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Quantitative Aptitude > Interest

COMPOUND INTEREST MCQs

Total Questions : 262 | Page 20 of 27 pages
Question 191. If the rate of interest be 4% per annum for first year, 5% per annum foe second year and 6% per annum for third year, then the compound interest of Rs.10000 for three years will be ?
  1.    Rs. 1575.20
  2.    Rs. 1600
  3.    Rs. 1625.80
  4.    Rs. 2000
 Discuss Question
Answer: Option A. -> Rs. 1575.20
$$\eqalign{
& {\text{ = Rs}}.10000\left[ {\left( {1 + \frac{4}{{100}}} \right)\left( {1 + \frac{5}{{100}}} \right)\left( {1 + \frac{6}{{100}}} \right)} \right] \cr
& = {\text{Rs}}.\left( {10000 \times \frac{{26}}{{25}} \times \frac{{21}}{{20}} \times \frac{{53}}{{50}}} \right) \cr
& = {\text{Rs}}.\left( {\frac{{57876}}{5}} \right) = {\text{Rs}}.11575.20 \cr
& {\text{C}}{\text{.I}}{\text{. = Rs}}{\text{.}}\left( {11575.20 - 10000} \right) \cr
& \,\,\,\,\,\,\,\,\, = {\text{Rs}}.1575.20 \cr} $$
Question 192. What will be the compound interest accrued on an amount of Rs.10000 @ 20 p.c.p.a in 2 years if the interest is compounded half - yearly?
  1.    Rs. 4400
  2.    Rs. 4600
  3.    Rs. 4641
  4.    Rs. 4680
  5.    None of these
 Discuss Question
Answer: Option C. -> Rs. 4641
$$\eqalign{
& {\text{P = Rs}}.10000, \cr
& {\text{R}} = 20\% \,p.a. \cr
& \,\,\,\,\,\,\, = 10\% \,{\text{per}}\,{\text{half year}} \cr
& T = 2\,{\text{years}} = 4\,{\text{half}}\,{\text{years}} \cr
& {\text{Amount}} \cr
& {\text{ = Rs}}.\left[ {10000 \times {{\left( {1 + \frac{{10}}{{100}}} \right)}^4}} \right] \cr
& = {\text{Rs}}.\left( {10000 \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \times \frac{{11}}{{10}}} \right) \cr
& = {\text{Rs}}.14641 \cr
& \therefore {\text{C}}{\text{.I}}{\text{. = Rs}}.\left( {14641 - 10000} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}.\,4641 \cr} $$
Question 193. A sum of money invested at compound interest amounts to Rs. 650 at the end of first year and Rs. 676 at the end of second year. The sum of money is = ?
  1.    Rs. 600
  2.    Rs. 540
  3.    Rs. 625
  4.    Rs. 560
 Discuss Question
Answer: Option C. -> Rs. 625
Interest on 650 for one year = 676 - 650 = 26
$$\eqalign{
& 26 = \frac{{650 \times r \times 1}}{{100}} \cr
& r = 4\% \cr
& 650 = P\left[ {1 + \frac{4}{{100}}} \right] \cr
& \Rightarrow 650 = P \times \frac{{26}}{{25}} \cr
& \Rightarrow p = \frac{{650 \times 25}}{{26}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,625 \cr} $$
Question 194. 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 = ?
