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# Compound Interest Questions with Answers

**Compound Interest Questions with Answers**

Basic concept of Compound Interest and Compound Interest Questions with Answers are provided here to help the students understand the applications of compound interest in our daily existence.

**Important Formulae to solve Compound Interest Questions :**

- P [1+ \frac{R}{100}]^{T}
This formula is applied to calculate when money is compounded annually.

- P [1+ \frac{R}{2\times 100}]^{2T}
This formula is applied to calculate when money is compounded half-yearly

- P [1+ \frac{R}{12\times 100}]^{12T}
This formula is applied when money in compounded monthly.

**Situations where we can use Compound Interest formulas.**

- Increase or decrease in population
- The growth of a bacteria (when the rate of growth is known)
- The value of an item, if its price increases or decreases in the intermediate years

**Compound Interest Questions and Answers**

**Example 1:**

The compound interest on Rs. 10,000 in 2 years at 4% per annum, the interest being compounded yearly, is

**Options:**

**a.** Rs 636.80**b.** Rs 816**c.** Rs 912**d.** Rs 882.82

**Explanation:**

Rate of interest = 4%

Therefore, applying the net% effect formula for effective rate of compound interest for 2 years , we get

Net% effect = x + y + \frac{xy}{100}\%

x = y = 4%

= 4 + 4 + \frac{4\times 4}{100} = 8 + .16 = 8.16\%

CI = 8.16% of 10,000

= \frac{8.16\times 10000}{100} = ₹ 816

Hence, option B is correct,

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- Allegations and Mixtures – Questions | Formulas | How to Solve Quickly | Tricks & Shortcuts
- Ratio and Proportions – Questions | Formulas | How to Solve Quickly | Tricks & Shortcuts
- Simple & Compound Interest – Questions | Formulas | How to Solve Quickly | Tricks & Shortcuts
- Simple Interest – Questions | Formulas | How to Solve Quickly | Tricks & Shortcuts
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Tricks & Shortcuts - Simple & Compound Interest – Questions |

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Tricks & Shortcuts - Simple Interest – Questions |

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Tricks & Shortcuts - Averages – Questions |

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Tricks & Shortcuts - Percentages – Questions |

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Tricks & Shortcuts - Profit & Loss – Questions |

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