096 (b) Rs. 4296 (c) Rs. 4568 (d) Rs. 4896 33. A sum of money is
lent out at compound interest rate of 20% per annum for 2 years. It would fetch Rs. 482 more if interest is compounded
half-yearly.
Maths' Mirror
2.25
Find the sum. (a) Rs, 20,000 (b) Rs. 22,000 (c) Rs. 24,000 (d) Can't be determined 34. The simple interest accrued on an
amount of Rs 25,000 at the end of three years is Rs 7,500. What would be the compound interest accrued on the same amount
at the same rate in the same period? (a) Rs 7,750 (b) Rs 8,275 (b) Rs 8,500 (d) Rs 8,250 35. What will be the difference in the
interest obtained by investing Rs. 500 for two years at the rate of 10% p.a. compounded yearly and Rs. 800 at the rate of 10%
p.a. compounded half-yearly for one year? (a) Rs. 20 (b) Rs. 27 (c) Rs. 30 (d) Rs. 23
ANSWERS
1. (b) 2. (a) 3. (c) 4. (b) 5. (d) 6. (b) 7. (d) 8. (b) 9. (a) 10. (c) 11. (c) 12. (a) 13. (c) 14. (d) 15. (a) 16. (a) 17. (b) 18. (a) 19.
(b) 20. (c) 21. (a) 22. (a) 23. (a) 24. (d) 25. (d) 26. (a) 27. (b) 28. (a) 29. (c) 30. (d) 31. (c) 32. (a) 33. (a) 34. (b) 35. (d)
Amit Kr. Verma

LEVEL – 1 1. 2000 10 % 200
200 20  Amount after 2 years = 2000+420 = Rs. 2420 2. 8000 5% 400
400 20
2 years = 9 = 32 1 year = 3= 31  3 times = 2 (Interest)+1(Principal) 
ROI = 200%
400 20 20 1  Amount after 3 years = 8000+1261 = Rs. 9261
4 4 1
8. Ratio of amounts for two year= 4 0 0
3. 10000 10% 1000
As this ratio is for two years so we need to take 1000 100
square root of the ratio.
1000 100 100 10  Amount at the end of 3 years = Rs. 13310
21
3000
4. Ratio of amount to principal =
= 5
2400 4
1 ×100 = 5% 5
ROI = 2 0  Sum after 6 years = 3000  4 = Rs. 3750
Alternatively
As interest is charged on Rs.400 in two year is 41,
1500 
5. Ratio of amount to principal = 1200
5
4 which is little bit more than 10%.
=3
5 × 5 7500
So rate of interest per annum = 5% 9. 2 years = 4 = 22  Sum after 6 years = 1500× 4 4
16
1 year = 2 = 21  2 times = 1(Principal)+1(Interest)
6. = Rs. 2343.75
Interest = 17640-16000 = Rs. 1640.
 ROI = 100% 10. Interest = 7896-7520 = Rs. 376.
16000 x% 800
800 40
376
 ROI = 7520  100 = 5%
100 100
ROI(x) = 4 0  800 = 5%, 800× 16000
= 5%
So, our distribution of interest is correct.

11. Interest = 840-800 = Rs. 40
40
ROI = 800  100  5%  ROI = 5% Alternatively
1348.32
12. Ratio of amounts for two year=
= 2803
1200 2500 As interest is charged on Rs.16000 in two year is 1640, which is little bit more than 10%.
As this ratio is for two years so we need to take square root of the ratio. So rate of interest per annum = 5% 7. 3 years = 27 = 33
53
Ratio of amounts for one year = 50 Amit Kr. Verma M aths' Mirror
Compound Interest
3 ×100 = 6%
ROI = 5 0
Alternatively As interest is charged on Rs.1200 in two year is 148.32, which is little bit more than 12%.
So rate of interest per annum = 6% 13. 4 years = 16 = 24
1 year = 2 = 21  2 times = 1(Principal)+1(Interest) 
ROI = 100% 14. Interest = 3936–3840 = Rs.96.
96
 ROI = 3840  100 = 2.5% 15. 400
400 32
100
 ROI = 32×
= 8%
400
6
16. ROI calculated half yearly = 2 

