Podcast
Questions and Answers
If Amit received Rs. 2400 as simple interest after two years, what is the principal amount he deposited?
If Amit received Rs. 2400 as simple interest after two years, what is the principal amount he deposited?
What is the total amount Amit received after 2 years, considering the compound interest he earned if he deposited Rs. 10,000?
What is the total amount Amit received after 2 years, considering the compound interest he earned if he deposited Rs. 10,000?
If Heeralal's investment earns an 11% interest rate this year, how much interest did he earn last year on the same investment?
If Heeralal's investment earns an 11% interest rate this year, how much interest did he earn last year on the same investment?
What was the amount invested in each scheme if Rs. 160,000 was divided equally?
What was the amount invested in each scheme if Rs. 160,000 was divided equally?
Signup and view all the answers
Calculate the interest earned on the amount invested in the scheme offering 12% compound interest for two years.
Calculate the interest earned on the amount invested in the scheme offering 12% compound interest for two years.
Signup and view all the answers
Calculate the simple interest earned on the amount invested in the scheme offering 13% simple interest for two years.
Calculate the simple interest earned on the amount invested in the scheme offering 13% simple interest for two years.
Signup and view all the answers
What is the difference in interest earned between the two schemes?
What is the difference in interest earned between the two schemes?
Signup and view all the answers
If the compound interest earned on a certain sum for 2 years at 4% is Rs. 2448, what is the principal amount?
If the compound interest earned on a certain sum for 2 years at 4% is Rs. 2448, what is the principal amount?
Signup and view all the answers
Calculate the simple interest for 2 years on the principal calculated in the previous question.
Calculate the simple interest for 2 years on the principal calculated in the previous question.
Signup and view all the answers
If Saahil received Rs. 550 as simple interest on half of his savings for two years, what is the rate of interest?
If Saahil received Rs. 550 as simple interest on half of his savings for two years, what is the rate of interest?
Signup and view all the answers
What will be the total payment Shantanu has to make after 2 years and 6 months if he borrowed Rs. 2.5 lakh at a rate of 6% per annum compounded annually?
What will be the total payment Shantanu has to make after 2 years and 6 months if he borrowed Rs. 2.5 lakh at a rate of 6% per annum compounded annually?
Signup and view all the answers
If an amount is lent at a compound interest of 20% per annum for two years and results in Rs. 482 more when compounded half-yearly, what is the principal amount?
If an amount is lent at a compound interest of 20% per annum for two years and results in Rs. 482 more when compounded half-yearly, what is the principal amount?
Signup and view all the answers
What was the share of son B if a man divided Rs. 67,280 between his wife and two sons such that they all receive the same amount at 5% compound interest when they reach 18 years of age?
What was the share of son B if a man divided Rs. 67,280 between his wife and two sons such that they all receive the same amount at 5% compound interest when they reach 18 years of age?
Signup and view all the answers
After 3 years, who will have more amount if Aditya invested in scheme A offering simple interest at 12% while Bhushan invested in scheme B offering compound interest at 10%? How much more?
After 3 years, who will have more amount if Aditya invested in scheme A offering simple interest at 12% while Bhushan invested in scheme B offering compound interest at 10%? How much more?
Signup and view all the answers
What was the amount of each instalment if Rs. 9960 was borrowed at a compound interest of 15/2% per annum and paid back in two equal annual instalments?
What was the amount of each instalment if Rs. 9960 was borrowed at a compound interest of 15/2% per annum and paid back in two equal annual instalments?
Signup and view all the answers
In the context of Shantanu's car loan, what is the effective interest earned on his loan over the 2.5 years period?
In the context of Shantanu's car loan, what is the effective interest earned on his loan over the 2.5 years period?
Signup and view all the answers
What will be the total interest earned by Bhushan after 3 years if he invested in a scheme with a compound interest rate of 10%?
What will be the total interest earned by Bhushan after 3 years if he invested in a scheme with a compound interest rate of 10%?
Signup and view all the answers
If the principal amount is doubled, how does the total amount change at the end of 3 years for Aditya if he continues his investment in scheme A?
