How many practice questions are available for Compound Interest?

SparkEd Math offers 60+ practice questions for Compound Interest across 3 difficulty levels (Easy, Medium, Hard) plus a timed test mode. Each question comes with visual step-by-step solutions and AI coaching hints.

Is Compound Interest content free on SparkEd Math?

Yes! All Compound Interest content on SparkEd Math is 100% free, including practice questions, visual solutions, lessons, and AI coaching. No credit card required.

How does SparkEd Math teach Compound Interest differently from textbooks?

SparkEd Math uses visual step-by-step solutions for every Compound Interest problem, making complex concepts easy to understand. The platform includes 3 difficulty levels for progressive learning, a Super Power Help AI coach for instant doubt-clearing, and interactive practice rather than passive reading.

Is SparkEd's Compound Interest content aligned with the ICSE syllabus?

Yes, all Compound Interest questions and lessons on SparkEd Math are fully aligned with the Indian Certificate of Secondary Education (ICSE) syllabus for Class 8. The content follows the official curriculum structure and exam pattern.

Compound Interest — Class 8 ICSE (2025-26)

About Compound Interest — Class 8 ICSE

Learn compound interest formula and solve problems on compounded amounts and rates. This topic is part of the ICSE Class 8 mathematics syllabus (chapter: Chapter 9). On this page you can practice 60 questions across three difficulty levels — 20 easy, 20 medium, and 20 hard — each with a visual step-by-step solution, plus a timed 35-question mastery test with a live leaderboard. Worked examples and sample questions from the topic are below.

What you'll learn in Compound Interest

Understanding Interest: Simple vs. Compound
The Core Concept of Compound Interest
The Compound Interest Formula for Annual Compounding
Advanced Compounding: Half-Yearly and Quarterly
Summary, Applications & Exam Preparation

Interactive lesson · about 15 minutes · checkpoint question after every unit

Compound Interest — solved examples for Class 8 ICSE

Example 1easy

Which of the following statements accurately describes Compound Interest (CI) compared to Simple Interest (SI) for a principal amount over more than one year?

A)CI is always less than SI.
B)CI is calculated only on the original principal amount.
C)CI is calculated on the principal and the accumulated interest from previous periods.
D)SI grows faster than CI.

Step-by-step solution

Simple Interest is calculated only on the original principal amount.
Compound Interest is calculated on the principal amount as well as the interest accumulated in previous periods.
This 'interest on interest' makes Compound Interest grow faster than Simple Interest over time for periods greater than one year.

Answer: CI is calculated on the principal and the accumulated interest from previous periods.

Example 2medium

A sum of ₹15,000 is invested at 8% per annum compound interest for 2 years. Calculate the compound interest earned, given that the interest is compounded annually.

A)₹2,400
B)₹2,496
C)₹2,560
D)₹2,600

Step-by-step solution

Given Principal (P) = ₹15,000, Rate (R) = 8% p.a., Time (n) = 2 years.
Amount (A) = P(1 + R/100)^n = 15000(1 + 8/100)^2
A = 15000(1.08)^2 = 15000 × 1.1664 = ₹17,496
Compound Interest (CI) = A - P = 17496 - 15000 = ₹2,496

Answer: ₹2,496

Example 3hard

A sum of money, when invested at 10% per annum compound interest, yields an interest of ₹1050 in 2 years. What is the principal sum?

A)₹4500
B)₹5000
C)₹5250
D)₹5500

Step-by-step solution

Let P be the principal sum. The amount A after 2 years will be A = P(1 + R/100)^n.
Substitute R=10% and n=2: A = P(1 + 10/100)^2 = P(1.1)^2 = 1.21P.
The Compound Interest (CI) is A - P. So, CI = 1.21P - P = 0.21P.
Given CI = ₹1050, we have 0.21P = 1050. Solving for P: P = 1050 / 0.21 = ₹5000.

