 # Concept And Short trick on Compound Interest With Quiz

When compound interest is applied, interest
is paid on both the original principal and on earned interest. If you make a
deposit into a bank account that pays compounded interest, you will receive
interest payments on the original amount that you deposited,

as well as
than if you were paid only simple interest.

IMPORTANT
TRICKS:
1. ONE YEAR OF SIMPLE INTEREST = ONE YEAR OF
COMPOUND INTEREST.

2. THE AMOUNT AT THE END OF FIRST YEAR (OR
PERIOD) WILL BECOME THE PRINCIPAL FOR THE SECOND YEAR(OR PERIOD) AND AMOUNT AT
THE END OF SECOND YEAR (OR PERIOD) BECOMES THE PRINCIPAL FOR THIRD YEAR.
AMOUNT = PRINCIPAL + INTEREST

A=P(1+R/100)n

Where, A=Amount
P=principal
R =Rate percentage
n=number of years

For two
years-

(1).CI/SI=(200+r)/200

(2).Difference between CI & SI =PR2/1002

For Three
years-
Difference between CI & SI =PR2(300+R)/1003

If lent money is Rs.
P and each instalments is Rs. R, then

P = x/(1+r/100) + x/(1+r/100)^2 +     x / (1+r/100)^3 + ….

Important Question on Compound Interest:
1.  The simple and compound interests on a sum of money for two years
are Rs 2880 and Rs 3052.80 respectively. The Rate of interest per annum is..
(1) 10%
(2)12%
(3)15%
(4)18%

2.  What annual instalment would clear a debt of Rs 4.24 lakhs in two
years at the rate of 12% p.a. compound interest if interest is paid at end of
year.
(1) 250880
(2)276440
(3)284220
(4)292660

3.  Find the
annual payment that will discharge a debt of Rs 15260 due in 4 years at 6% per
annum simple interest( assume that each annual payment is made at the end of
the year.)
(1) 3600
(2)3500
(3)3450
(4)3400

4.   A person took a loan of Rs 6000 for 3 years, at 5% per annum
compound interest. He repaid Rs 2100 in each of the first 2 years.The amount he
should pay at the end of third year to clear all his debts is.
(1) 2425.5
(2)2552.5
(3)2635.5
(4)2745.5

5.   If the difference between simple interest and compound interest on
a certain sum of money for 3 years at 10% per annum is Rs 31, The sum is.
(1) 500
(2)750
(3)1000
(4)1250

1.
(2) Since,
CI/SI = (200+R)/200
3052.8/2880
= (1+R/200)
R = 12%
2.
(1) 4.24
x 100000 = x/ (1+r/100) + x / (1+r/100)^2
=
x/(1+12/100) + x/(1+12/100)^2
=
25x/28 + 252 x/282 = 1325x/784
X =
250880
3.
(2) Let
annual payment 100 Rs.
100
+(100+R) + (100 +2*R) + (100 +3*R) = 15260
100+
106 + 112 + 118 = 15260
436 =
15260
100 =
15260×100 / 436 = 3500
4.
(1)  P
= 6000
For 1sr
year CI = 5% of 6000 = 300
Amount
= 6000 + 300 = 6300
P for 2nd
year = 63000 – 2100 = 4200
CI for
2nd year = 5% of 4200 = 210
Amount
2nd year = 4200 + 210 = 4410
P for 3rd
year = 4410 – 2100 = 2310
CI for
3rd year = 5% of 2310 = 115.5
Required
amount = 2310 + 115.5 = 2425.5
5.
(3) Since
difference = PR2 (300+R)
31 = Px102
(300+10)/ 1003

P =
1000

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## Join the Conversation

1. 1. kumar says:

Thank u mam/sir

2. Thank you madam ji 🙂 _/_

3. Swati :)) says:

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4. :))

5. Shikha says:

thank u .. 🙂

6. ram... says:

thnku ayushi mam…

7. ajay sangwan says:

Where are the installments
2 years
3 years

8. Tarun garg says:

1) 2
2) 1
3
4) 1
5) 3

9. Vartika says:

Refresh!!!

10. james says:

mam can u tell me how to make letters bold while i post on BA/SA?

11. james says:

ass

12. Bipin says:

Thank you

13. Gaurav Tiwari says:

14. avinash says:

Is there any mail adress or contact no .of cgl helpline .I wrongly filled the form so I need help

15. james says:

part 1 or 2?

16. avinash says:

Part 1 jaha qualification select krte h waha Maine BA hons k jagah sirF BA select krte diya ..what should I do now please reply frnds

17. Vartika says:

Have you submitted Part 2?

18. avinash says:

Yes

19. Vartika says:

Then at the time of document varification you need to submit affidavit regarding this.

20. avinash says:

Can I fill the form again?

21. Vartika says:

No you cant!!

22. Lavkush Pandey says:

u can reapply dear

23. avinash says:

Y mam ..if I fill the form with diferent phone no and email I'd then koi problem hoga?

24. Vartika says:

In SSC your Name and DOB is a importent factor which you cant change.If you will do so,then may be your both forms could be cancelled so its batter to not to fill again Instead of that make an affidavit.

25. Rani says:

1st. question key is wrong it should be 6%.

26. shikha says:

Thanks

27. Gurpreet Singh says:

Thank

28. Gurpreet Singh says:

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