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Quantitative Aptitude > Interest

COMPOUND INTEREST MCQs

Total Questions : 262 | Page 15 of 27 pages
Question 141. 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
$$\eqalign{
& {\text{S}}{\text{.I}}{\text{.}}\, = Rs.\,\left( {\frac{{1200 \times 5 \times 2}}{{100}}} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,120 \cr
& {\text{C}}{\text{.I}}{\text{.}} = Rs.\,\left[ {1200 \times {{\left( {1 + \frac{5}{{100}}} \right)}^2} - 1200} \right] \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,123 \cr
& \therefore {\text{Difference}} = Rs.\,\left( {123 - 120} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,3 \cr} $$
Question 142. 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
  5.    None of these
 Discuss Question
Answer: Option A. -> Rs. 51.25
$$\eqalign{
& {\text{Sum}} = Rs.\,\left( {\frac{{50 \times 100}}{{2 \times 5}}} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,500 \cr
& {\text{Amount}} = Rs.\,\left[ {500 \times {{\left( {1 + \frac{5}{{100}}} \right)}^2}} \right] \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,\left( {500 \times \frac{{21}}{{20}} \times \frac{{21}}{{20}}} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,551.25 \cr
& \therefore {\text{C}}{\text{.I}}{\text{.}} = Rs.\,\left( {551.25 - 500} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = Rs.\,51.25 \cr} $$
Question 143. A certain sum of amounts to Rs. 5832 in 2 years at 8% per annum compound interest, the sum is = ?
  1.    Rs. 5000
  2.    Rs. 5200
  3.    Rs. 5280
  4.    Rs. 5400
 Discuss Question
Answer: Option A. -> Rs. 5000
$${\text{Rate 8% = }}\frac{2}{{25}}$$
Principal   
   Amount
25
27
25
27
625
729
↓ × 8
↓ × 8
5000
5832
Hence required sum = Rs. 5000
Question 144. A man borrow Rs. 4000 at 15%, compound rate of interest. At the end of each year he pays back Rs. 1500. How much amount should be pay at the end of the third year to clear all his dues ?
  1.    Rs. 874.75
  2.    Rs. 824.50
  3.    Rs. 924.25
  4.    Rs. 974.25
 Discuss Question
Answer: Option A. -> Rs. 874.75
$$\eqalign{
& {\text{Amount after }}{{\text{1}}^{{\text{st}}}}{\text{ year}} \cr
& {\text{ = Rs}}{\text{. }}\left[ {4000\left( {1 + \frac{{15}}{{100}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left[ {\left( {4000 \times \frac{{23}}{{20}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left( {4600 - 1500} \right) \cr
& = {\text{Rs}}{\text{. }}3100 \cr
& {\text{Amount after }}{{\text{2}}^{{\text{nd}}}}{\text{ year}} \cr
& {\text{ = Rs}}{\text{. }}\left[ {3100\left( {1 + \frac{{15}}{{100}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left[ {\left( {3100 \times \frac{{23}}{{20}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left( {3565 - 1500} \right) \cr
& = {\text{Rs}}{\text{. }}2065 \cr
& {\text{Amount after }}{{\text{3}}^{{\text{rd}}}}{\text{ year}} \cr
& {\text{ = Rs}}{\text{. }}\left[ {2065\left( {1 + \frac{{15}}{{100}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left[ {\left( {2065 \times \frac{{23}}{{20}}} \right) - 1500} \right] \cr
& = {\text{Rs}}{\text{. }}\left( {2374.75 - 1500} \right) \cr
& = {\text{Rs}}{\text{. }}874.75 \cr} $$
Question 145. The compound interest on Rs. 6000 at 10% per annum for $${\text{1}}\frac{1}{2}$$ years, when the interest being compounded annually, is = ?
