Compound Interest


The difference  between the compound interest  and the simple interest  and the simple interest earned on a sum of money at the end of 4 years is Rs. 256.40. To find out the sum , which of the following informations given  in the statements P and  Q  is/ are necessary ?

P : Amount of simple interest accrued after 4 years

Q : Rate of interest per annum

A. Only P is necessary
B. Only Q is necessary
C. Eiher P of Q is necessary
D. Neiher P nor Q is necessary
E. Both P and Q are necessary.


A sum of money is borrowed and paid back in two annual instalments of Rs. 882 each a;;owing 5% compound interest . The sum borrowed was  :

A. Rs. 1620
B. Rs. 1640
C. Rs. 1680
D. Rs. 1700


A man borrows Rs. 12,500 at 20%  compound interest At he end of every year he pays Rs. 2000 as per part  repayment .How much does he still  owe after three such instalments ?

A. Rs. 12,000
B. Rs. 12,864
C. Rs. 15,600
D. None of these


What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest ?

A. Rs. 550
B. Rs. 551.25
C. Rs. 560
D. Rs. 560.75


A man borrows Rs. 2550 to be paid  back with compound interest at the rate of 4% per annum by  the end of 2 years in two equal  yearly instalments . how much will  each instalment be  be ?

A. Rs. 1275
B. Rs. 1283
C. Rs. 1352
D. Rs. 1377