  1.    Rs. 120
  2.    Rs. 121
  3.    Rs. 122
  4.    Rs. 123
 Discuss Question
Answer: Option B. -> Rs. 121
$$\eqalign{
& {\text{ = Rs}}.\left[ {1600 \times {{\left( {1 + \frac{5}{{2 \times 100}}} \right)}^2} + 1600 \times \left( {1 + \frac{5}{{2 \times 100}}} \right)} \right] \cr
& {\text{ = Rs}}.\left[ {1600 \times \frac{{41}}{{40}} \times \frac{{41}}{{40}} + 1600 \times \frac{{41}}{{40}}} \right] \cr
& {\text{ = Rs}}.\left[ {1600 \times \frac{{41}}{{40}}\left( {\frac{{41}}{{40}} + 1} \right)} \right] \cr
& {\text{ = Rs}}.\left( {\frac{{1600 \times 41 \times 81}}{{40 \times 40}}} \right) \cr
& {\text{ = Rs}}.\,3321 \cr
& \therefore {\text{C}}{\text{.I}}{\text{. = Rs}}.\left( {3321 - 3200} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}.\,121 \cr} $$
Question 195. The compound interest on a certain sum of money at a certain rate for 2 years is Rs. 40.80 and the simple interest on the same sum is Rs. 40 at the same rate and for the same time. The rate of interest is = ?
  1.    2% per annum
  2.    3% per annum
  3.    4% per annum
  4.    5% per annum
 Discuss Question
Answer: Option C. -> 4% per annum
Difference in CI and SI for 2 years
$$\eqalign{
& = \left( {40.80 - 40} \right) \cr
& = {\text{Rs 0}}{\text{.80}} \cr
& {\text{SI for first year }} \cr
& {\text{ = }}\frac{{40}}{2} = {\text{Rs}}{\text{.}}\,20 \cr
& {\text{Required Rate }}\% \cr
& {\text{ = }}\frac{{0.80}}{{20}} \times 100 = 4\% \cr} $$
Question 196. Mr. Duggal invested Rs. 20000 with rate of interest @ 20 p.c.p.a. The interest was compounded half - yearly for first one year ans in the next year it was compounded yearly. What will be the total interest earned at the end of 2 year ?
  1.    Rs. 8040
  2.    Rs. 8800
  3.    Rs. 9040
  4.    Rs. 9800
  5.    None of these
 Discuss Question
Answer: Option C. -> Rs. 9040
$$\eqalign{
& {\text{Amount}} \cr
& {\text{ = Rs}}.\left[ {20000{{\left( {1 + \frac{{10}}{{100}}} \right)}^2}\left( {1 + \frac{{20}}{{100}}} \right)} \right] \cr
& = {\text{Rs}}.\left( {20000 \times \frac{{11}}{{10}} \times \frac{{11}}{{10}} \times \frac{6}{5}} \right) \cr
& = {\text{Rs}}.29040 \cr
& {\text{C}}{\text{.I}}{\text{. = Rs}}.\left( {29040 - 20000} \right) \cr
& \,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}. 9040 \cr} $$
Question 197. The principal which will amounts to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest, is = ?
  1.    Rs. 200
  2.    Rs. 225
  3.    Rs. 250
  4.    Rs. 220
 Discuss Question
Answer: Option C. -> Rs. 250
$$\eqalign{
& 4\% = \frac{1}{{25}} \cr
& \,\,\,\,\,\,\,\,\, = \frac{{26 \to {\text{Amount}}}}{{25 \to {\text{Principal}}}} \cr
& {\text{Time = 2 years}} \cr
& {\text{Principal}}\,\,\,\,\,{\text{Amount}} \cr
& \,\,\,\,\,\,\,\,\,{\text{25}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{26}} \cr
& \,\,\,\,\,\,\,\,\,{\text{25}}\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,{\text{26}} \cr
& \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \cr
& \,\,\,\,\,\,\,\,625\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,676 \cr
& \,\,\,\, \downarrow \times 0.4\,\,\,\,\,\, \downarrow \times 0.4 \cr
& \,\,\,\,\,\,\,\,\,250\,\,\,\,\,\,\,\,\,\,\,\,270.40 \cr
& {\text{Hence required principal}} \cr
& {\text{ = Rs.250}} \cr} $$
Question 198. A sum of money on compound interest amounts to Rs. 10648 in 3 years and Rs. 9680 in 2 years. The rate of interest per annum is = ?