  1.    Rs. 910
  2.    Rs. 870
  3.    Rs. 930
  4.    Rs. 900
 Discuss Question
Answer: Option C. -> Rs. 930
$$\eqalign{
& {\text{Principal = Rs 6000}} \cr
& {\text{Rate }}\% {\text{ = 10}}\% \cr
& {\text{Time (t) = 1}}\frac{1}{2}{\text{ years}} \cr} $$
$$\eqalign{
& {{\text{2}}^{{\text{nd}}}}{\text{ year CI = 660}} \cr
& {\text{6 months }}{{\text{2}}^{{\text{nd}}}}{\text{ year CI}} \cr
& {\text{ = }}\frac{{660}}{2}{\text{ = 330}} \cr
& {\text{Total CI}} \cr
& {\text{ = }}\left( {600 + 330} \right) \cr
& \,\, = 930 \cr} $$
Question 146. At a certain rate per annum, the simple interest on a sum of money for one year is Rs. 260 and the compound interest on the same sum for two years is Rs. 540.80. The rate of interest per annum is = ?
  1.    4%
  2.    6%
  3.    8%
  4.    10%
 Discuss Question
Answer: Option C. -> 8%
$$\eqalign{
& {\text{SI for 1 year}} \cr
& {\text{ = Rs 260}} \cr
& {\text{SI for 2 year}} \cr
& {\text{ = 260}} \times {\text{2}} \cr
& {\text{ = Rs}}{\text{. 520 }} \cr
& {\text{Difference in (CI}} - {\text{SI)}} \cr
& \left( {540.80 - 520} \right){\text{ = Rs 20}}{\text{.8}} \cr
& {\text{Required rate % }} \cr
& {\text{ = }}\frac{{20.8}}{{260}} \times {\text{100}} \cr
& {\text{ = 8% }} \cr} $$
Question 147. A man invests Rs. 5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year = ?
  1.    Rs. 5624.32
  2.    Rs. 5627.20
  3.    Rs. 5630.50
  4.    Rs. 5788.125
 Discuss Question
Answer: Option A. -> Rs. 5624.32
$$\eqalign{
& {\text{C}}{\text{.I}}{\text{. earned during }}{{\text{1}}^{{\text{st}}}}{\text{ year}} \cr
& {\text{= }}\,{\text{Rs}}{\text{.}}\left[ {5000\left( {1 + \frac{5}{{100}}} \right) - 5000} \right]{\text{ }} \cr
& = {\text{Rs}}{\text{. }}\left( {5250 - 5000} \right) \cr
& = {\text{Rs}}{\text{. 250}} \cr
& {\text{Amount after }}{{\text{1}}^{{\text{st}}}}{\text{ year}} \cr
& = {\text{Rs}}{\text{. }}\left( {5250 - 20\% {\text{ of }}250} \right) \cr
& = {\text{Rs}}{\text{.}}\left( {5250 - 50} \right){\text{ }} \cr
& {\text{= }}\,{\text{Rs}}{\text{.}}\,{\text{5200 }} \cr
& {\text{C}}{\text{.I}}{\text{. earned during }}{{\text{2}}^{{\text{nd}}}}{\text{ year}} \cr
& = {\text{Rs}}{\text{.}}\left[ {5200\left( {1 + \frac{5}{{100}}} \right) - 5200} \right]{\text{ }} \cr
& = {\text{Rs}}{\text{. }}\left( {5460 - 5200} \right) \cr
& = {\text{Rs}}{\text{.260 }} \cr
& {\text{Amount after }}{{\text{2}}^{{\text{nd}}}}{\text{ year}} \cr
& {\text{= Rs}}{\text{. }}\left( {5460 - 20\% {\text{ of }}260} \right) \cr
& {\text{= Rs}}{\text{. }}\left( {5460 - 52} \right) \cr
& = {\text{Rs}}{\text{.}}\,{\text{5408 }} \cr
& {\text{C}}{\text{.I}}{\text{. earned during }}{{\text{3}}^{{\text{rd}}}}{\text{ year}} \cr
& {\text{= Rs}}{\text{. }}\left[ {5408\left( {1 + \frac{5}{{100}}} \right) - 5408} \right] \cr
& = {\text{Rs}}{\text{. }}\left( {5678.40 - 5408} \right) \cr
& = {\text{Rs}}{\text{.}}\,{\text{270}}{\text{.40 }} \cr
& {\text{Amount after }}{{\text{3}}^{{\text{rd}}}}{\text{ year}} \cr
& = {\text{Rs}}{\text{. }}\left( {5678.40 - 20\% \,{\text{of }}270.40} \right) \cr
& = {\text{Rs}}{\text{. }}\left( {5678.40 - 54.08} \right) \cr
& = {\text{Rs}}{\text{. 5624}}{\text{.32}} \cr} $$
Question 148. The compound interest on Rs. 5000 for 3 years at 10% p.a. will amount to = ?