3% 3%3% 0.09% 
Effective rate of interest = 6.09%
12 = 6%
17. ROI calculated half yearly = 2
Effective rate of interest = 12.36%

6%6% 0.36% 
8 = 4%
Effective rate of interest = 8.16% 19. 5050 2.5

4%4% 0.16% 
5
Interest on Rs. 50 at 5% = 50  100  Rs.2.5  CI at the end of 2 years = Rs. 102.50
Maths' Mirror
2.27
20. 250
250 12.5
5= Rs. 12.50
Interest on Rs. 250 at 5% p.a = 250× 100 CI at the end of 2 years = Rs. 512.50 21. Go through option.
Suppose principal = Rs. 160 160 5% 88 0.4 Amount

at the end of 2 years = 160+16.4 = Rs. 176.4  It is proved that principal =
Rs. 160 22. 3000 12% 360
360 43.2 360 43.2 43.2 5.182  Compound interest at the end of 3 years
= Rs. 1214.78 23. 2000 5% 100
100 5 Compound interest at the end of 2 years = Rs. 205 24. 25000 12% 3000
3000 360 3000 360 360 43.2  Compound interest at the end of 3 years
= Rs. 10123.20 25. 10000 10% 1000
1000 100 1000 100 100 10  Compound interest at the end of 3 years = Rs. 3310
8
26. Interest on Rs. 48 at 8% p.a = 48  100 = Rs. 3.84
 Compound interest in second year
48+3.84 = Rs. 51.84
200
27. Simple Interest in the first year = 2

100 100 100 10 Compound interest on Rs. 100 for 2nd year
10
= 100  100 
10 Amit Kr. Verma
 Total compound interest the end of 2 year
3rd year _ __ 4 4 0.20 = 200+10 = Rs. 210
We have to distribute Rs. 12.20 such a way that the
300 = Rs. 150
28. Simple interest in 1 year = 2
150
odd one comes on 4th part of 3rd year and remaining part of 2nd and 3rd year are same.
= 5%
ROI = 0.20× 100
4 150 9
 Our distribution of interest is correct. Compound interest at 6% on Rs. 150
6
Now,= 150  100 = Rs. 9
5=
Interest in 1st year = 4× 100 Rs. 80  Compound interest at the end of 2 years = 300+9
= Rs. 309 29. 2 times = 6 years.
100 = Rs. 1600
Principal amount = 80× 5
24 times = 6×4 = 24 years
37. 600 30
5%  In 24 years, the amount will become 16 times.
30
1.50 30.
3 times = 4 years
Compound interest for the first year 33 times = 4×3 = 12 years  In 12 years, the amount will become 27 times. 31. 2 times = 4
years
100 = Rs 30
= 1.50× 5
22 times = 4×2 = 8 years. In 8 years, the amount will become four times.
100 = Rs. 600
Principal = 30× 5
32. 2 times = 5 years
38. 5023 times = 5×3 = 15 years
In 15 years, the amount will become 8 times. 33. 2 times = 4 years

50 5 
100
ROI = 5  50 = In 12 years, the amount will become 8 times. 34. 3 times = 3 years
10% 2 times = 4×3 = 12 years 
3
100
Now, Principal = 50  10 =
Rs. 500
3 times = 3×2 = 6 years 39. 50In 6 years, the amount will become 9 times.
2
50 5
100 = 35
35. Interest for the 1st year = 1.40× 4
100
ROI = 5  50 = 10%
100 = 875
The sum = 35× 4
100
Principal = 50  10 =
Rs. 500
40. 75875 4% 35
4%
75 ___ 35
1.40
Compound interest at the end of the first year
___
36. 1st year 
2nd year  ___ 4
150 = Rs. 75
= 2 Amit Kr. Verma Maths' Mirror
Compound Interest
3= Rs. 2.25

