Aptitude Questions: Compound Interest Set 7

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. A sum of rupees 3903 is divided between P and Q such that the share of P at the end of 8 years is equal to the share of Q after 10 years. Find the share of P if rate of interest is 4% compounded annually.
    a) 2012
    b) 2029
    c) 2028
    d) 2081
    e) None of these
    Answer & Explanation
    Answer –c) 2028
    Explanation :
    P*(1 + 4/100)^8 = (3903 – P)*(1 + 4/100)^10
  2.  A man borrows 2000 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 third Year to clear all his debt?
    a) 252
    b) 352
    c) 452
    d) 552
    e) None of these
    Answer & Explanation
    Answer – b) 352
    Explanation :
    After one year amount = 2000*110/100 = 2200
    He pays 1000 back, so remaining = 2200 – 1000 = 1200
    After second year = 1200*110/100 = 1320
    He pays 1000 back, so remaining = 1320 – 1000 = 320
    After third year = 320*110/100 = 352
  3. A sum of rupees 3200 is compounded annually at the rate of 10 paisa per rupee per annum. Find the compound interest payable after 2 years.
    a) 200
    b) 842
    c) 672
    d) 832
    e) None of these
    Answer & Explanation
    Answer – c) 672
    Explanation :
    Rate of interest is 10 paisa per rupee per annum. So for 100 rupees it is 1000 paise i.e. 10 percent
    Now, CI = 3200(1+10/100)^ 2  – 3200 = 672
  4. What sum of money will amount to rupees 1124.76 in 3 years, if the rate of interest is 5% for the first year, 4% for the second year and 3% for the third year?
    a) 1500
    b) 1200
    c) 1000
    d) 1900
    e) None of these
    Answer & Explanation
    Answer – c) 1000
    Explanation :
    1124.76 = p*(105/100)*(104/100)*(103/100)
  5. Riya 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
  6. 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
  7. On a certain sum of money, after 2 years the simple interest and compound interest obtained are Rs 400 and Rs 600 respectively. What is the sum of money invested?
    a) 100
    b) 200
    c) 300
    d) 400
    e) None of these
    Answer & Explanation
    Answer –b) 200
    Explanation :
    400 = P*(R/100)*2
    600 = P*(1+R/100)^2 – P
    Solve both equations to get P
  8. A sum of money becomes Rs 35,280 after 2 years and Rs 37,044 after 3 years when lent on compound interest. Find the principal amount.
    a) 2800
    b) 3000
    c) 3200
    d) 4000
    e) None of these
    Answer & Explanation
    Answer –c) 3200
    Explanation :
    37044 = p*(1 +r/100)^3
    35280 = p*(1 + r/100)^2
    Divide both equations to get the value of r and then substitute in any equation to get P
  9. A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent? 
    a) 1000
    b) 1200
    c) 1400
    d) 1600
    e) None of these
    Answer & Explanation
    Answer – d) 1600
    Explanation :
    8.81 = p*(1+5/100)^4 – p*(1+10/100)^2
  10. A sum of rupees 4420 is to be divided between raj and parth 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 raj and parth
    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 raj and parth be R and P
    R*(1+10/100)^ 5 = (4420 – R)*(1+10/100)^ 7
    We get R = 2420, so P = 2000

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