Practice the questions given in the Worksheet on Compound Interest as Repeated Simple Interest.
1. Find the amount and compound interest for $2000 lent for 2 years at 2% rate of interest p.a.
2. Find the amount and compound interest for $8000 lent for 3 years at 5% rate of interest, compounded annually.
3. Find the difference between compound interest and simple interest for a sum of $5000 lent for 3 years at 5% rate of interest p.a.
4. A sum of $8000 becomes $8800 in 1 year at a certain rate of interest per annum.
(i) Calculate the compound interest on the sum for 2 years at the same rate of interest.
(ii) Calculate the amount after 3 years at the same rate of compound interest.
5. Which one of the following is larger?
(i) Compound interest on $2500 for 2 years at the rate of 10% per annum.
(ii) Simple interest on $2000 for 3 years at the rate of 12 1/2% per annum.
6. Ron had borrowed $15000 for 3 years at 5%p.a., compound interest. Sam borrowed the same amount for the same number of years at the same rate p.a., simple interest. Find the amount paid by both at the end of 3 years. Who has to pay more and by how much?
7. Jack borrowed $50000 for 3 years at 15% per annum compound interest. Find the interest earned in the second year.
8. Shelly invests $66000 at 6% per annum compound interest for 3 years.
(i) Calculate the interest for the first year.
(ii) Calculate the amount at the end of the second year.
(iii) Calculate the interest for the third year.
(iv) Calculate the total compound interest.
9. A sum of $ 30000 is invested for 3 years at 7 ½ % per annum compound interest.
(i) What is the sum at the end of the second year?
(ii) What is the sum at the end of the 3 years?
(iii) What is the total interest earned in 3 years?
10. Jack borrowed $400000 from a money lender. He was charged 8% interest half yearly. What amount did he have to return after 1 ½ year?
11. The price of a piece of land increase 8% annually. If the land cost Davis $70000, 3 years ago, at what price to the nearest hundred can he sell the land now?
12. The cost price of a bicycle is $1200. Each year its price decreased by 4%. At what price to the nearest ten will the cycle be sold after 2 years?`
Answers for the worksheet on compound interest as repeated simple interest are given below.
1. $2080.80, $80.80
2. $9261, $1261
4. (i) $1680
6. Ron paid $17364.38 and Sam paid $17250. Ron paid $114.38 more than Sam
8. (i) $3960
9. (i) $34668.75