 R  of the sate of R1% during first year and R2% during

5 
 R   second year, then
A=P 1   1  4  and C.I. = A-P
 100   100   R   R 
  Population after 2 years = P 1  1   1  2 
   100   100 
Ex.4 Find the amount of Rs.8000 for 3 years, This formula may be extended for more then 2 the
compounded annually at 5% per value Vn at the end of n years is given by
annum. Also, find the compound interest.  If V0 is the value of an article at a certain time and
Sol. Here, P=Rs 8000 .R=5% per annum and n=3
R% per annum is the rate of depreciation, then the
years.
n
value Vn at the end of n years is given by
 R  n
Using the formula A =P 1   ,we get  R 
 100  Vn  V0 1  
 100 

  5  
3

Amount at the 3 year = Rs. 8000 1     If V0 is the value of an article at a certain time and

  100    the rate of depreciation is R1 % fir first n1 years ,R2%
for next n2 years and so on and Rk % for the last nk
 21 21 21 
=Rs  8000    =Rs. 9261. years, then the value at the end of n1 + n2…..nk years
 20 20 20 
is given by
Ex.5 At what rate percent per annum will a sum of Rs. n n n
2000 amount to RS 2205 in years, compounded  R  1 R  2  R  k
V  V0 1  1  1  2  ....1  k 
annually?  100   100   100 
Sol. Let the required rate be R % per annum. Ex.6 The present population of a town is 25000. It grows
Here, A =Rs 2205, P = Rs2000 at the rate of 4%, 5% and 8% during the first year,
And n=2 years. second year and third year respectively. Find its
n
 R  population after 3 years,
Using the formula A=P 1   . We get
 100  Sol, Population after 3 years.
 4  5  8 
 R 
2
 250001   1  100 1  100
2205= 2000× 1    100   
 100 
26 21 27
 R 
2
2205  25000    29484
 1    25 20 25
 100  2000 Hence, the population after 3 years = 29484.
2
 R  441
 1    EXERCISE
 100  400
2 2
 R   2  1. A man earn Rs. 450 as an interest in 2 yrs on a
 1    
 100   20  certain sum invested with company at the rate of
 R  21 12% per annum. Find sum invested by the man in
 1   the company.
 100  20 (A) Rs.1875 (B) RS.1830
R  21  1 (C) Rs.1825 (D) Rs.1810
   1 
100  20  20
2. In what time will Rs 64000 amount to Rs 68921 at
 1  5% per annum, interest being compounded half-
 R  100  5
 20  yearly?
Hence, the required rate of interest is 5% per 2 1 1 1
(A) 1 (B) 2 (C) 1 (D) 1
annum. 3 2 2 4
3. A sum of money doubles itself ant compound
Application of Compound Interest: interest in 15 years. In how many will it become
 Let P be the population of a city or town at the eight times:
beginning of a certain year and the population grows (A) 35 years (B) 40years
at a constant rate of E% per annum, then (C) 42 years (D) 45 years
n 4. A sum of money placed at compound interest
 R 
Population after n years = 1   P doubles itself in 5 years. If will amount to eight times
 100  itself at the same rate of interest in:
 Lat P be the population of a city or a town at the (A) 7years (B) 10years
beginning of a certain year. If the population grows (C) 15years (D) 20years
5. If the difference between the C.I and S.I at the end 13. What will be the ratio of simple interest earned by
of 2 years is Rs. 100 what is the principal? Rate is certainly amount at the same rate of interest for 6
5% per annum is both the cases. Assume same years and that for 9 years?
principal for both the cases. (A) 1:3 (B) 1:4
(A) Rs.50,000 (B) Rs.40,000 (C) Data (D) None of these
(C) Rs.10,000 (D) None of these
14. Rs. 300 amounts lent out at simple interest is
6. The compound interest on RS 5000 at 4% per increased by 1% then in same time the amount will
annum for 2 years compounded annually is: be:
(A) Rs.804 (B) Rs.708 (A) Rs.500 (B) RS.372
(C) Rs.408 (D) Rs.5408 (C) Rs.312 (D) Rs. 364

