Chapter 11: Compound Interest

Page number: 144

Exercise 11A

Question 1:
Solution:
Principal for the first year = Rs.2500
 2500 10 1 
Interest for the first year =    Rs.250
 100 
Amount at the end of the first year = (2500 + 250) = Rs. 2750
Principal for the second year = Rs. 2750
 2750 10 1 
Interest for the second year =    Rs.275
 100 
Amount at the end of the second year = (2750 + 275) = Rs. 3025
Therefore, compound interest = (3025 – 2500) = Rs.525

Question 2:
Solution:
Principal for the first year = Rs.15625
 15625 12 1 
Interest for the first year =    Rs.1875
 100 
Amount at the end of the first year = (15625 + 1875) = Rs. 17500
Principal for the second year = Rs. 17500
 17500  12 1 
Interest for the second year =    Rs.2100
 100 
Amount at the end of the second year = (17500 + 2100) = Rs. 19600
Principal for the third year = Rs.19600
 19600  12 1 
Interest for the third year =    Rs.2352
 100 
Amount at the end of the third year = (19600 + 2352) = Rs. 21952
Therefore, compound interest = (21952 – 15625) = Rs.6327

Question 3:
Solution:
Principal amount = Rs.5000
 5000  2  9 
Simple interest =    Rs.900
 100 
To calculate compound interest,
Principal for the first year = Rs.5000
  5000  9 1 
Interest for the first year =    Rs.450
 100 
Amount at the end of the first year = (5000 + 450) = Rs. 540
Principal for the second year = Rs. 5450
 5450  9 1 
Interest for the second year =    Rs.490.5
 100 
Amount at the end of the second year = (5450 + 490.5) = Rs. 5940.5
Therefore, compound interest = (5940.5 – 5000) = Rs.940.5
Now, difference between the simple interest and the compound interest = (940.5 – 900)
= Rs.40.5

Question 4:
Solution:
Principal for the first year = Rs.25000
 25000  8 1 
Interest for the first year =    Rs.2000
 100 
Amount at the end of the first year = (25000 + 2000) = Rs. 27000
Principal for the second year = Rs. 27000
 27000  8 1 
Interest for the second year =    Rs.2160
 100 
Amount at the end of the second year = (27000 + 2160) = Rs. 29160
Therefore, Ratna has to pay Rs.29160 after 2 years to discharge her debt.

Question 5:
Solution:
Principal amount = Rs.20000
 20000  2  12 
Simple interest =    Rs.4800
 100 
To calculate compound interest,
Principal for the first year = Rs.20000
 20000 12 1 
Interest for the first year =    Rs.2400
 100 
Amount at the end of the first year = (20000 + 2400) = Rs. 22400
Principal for the second year = Rs. 22400
 22400 12 1 
Interest for the second year =    Rs.2688
 100 
Amount at the end of the second year = (22400 + 2688) = Rs. 25088
Therefore, compound interest = (25088 – 20000) = Rs.5088
Now, CI – SI = (5088 – 4800) = Rs.288
Therefore, the amount of money Harpreet will gain after 2 years is Rs. 288.

Question 6:
Solution:
Principal for the first year = Rs.64000
 64000  15  1 
Interest for the first year =    Rs.4800
 100  2 
Amount at the end of the first year = (64000 + 4800) = Rs. 68800
Principal for the second year = Rs. 68800
 68800  15  1 
Interest for the second year =    Rs.5160
 100  2 
Amount at the end of the second year = (68800 + 5160) = Rs. 73960
Principal for the third year = Rs.73960
 73960 15 1 
Interest for the third year =    Rs.5547
 100  2 
Amount at the end of the third year = (73960 + 5547) = Rs. 79507
Therefore, Amount on maturity will be Rs.79507.