If the principal amount is doubled, how does the total amount change at the end of 3 years for Aditya if he continues his investment in scheme A?
Signup and view all the answers
What is the benefit of compounding half-yearly compared to annually if the interest rate is 20%?
What is the benefit of compounding half-yearly compared to annually if the interest rate is 20%?
Signup and view all the answers
If the maturity value of an investment is Rs. 8,000 at a compound interest rate of 10% after 2 years, what was the initial principal amount?
If the maturity value of an investment is Rs. 8,000 at a compound interest rate of 10% after 2 years, what was the initial principal amount?
Signup and view all the answers
Flashcards
Compound Interest
Compound Interest
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
Future Value Calculation
Future Value Calculation
The amount of money an investment will grow to over a period at a given interest rate.
Annual Compounding
Annual Compounding
Interest is added to the principal once each year.
Half Yearly Compounding
Half Yearly Compounding
Signup and view all the flashcards
Simple Interest Formula
Simple Interest Formula
Signup and view all the flashcards
Instalment Payment
Instalment Payment
Signup and view all the flashcards
Principal Amount
Principal Amount
Signup and view all the flashcards
Rate of Interest
Rate of Interest
Signup and view all the flashcards
Time Period in Investment
Time Period in Investment
Signup and view all the flashcards
Equal Instalments
Equal Instalments
Signup and view all the flashcards
Simple Interest Calculation
Simple Interest Calculation
Signup and view all the flashcards
Interest Rate Increase
Interest Rate Increase
Signup and view all the flashcards
Investment Split
Investment Split
Signup and view all the flashcards
Difference in Interest
Difference in Interest
Signup and view all the flashcards
Compound vs Simple Interest
Compound vs Simple Interest
Signup and view all the flashcards
Periodic Interest Calculation
Periodic Interest Calculation
Signup and view all the flashcards
Total Amount Received
Total Amount Received
Signup and view all the flashcards
Interest Earned
Interest Earned
Signup and view all the flashcards
Study Notes
Compound Interest Test No 2
- Problem 1: Shantanu borrowed ₹2.5 lakh for a car. Interest is 6% per annum, compounded annually. Calculate the payment after 2 years and 6 months.
- Problem 2: A certain amount is lent at 20% compound interest for two years, compounded annually. If compounded half-yearly, it yields ₹482 more. Find the principal.
- Problem 3: A man gave 50% of ₹67,280 savings to his wife. The remainder is divided between two sons (aged 14 and 12). The distribution is such that at age 18, both sons receive the same amount at 5% compound interest. Calculate the share of the younger son (B).
- Problem 4: Aditya and Bhushan invested ₹10,000 each in schemes A and B respectively for 3 years. Scheme A offers simple interest at 12% per annum, while Scheme B offers compound interest at 10%. Determine which scheme yields a larger amount and by how much.
- Problem 5: A loan of ₹9960 was borrowed at 15/2% per annum compound interest and repaid in two equal annual installments over two years. Calculate the amount of each installment.
- Problem 6: Amit deposited money in a bank offering 15% interest, compounded yearly. If the bank offers simple interest instead of compound interest, Amit receives ₹2400 after two years. Find the total amount he receives after 2 years.
- Problem 7: Heeralal invests a fixed amount every year. This year's interest rate is 11%, increasing by 10% annually. Find the interest rate of the previous year.
- Problem 8: ₹160,000 is split into two equal parts. One part is invested in a scheme with 12% annual compound interest for two years. The other part is invested in a scheme with 13% simple interest for two years. Find the difference in interest earned.
- Problem 9: Compound interest on a certain sum at 4% for 2 years is ₹2448. Find the simple interest on the same sum at the same rate for the same period.
- Problem 10: Saahil invested half his savings in a life insurance policy with simple interest for 2 years, earning ₹550. The remainder is invested in a life insurance policy with compound interest (compounded annually), for the same rate and period, earning ₹605. Calculate Saahil's total savings before investment.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your understanding of compound interest with this quiz that covers various scenarios from loans to investments. Solve problems involving different rates and time periods, and determine the outcomes of financial decisions. Perfect for students looking to enhance their financial literacy.
