
What will happen if interest is compounded quarterly? How many conversion periods will be there? What about the quarter-year rate? How much will it be of the annual rate?
Important Questions on Compound Interest

A sum of becomes in years at a certain rate of compound interest. What will be the sum (in ) after years?






How long will a sum of money take to double, if it is invested at p.a. simple interest?

What is the ratio of simple interest earned on certain amount at the rate of p.a. for years and that for years ?
1.
2.
3.
4.

On a certain principal, simple interest amounts to Rs. 1000 in 1 year at the rate of 10% p.a. What will be the effective rate of interest if the same is compounded on a half-yearly basis?
1. 10.10
2. 10.15
3. 10.20
4. 10.25



What will be the compound interest on a sum of Rs. 160000 for 2 years at the annual rate of 10%, if the interest is compounded half yearly?




What will amount to in years at the rate of p.a., if interest is compounded yearly?




