Worksheet on Compound Interest

In worksheet on compound interest we will solve different types of questions where compound interest is calculated annually, where compound interest is calculated half-yearly and where compound interest is calculated quarterly by using formulas.

A. Questions on compound interest without using formulas

1. Find the amount and the compound interest on $ 2500 for 2 years at 10% per annum, compounded annually.

2. Find the amount and the compound interest on $ 16000 for 3 years at 5% per annum, compounded annually.

3. Find the difference between the simple interest and the compound interest on $ 5000 for 2 years at 6% per annum.

4. Roby obtained a loan of $ 25000 from the Syndicate Bank to renovate her house. If the rate of interest is 8% per annum, what amount will she have to pay to the bank after 2 years to discharge her debt?

5. Henna borrowed $ 20000 from her friend Nancy at 12% per annum simple Interest. She lent it to Andy at the same rate but compounded annually. Find her gain after 2 years.

6. Mike deposited a sum of $ 64000 in a post office for 3 years, compounded annually at 7¹/₂ % per annum. What amount will he get on maturity?

7. David deposited a sum of $ 6250 in the ICICI Bank for 1 year, compounded half-yearly at 8% per annum. Find the compound interest he gets.

8. Mike borrowed $ 16000 from a finance company at 10% per annum, compounded half-yearly. What amount of money will discharge his debt after 1¹/₂ years?

B. Find the amount and the compound interest by using the formula in each of the following.

1. Principal = $ 6000, rate = 5% p.a. and time = 2 years.

2. Principal = $ 10000, rate = 11% p.a. and time = 2 years .

3. Principal = $ 4800, rate = 7¹/₂ % p.a. and time = 2 years.

4. Principal = $ 31250, rate = 8% p.a. and time = 3 years.

5. Principal = $ 6750, rate = 6²/₃ % p.a. and time = 3 years.

6. Principal = $ 62500, rate = 12 % p.a. and time = 3 years.

7. Principal = $ 15000, rate = 10% p.a. and time = 2 years.

8. Principal = $ 8000, time = 2 years and the rates being 9% per annum during the first year and 10% per annum during the second year.

9. Andy obtained a loan of $ 125000 from the Allahabad Bank for buying computers. The bank charges compound interest at 8% per annum, compounded annually. What amount will he have to pay after 3 years to clear the debt?

10. Three years ago, Brandon purchased a buffalo from Sam for $ 11000. What payment will discharge his debt now, the rate of interest being 10% per annum, compounded annually?

11. Shelly took a loan of $ 18000 from S.R Finance to purchase a TV set. If the company charges compound interest at 12% per annum during the first year and 12¹/₂% per annum during the second year, how much will she have to pay after 2 years?

12. Nancy borrowed $ 24000 from the State Bank to buy a scooter. If the rate of interest be 10% per annum compounded annually, what payment will she have to make after 2 years 3 months? Hint. 2 years 3 months = 2¹/₄ years.

13. Abby borrowed $ 16000 at 7¹/₂ % per annum simple interest. On the same day, he lent it to Gary at the same rate but compounded annually. What does he gain at the end of 2 years?

14. The simple interest on a sum of money for 2 years at 6% per annum is $ 900. What will be the compound interest on that sum at the same rate and for the same period?

15. The difference between the compound interest and the simple interest on a certain sum for 2 years at 5% per annum is $ 40. Find the sum.

16. The difference between the compound interest and the simple interest on a certain sum for 3 years at 10% per annum is $ 93. Find the sum.

17. A sum of money amounts to $ 10240 in 2 years at 6²/₃ % per annum, compounded, annually. Find the sum.

18. What sum of money will amount to $ 21296 in 3 years at 10% per annum, compounded annually?

19. At what rate per cent per annum will $ 4000 amount to $ 4410 in 2 years when compounded annually?

20. At what rate per cent per annum will $ 640 amount to $ 774.40 in 2 years when compounded annually?

21. In how many years will $ 1800 amount to $ 2178 at 10% per annum when compounded annually?

22. In how many years will $ 1600 amount to $ 1852.20 at 5% per annum when compounded annually?

C. Questions on compound interest by using the formula of interest compounded half-yearly and interest compounded quarterly.

1. Find the amount and the compound interest on $ 8000 for 1 year at 10% per annum, compounded half-yearly.

2. Find the amount and the compound interest on $ 31250 for 1¹/₂ years at 8% per annum, compounded half-yearly.

3. Find the amount and the compound interest on $ 12800 for 1 year at 7¹/₂ % per annum, compounded semi-annually.

4. Find the amount and the compound interest on $ 160000 for 2 years at 10% per annum, compounded half-yearly.

5. Sandy borrowed $ 40960 from a bank to buy a piece of land. If the bank charges 12¹/₂ % per annum, compounded half-yearly, what amount will she have to pay after 1¹/₂ years? Also find the interest paid by her.

6. Mike purchased a house from a lender on credit. If the cost of the house is $ 125000 and the lender charges interest at 12% per annum compounded half-yearly, find the interest paid by Aslam after a year and a half.

7. Shelly deposited $ 20000 in a bank where the interest is credited half-yearly. If the rate of interest paid by the bank is 6% per annum, what amount will she get after 1 year?

8. Nik lent $ 65536 for 2 years at 12¹/₂ % per annum, compounded annually. How much more could he earn if the interest were compounded half-yearly?

9. Sam deposited $ 32000 in a bank, where the interest is credited quarterly. If the rate of interest be 5% per annum, what amount will he receive after 6 months?

10. Andy took a loan of $ 390625 from Kathy Finance. If the company charges interest at 16% per annum, compounded quarterly, what amount will discharge his debt after one year?