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1. Let Principal = P, Rate = R% per annum, Time = n
2. When interest is compound Annually:
 Amount = P 1 + R n 100
1. When interest is compounded Half-yearly:
 Amount = P 1 + (R/2) 2n 100
1. When interest is compounded Quarterly:
 Amount = P 1 + (R/4) 4n 100
1. When interest is compounded Annually but time is in fraction, say 3
 Amount = P 1 + R 3 x 1 + R 100 100
1. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2ndand 3rd year respectively.
 Then, Amount = P 1 + R1 1 + R2 1 + R3 . 100 100 100
1. Present worth of Rs. xdue n years hence is given by:
Present Worth = x .
 1 + R 100
Question:-
• A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
• Rs. 120
• Rs. 121
• Rs. 122
• Rs. 123
• The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
• 625
• 630
• 640
• 650
• There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
• Rs. 2160
• Rs. 3120
• Rs. 3972
• Rs. 6240
• None of these
• What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?
• Rs. 2.04
• Rs. 3.06
• Rs. 4.80
• Rs. 8.30
• The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
• 2
• 212
• 3
• 4
• What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?
• Rs. 9000.30
• Rs. 9720
• Rs. 10123.20
• Rs. 10483.20
• None of these
• At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
• 6%
• 6.5%
• 7%
• 7.5%
• The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
• 3
• 4
• 5
• 6
• Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
• Rs. 8600
• Rs. 8620
• Rs. 8820
• None of these
• The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
• 6.06%
• 6.07%
• 6.08%
• 6.09%