Math worksheet with two interest calculation problems.
Two math problems on a worksheet about simple and compound interest calculations.
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Step-by-step solution for: FIND THE INTEREST RATE IN THE COMPOUND INTEREST RATE PROBLEMS Math ...
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Show Answer Key & Explanations
Step-by-step solution for: FIND THE INTEREST RATE IN THE COMPOUND INTEREST RATE PROBLEMS Math ...
Let's solve both problems step by step.
---
Given:
- Simple Interest (SI) = $1200
- Rate (R) = 5% per annum
- Time (T) = 3 years
We are to find the Compound Interest (CI) on the same sum for the same period at the same rate.
---
#### Step 1: Find the Principal (P)
Use the simple interest formula:
$$
SI = \frac{P \times R \times T}{100}
$$
Substitute the known values:
$$
1200 = \frac{P \times 5 \times 3}{100}
$$
$$
1200 = \frac{15P}{100}
$$
$$
1200 = 0.15P
$$
$$
P = \frac{1200}{0.15} = 8000
$$
So, the principal is $8000.
---
#### Step 2: Calculate Compound Interest
Formula for compound interest (compounded annually):
$$
A = P \left(1 + \frac{R}{100}\right)^T
$$
$$
A = 8000 \left(1 + \frac{5}{100}\right)^3 = 8000 \left(1.05\right)^3
$$
Now calculate $ (1.05)^3 $:
$$
1.05^2 = 1.1025
$$
$$
1.05^3 = 1.1025 \times 1.05 = 1.157625
$$
$$
A = 8000 \times 1.157625 = 9261
$$
So, amount after 3 years = $9261
Now, compound interest:
$$
CI = A - P = 9261 - 8000 = 1261
$$
✔ So, Compound Interest = $1261
---
Answer: (d) $1261
---
Given:
- Compound Interest (CI) = $510
- Rate (R) = $12\frac{1}{2}\% = 12.5\% = \frac{25}{2}\% $
- Time (T) = 2 years
We are to find the Simple Interest (SI) on the same sum at the same rate and time.
---
#### Step 1: Use CI formula to find Principal
For compound interest compounded annually:
$$
CI = P \left(1 + \frac{R}{100}\right)^T - P
$$
$$
510 = P \left(1 + \frac{12.5}{100}\right)^2 - P
$$
$$
510 = P \left(1.125\right)^2 - P
$$
Calculate $ (1.125)^2 $:
$$
1.125^2 = 1.265625
$$
$$
510 = P(1.265625 - 1) = P(0.265625)
$$
$$
P = \frac{510}{0.265625} = 1918.367...
$$
Wait — let’s do it more precisely using fractions.
Convert 12.5% = $ \frac{25}{2} \% $
So,
$$
1 + \frac{R}{100} = 1 + \frac{25}{200} = 1 + \frac{1}{8} = \frac{9}{8}
$$
So,
$$
A = P \left(\frac{9}{8}\right)^2 = P \times \frac{81}{64}
$$
$$
CI = A - P = P \left(\frac{81}{64} - 1\right) = P \left(\frac{17}{64}\right)
$$
Given CI = 510:
$$
\frac{17}{64} P = 510
$$
$$
P = 510 \times \frac{64}{17} = 30 \times 64 = 1920
$$
Because $ 510 \div 17 = 30 $, then $ 30 \times 64 = 1920 $
So, Principal = $1920
---
#### Step 2: Find Simple Interest
Use SI formula:
$$
SI = \frac{P \times R \times T}{100} = \frac{1920 \times 12.5 \times 2}{100}
$$
First, $ 12.5 \times 2 = 25 $
$$
SI = \frac{1920 \times 25}{100} = \frac{48000}{100} = 480
$$
✔ So, Simple Interest = $480
---
Answer: (d) $480
---
- Problem 5: (d) $1261
- Problem 6: (d) $480
Let me know if you'd like a visual explanation or shortcut methods!
---
Problem 5:
Given:
- Simple Interest (SI) = $1200
- Rate (R) = 5% per annum
- Time (T) = 3 years
We are to find the Compound Interest (CI) on the same sum for the same period at the same rate.
---
#### Step 1: Find the Principal (P)
Use the simple interest formula:
$$
SI = \frac{P \times R \times T}{100}
$$
Substitute the known values:
$$
1200 = \frac{P \times 5 \times 3}{100}
$$
$$
1200 = \frac{15P}{100}
$$
$$
1200 = 0.15P
$$
$$
P = \frac{1200}{0.15} = 8000
$$
So, the principal is $8000.
---
#### Step 2: Calculate Compound Interest
Formula for compound interest (compounded annually):
$$
A = P \left(1 + \frac{R}{100}\right)^T
$$
$$
A = 8000 \left(1 + \frac{5}{100}\right)^3 = 8000 \left(1.05\right)^3
$$
Now calculate $ (1.05)^3 $:
$$
1.05^2 = 1.1025
$$
$$
1.05^3 = 1.1025 \times 1.05 = 1.157625
$$
$$
A = 8000 \times 1.157625 = 9261
$$
So, amount after 3 years = $9261
Now, compound interest:
$$
CI = A - P = 9261 - 8000 = 1261
$$
✔ So, Compound Interest = $1261
---
Answer: (d) $1261
---
Problem 6:
Given:
- Compound Interest (CI) = $510
- Rate (R) = $12\frac{1}{2}\% = 12.5\% = \frac{25}{2}\% $
- Time (T) = 2 years
We are to find the Simple Interest (SI) on the same sum at the same rate and time.
---
#### Step 1: Use CI formula to find Principal
For compound interest compounded annually:
$$
CI = P \left(1 + \frac{R}{100}\right)^T - P
$$
$$
510 = P \left(1 + \frac{12.5}{100}\right)^2 - P
$$
$$
510 = P \left(1.125\right)^2 - P
$$
Calculate $ (1.125)^2 $:
$$
1.125^2 = 1.265625
$$
$$
510 = P(1.265625 - 1) = P(0.265625)
$$
$$
P = \frac{510}{0.265625} = 1918.367...
$$
Wait — let’s do it more precisely using fractions.
Convert 12.5% = $ \frac{25}{2} \% $
So,
$$
1 + \frac{R}{100} = 1 + \frac{25}{200} = 1 + \frac{1}{8} = \frac{9}{8}
$$
So,
$$
A = P \left(\frac{9}{8}\right)^2 = P \times \frac{81}{64}
$$
$$
CI = A - P = P \left(\frac{81}{64} - 1\right) = P \left(\frac{17}{64}\right)
$$
Given CI = 510:
$$
\frac{17}{64} P = 510
$$
$$
P = 510 \times \frac{64}{17} = 30 \times 64 = 1920
$$
Because $ 510 \div 17 = 30 $, then $ 30 \times 64 = 1920 $
So, Principal = $1920
---
#### Step 2: Find Simple Interest
Use SI formula:
$$
SI = \frac{P \times R \times T}{100} = \frac{1920 \times 12.5 \times 2}{100}
$$
First, $ 12.5 \times 2 = 25 $
$$
SI = \frac{1920 \times 25}{100} = \frac{48000}{100} = 480
$$
✔ So, Simple Interest = $480
---
Answer: (d) $480
---
✔ Final Answers:
- Problem 5: (d) $1261
- Problem 6: (d) $480
Let me know if you'd like a visual explanation or shortcut methods!
Parent Tip: Review the logic above to help your child master the concept of compound interest word problems worksheet.