Difference in CI and SI = 75× 100
41. 625 8 % 5050 4
 The first part of CI is same as SI for every years  Difference between CI and SI = Rs. 4 42. 2500 6 %150
150 9 Difference between CI and SI = Rs. 9 43. 10000 3 % 300
300 9 300 9 9 0.27  Difference between CI and SI = 9+9+9+0.27
= Rs. 27.27 44. 8000 5 %400
400 20 400 20 20 1  Difference between CI and SI = 20+20+20+1
= Rs. 61. 45. Assume principal = Rs. 100
Ratio of CI to SI = 10.25 : 10 = 41 : 40 46. ___
Now, 100 5% 55 0.25 
___ 1
100 = Rs. 25
Interest in the first year = 1× 4
100 = Rs. 625

Sum of the money = 25× 4 47. 1250 4% 5050 2
So, difference between SI and CI for 2 years = Rs. 2 48. 5000 12% 600
600 72 So, difference between SI and CI for 2 years = Rs. 72
200 = Rs. 100

49. SI in the first year = 2
Maths' Mirror
2.29
100 100 7
7= Rs. 7
CI in the 2nd part of 2nd year = 100× 100
 Difference between CI and SI = Rs. 7 50. 150

150 9  Difference between CI and SI = Rs. 9.
LEVEL – 2
1. 15000 5% 750
750 37.5  Amount at the end of 2 years = 15000 + 1537.5
= Rs. 16537.50 2. 50000 1 % 500
2% 1000 10 3% 1500 15 30 0.3  Amount at the end of 3 years = 50000+3055.3
= Rs. 53055.3 3. 20000 10% 2000
5% 1000 100 4% 800 80 40 4  Amount at the end of 3 years = Rs. 24024
4. 1000 2.5% 2525 0.625
 Amount at the end of 1 year = Rs. 1050.625 5. 6400 2.5% 160

160 4 160 4 4 0.1 Amount at the end of 1 year 6 months
= Rs. 6892.1 6. 4000 10% 400
400 40 400 40 40 4  Amount at the end of 2.5 years = Rs.5082 7. ____
____ 8 ____ 8 8 1
Amit Kr. Verma

1
ROI = 8 
100 
1
12 2 %
years will be more than 12% . Now analysing
principal we may answer 5000.
8. 5000 4% 200
13. Interest on Rs. 1600 deposited on 1st Jan :-
5% 250 10 1600 5% 8010% 500 20 25 1
80 4
 Amount at the end of 3 years = 5000 +1006
Interest on Rs. 1600 deposited on 1st July- = Rs. 6006.
1600 5% 80 9. 24000 12% 2880
 Total interest at the end of a year = Rs. 244 2880 345.6 2880 345.6 345.6 41.472  Compound interest at the end of 3 years
20 = 5%
14. Rate of interest = 4
= Rs. 9718.272
16000 5% 800 10. 20480 6.25% 1280
800 40 1280 80
800 40 40 2 73365 (1280 80 80 5)
 Compound interest at the end of 9 months
ompound interest at the end of 2 years 73
= Rs. 2522.  C
months 15. = 2640 

