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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)

Total Questions : 1171 | Page 5 of 118 pages
Question 41.

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.?

  1.    Rs. 9000.30
  2.    Rs. 9720
  3.    Rs. 10123.20
  4.    Rs. 10483.20
  5.    None of these
 Discuss Question
Answer: Option C. -> Rs. 10123.20

Amount =  Rs. \(\left[25000\times\left(1+\frac{12}{100}\right)^{3}\right]\)


= Rs. \(\left(25000\times\frac{28}{25}\times\frac{28}{25}\times\frac{28}{25}\right)\)


= Rs. 35123.20


So, C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20

Question 42.

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

  1.    6%
  2.    6.5%
  3.    7%
  4.    7.5%
 Discuss Question
Answer: Option A. -> 6%

Let the rate be R% p.a.


Then, \(1200\times\left(1+\frac{R}{100}\right)^{2}=1348.32\)


\(\Rightarrow\left(1+\frac{R}{100}\right)^{2}=\frac{134832}{120000}=\frac{11236}{10000}\)


So,  \(\left(1+\frac{R}{100}\right)^{2} = \left(\frac{106}{100}\right)^{2}\)


\(1+\frac{R}{100} =\frac{106}{100}\)


R = 6%


 

Question 43.

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

  1.    3
  2.    4
  3.    5
  4.    6
 Discuss Question
Answer: Option B. -> 4

P \(\left(1+\frac{20}{100}\right)^{n}>2P \Rightarrow\left(\frac{6}{5}\right)^{n}> 2.\)


Now,  \(\left(\frac{6}{5}\times\frac{6}{5}\times\frac{6}{5}\right)>2.\)


So n  = 4 year

Question 44.

Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

  1.    Rs. 8600
  2.    Rs. 8620
  3.    Rs. 8820
  4.    None of these
 Discuss Question
Answer: Option C. -> Rs. 8820

Amount = Rs. \(\left[8000\times\left(1+\frac{5}{100}\right)^{2}\right]\)


= Rs. \(\left(8000\times\frac{21}{20}\times\frac{21}{20}\right)\)


= Rs. 8820.

Question 45.

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

  1.    6.06%
  2.    6.07%
  3.    6.08%
  4.    6.09%
 Discuss Question
Answer: Option D. -> 6.09%

Amount of Rs. 100 for 1 year 
when compounded half-yearly = \(Rs. \left[100\times\left(1+\frac{3}{100}\right)^{2}\right] = Rs. 106.09\)


So, Effective rate = (106.09 - 100)% = 6.09%

Question 46.

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

  1.    Rs. 1550
  2.    Rs. 1650
  3.    Rs. 1750
  4.    Rs. 1750
 Discuss Question
Answer: Option C. -> Rs. 1750

C.I. = Rs. \(\left[4000\times\left(1+\frac{10}{100}\right)^{2}-4000\right]\)


= Rs.\(\left(4000\times\frac{11}{10}\times\frac{11}{10}-4000\right)\)


= Rs. 840.


Sum = Rs. \(\left(\frac{420\times100}{3\times8}\right)= Rs. 1750.\)

Question 47.

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

  1.    Rs. 51.25
  2.    Rs. 52
  3.    Rs. 54.25
  4.    Rs. 60
 Discuss Question
Answer: Option A. -> Rs. 51.25

Sum = Rs. \(\left(\frac{50\times100}{2\times5}\right)= Rs. 500. \)


Amount  =  Rs.  \(\left[500\times\left(1+\frac{5}{100}\right)^{2}\right]\)


= Rs.  \(\left(500\times\frac{21}{20}\times\frac{21}{20}\right)\)


= Rs. 551.25


 So, C.I. = Rs. (551.25 - 500) = Rs. 51.25

Question 48.

The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

  1.    Rs. 2.50
  2.    Rs. 3
  3.    Rs. 3.75
  4.    Rs. 4
  5.    None of these
 Discuss Question
Answer: Option B. -> Rs. 3

S.I. = Rs \(\left(\frac{1200\times10\times1}{100}\right)= Rs. 120.
\)


C.I. = Rs. \(\left[1200\times\left(1+\frac{5}{100}\right)^{2}-1200\right]= Rs. 123.\)


So, Difference = Rs. (123 - 120) = Rs. 3.

Question 49.

The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

  1.    8
  2.    10
  3.    12
  4.    Cannot be determined
  5.    None of these
 Discuss Question
Answer: Option A. -> 8

\(\left[15000\times\left(1+\frac{R}{100}\right)^{2}-15000\right]-\left(\frac{15000\times R\times2}{100}\right)= 96.\)  


\(15000\left[\left(1+\frac{R}{100}\right)^{2}-1-\frac{2R}{100}\right]= 96. \)


\(15000\left[\frac{(100+R)^{2}-10000-(200\times R)}{10000}\right]=96.\)


R2 = \(\left(\frac{96\times2}{3}\right) = 64\)


R =  8.


So, Rate = 8 %.

Question 50.

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

  1.    Rs. 400
  2.    Rs. 500
  3.    Rs. 600
  4.    Rs. 800
 Discuss Question
Answer: Option B. -> Rs. 500

Let the sum be Rs. P.


Then , \(\left[P\left(1+\frac{10}{100}\right)^{2}-P\right] = 525\)


\(\left[\left(\frac{11}{10}\right)^{2}-1\right] = 525\)


P =  \(\left(\frac{525\times100}{21}\right) = 2500\)


So , Sum =  Rs. 2500.


So, S.I. = Rs. \(\left(\frac{2500\times5\times4}{100}\right) = 500.\)

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