Aptitude Questions: Compound Interest Set 8

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Welcome to Online Maths in AffairsCloud.com. Here we are creating question sample in Compound Interest, which is common for all the IBPS, SBI, RBI, IPPB, LIC and other competitive exams. We have included Some questions that are repeatedly asked in exams !!

1. A part of 70000 is lent out at 10% annum. The rest of the amount is lent out at 5% per annum after one year. The ratio of interest after 3 years from the time when first amount was lent out is 1:2. Find the second part that was lent out at 5%.
   A.40000
   B.50000
   C.60000
   D.48000
   E.55000
   
   Answer & Explanation

   Answer – C.60000
   Explanation :
   10*3*x/5*2*y = 1/2
   x/y = 1/6
   6/7*70000 = 60000
   
   
   
2. There is 50% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
   A.Rs. 2255
   B.Rs. 2792
   C.Rs. 3580
   D.Rs. 3972
   E.None of these
   
   Answer & Explanation

   Answer – D.Rs. 3972
   Explanation :
   In S.I,
   Let P=100, I=50, T=5 yrs
   R = 50*100/100*5 = 10%
   In C.I,
   P = 12000, T=3 yrs, R= 10%
   C.I = [12000*(1 + 10/100)^3 – 1 ]
   C.I = 3972.
   
   
   
3. Karthik lends a certain amount to Vignesh on simple interest for two years at 20%. Vignesh gives this entire amount to Kamal on compound interest for two years at the same rate annually. Find the percentage earning of Vignesh at the end of two years on the entire amount.
   A.3%
   B.3(1/7)%
   C.4%
   D.5(6/7)%
   E.None of these
   
   Answer & Explanation

   Answer – C.4%
   Explanation :
   SI=20*2=40%
   CI=20+20+(400/100)=44%
   Diff = 44-40=4%
   
   
   
4. A man borrows 3000 rupees at 10% compound interest. At the end every year he pays rupees 1000 back. How much amount should he pay at the end of the fourth Year to clear all his debt?
   A.Rs. 680.5
   B.Rs. 651.3
   C.Rs. 751.3
   D.Rs. 790.3
   E.None of these
   
   Answer & Explanation

   Answer – C.Rs. 751.3
   Explanation :
   After one year amount = 3000 *110/100 = 3300
   He pays 1000 back, so remaining = 3300-1000 = 2300
   After two year amount = 2300 *110/100 = 2530
   He pays 1000 back, so remaining = 2530-1000 = 1530
   After three year amount = 1530*110/100 = 1683
   He pays 1000 back, so remaining = 1683-1000= 683
   After fouth year = 683 * 110/100 = 751.3
   
   
   
5. Rahul saves an amount of 800 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.
   A.Rs. 1822.8
   B.Rs. 2252
   C.Rs. 2550.50
   D.Rs. 2912.8
   E.None of these
   
   Answer & Explanation

   Answer – D.Rs. 2912.8
   Explanation :
   800*(11/10)³=1064.8
   800*(11/10)²=968
   800*(11/10)=880
   Total amount =2912.8 
   
   
   
6. Find the compound interest at the rate of 8% for 3 years on that principal which in 3 years at therate of 10% per annum gives 300 as simple interest.
   A.180.515
   B.220.25
   C.259.712
   D.289.624
   E.312.51
   
   Answer & Explanation

   Answer – C.259.712
   Explanation :
   SI =300
   Per yr = 100
   Rate = 10%
   C.I = 1000*(108/100)³ -1000
   C.I = 259.712
   
   
   
7. The difference between the total simple interest and the total compound interest compounded annually at the same rate of interest on a sum of money at the end of two years is Rs. 450. What is definitely the rate of interest per cent per annum?
   A.8400
   B.4800
   C.7800
   D.Data inadequate
   E.None of these
   
   Answer & Explanation

   Answer – D.Data inadequate
   Explanation :
   Difference = Pr²/(100)²
   = (450×100×100)/(P×r²)
   P is not given
   
   
   
8. The CI on Rs.6000 for 3 years at 8% for first year, 7% for second year, 6% for the third year will be
   A.Rs.1430
   B.Rs.1530
   C.Rs.1250
   D.Rs.1350
   E.None of these
   
   Answer & Explanation

   Answer – D.Rs.1350
   Explanation :
   A = 6000*108/100*107/100*106/100
   = 6000*1.08*1.07*1.06
   = 7349.616 = 7350
   CI = 7350-6000 = 1350
   
   
   
9. Venkat and Vidhya have to clear their respective loans by paying 2 equal annual instalments of Rs.30000 each. Venkat pays at 10% pa of SI and Vidhyapays at 10% CI pa. What is the difference in their payments ?
   A.200
   B.300
   C.400
   D.500
   E.None of these
   
   Answer & Explanation

   Answer – B.300
   Explanation :
   D =[(30,000 *110/100*110/100) – 30,000]  – 30,000 *10*2/100
   =[36300-30000]- 6000
   =6300 – 6000
   D = 300
   
   
   
10. The difference between interest received by Vivek and Vimal is Rs.405 on Rs.4500 for 3 years. What is the difference in rate of interest ?
    A.1.5%
    B.2%
    C.3%
    D.2.7%
    E.None of these
    
    Answer & Explanation

    Answer – C.3%
    Explanation :
    4500*3/100(R1-R2) = 405
    R1-R2 = 405*100/13500 = 3%