73
 365
1495 4 = 2%
ROI = 2 10000 2% 200
= 2640+289 = Rs. 2929
200 4
16 = 4%
11. Rate of Interest quarterly = 4
200 4 4 0.08 200 4 4 4 0.08 0.08
0.08 0.0016 15625 4% 625
 Compound interest at the end of 2 years 625 25
= Rs. 824.3216 625 25 25 1  Compound interest at the end of 9 months
= Rs. 1951
500 = 250
16. Simple Interest in the first year = 2 12. Go through option.
Suppose principal = Rs. 5000 5000 4% 200
200 8
250 250 12.5 Compound interest on Rs. 250 for 2nd year
200 8 8 0.32 So, amount at the end of 3 years
= 5000+624.32 = Rs. 5624.32
5= 12.5
= 250× 100
 It is proved that principal = Rs 5000.
Total compound interest at the end of 2 years Alternatively
= 500+12.5 = Rs. 512.5 As rate of interest is 4%, so total interest in 3
aths' Mirror
Amit Kr. Verma M
Compound Interest
4 =1%
17. ROI quarterly = 4
10000 1% 100
100 1 100 1 1 0.01  Compound interest at the end of 9 months
= Rs. 303 (approx.)
5 = 1.25%
18. ROI quaterly = 4
8000 1.25% 100  Compound interest at the end of 3 months
= Rs. 100 19. 30000 7% 2100
2100 147  In 2 years, interest = Rs. 4347 Alternatively
As interest on Rs.30000 at 7% is Rs.4347 which is between 14% - 15%, so time period must be 2years. 20. 1000 10% 100
100 10 100 10 10 1  Amount at the end of 3 years = 1000+331
= Rs. 1331  In 3 years, Rs. 1000 will become Rs. 1331. Alternatively
As interest on Rs. 1000 at 10% is Rs.331 which is between 33%- 34%, so time period must be 3years. 21. 2000 10% 200
200 20 Amount at the end of 2 years = 2000+420 = Rs. 2420  In 2 years Rs. 2000 will become Rs. 2420 Alternatively
As interest on Rs.2000 at 10% is Rs.420 which is 21%, so time period must be 2years. 22. Go through option.
As ROI is 4 pcpa, try to find the option which is nearby and less than Rs.78030 and in which Maths' Mirror
2.31
when 4% of the number is added, Assume principal = Rs. 75000
4 = 2 %
ROI = 2
Semi annually- 75000 2% 1500
Amount at the end of a year = 75000+3030
1500 30 
= Rs. 78030 So, assumption is right.  Sum = Rs 75000 23. ____
____ 90 ____ 90 90 13.50
100
ROI = 13.50×
= 15%
90
 Our distribution of interest is correct. Now,
100
Interest for the 1st year = 90×
= Rs. 600
15
100
Sum = 600×
= Rs. 4000
15
24. ____
____ 96
100
Interest in the first year = 96×
= Rs. 480
20
100
Sum = 480×
= Rs. 2400
20
25. ___
___ 5 ___ 5 5 0.50
100 = 10%
ROI = 0.50× 5
 Our distribution interest is correct.
Amit Kr. Verma
Now,
31. 250
100
Interest in the first year = 5×
= Rs.50
10
100
Sum = 50×
= Rs. 500
10
250 10
100
ROI = 10×
= 4%
250
 Distribution of interest is correct.
26. 1000 10% 100
 SI for 2 years = 250× 2 = Rs. 500.
100 10 100 10 10 1
8×3 = Rs. 1920
32. SI at 8% p.a =8000× 100 100 10 10 10 1 1 1 0.1
8000 15/2% 600
 Difference between SI and CI = Rs. 65
600 45
(approx.)
10 = 5%
27. ROI half yearly = 2
1200 5 % 6060 3
3 1 % = 1938 3
600 45 45 3 8 CI at 7 2 8  Difference between SI and CI = Rs. 3 28. Case I : When interest is calculated yearly.
3– 1920
More amount she will receive = 1938 8 50000 12 % 6000 Case II : When interest is calculated half yearly.
3 12 = 6%
= 18 8 ROI = 2
33. 3030 0.60 50000