Question 7:
Solution:
Principal for the first half year = Rs.6250
 6250  4 1 
Interest for the first half year =    Rs.250
 100 
Amount at the end of the first half year = (6250 + 250) = Rs. 6500
Principal for the second half year = Rs.6500
 6500  4 1 
Interest for the second half year =    Rs.260
 100 
Amount at the end of the second half year = (6500 + 260) = Rs. 6760
Therefore, compound interest = (6760 – 6250) = Rs.510

Question 8:
Solution:
Principal for the first half year = Rs.16000
 16000  5 1 
Interest for the first half year =    Rs.800
 100 
Amount at the end of the first half year = (16000 + 800) = Rs. 16800
Principal for the second half year = Rs.16800
 16800  5 1 
Interest for the second half year =    Rs.840
 100 
Amount at the end of the second half year = (16800 + 840) = Rs. 17640
Principal for the third half year = Rs.17640
 17640  5 1 
Interest for the third half year =    Rs.882
 100 
Amount at the end of the third half year = (17640 + 882) = Rs. 18522
1
Therefore, the amount of money Michael has to pay the Finance company after 1 years is
2
Rs.18522.

Page number: 151

Exercise 11B

Question 1.
Solution:
Here P = 6000, R = 9 and n = 2
n
 R 
Using the formula, A  P 1  
 100 
2
 9 
 6000 1  
 100 
109 109
 6000  
100 100
 Rs.7128.6
And compound interest = 7128.6 – 6000 = Rs.1128.6

Question 2.
Solution:
Here P = 10000, R = 11 and n = 2
n
 R 
Using the formula, A  P 1  
 100 
2
 11 
 10000 1  
 100 
111 111
 10000  
100 100
 Rs.12321
And compound interest = 12321 – 10000 = Rs.2321
Question 3.
Solution:
Here P = 31250, R = 8 and n = 3
n
 R 
Using the formula, A  P 1  
 100 
3
 8 
 31250 1  
 100 
27 27 27
 31250   
25 25 25
 Rs.39366
And compound interest = 39366 – 31250 = Rs.8116

Question 4.
Solution:
1 25
Here P = 10240, R = 12  and n = 3
2 2
n
 R 
Using the formula, A  P 1  
 100 
3
  25  
  2 
 10240 1    
 100 
 
 
9 9 9
 10240   
8 8 8
 Rs.14580
And compound interest = 14580 – 10240 = Rs.4340

Question 5.
Solution:
Here P = 62500, R = 12 and n = 2 years 6 months
1
Amount for 2 years,
2
n
 R 
Using the formula, A  P 1  
 100 
   1 
 12  
12   2
2

 62500 1    1  
 100   100  
   
112 112 53
 62500   
100 100 50
 Rs.83104
And compound interest = 83104 – 62500 = Rs.20604

Question 6.
Solution:
Here P = 9000, R = 10 and n = 2 years 4 months
1
Amount for 2 years,
3
n
 R 
Using the formula, A  P 1  
 100 
  1 
 10  
10   3
2

 9000 1    1  
  100   100  
   
11 11 31
 9000   
10 10 30
 Rs.11253
And compound interest = 11253 – 9000 = Rs.2253

Question 7.
Solution:
Principal for the first year = Rs.8000
 8000  9 1 
Interest for the first year =    Rs.720
 100 
Amount at the end of the first year = (8000 + 720) = Rs. 8720
Principal for the second year = Rs. 8720
 8720  10  1 
Interest for the second year =    Rs.872
 100 
Amount at the end of the second year = (8720 + 872) = Rs. 9592
Therefore, amount after 2 years is Rs.9592.
Question 8.
Solution:
Principal for the first year = Rs.125000
 125000  8 1 
Interest for the first year =    Rs.10000
 100 
Amount at the end of the first year = (125000 + 10000) = Rs. 135000
Principal for the second year = Rs. 135000
 135000  8 1 
Interest for the second year =    Rs.10800
 100 
Amount at the end of the second year = (135000 + 10800) = Rs. 145800
Principal for the third year = Rs.145800
 145800  8 1 
Interest for the third year =    Rs.11664
 100 
Amount at the end of the third year = (145800 + 11664) = Rs. 157464
Therefore, Anand has to pay Rs.157464.

