Aptitude Questions: Compound Interest Set 6

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

Questions Penned by Yogit

  1. The difference between compound interest compounded every 6 months and simple interest after 2 years is 248.10. The rate of interest is 10 percent. Find the sum
    a) 12000
    b) 14000
    c) 16000
    d) 18000
    e) None of these
    Answer & Explanation
    Answer – c) 16000
    Explanation :
    P*(1+5/100)^4 – P – P*(10/100)*2 = 248.10
    P = 16000
  2. A person earns an interest of 240 on investing certain amount at Simple interest for 2 years at 5 percent amount. If the rate of interest is compounded annually then how much more interest will be gain by the person at same rate of interest and on the same sum.
    a) 6
    b) 8
    c) 12
    d) 10
    e) None of these
    Answer & Explanation
    Answer –a) 6
    Explanation :
    240 = P*(5/100)*2, P = 2400
    CI = 2400(1+5/100)^2 – 2400 = 246
    So, 246 – 240 = 6
  3. Find the least number of years in which the sum put at 25% rate of interest will be more than doubled.
    a) 2 years
    b) 3 years
    c) 4 years
    d) 5 years
    e) None of these
    Answer & Explanation
    Answer – c) 4 years
    Explanation :
    Amount >= P*(1+25/100)^n
    Amount = p*(5/4) ^n
    For n = 4, (625/256) which is greater than 2.
  4. A sum of rupees 4420 is to be divided between rakesh and prakash in such a way that after 5 years and 7 years respectively the amount they get is equal. The rate of interest is 10 percent. Find the share of rakesh and prakash
    a) 2000, 2420
    b) 2420, 2000
    c) 2480, 2420
    d) 2210, 2210
    e) None of these
    Answer & Explanation
    Answer – b) 2420, 2000
    Explanation :
    Let the share of rakesh and prakash be R and P
    R*(1+10/100)^ 5 = (4420 – R)*(1+10/100)^ 7
    We get R = 2420, so P = 2000
  5. The simple interest on a certain sum of money for 4 years at 15 percent per annum is 600. Find the compound interest in the same sum at 10 percent interest for 2 years
    a) 220
    b) 200
    c) 210
    d) 120
    e) None of these
    Answer & Explanation
    Answer – c) 210
    Explanation :
    600 = p*4*(15/100), P = 1000
    CI = 1000(1+10/100)^ 2 – 1000 = 210
  6. Find the effective annual rate of 10 percent per annum compounded half- yearly-
    a) 10.5
    b) 10.25
    c) 11.25
    d) 11.50
    e) None of these
    Answer & Explanation
    Answer – b) 10.25
    Explanation :
    Take principal as 100 and then calculate,
    A = 100*(1+5/100)^ 2
    A = 110.25
    So effective rate is 10.25
  7. A sum of rupees 3200 is compounded annually at the rate of 25 paise per rupee per annum. Find the compound interest payable after 2 years.
    a) 1200
    b) 1600
    c) 1800
    d) 2000
    e) None of these
    Answer & Explanation
    Answer – c) 1800
    Explanation :
    Rate of interest is 25 paise per rupee per annum.
    So for 100 rupees it is 2500 paise i.e. 25 percent
    Now, CI = 3200(1+25/100)^ 2  – 3200 = 1800
  8. A sum of 3000 becomes 3600 in 3 years at 15 percent per annum. What will be the sum at the same rate after 9 years.
    a) 5124
    b) 5184
    c) 5186
    d) 5192
    e) None of these
    Answer & Explanation
    Answer – b) 5184
    Explanation :
    3600 = 3000*(1+15/100)^ 3
    (1+15/100)^ 3 = 6/5
    Amount = 3000*[(1+15/100)^ 3]^ 3
    Amount = 3000*(6/5)^ 3 = 5184
  9. Priya saves an amount of 500 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.
    a) 1820.5
    b) 1840.5
    c) 1920.5
    d) 1940.5
    e) None of these
    Answer & Explanation
    Answer – a) 1820.5
    Explanation :
    Total amount  = 500*(1+10/100)^ 3 + 500*(1+10/100)^ 2 + 500*(1+10/100)
    = 1820.5
  10. A man borrows 10000 rupees at 20 % compound interest for 3 years. If every year he pays 2000 rupees as repayment. How much amount is still left to be paid by the man?
    a) 5000
    b) 7000
    c) 9000
    d) 10000
    e) None of these
    Answer & Explanation
    Answer – d) 10000
    Explanation :
    Amount to be paid at the end of three years = 10000*(1+20/100)^ 3 = 17280
    Amount paid as instalment by the man = 2000*(1+20/100)^ 2 + 2000*(1+20/100) + 2000 = 7280
    So remaining amount = 10000
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