6% 3000 3000 180  Difference in the interest calculated yearly and half yearly = 6180-6000= Rs. 180
100
ROI = 0.60  30 =
2%
29. 5050 2
100 100
Sum = 30  Rs.1500 ROI = 2 
2 50 =4
%
34. Go through option.
Assume principal = 5000
So, our distribution of interest is correct.
5000 10% 500
Simple interest for 2 years = 50× 2 = Rs.100
500 50
30. 160
500 50 50 5
160 8
100
Amount in 3 years = 5000+1655 = Rs. 6655 So, the sum = Rs. 5000. ROI = 8  160 =
5%
35. 2 years = 1.44 = 1.22
1 year = 1.2  Our distribution is correct.
1.2 times = 1(Principal) + 0.2 (Interest)
SI for 2 years = 160×2 = Rs. 320 .
 ROI = 20%
aths' Mirror
Amit Kr. Verma M
Compound Interest
36. On first EMI there will be 5% interest.
Total money received = 882 × 2+ 5% of 882 = 1808.1 Now, go through options. (a) 1640 5% 82
82 4.1 Amount in 2 years = 1640 + (82+82+4.1) = 1808.1So, our assumption is right.
Sum borrowed = Rs. 1640 37. On first EMI there will be 8.33% interest.
Total money received = 338 × 2+ 8.33% of 338 = 704.16
Go through options. 600 8.33% 5050 4.16
Total money given = 600+100+4.16 = 704.16  Sum borrowed = 600 38. On first EMI there will be 4% interest.
Total money received = 676 × 2+ 4% of 676 = 1379.04 Total money received = 676 × 2 = 1352 Now, go through options.
(d) 1275 4% 5151 2.04 Amount in 2 years = 1275 + (51+51+2.04)
= 1379.04 So, our assumption is right. Sum borrowed = Rs. 1275 39. ___ ___ ___
___ 2.50
100
Interest for the first year = 2.50×
= Rs. 25
10
100
 Sum = 25×
= Rs. 250
10 40. ___
___ 1 ___ 1 1 0.04
100 = 4%
ROI = 0.04× 1 Maths' Mirror
2.33
 Our distribution is correct. Now,
100 = Rs. 25
Interest for the first year = 1× 4
100 = Rs. 625
Principal = 25× 4
480
41. Principal = 480  576 = Rs. 400.
42. 8000 5% 400
10% 800 40  CI at the end of 2 year = Rs. 1240. 43. Let the principal amount br Rs. 100
Ratio of CI to SI = 16.64 : 16 = 26 : 25.

100 8% 88 0.64 
44. 4000 5% 200
200 10  Difference between CI and SI = 410-400 = Rs. 10 45. Present value of the car
95 95
= 200000  100 × 100
× 95
100
= Rs. 171475
80 80
46. Present population = 10000  100 × 100
= 6400
50 = Rs. 25
47. Interest for 1 year = 2
2525 1.25 Interest

for the second part in the second year
5= 1.25
= 25× 100
 CI at the end of 2 years = Rs. 51.25
Amit Kr. Verma
48. 2 years = 2.25 = 1.52
1 year = 1.5 2. 1.2 times = 1(Principal) + 0.5 (Interest)  ROI = 50%
15= 2700
49. SI for 3 years = 12000×3× 200
10 = 5%
ROI= 2
800 5% 4040 2
40 2 2 0.10 Amount at the end of 1and half year 12000 15/2% 900
900 67.5 900 CI for 3 years = 2907.5625
67.5 67.5 5.0625 3. Amount gained = 2907.5625 - 2700 = 207.5625
= 800+126.10 = Rs. 926.10 4000 10% 400
400 40
50. Go through options.
Simple Interest at the end of 3 years
Assume capital = Rs. 5120 5120 25% 1280
1280 320
840 = Rs. 420
= Rs. 2
1280 320 320 80 Amount = 5120 + 4880 = 10000
420
Simple interest in the first year = 3 Our assumption is correct. Alternatively,
10000 25% 2500
= Rs. 140 So, sum placed on simple interest
2500 625 2500 625 625 156.25
100 = Rs. 1750
= 140× 8
Since, 19531.25 units = 10000 10000 units = 5120
4. 400
400 32
Capital = Rs. 5120 LEVEL – 3

800 = Rs. 400
Interest in the first year = 2
1. As he saves Rs. 200 at the end of each year and total time period is 3years, so he will receive 2 year interest on
first saving and one year interest
100
ROI = 32×
= 8%
400
on second savings and as last saving is at the end of 3years, no interest he will receive. 200 5% 1010 0.5 200
5% 10
200 Amount at the end of 3years = 600+30.5 =