  1.    Rs. 1654
  2.    Rs. 1655
  3.    Rs. 1600
  4.    Rs. 1565
 Discuss Question
Answer: Option B. -> Rs. 1655
$$\eqalign{
& {\text{Principal = Rs. 5000}} \cr
& {\text{Time = 3 years}} \cr
& {\text{Rate = 10}}\% {\text{ = }}\frac{1}{{10}} \cr
& {\text{Principal}}\,\,\,\,\,\,\,{\text{Amount}} \cr
& \,\,\,\,\,\,\,\,\,\,{\text{10}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{11}} \cr
& \,\,\,\,\,\,\,\,\,\,{\text{10}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{11}} \cr
& \,\,\,\,\,\,\,\,\,\,{\text{10}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{11}} \cr
& \underbrace {\overline {\,\,\,\,\,\,1000\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{1331}}\,\,\,\,\,} }_{331{\text{ units}}} \cr
& \Rightarrow 1000{\text{ units = Rs 5000}} \cr
& \Rightarrow 1{\text{ units = Rs 5}} \cr
& \Rightarrow 331{\text{ units = 331}} \times {\text{5}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{ = Rs. 1655}} \cr} $$
Question 149. If the compound interest on a certain sum for two years at 12% per annum is Rs. 2544, the simple interest on it at the same rate for 2 years will be = ?
  1.    Rs. 2400
  2.    Rs. 2500
  3.    Rs. 2480
  4.    Rs. 2440
 Discuss Question
Answer: Option A. -> Rs. 2400
$$\eqalign{
& {\text{Rate = 12}}\% \cr
& {\text{Time = 2 years}} \cr
& {\text{Effective rate of CI for 2 years}} \cr
& {\text{ = 12 + 12 + }}\frac{{12 \times 12}}{{100}} \cr
& = 25.44\,\% \cr
& {\text{Effective rate of SI for 2 years}} \cr
& {\text{ = 12}} \times 2{\text{ = 24}}\,\% \cr
& {\text{According to question,}} \cr
& {\text{Required SI}} \cr
& {\text{ = }}\frac{{2544}}{{25.44}} \times {\text{24}} = {\text{ Rs. 2400}} \cr
& {\text{Required sum}} \cr
& {\text{ = Rs. 2400}} \cr} $$
Question 150. A sum of money is compound interest became doubles itself in 15 years. It will become eight times of itself in = ?
  1.    45 years
  2.    48 years
  3.    54 years
  4.    60 years
 Discuss Question
Answer: Option A. -> 45 years
$$\eqalign{
& P{\left( {1 + \frac{{\text{R}}}{{100}}} \right)^{15}} = 2P \cr
& \Rightarrow {\left( {1 + \frac{{\text{R}}}{{100}}} \right)^{15}} = 2 \cr
& {\text{Let }}P{\left( {1 + \frac{{\text{R}}}{{100}}} \right)^n} = 8P \cr
& \Rightarrow {\left( {1 + \frac{{\text{R}}}{{100}}} \right)^n} = 8 = {2^3} = {\left\{ {{{\left( {1 + \frac{{\text{R}}}{{100}}} \right)}^{15}}} \right\}^3} \cr
& \Rightarrow {\left( {1 + \frac{{\text{R}}}{{100}}} \right)^n} = {\left( {1 + \frac{{\text{R}}}{{100}}} \right)^{45}} \cr
& \Rightarrow n = 45 \cr
& \therefore {\text{Required time = 45 years}} \cr} $$

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