  1.    5%
  2.    10%
  3.    15%
  4.    20%
 Discuss Question
Answer: Option B. -> 10%
Let the sum be Rs. P and rate of interest be R% per annum. Then,
$$\eqalign{
& P{\left( {1 + \frac{R}{{100}}} \right)^2} = 9680\,.....\,\left( 1 \right) \cr
& P{\left( {1 + \frac{R}{{100}}} \right)^3} = 10648\,.....\,\left( 2 \right) \cr} $$
On dividing equation (2) by (1) :
$$\eqalign{
& 1 + \frac{R}{{100}} = \frac{{10648}}{{9680}} \cr
& \Rightarrow \frac{R}{{100}} = \frac{{10648}}{{9680}} - 1 \cr
& \Rightarrow \frac{R}{{100}} = \frac{{10648 - 9680}}{{9680}} \cr
& \Rightarrow \frac{R}{{100}} = \frac{{968}}{{9680}} \cr
& \Rightarrow \frac{R}{{100}} = \frac{1}{{10}} \cr
& \Rightarrow R = \frac{1}{{10}} \times 100 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\, = 10\% \cr} $$
Question 199. The difference between simple interest ans compound interest on Rs. P at R% p.a in 2 years is = ?
  1.    $${\text{Rs}}{\text{.}}\,\frac{{PR}}{{100}}$$
  2.    $${\text{Rs}}{\text{.}}\,\frac{{2PR}}{{100}}$$
  3.    $${\text{Rs}}{\text{.}}\,\frac{{P{R^2}}}{{100}}$$
  4.    $${\text{Rs}}{\text{.}}\,\frac{{P{R^2}}}{{{{\left( {100} \right)}^2}}}$$
 Discuss Question
Answer: Option D. -> $${\text{Rs}}{\text{.}}\,\frac{{P{R^2}}}{{{{\left( {100} \right)}^2}}}$$
$$\eqalign{
& {\text{S}}{\text{.I}}{\text{. = Rs}}{\text{.}}\left( {\frac{{P \times R \times 2}}{{100}}} \right) \cr
& \,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\left( {\frac{{2PR}}{{100}}} \right) \cr
& {\text{C}}{\text{.I}}{\text{. = Rs}}{\text{.}}\left[ {P \times {{\left( {1 + \frac{R}{{100}}} \right)}^2} - P} \right] \cr
& \,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\left[ {\frac{{P{R^2}}}{{{{\left( {100} \right)}^2}}} + \frac{{2PR}}{{100}}} \right] \cr
& \therefore {\text{Difference}} \cr
& {\text{ = Rs}}{\text{.}}\left[ {\left\{ {\frac{{P{R^2}}}{{{{\left( {100} \right)}^2}}} + \frac{{2PR}}{{100}}} \right\} - \frac{{2PR}}{{100}}} \right] \cr
& = {\text{Rs}}{\text{.}}\left[ {\frac{{P{R^2}}}{{{{\left( {100} \right)}^2}}}} \right] \cr} $$
Question 200. Compound interest on a sum of money for 2 years at 4% per annum is Rs. 2448. simple interest on the same sum of money at the same rate of interest for 2 years will be = ?
  1.    Rs. 2500
  2.    Rs. 2400
  3.    Rs. 2360
  4.    Rs. 2250
 Discuss Question
Answer: Option B. -> Rs. 2400
Time (t) = 2 years
Rate % = 4%
Effective rate of CI of 2 years
$$\eqalign{
& {\text{ = 4 + 4 + }}\frac{{4 \times 4}}{{100}} \cr
& = 8.16\% \cr} $$
Effective Rate of SI for 2 years = 8%
According to the question
$$\eqalign{
& {\text{8}}{\text{.16% of sum}} \cr
& {\text{ = Rs. 2448}} \cr
& {\text{1% of sum}} \cr
& {\text{ = Rs. }}\frac{{2448}}{{8.16}} \cr
& {\text{8% of sum}} \cr
& {\text{ = }}\frac{{2448}}{{8.16}} \times {\text{8}} \cr
& {\text{ = Rs. 2400 }} \cr} $$

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