Rs. 630.5
100 = Rs. 5000
Principal = 400× 8
So, CI for 3 years - 5000 8% 400
400 32 400 32 32 2.56  Difference between CI and SI for 3 years
(32×3)+2.56 = 96+2.56 = Rs. 98.56
Amit Kr. Verma M aths' Mirror
Compound Interest 5 . 120
120 6
100
ROI = 6×
=5%
120
 Our distribution is correct.
100 = Rs. 2400
So, principal = 120× 5
Now,
6× 3 = Rs. 432
SI for 3 years = 2400× 100
6. As he saves Rs. 2000 at the beginning of each year and total time period is 3years, so he will receive 3 year
interest on first saving and 2 year interest on second savings and 1 year interest on last saving.
2000 5% 100
100 5 100 5 5 0.5 2000 5% 100
100 5 2000 5% 100
 Amount at the end of 3years = 6000+620.5 = Rs. 6620.5 7. Simple interest for a year = 4000/2 = 2000
2000 2000 200
200
 ROI = 2000  100 = 10%
8. 800
800 40
100
ROI = 40×
= 5%
800  Distribution of interest is correct.
100 = Rs. 16000.
 Principal = 800× 5 Maths' Mirror
2.35
Assume sum = 2500 Interest = 2893.8-2500 = Rs. 393.8 2500 4% 100
5% 125 5 6% 150 6 7.50 0.30 Total amount= 2500+393.8 = Rs. 2893.8
 Principal = Rs. 2500. 10. Interest = 2977.54-2809 = Rs. 168.54
100
ROI = 168.54× 2809
= 6%
112.36% = 2809
100 6% 66 0.36 
2809
 100% = 112.36
×100 = 2500
 Principal = Rs. 2500. 11. Go through option.

Suppose principal = Rs. 1250 1250 4% 5050 2 Amount
at the end of 2 years = Rs. 1352 So our assumption is correct.
 Principal = Rs. 1250 12. 2020 1

20 1 1 0.50
100 = 5%
ROI 1 =
0.50× 1
100
ROI2 =
1×
= 5%
20
 Distribution of interest is correct.
100 = Rs. 400.
 Principal = 20× 5
Amit Kr. Verma
Suppose principal = Rs. 5000
2708
 1 unit = 1354
=2
5000 10% 500

500 50 500 50 50 5
 Share of A = 2×729 = Rs. 1458
Share of B = 2×625 = Rs. 1250. 17. Difference in years = 7-5 = 2 years. Amount at the end of 2.5 years =
605
5000+1050+ 2
= Rs. 6352.50
=
1 10 100
2   10 11   So,
assumption is right.  Principal = Rs. 5000 14. ROI, when interest is calculated half
yearly
10 =5%
= 2
___ ___ 20 ___ 20 20 1 ___ 20 20 20 1 1 1 0.5
100
ROI = 1  20 =
5%
 Our distribution is correct.
100 = Rs. 400
Interest in the first year = 20× 5
100 = Rs. 8000.
Principal amount = 400× 5
15. 9375 2% 187.5
4% 375 7.50  CI at the end of 2 years = Rs. 570 16. Difference in year = 8-6 = 2 years
=
Amit Kr. Verma M aths' Mirror
121
2 = 100
 221 units = 1105

1105
 1 unit =
=5
221 So, share of A = 5×121 = Rs. 605 Share of B = 5×100 = Rs. 500 18. Difference in years = 5-3 = 2 years
=
    
  =

   1  100
  2 =
20 
36

   62 5   = 25
 61 units = 6100
6100
 1 unit =
= 100
61  Share of A = 36×100 = Rs. 3600 Share of B = 25×100 = Rs. 2500 19. 3000 30% 900 2900 30% 870
2770 30% 831 Amount at the end of first year = 3000+900
= Rs. 3900 Remaining amount after the payment
= 3900-1000 = Rs. 2900 Amount at the end of second year = 2900+870
= Rs. 3770
   1  100
  2 =
8
   Remaining
amount after the payment
= 3770-1000 = 2770 Amount to be paid at the end of 3rd year to clear all his dues = 2770 + 831 = Rs. 3601 272 25
729

