Compound Interest – Practice Questions
Various practice questions on compound interests are,
Q1. Find the Amount that need to be paid after 3 years if a sum of 10000 is lent at the rate of 4% compounded annually.
Q2. Find the interest need to be paid after 1.5 years if a sum of 2500 is lent at rate of 6% compounded half-yearly.
Q3. Calculate the compound interest for a amount of 9000 lent at the rate of 5% quarterly for 15 months.
Q4. Calculate the compound interest for a amount of 20000 lent at the rate of 12% for 3 months compounded monthly
Compound Interest Formula
Compound Interest is the interest that is calculated against a loan or deposit amount in which interest is calculated for the principal as well as the previous interest earned.
The common difference between compound and simple interest is that in compound interest, interest is calculated for the principal amount as well as for the previously earned interest whereas simple interest depends only on the principal invested.
Table of Content
- What is Compound Interest?
- Compound Interest Formula
- How to Calculate Compound Interest?
- Compound Interest Formula – Derivation
- Half-yearly Compound Interest Formula
- Quarterly Compound Interest formula
- Monthly Compound Interest Formula
- Daily Compound Interest Formula
- Periodic Compounding Rate Formula
- Rule of 72
- Compound Interest of Consecutive Years
- Continuous Compounding Interest Formula
- Some Other Applications of Compound Interest
- Difference between Compound Interest and Simple Interest
- Compound Interest Examples
- Compound Interest – Practice Questions
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