Question 9.
Solution:
Principal for the first year = Rs.11000
 11000  10 1 
Interest for the first year =    Rs.1100
 100 
Amount at the end of the first year = (11000 + 1100) = Rs. 12100
Principal for the second year = Rs. 12100
 12100  10 1 
Interest for the second year =    Rs.1210
 100 
Amount at the end of the second year = (12100 + 1210) = Rs. 13310
Principal for the third year = Rs.13310
 13310  10 1 
Interest for the third year =    Rs.1331
 100 
Amount at the end of the third year = (13310 + 1331) = Rs. 14641
Therefore, amount to discharge the debt after 3 years is Rs.14641.

Question 10.
Solution:
Principal for the first year = Rs.18000
 18000  12 1 
Interest for the first year =    Rs.2160
 100 
Amount at the end of the first year = (18000 + 2160) = Rs. 20160
Principal for the second year = Rs. 20160
  25 
 20160  2 1 
Interest for the second year =    Rs.2520
 100 
 
Amount at the end of the second year = (20160 + 2520) = Rs. 22680
Therefore, she have to pay Rs.22680 after 2 years.

Question 11.
Solution:
Here P = 24000, R = 10 and n = 2 years 3 months
1
Amount for 2 years,
4
n
 R 
Using the formula, A  P 1  
 100 
  1 
 10  
10   4
2

 24000 1    1  
 100   100  
   
11 11 41
 24000   
10 10 40
 Rs.29766
Therefore, she will have to make a payment of Rs.29766.

Question 12.
Solution:
Principal amount = Rs.16000
 16000  2  7.5 
Simple interest =    Rs.2400
 100 
To calculate compound interest,
Principal for the first year = Rs.16000
 16000  7.5 1 
Interest for the first year =    Rs.1200
 100 
Amount at the end of the first year = (16000 + 1200) = Rs. 17200
Principal for the second year = Rs. 17200
 17200  7.5 1 
Interest for the second year =    Rs.1290
 100 
Amount at the end of the second year = (17200 + 1290) = Rs. 18490
Therefore, compound interest = (18490 – 16000) = Rs.2490
Now, CI – SI = (2490 – 2400) = Rs.90
Therefore, the amount of money Abhay will gain after 2 years is Rs. 90.

Question 13.
Solution:
Let the Principal amount = Rs. P
 P  28 
Simple interest =  
 100 
 P  28 
 2400   
 100 
2400 100
P 
28
 P  15000
To calculate compound interest,
Principal for the first year = Rs.15000
 15000  8 1 
Interest for the first year =    Rs.1200
 100 
Amount at the end of the first year = (15000 + 1200) = Rs.16200
Principal for the second year = Rs. 16200
 16200  8 1 
Interest for the second year =    Rs.1296
 100 
Amount at the end of the second year = (16200 + 1296) = Rs. 17496
Therefore, compound interest = (17496 – 15000) = Rs.2496

Question 14.
Solution:
CI – SI = Rs.90
 x  2  6  12 x
Simple interest =  
 100  100
Compound interest = Amount - Principal
  6  
2

  x 1   x
  100  
 53 53 
 x     x
 50 50 
2809 x
 x
2500
309 x

2500
 309 x 12 x
   90
2500 100
9x
  90
2500
90  2500
x 
9
 x  25000
Therefore, the sum is Rs.25000.

Question 15.
Solution:
CI – SI = Rs.93
 x  3  10  3 x
Simple interest =  
 100  10
Compound interest = Amount - Principal
  10  
3

  x 1   x
  100  
 11 11 11 
 x     x
 10 10 10 
1331x
 x
1000
331x

1000
331x 3 x
   93
1000 10
31x
  93
1000
93  1000
x 
31
 x  3000
Therefore, the sum is Rs.3000.

Question 16.
Solution:
2 20
Here A = Rs.10240, P = x, R = 6  and n = 2
3 3
n
 R 
Using the formula, A  P 1  
 100 
 2
  20  
  3 
10240  x 1    
 100 
 
 
16 16
10240  x  
15 15
10240 15 15
x 
16  16
 x  9000
Therefore, the sum is Rs.9000.

Question 17.
Solution:
Here A = Rs.21296, P = x, R = 10 and n = 3
n
 R 
Using the formula, A  P 1  
 100 
3
 10 
 21296  x 1  
 100 
11 11 11
 21296  x   
10 10 10
21296 10 10 10
x 
111111
 x  16000
Therefore, the sum is Rs.16000.