   =
.
625
 1354 units = 2708
Compound Interest
900 = Rs. 300
20. Interest at the end of first year = 3
300 300 18 300 18 18 1.08 Interest in the second part of second year =
100 6 = Rs. 18
300 
6

Interest in the fourth part of 3rd year = 18× 100 = Rs. 1.08  More interest he would earn at the end of
3rd year = 18+18+18+1.08 = Rs. 55.08 21. Difference in the year = 9-7 = 2 year
=
   1  100
  2 =    Maths'
4 Mirror 262 25
676

   = 625
 1301 units = 1301
1301
 1 unit =
=1
1301  Share of A = 1×676 = Rs. 676 22. Difference in the year = 7-5 = 2 years
Ratio of distribution of amount =
   1  100
676
  2 =
4 625
 1301 units = 5204

5204
 1 unit =
=4
1301  Share of A = 4×676 = Rs. 2704. 23. Interest amount = 2662-2000 = Rs. 662
200 200 20 200 20 20 2
2.37
100
ROI = 2×
= 10%
20
100
= 20  200 = 10%  In both the cases rate of interest are equal  Our distribution of amount is correct. 24.
Go through option.
Assume principal amount = Rs. 8000 8000 5% 400
400 20 400 20 20 1  Amount at the end of 3 years = 8000+1261
= Rs. 9261 So, our assumption is correct  Principal = Rs. 8000
10 = 5%
Difference between S, and C, at the end of 1 year

60 5% 33 0.15 
= 6.15-6 = Rs. 0.15. 26. P 1/6% 360
360 60 360 60 60 10 As per table, SI = 360×3 = 1080 27. 250 250 25
100
ROI = 25  250 =10%

 Our distribution of amount is correct. Principal = 250×100 = Rs. 2500 Now,
10 = 5%
ROI for SI = 2
Amit Kr. Verma
5×4 = Rs. 500
 SI for 4 years = 2500× 100
28. 3 years = 2 times
(3×5) years = 25 = 32 times  After 15 year it will become = 10000×32
= Rs. 320000. 29. 330
330 36.30
Present Value = Rs. 4096 33. 100 20% 2020 4 Total
interest = Rs. 44 When calculated half yearly, r = 10% - 100
10% 1010 1
100
10 1 1 0.01 10 1 1 1 0.1 0.1 ROI = 36.30×
= 11% (approx)
330
0.1 0.01 Total interest = Rs. 46.41
30. ____
2.41% = 482
____ ____
100% = 20000
____ ____ 1000 100
100
ROI = 100× 1000
= 10%
100
Interest in 1st year = 1000×
= 10000
10
7500 = 2500
34. SI for a year = 3
100%
ROI = 2500 25000
= 10%
CI in the second column of 2nd year

100
Deposited amount = 10000×
= 100000
10
10= 250
= 2500 100
Assume principal = Rs. 500
10= 25
CI in the 4th column of 3rd row = 250 100 Now, 500 3% 15
4% 20 0.6 35. 5% 25 0.75 1 0.03  Amount at the end of 3 years = 500 + 62.38
= Rs . 562.38  Our assumption is correct.  Principal = Rs. 500
CI for 3 years = (2500 3)+(250 3)+25 = 8275 CI (yearly) - 500 10% 5050 5 Total
CI = 105 CI (half yearly) -
1 % = 1
800 5% 4040 2 Total
CI = 82 Difference = 105 - 82 = 23 32. 6 4 16
So the value must be divisibe by 16 and by going through option 4096 is the only value divisibe by 16.
aths' Mirror
Amit Kr. Verma M

Compound Interest

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Compound Interest

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Compound Interest

500 1 st​​ year Initial

ROI ​64,000 8000 8000 1000

It may be in decimal e.g., 2.3 years, 1.5 years.

