Compound Interest (Without Using Formula)
ICSE · Class 9 · Mathematics
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What is the compound interest on ₹2,000 at 10% per annum for 2 years?
If ₹5,000 amounts to ₹5,500 in first year at compound interest, what will be the amount at the end of second year?
₹8,000 is invested at 5% compound interest. What is the difference between CI and SI for 2 years?
₹6,000 at 8% compound interest for 1.5 years. What is the total amount?
Sample Questions
Which of the following statements are correct about compound interest?
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CI for first year equals SI for first year, CI increases each year on same principal, CI is always greater than SI after first year
In CI, first year interest equals SI. Each year's interest is calculated on growing amount, so CI increases yearly and exceeds SI after year 1.
If compound interest on ₹10,000 for 2 years is ₹2,100, what is the rate per annum?
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10%
Let rate = r%. Year 1: CI = 10000r/100. Year 2: CI = (10000+10000r/100)×r/100. Total CI = 10000r/100 + (10000r + 100r²)/10000 = 2100. Solving: r = 10%
Which calculations are needed to find compound interest for 3 years?
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Interest for year 1 on original principal, Interest for year 2 on year 1 amount, Interest for year 3 on year 2 amount, Sum of all yearly interests
CI calculation requires computing interest each year on the growing principal (amount from previous year), then summing all yearly interests.
₹15,000 invested at different rates: 12% for year 1, 15% for year 2. What is the amount after 2 years?
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₹19,320
Year 1: Interest = (15000×12)/100 = ₹1,800, Amount = ₹16,800. Year 2: Interest = (16800×15)/100 = ₹2,520, Amount = 16800 + 2520 = ₹19,320
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