Question 18.
Solution:
Here A = Rs.4410, P = 4000, R = x and n = 2
n
 R 
Using the formula, A  P 1  
 100 
 2
 x 
 4410  4000 1  
 100 
4410  100  x 
2

  
4000  100 
441 100  x
 
400 100
21 100  x
 
20 100
 21 100 
x     100
 20 
x  5
Therefore, the rate is 5% per annum.

Question 19.
Solution:
Here A = Rs.774.40, P = 640, R = x and n = 2
n
 R 
Using the formula, A  P 1  
 100 
2
 x 
 774.4  640 1  
 100 
774.4  100  x 
2

  
640  100 
7744 100  x
 
6400 100
88 100  x
 
80 100
11 100  x
 
10 100
 11100 
x     100
 10 
 x  10
Therefore, the rate is 10% per annum.

Question 20.
Solution:
Here A = Rs.2178, P = 1800, R = 10 and n = x
 n
 R 
Using the formula, A  P 1  
 100 
x
 10 
 2178  1800 1  
 100 
x
2178  11 
  
1800  10 
x
121  11 
  
100  10 
2 x
 11   11 
    
 10   10 
x  2
Therefore, the time period required is 2 years.

Question 21.
Solution:
Here A = Rs.7290, P = 6250, R = 8 and n = x
n
 R 
Using the formula, A  P 1  
 100 
x
 8 
 7290  6250 1  
 100 
x
7290  27 
  
6250  25 
x
729  27 
  
625  25 
2 x
 27   27 
    
 25   25 
x  2
Therefore, the time period required is 2 years.

Question 22.
Solution:
Here P = 125000, R = 2 and n = 3
n
 R 
Using the formula, A  P 1  
 100 
 3
 2 
 125000 1  
 100 
51 51 51
 125000   
50 50 50
 1105425
Therefore, the population after three years will be 1105425.

Question 23.
Solution:
Initial population = 50000
 50000  5 1 
Increase in first year =    2500
 100 
Increase at the end of the first year = (50000 + 2500) = 52500
 52500  4 1 
Increase in second year =    2100
 100 
Increase at the end of the second year = (52500 + 2100) = 54600
 54600  3 1 
Increase in third year =    1638
 100 
Increase at the end of the third year = (54600 + 1638) = 56238
Therefore, present population is 56238.

Question 24.
Solution:
Initial population = 120000
 120000  6  1 
Increase in first year =    7200
 100 
Increase at the end of the first year = (120000 + 7200) = 127200
 127200  5 1 
Decrease in second year =    6360
 100 
Increase at the end of the second year = (127200 - 6360) = 120840
Therefore, population in 2015 was 120840.

Question 25.
Solution:
Here P = 500000, R = 2 and n = 2
n
 R 
Using the formula, A  P 1  
 100 
 2
 2 
 500000 1  
 100 
51 51
 500000  
50 50
 520200
Therefore, the population after 2 hours will be 520200.

Question 26.
Solution:
Initial population = 20000
 20000  10  1 
Increase in first hour =    2000
 100 
Increase at the end of the first hour = (20000 + 2000) = 22000
 22000  10  1 
Decrease in second hour =    2200
 100 
Decrease at the end of the second hour = (22000 - 2200) = 19800
 19800 10 1 
Increase in third hour =    1980
 100 
Increase at the end of the third hour = (19800 + 1980) = 21780
Therefore, bacteria at the end of 3 hours is 21780.

Question 27.
Solution:
Here P = 625000, R = 8 and n = 2
To calculate depreciation,
n
 R 
Using the formula, A  P 1  
 100 
2
 8 
 625000 1  
 100 
23 23
 625000  
25 25
 529000
Therefore, the value of machine after 2 years will be Rs.529000.

Question 28.
Solution:
Here P = 56000, R = 10 and n = 3
To calculate depreciation,
 n
 R 
Using the formula, A  P 1  
 100 
3
 10 
 56000 1  
 100 
9 9 9
 56000   
10 10 10
 40824
Therefore, the value of scooter after 3 years will be Rs.40824.