12% 3 ​Quarterly ​months or 9%2 months ​6%​1 month ​3%

100 4% 4​P4 0.16 ​​Applicable ROI = 8.16 % p.a Ex.4.5

100 8% 8​8 0.64

​ = 6075, we may also get previous

4=​ Amount ​6 yrs =

Amit Kr. Verma 3​ 0​30 0.60

​ ​l. Amount = 2 times = 1 (Principal) +1 (Interest)

6 years = 2 times Sol.

​ ​  1​ ​100​5 ​  ​1 ​100 5​ ​  16​

p.a. Find share of each one.

 ​   ​ ​2331 units = 1,16,55,000

Amit Kr. Verma

2.18 ​Percentage and its Applications

1. (b) 2. (c) 3. (d) 4. (b) 5. (c) 6. (d) 7. (d) 8. (b) 9. (b)

Amit Kr. Verma ​Maths' Mirror

1. Mohan invested an amount of Rs 15,000 at compound

1​ % compound interest. The sum borrowed ​

Amit Kr. Verma

1​ % per annum compound interest. ​

Amit Kr. Verma

So, our distribution of interest is correct.

​ ​Effective rate of interest = 12.36%

​ ​Effective rate of interest = 8.16% 19. 50​50 2.5

Suppose principal = Rs. 160 160 5% 8​8 0.4 Amount

​ In 15 years, the amount will become 8 times. 33. 2 times = 4 years

3​= Rs. 2.25

41. 625 8 % 50​50 4

100​ = Rs. 625 ​

200​ = Rs. 100

 ​Difference between CI and SI = Rs. 7 50. 150

4. 1000 2.5% 25​25 0.625

 ​Amount at the end of 1 year = Rs. 1050.625 5. 6400 2.5% 160

Amit Kr. Verma

months 15. = ​2640 ​

33. 30​30 0.60 50000

​ ​Ratio of CI to SI = 16.64 : 16 = 26 : 25.

25​25 1.25 Interest

​Capital = Rs. 5120 ​ L​EVEL – 3

200​ ​Amount at the end of 3years = 600+30.5 =

 ​Principal = Rs. 2500. 11. Go through option.

 ​Principal = Rs. 1250 12. 20​20 1

5000 10% 500

 ​221 units = 1105

 ​1301 units = 5204

​ ​Difference between S, and C, at the end of 1 year

CI in the second column of 2nd year

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500 1 st year Initial

ROI 64,000 8000 8000 1000

12% 3 Quarterly months or 9%2 months 6%1 month 3%

100 4% 4P4 0.16 Applicable ROI = 8.16 % p.a Ex.4.5

100 8% 88 0.64

= 6075, we may also get previous

4= Amount 6 yrs =

Amit Kr. Verma 3 030 0.60

l. Amount = 2 times = 1 (Principal) +1 (Interest)

  1 1005   1 100 5   16

    2331 units = 1,16,55,000

2.18 Percentage and its Applications

Amit Kr. Verma Maths' Mirror

1 % compound interest. The sum borrowed

1 % per annum compound interest.

Effective rate of interest = 12.36%

Effective rate of interest = 8.16% 19. 5050 2.5

Suppose principal = Rs. 160 160 5% 88 0.4 Amount

In 15 years, the amount will become 8 times. 33. 2 times = 4 years

3= Rs. 2.25

41. 625 8 % 5050 4

100 = Rs. 625

200 = Rs. 100

 Difference between CI and SI = Rs. 7 50. 150

4. 1000 2.5% 2525 0.625

 Amount at the end of 1 year = Rs. 1050.625 5. 6400 2.5% 160

months 15. = 2640 

33. 3030 0.60 50000

Ratio of CI to SI = 16.64 : 16 = 26 : 25.

2525 1.25 Interest

Capital = Rs. 5120 LEVEL – 3

200 Amount at the end of 3years = 600+30.5 =

 Principal = Rs. 2500. 11. Go through option.

 Principal = Rs. 1250 12. 2020 1

 221 units = 1105

 1301 units = 5204

Difference between S, and C, at the end of 1 year