Answer: ₹5000

Practice questions on Compound Interest

Q1.easy
A sum of ₹5,000 is invested at 10% per annum compound interest for 2 years. What is the amount received at the end of 2 years?
1. A)₹5,500
2. B)₹6,000
3. C)₹6,050
4. D)₹6,100
Show answer
Answer: ₹6,050
Hint: Use the compound amount formula A = P(1 + R/100)^N. Remember to calculate for each year's compounding effect.
Q2.easy
If a principal of ₹8,000 earns interest at 5% per annum compounded annually for 2 years, what is the Compound Interest (CI) earned?
1. A)₹800
2. B)₹820
3. C)₹840
4. D)₹860
Show answer
Answer: ₹820
Hint: First, calculate the Amount (A) at the end of 2 years using the compound interest formula, then subtract the principal (P) to find the CI.
Q3.easy
When interest is compounded half-yearly, how are the annual rate (R) and the number of years (N) adjusted in the formula A = P(1 + R'/100)^N'?
1. A)R' = R, N' = N × 2
2. B)R' = R / 2, N' = N / 2
3. C)R' = R / 2, N' = N × 2
4. D)R' = R × 2, N' = N / 2
Show answer
Answer: R' = R / 2, N' = N × 2
Hint: Half-yearly compounding means interest is calculated twice a year. Think about how this affects the rate applied per period and the total number of periods within the given years.
Q4.medium
Rohan borrows ₹20,000 from a bank at 10% per annum compound interest. If the interest is compounded half-yearly, what amount will he have to pay back after 1 year?
1. A)₹22,000
2. B)₹22,050
3. C)₹21,000
4. D)₹22,100
Show answer
Answer: ₹22,050
Hint: Remember to adjust both the rate and the time period when interest is compounded half-yearly. The annual rate is halved, and the number of years is doubled for the number of compounding periods.
Q5.medium
The difference between the compound interest and simple interest on a certain sum for 2 years at 5% per annum is ₹25. Find the sum.
1. A)₹8,000
2. B)₹10,000
3. C)₹12,000
4. D)₹15,000
Show answer
Answer: ₹10,000
Hint: Set up expressions for SI and CI in terms of the principal 'P'. The difference between these two expressions will be equal to ₹25. Remember to consider the formula for CI for 2 years.
Q6.medium
What principal will amount to ₹13,310 in 3 years at 10% per annum compound interest, compounded annually?
1. A)₹10,000
2. B)₹11,000
3. C)₹12,000
4. D)₹10,500
Show answer
Answer: ₹10,000
Hint: Use the compound interest formula A = P(1 + R/100)^n. You know A, R, and n. Rearrange the formula to solve for P.
Q7.hard
What is the difference between the Compound Interest and Simple Interest on a sum of ₹10,000 at an annual interest rate of 10% for 3 years?
1. A)₹300
2. B)₹310
3. C)₹320
4. D)₹331
Show answer
Answer: ₹310
Hint: Calculate Simple Interest and Compound Interest separately for 3 years and then find their difference. Remember CI is calculated on the amount of the previous year.
Q8.hard
A sum of money amounts to ₹29,160 in 1 year at 20% per annum, compounded half-yearly. Find the original principal sum.
1. A)₹24,000
2. B)₹25,000
3. C)₹26,000
4. D)₹27,000
Show answer
Answer: ₹24,000
Hint: When interest is compounded half-yearly, the annual rate is halved, and the time period (n) is doubled in terms of half-years.
Q9.hard
The compound interest on a certain sum of money for the second year at a certain rate is ₹1,000, and for the third year, it is ₹1,100. Find the annual rate of interest.
1. A)5%
2. B)8%
3. C)10%
4. D)12%
Show answer
Answer: 10%
Hint: The interest for the third year is calculated on the amount accumulated at the end of the second year. The increase in interest from the second to the third year is due to the interest on the previous year's interest.

These are 9 of the 60 questions available for Compound Interest. Start practicing above to unlock visual solutions, AI coaching, and the topic leaderboard — completely free.