Question 29.
Solution:
Price of car = Rs.348000
 348000 10 1 
Depreciation for the first year =    Rs.34800
 100 
Value at the end of the first year = (348000 - 34800) = Rs. 313200
 313200  20 1 
Depreciation for the second year =    Rs.62640
 100 
Value at the end of the second year = (313200 - 62640) = Rs. 250560

Question 30.
Solution:
Here A = 291600, P = x , R = 10 and n = 3
To calculate depreciation,
n
 R 
Using the formula, A  P 1  
 100 
3
 10 
 291600  x 1  
 100 
9 9 9
 291600  x    
 10 10 10 
729 x
 291600 
1000
291600 1000
x 
729
 x  400000
Therefore, the machine was purchased for Rs.400000.
Page number: 154
Exercise 11C

Question 1:
Solution:
Here P = 8000
R = 10% per annum
So, for half-yearly R = 5%
n = 1 year = 2 half years
n
 R 
Using the formula, A  P 1  
 100 
2
 5 
 8000 1  
 100 
21 21
 8000  
20 20
 Rs.8820
And compound interest = 8820 – 8000 = Rs.820

Question 2:
Solution:
Here P = 31250
R = 8% per annum
So, for half-yearly R = 4%
1
n = 1 years = 3 half years
2
n
 R 
Using the formula, A  P 1  
 100 
3
 4 
 31250 1  
 100 
26 26 26
 31250   
25 25 25
 Rs.35152
And compound interest = 35152 – 31250 = Rs.3902

Question 3:
Solution:
Here P = 12800
 1 15
R = 7 %  % per annum
2 2
15
So, for half-yearly R = %
4
n = 1 year = 2 half years
n
 R 
Using the formula, A  P 1  
 100 
2
  15  
  4 
 12800  1    
 100 
 
 
83 83
 12800  
80 80
 Rs.13778
And compound interest = 13778 – 12800 = Rs.978

Question 4:
Solution:
Here P = 160000
R = 10% per annum
So, for half-yearly R = 5%
n = 2 years = 4 half years
n
 R 
Using the formula, A  P 1  
 100 
4
 5 
 160000 1  
 100 
21 21 21 21
 160000    
20 20 20 20
 Rs.194481
And compound interest = 194481 – 160000 = Rs.34481

Question 5:
Solution:
Here P = 40960
25
R= % per annum
2
25
So, for half-yearly R = %
4
 1
n= 1 years = 3 half years
2
n
 R 
Using the formula, A  P 1  
 100 
3
  25  
  4 
 40960 1    
 100 
 
 
17 17 17
 40960   
16 16 16
 Rs.49130
And compound interest = 49130 – 40960 = Rs.8170

Question 6:
Solution:
Here P = 125000
R = 12% per annum
So, for half-yearly R = 6%
1
n= 1 year = 3 half years
2
n
 R 
Using the formula, A  P 1  
 100 
3
 6 
 125000 1  
 100 
53 53 53
 125000   
50 50 50
 Rs.148877
And compound interest = 148877 – 125000 = Rs.23877

Question 7:
Solution:
Here P = 20000
R = 6% per annum
So, for half-yearly R = 3%
n = 1 year = 2 half years
n
 R 
Using the formula, A  P 1  
 100 
 2
 3 
 20000 1  
 100 
103 103
 20000  
100 100
 Rs.21218
Therefore, amount she will get after 1 year is Rs.21218.

Question 8:
Solution:
25
For annual interest, Here P = 65536, R = and n = 1
2
n
 R 
Using the formula, A  P 1  
 100 
  25  
  2 
 65536 1    
 100 
 
 
9
 65536 
8
 Rs.73728
And compound interest = 73728 – 65536 = Rs.8192
For half-yearly interest, Here P = 65536
25
R= % per annum
2
25
So, for half-yearly R = %
4
n = 1 year = 2 half years
n
 R 
Using the formula, A  P 1  
 100 
2
  25  
  4 
 65536 1    
 100 
 
 
17 17
 65536  
16 16
 Rs.73984
And compound interest = 73984 – 65536 = Rs.8448
Gain = half-yearly interest – annual interest
= 8448 – 8192 = Rs.256

