Practice Compound Interest Practice Questions with Detailed Solutions – Level 3

Ramesh invests ₹20,000 at 12% per annum compound interest, compounded half-yearly. What compound interest will he earn in 1\( \frac{1}{2} \) years?

Find the compound interest on ₹31,250 for 9 months at 16% per annum, compounded quarterly.

On a certain sum, the simple interest for 2 years is ₹1,200. The difference between the compound interest (compounded annually) and the simple interest on the same sum for 2 years at the same rate is ₹48. Find the sum.

The difference between the compound interest (compounded annually) and the simple interest on a certain sum for 3 years at 5% per annum is ₹122. What is the compound interest on the same sum for 3 years at the same rate?

A sum of money becomes 8 times itself in 9 years at compound interest. In how many years will it become 32 times itself at the same rate?

Sunita borrowed ₹21,000 at 10% per annum compound interest, compounded annually. She repays the loan in two equal annual instalments, the first at the end of the first year. What is the value of each instalment?

A loan taken at 25% per annum compound interest, compounded annually, is fully repaid in three equal annual instalments of ₹2,000 each, the first being paid at the end of the first year. How much money was borrowed?

A sum of ₹12,500 is invested at compound interest, compounded annually, at 8% for the first year, 10% for the second year and 12% for the third year. What is the total interest earned in 3 years?

The population of a town is 50,000. It increases by 10% in the first year, decreases by 8% in the second year and increases by 5% in the third year. What is the population at the end of the third year?

The value of a machine depreciates at 20% per annum on its value at the beginning of each year. After 3 years its value is ₹2,04,800. By how much does the depreciation in the first year exceed the depreciation in the third year?