7. Find the compound interest on Rs 15625 for 9 15. A sum of money lent out at simple interest amounts
months, at 16% per annum, compounded quarterly. to Rs. 720 after 2 years and to Rs. 1020 after a
(A) Rs.1250 (B) Rs.1651 further period of 5years. The sum is:
(C) Rs.1951 (D) Rs.2651 (A) Rs. 500 (B) Rs.620
(C) Rs.502 (D) Rs.501
8. Difference between C.I. & S.I in a certain amount at 16. If the compound interest on a certain sum of money
10% per annum for 2yrs compound annually is Rs for 2 years at 4% per annum is Rs. 102, then the
.282. Find the principal. simple interest on the same sum of money at the
(A) RS.28210 (B) Rs.28120 same rate and for the same period is
(C) Rs.28200 (D) None (NTSE Stage-1/Raj/2007)
(A) Rs.99 (B) Rs.100
9. If an amount is kept at S.I, It earns an interest of (C) Rs.101 (D) Rs. 102
Rs.600 in first two years but when kept at C.I., if 17. In what time a capital becomes five times at the
earns an interest of Rs .660 in the same period. The interest rate of 10%. (NTSE Stage-
rate of interest will be: 1/Raj/2007)
(A) 10% (B) 20% (A) 10years (B) 30years
(C) 30% (D) None of these (C) 40 years (D) 50 years
18. An amount at certain rate of compound interest be –
10. The population of a village in the year 2000 was comes Rs. 700 in 3 years and
10,000. In the year 2001& 2002 percentage (NTSE Stage-1/Raj/2008)
increase in population was 5%& 10% respectively. (A) 7% (B) 10%
The population of village in the year 2002 will be: (C) 8% (D) 10.5%
 5  10  19. A borrowed Rs. 500 at the rate of 5% annum and
(A) 10000 1  1   Rs. 1000 at the rate of 4% per annum on simple
 100  100  interest from B on the same day. Under conditions
 5  10  that the loan and interest will be paid when the
(B) 1000 1  1  
 100  100  amount in both cases together will be Rs. 2020.
How many years will it take to repay the loans?
 5  10 
( C) 1000 1  1   (NTSE Stage-1/Raj/2008)
 100  100  (A) 6 (B) 8
 5  10  (C) 10 (D) 12
(D) 1000 1  1   20. A borrowed a sum of money for 3 years at the rate
 100  100  of 5%simple interest from B. He then lent that
money to C for the same time and the same rate at
11. A bacteria reproduces at the rate of 50% in every 15 compound interest. If A gained Rs .122, after paying
3 back to B, then the sum borrowed by A was:
min. In how much time will it be 3 times of itself?
8 (NTSE Stage-1/Raj/2008)
(A) 105 min (B) 45min (A) Rs.16000 (B) Rs. 12000
(C) 75 min (D) 50min (C) Rs.8000 (D) Rs.4000
21. One third of a certain sum is invested at 3% per
12. The population of a town increases 20% annually. annum; one sixth of the sum is invested at 6% per
What is the population after two years if present annum and the remaining sum at 8% per annum.
population is 2500? simple interest from all these investments is Rs
(A) 3250 (B) 3500 .600, the original sum is: (NTSE Stage-1/Raj/2007)
(C) 3600 (D) 4000 (A) Rs.6000 (B) Rs.6666
(C) Rs.7500 (D) Rs. 10000
 ANSWER – KEY

S.I. & C.I.

Que. 1 2 3 4 5 6 7 8 9 10
Ans. A C D C B C C C B A
Que. 11 12 13 14 15 16 17 18 19 20
Ans. B C D B C B C C B A
Que. 21
Ans. D