Question 9:
Solution:
Here P = 32000
R = 5% per annum
5
So, for quarterly R = %
4
n = 6 months = 2 quarter years
n
 R 
Using the formula, A  P 1  
 100 
2
 5
 4
 32000 1    
 100 
 
 
81 81
 32000  
80 80
 Rs.32805

Question 10:
Solution:
Here P = 390625
R = 16% per annum
So, for quarterly R = 4%
n = 1 year = 4 quarter years
n
 R 
Using the formula, A  P 1  
 100 
4
 4 
 390625 1  
 100 
26 26 26 26
 390625    
25 25 25 25
 Rs.456976
Amount to discharge the debt is Rs.456976.
Page number: 154
Exercise 11D

Question 1.
Solution:(c) Rs.832

Question 2.
Solution:(b) Rs.3310

Question 3.
Solution:(a) Rs.1872

Question 4.
Solution:(c) Rs.961

Question 5.
Solution: (b) Rs.5051

Question 6.
Solution:(b) Rs.510

Question 7.
Solution:(a) Rs.1209

Question 8.
Solution:(b) 26460

Question 9.
Solution:(c) Rs.65200

Question 10.
Solution:(c) Rs.65200

Question 11.
Solution:(a) 25000

Question 12.
Solution:(d) Rs.1261

Question 13.
Solution:(d) Rs.480
Question 14.
Solution:(d) Rs.4096

Question 15.
Solution:(c) 6%

Page number: 157

TEST PAPER 11
A. Question 1.
Solution:
Principal for the first year = Rs.3000
 3000  10 1 
Interest for the first year =    Rs.300
 100 
Amount at the end of the first year = (3000 + 300) = Rs. 3300
Principal for the second year = Rs. 3300
 3300  10 1 
Interest for the second year =    Rs.330
 100 
Amount at the end of the second year = (3300 + 330) = Rs. 3630
Principal for the third year = Rs.3630
 3630  10 1 
Interest for the third year =    Rs.363
 100 
Amount at the end of the third year = (3630 + 363) = Rs. 3993
Therefore, compound interest = (3993 – 3000) = Rs.993

Question 2.
Solution:Principal for the first year = Rs.10000
 10000  10 1 
Interest for the first year =    Rs.1000
 100 
Amount at the end of the first year = (10000 + 1000) = Rs. 11000
Principal for the second year = Rs. 11000
 11000  12 1 
Interest for the second year =    Rs.1320
 100 
Amount at the end of the second year = (11000 + 1320) = Rs. 12320
Therefore, compound interest = (12320 – 10000) = Rs.2320

Question 3.
Solution:
Here P = 6000
R = 10% per annum
So, for half-yearly R = 5%
n = 1 year = 2 half years
n
 R 
Using the formula, A  P 1  
 100 
2
 5 
 6000 1  
 100 
21 21
 6000  
20 20
 Rs.6615
And compound interest = 6615 – 6000 = Rs.615

Question 4.
Solution:
Here A = Rs.23762, P = x, R = 9 and n = 2
n
 R 
Using the formula, A  P 1  
 100 
2
 9 
 23762  x 1  
 100 
109 109
 23762  x  
100 100
23762  100 100
x 
109  109
 x  20000
Therefore, the sum is Rs.20000.

Question 5.
Solution:
Here P = 32000, R = 10 and n = 2
To calculate depreciation,
n
 R 
Using the formula, A  P 1  
 100 
2
 10 
 32000 1  
 100 
9 9
 32000  
10 10
 25920
Therefore, the value of scooter after 2 years will be Rs.25920.
B.
Question 6.
Solution:(b) Rs.1050

Question 7.
Solution:(c) 4410

Question 8.
Solution:(d) 8%

Question 9.
Solution:(a) Rs.1655

Question 10.
Solution:(c) Rs.5000

C. Question 11.
Solution:
n
 R 
(i) A  P 1   .
 100 
(ii) (Amount) – (Principal) = Compound Interest.
(iii) If the value of a machine is Rs.P and it depreciates at R% per annum, then its value after 2
2
 R 
years is Rs.P 1   .
 100 
(iv) If the population P of a town increases at R% per annum, then its population after 5 years is
5
 R 
P 1   .
 100 