1. Topics
  2. Quantitative Aptitude
  3. Compound Interest
Question:

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

Options:
A.2
B.2 1/2
C.3
D.4
E.None of these
Answer: Option A
 -    Amount = Rs. (30000 + 4347) = Rs. 34347.
 
  Let the time be n years.
 Then, 30000  (  1 + 7  ) n   = 34347 100  
 (    107   ) n   =   34347   =   11449   =   (  107  ) 2 100 30000 10000 100  
  n = 2 years.

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More Questions Related to Quantitative Aptitude > Compound Interest :

Question 1.

There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

Options:
  1.    Rs. 2160
  2.    Rs. 3120
  3.    Rs. 3972
  4.    Rs. 6240
  5.    None of these
Answer: Option C
 -    Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.
  R =   100 x 60   = 10% p.a. 100 x 6   Now, P = Rs. 12000. T = 3 years and R = 10% p.a.
 C.I. = Rs. [ 12000 x { ( 1 + 10 ) 3 - 1 } ] 100   = Rs.   12000 x
331   1000  
= 3972.
Question 2.

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

Options:
  1.    625
  2.    630
  3.    640
  4.    650
  5.    None of these
Answer: Option A
 -  Let the sum be Rs. x. Then,
C.I. = [  x  ( 1 + 4  ) 2  -  x  ]  =  (  676  x - x  )  =  51  x. 100 625 625  
Question 3.

A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

Options:
  1.    Rs 120
  2.    Rs 121
  3.    Rs 122
  4.    Rs 123
  5.    None of these
Answer: Option B
 -     Amount = Rs. [ 1600 x ( 1 + 5 ) 2 + 1600 x ( 1 + 5 ) ] 2 x 100 2 x 100   = Rs. [ 1600 x 41 x 41 + 1600 x 41 ] 40 40 40   = Rs.
[ 1600 x 
41
 ( 
41 + 1 
)
] 40 40   = Rs.
[ 
1600 x 41 x 81
 ] 40 x 40  
= Rs. 3321.
 C.I. = Rs. ( 3321 - 3200 ) = Rs. 121
Question 4.

What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

Options:
  1.    Rs. 9000.30
  2.    Rs. 9720
  3.    Rs. 10123.20
  4.    Rs. 10483.20
  5.    None of these
Answer: Option C
 -     Amount = Rs.     25000 x   ( 1 + 12 ) 3   100   = Rs.   25000 x   
28   x 
28   x  
28   25 25 25  
= Rs. 35123.20  
  C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20
Question 5.

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

Options:
  1.    3
  2.    4
  3.    5
  4.    6
  5.    None of these
Answer: Option B
 -    P  ( 1 + 20  ) n > 2P           ( 6 )  n  > 2. 100 5  
Now, ( 6   x   6   x   6   x 6  )   > 2. 5 5 5 5
  So, n = 4 years.
Question 6.

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

Options:
  1.    6.06%
  2.    6.07%
  3.    6.08%
  4.    6.09%
  5.    None of these
Answer: Option D
 -     Amount of Rs. 100 for 1 year 
  when compounded half-yearly   }   = Rs.    100 x   (   1 + 3  ) 2   = Rs. 106.09 100
  Effective rate = (106.09 - 100)% = 6.09%

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