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Quantitative Aptitude > Interest

COMPOUND INTEREST MCQs

Total Questions : 262 | Page 12 of 27 pages
Question 111. A certain sum of money amounts to Rs.2,420 in 2 years and Rs.2,662 in 3 years at some rate of compound interest, compounded annually. The rate of interest per annum is
  1.    10%
  2.    6%
  3.    9%
  4.    8%
 Discuss Question
Answer: Option A. -> 10%
Answer: (a)Let the rate of interest = R% per annum.We know thatA = P$(1 + R/100)^T$2420 = P$(1 + R/100)^2$ ....(i)2662 = P$(1 + R/100)^3$ ...(ii)Dividing equation (ii) by (i),$1 + R/100 = 2662/2420$$R/100 = 2662/2420$ - 1$R/100 = {2662 - 2420}/2420$= $242/2420 = 1/10$R = $1/10 × $100 = 10%Using Rule 7(i),Here, b - a = 3 - 2 = 1B = Rs.2,662, A= Rs.2,420R% = $(B/A - 1)$ × 100%= $(2662/2420 -1)$ × 100%= $[{2662 - 2420}/2420]$ × 100%= $242/2420 × 100%$ = 10%
Question 112. A certain amount of money at r%, compounded annually after two and three years becomes Rs.1440 and Rs.1728 respectively. r is
  1.    20
  2.    5
  3.    15
  4.    10
 Discuss Question
Answer: Option A. -> 20
Answer: (a)If the principal be Rs.P, thenA = P$(1 + R/100)^T$1440 = P$(1 + R/100)^2$ ...(i)and 1728 = P$(1 + R/100)^3$ ...(ii)On dividing equation (ii) by (i),$1728/1440 = 1 + r/100$$r/100 = 1728/1440$ - 1= ${1728 - 1440}/1440 = 288/1440$r = ${288 × 100}/1440$r = 20% per annumUsing Rule 7(i),Here, b - a = 3 - 2 = 1B = Rs.1728, A = Rs.1440R% = $(B/A - 1)$ × 100%= $(1728/1440 - 1) × 100%$= $({1728 - 1440}/1440) × 100%$= $[288/1440] × 100%$ = 20%
Question 113. The difference between simple and compound interest compounded annually, on a certain sum of money for 2 years at 4% per annum is 1. The sum (in ) is :
  1.    640
  2.    650
  3.    625
  4.    630
 Discuss Question
Answer: Option C. -> 625
Answer: (c)Using Rule 6,The difference between compound interest and simple interest for two years= ${\text"Principal" × (Rate)^2}/{100 × 100}$1 = ${\text"Principal" × (4)^2}/10000$Principal = $10000/16$ = Rs.625
Question 114. If the difference between S.I. and C.I. for 2 years on a sum of money lent at 5% is 6, then the sum is
  1.    2000
  2.    2200
  3.    2600
  4.    2400
 Discuss Question
Answer: Option D. -> 2400
Answer: (d)Using Rule 6,The difference between C.I. and S.I. on a sum 'P' in 2 years at the rate of R% rate of compound interest will beC.I - S.I. = P$(R/100)^2 = {S.I. × R}/200$ For 3 years, C.I. - S.I. = P$(R/100)^2 × (3 + R/100)$
Question 115. What sum will give 244 as the difference between simple interest and compound interest at 10% in 1 1 2 years compounded half yearly ?
  1.    28,000
  2.    40,000
  3.    32,000
  4.    36,000
 Discuss Question
Answer: Option C. -> 32,000
Answer: (c)Using Rule 6,Time = $3/2 × 2 = 3$ half yearsRate = $10/2$ = 5% per half year[Since, when r → $r/2$, then t → 2t]Difference = P$(r^3/1000000 + {3r^2}/10000)$244 = P$(125/1000000 + 75/10000)$244 = P$(7625/1000000)$P = ${244 × 1000000}/7625$ = Rs.32000
Question 116. Find the difference between the compound interest and the simple interest on 32,000 at 10% p.a. for 4 years.
  1.    2501.20
  2.    2051.20
  3.    2025.20
  4.    2052.50
 Discuss Question
Answer: Option B. -> 2051.20
Answer: (b)Using Rule 1,S.I. = $\text"Principal × Time × Rate"/100$= ${32000 × 4 × 10}/100$ = Rs.12800C.I. = P$[(1 + R/100)^4 - 1]$= 32000$[(1 + 10/100)^4 - 1]$= 32000 $[(1.1)^4$ - 1]= 32000 (1.4641 - 1)= 32000 × 0.4641= Rs.14851.2Required difference= 14851.2 - 12800 = Rs.2051.2
Question 117. The difference between the compound and the simple interest on a sum for 2 years at 10% per annum, when the interest is compounded annually, is 28. If the interest were compounded halfyearly, the difference in the two interests will be
  1.    43.29
  2.    44
  3.    43.41
  4.    28.35
 Discuss Question
Answer: Option C. -> 43.41
Answer: (c)Using Rule 6,The difference between C.I. and S.I. on a sum 'P' in 2 years at the rate of R% rate of compound interest will beC.I - S.I. = P$(R/100)^2 = {S.I. × R}/200$ For 3 years, C.I. - S.I. = P$(R/100)^2 × (3 + R/100)$
Question 118. On a certain sum of money lent out at 16% p.a. the difference between the compound interest for 1 year, payable half yearly, and the simple interest for 1 year is 56. The sum is
  1.    5780
  2.    1080
  3.    8750
  4.    7805
 Discuss Question
Answer: Option C. -> 8750
Answer: (c)Using Rule 6,Rate of interest = 8% per halfyearTime = 2 half yearsDifference of interests = ${PR^2}/100$56 = $P × (8)^2/(100)^2$P = ${56 × 10000}/64$ = 8750
Question 119. The difference between simple and compound interest on a certain sum of money for 2 years at 4 per cent per annum is 1. The sum of money is :
  1.    650
  2.    600
  3.    560
  4.    625
 Discuss Question
Answer: Option D. -> 625
Answer: (d)Using Rule 6,When difference between the CI and SI on a certain sum of money for 2 years at r % rate is x, thenSum = x × $(100/r)^2$= 1 × $(100/4)^2$ = Rs.625
Question 120. A sum of 6,000 is deposited for 3 years at 5% per annum compound interest (compounded annually). The difference of interests for 3 and 2 years will be
  1.    375.00
  2.    75.00
  3.    330.75
  4.    30.75
 Discuss Question
Answer: Option C. -> 330.75
Answer: (c)Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$

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