Compound Interest
1. A sum of money put at compound interest amounts to Rs
6489.60 in two years and to Rs 6749.184 in three years. Find
the sum and annual rate of interest.
2. A person wants to divide a sum of Rs 24,37,200 between his
two sons, who are 12 and 14 years of age respectively, in
such a way that their shares, if invested at 8% per annum
compound interest, should produce the same amount when
they become of 17 years of age. Find the share of each.
3. A sum of money put at compound interest amounts to Rs
18,816 in two years and to Rs 21,073.92 in three years. Find
the sum and annual rate of interest.
K
4. Divide Rs 33201 between A and B so that after 7 years the
amount of A is equal to the amount of B after 10 years, the
interest being compound and calculated at 4% p.a.
5. Two partners A and B together lend Rs 841000 at 5% interest
compounded annually. The amount which A gets at the end
of 3 years is the same as what B gets at the end of 5 years.
Determine the shares of A and B.
KUNDAN
6. At what rate per cent compound interest will Rs 20000 amount
to Rs 22050 in 2 years?
7. A man deposited in a bank a part of Rs 12615 in the name of
his son and the rest in the name of his daughter so that they
get the same amount after 4 and 6 years respectively. Find
the sum deposited in their names separately, the rate of in-
terest being 5% per annum.
8. Find the difference between the simple interest and com-
pound interests on Rs 16000 at 5% per annum at the end of
1½ years, if the interest is calculated half-yearly.
9. A certain sum is invested at compound interest. The interest
accrued in the first two years is Rs 272 and that in the first
three years is Rs 434. Find the rate per cent.
10. A person lent out a certain sum on simple interest and the
same sum on compound interest at a certain rate of interest
per annum. He noticed that the ratio between difference of
compound interest and simple interest of 3 years and that of
2 years is 25 : 8. Find the rate of interest per annum.
 Answers and explanation
1. Let the sum and rate of interest be Rs p and r% re- 21,073.92  18,816
spectively. 
18,816
2
 r 
p 1    6489.60 .... (i) r 2,257.92
 100  or, 
3
100 18,816
 r 
and p1    6749.184 .... (ii) 2,257.92 100
 100  or, r =  12%
Dividing (ii) by (i), we get 18,816
r 6749.184 Now, putting the value of ‘r’ in equation (i), we get
1 

K
2
100 6489.60  12 
P1    18,816
 100 
r 6749.184  6489.60 259.584
   2
100 6489.60 6489.60  28 
or, P   18,816
 25 
259.584
r   100  4% 18,816  25  25
6489.60 or, P =  Rs 15,000
28  28
From equation (i),
4. According to the given information, A’s present share ×
6489.60  25  25
p  Rs 6000 1  4 
7
 4 
10
26  26   = B’s present share × 1  

KUNDAN
2. Let the elder son receive Rs x; then younger will get Rs  100   100 
(24,37,200 - x). 10
From the question, 1  4 
 
3 5 A' s present share  100 
 8   8   7
x1   = (24,37,200 - x) 1    B' s present share  4 
 100   100  1  100 
 
2
 8  3
or, x = (24,37,200 - x) 1    4  104  104  104 17576
 100  = 1  100  = 
  100  100  100 15625
2
 27   A’s share : B’s share = 17576 : 15625
or, x = (24,37,200 - x)  
 25  Hence, A’s present share
625 17576
or, x = 24,37,200 - x = 17576  15625  33201
729
( 625  729) x 17576  33201
or, = 24,37,200 =  Rs 17576
33201
729
1354 x  B’s present share = 33201 - 17576 = Rs 15625
or, = 24,37,200 5. Let the shares of A and B be Rs x and Rs y respectively.
729
Amount received by A after 3 years at 5% interest
24,37,200  729
x= 1354
= Rs 13,12,200
 5 
3
 21 
3

= x 1  100   x  20 
 Younger son will get = Rs (24,37,200 - 13,12,200)    
= Rs 11,25,000 Similarly, amount received by B after 5 years at 5% interest =
3. Let the sum and rate of interest be Rs ‘P’ and r% respec- 5 5
5   21 
tively. y1    y 
 100   20 
In the case of compound interest
According to the question,
2
 r  3 5
21 21
Amount = P 1 
 100 
  18,816 ..... (i) x    y 
20
  20
 
3 2
 r  x  21  441
P1    21,073.92 ...... (ii) or,   
 100  y  20  400
Dividing (ii) by (i), we get or, x : y = 441 : 400

r 21,073.92 441
Now, the share of A(x) =  841000
1  841
100 18,816
= Rs 441000
r 21,073.92 400
or,  1 Share of B(y) =  841000 = Rs 400000
100 18,816 841
6. Let ‘r’ be the rate of interest per annum. Difference between CI and SI
Amount of Rs 20000 in 2 years = 1230.25 - 1200 = Rs 30.25
2 t
 r   R 
= 200001  100  9. Amount A  P 1  100 
   
2 t
r  = 22050  
 200001   CI  P 1 
R 
  1
 100   100  
2
 r  22050  R 
or, 1  100   20000 Putting 1  100   x in the above equation for two years, t
   
r 22050 =2
or, 1  
 

K
100 20000 P x 2  1  272 ....(1)
For three years, t = 3
r 11025 105
or, 1   
100 10000 100  
P x 3  1  434 ....(2)
Dividing (2) by (1), we get
r 5
or, =
100 100  
P x 3  1 434

  
 r  5% P x 2  1 272
7. Let the man deposit Rs x in favour of his son and Rs (12615
x 2  x  1 217
– x) in favour of his daughter.  
x 1 136
Amount in the name of the son after 4 years at 5% = Rs

KUNDAN
4 4 x2 81
5   105   
x 1   = Rs x   x  1 136
 100   100 
 81x  81  136x 2
and the amount in the name of the daughter after six years =
 136x 2  81x  81  0
6
 105   x = 9/8
Rs (12615 – x)  
 100 
R
These two amounts are equal,  x  1  100
4 6
 105   105  9 R
ie, x  100   12615  x  100   8  1  100
   
 R = 12.5%
2
x  105  10. Let the principal be P and rate of interest R% per annum.
or, 12615  x   100 
  Difference of CI and SI for 2 years
x 21 21 441  R 
2
 2PR PR 2
or,  
12615  x 20 20 400
  P 1   P   100  4 .
  100   10
or, 400x = 441 × 12615 – 441x
or, 841x = 441 × 12615 Difference of CI and SI for 3 years
or, x = Rs 6615 3
 R   3PR PR 2  300  R 
 Son’s share = Rs 6615  P 1   P   100  4  100 
Daughter’s share = 12615 – 6615 = Rs 6000   100   10  
8. SI = 16000 × 5 × 3/2 × 1/100 = Rs 1200 According to the question,
n
 R  PR 2  300  R 
CI = P1  100   P  
  10 4  100  25

3 PR 2 8
 5 
= 16000 1  2  100   16000 104
 
300  R 25 2500
1 1 yrs  3half - years     300 + R = 8
100 8
 2 
5% pa  5/2% half - yearly  2500
 300 
2500  2400
 R= 8 8
41 41 41
= 16000     16000 100 1
40 40 40   12 % .
8 2
68921
=  16000 = 17230.25 - 16000 = Rs 1230.25
4