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Quantitative Aptitude > Interest

COMPOUND INTEREST MCQs

Total Questions : 262 | Page 3 of 27 pages
Question 21. The compound interest on a certain sum of money for 2 years at 5% per annum is Rs.410. The simple interest on the same sum at the same rate and for the same time is
  1.    Rs.405
  2.    Rs.400
  3.    Rs.350
  4.    Rs.300
 Discuss Question
Answer: Option B. -> Rs.400
Answer: (b)Compound interest = P $[(1 + R/100)^T - 1]$410 = P$[(1 + 5/100)^2 - 1]$410 = P$[(1 + 1/20)^2 - 1]$410 = P$[(21/20)^2 - 1]$410 = P$(441/400 - 1)$410 = P$(41/400)$P = ${410 × 400}/41$ = Rs.4000S.I. = $\text"Principal × Time × Rate"/100$= ${4000 × 2 × 5}/100$ = Rs.400Using Rule 10,Here, C.I. = Rs.410, R = 5%, S.I. = ?C.I. = S.I.$(1 + R/200)$410 = S.I.$(1 + 5/200)$410 = S.I.$(205/200)$S.I. = ${410 × 200}/205$ = Rs.400
Question 22. Compound interest on a sum of money for 2 years at 4 per cent per annum is Rs.2,448. Simple interest of the same sum of money at the same rate of interest for 2 years will be
  1.    Rs.2,250
  2.    Rs.2,500
  3.    Rs.2,360
  4.    Rs.2,400
 Discuss Question
Answer: Option D. -> Rs.2,400
Answer: (d)C.I.= P$(1 + r/100)^t$ - P2448 = P$[(1 + r/100)^t - 1]$or 2448 = P$[(1 + 4/100)^2 - 1]$2448 = P$[676/625 - 1]$2448 = P$[51/625]$P = ${2448 × 625}/51$ = Rs.30,000S.I. = ${30000 × 4 × 2}/100$ = Rs.2400Using Rule 10,Here, C.I. = Rs.2448, R = 4%, S.I. = ?C.I.= S.I.$(1 + R/200)$2448 = S.I.$(1 + 4/200)$2448 = S.I.$(1 + 1/50)$2448 = S.I.$(51/50)$S.I. = ${2448 × 50}/51$ = Rs.2400
Question 23. A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of Rs.26,410 in 4 years. The man borrowed
  1.    Rs.100000
  2.    Rs.200000
  3.    Rs.132050
  4.    Rs.150000
 Discuss Question
Answer: Option A. -> Rs.100000
Answer: (a)Let the principal be Rs.P. For 4 years,S.I. = $\text"Principal × Time × Rate"/100$= ${P × 4 × 5}/100$ = Rs.$P/5$C.I. = P$[(1 + R/100)^T - 1]$= P$[(1 + 10/100)^4 - 1]$= P$[(11/10)^4 - 1]$= P$(14641/10000 - 1) = {4641P}/10000$According to the question,${4641P}/10000 - P/5$ = 26410${4641P - 2000P}/10000$ = 2641${2641P}/10000$ = 2641P = Rs.10000
Question 24. The simple interest and compound interest (compounded annually) on a certain sum of money with a given rate for a period of 2 years are Rs.900 and Rs.954 respectively. The sum of money is
  1.    Rs.3750
  2.    Rs.3700
  3.    Rs.3850
  4.    Rs.3650
 Discuss Question
Answer: Option A. -> Rs.3750
Answer: (a)Difference of CI and SI for two years= Rs.(954 - 900) = Rs.54Sum= Difference in CI and SI × $(100/{Rate})^2$Rate = ${2 × \text"Difference" × 100}/\text"Simple interest"$= ${2 × 5400}/900 = 12%$Sum = 54 × $(100/12)^2$= $54 × 25/3 × 25/3$ = Rs.3750Using Rule 10,C.I. = Rs.954, S.I.=Rs.900, P=?C.I.= S.I.$(1 + R/200)$954 = 900$(1 + R/200)$$954/900 = 1 + R/200$$954/900 - 1 = R/200$${954 - 900}/900 = R/200$$54/9 = R/2$R = 12%Now S.I. = ${P × R × T}/100$900 = ${P × 12 × 2}/100$P = Rs.3750
Question 25. If the compound interest on a certain sum for two years at 12% per annum is Rs.2,544, the simple interest on it at the same rate for 2 years will be
  1.    Rs.2,440
  2.    Rs.2,400
  3.    Rs.2,480
  4.    Rs.2,500
 Discuss Question
Answer: Option B. -> Rs.2,400
Answer: (b)C.I. = P$[(1 + R/100)^T - 1]$2544 = P$[(1 + 12/100)^2 - 1]$2544 = P$[(28/25)^2 - 1]$2544 = P$(784/625 - 1)$2544 = P$({784 - 625}/625)$2544 = ${P × 159}/625$P = ${2544 × 625}/159$ = Rs.10000S.I. = ${P × R × T}/100$= ${10000 × 2 × 12}/100$ = Rs.2400Using Rule 10,Here, C.I. = Rs.2544, R = 12%, S.I. = ?C.I. = S.I.$(1 + R/200)$2544 = S.I.$(1 + 12/200)$2544 = S.I.$(212/200)$S.I. = ${2544 × 200}/212$ = Rs.2400
Question 26. A man borrowed some money from a private organisation at 5% simple interest per annum. He lended 50% of this money to another person at 10% compound interest per annum and thereby the man made a profit of Rs.3,205 in 4 years. The man borrowed.
  1.    Rs.1,50,000
  2.    Rs.80,000
  3.    Rs.1,20,000
  4.    Rs.1,00,000
 Discuss Question
Answer: Option D. -> Rs.1,00,000
Answer: (d)Using Rule 1,Sum borrowed = Rs.xSimple interest after 4 years= ${x × 4 × 5}/100$ = Rs.$x/5$Amount lent of on compound interest = Rs.$x/2$C.I. = P$[(1 + R/100)^T - 1]$= $x/2[(1 + 10/100)^4 - 1]$= $x/2[(1.1)^4 - 1]$= $x/2$ (1.4641 - 1) = Rs.${0.4641x}/2$${0.4641x}/2 - x/5$ = 3205${2.3205x - 2x}/10$ = 32050.3205x = 32050$x = 32050/{0.3205}$ = Rs.100000
Question 27. On a certain sum of money the compound interest for 2 years is Rs.282.15 and the simple interest for the same period of time is Rs.270. The rate of interest per annum is
  1.    12.15%
  2.    6.07%
  3.    9%
  4.    10%
 Discuss Question
Answer: Option C. -> 9%
Answer: (c)Using Rule 10,If SI on a certain sum for two years is x and CI is y, then$y = x(r + /200)$$282.15 = 270(1 + r/100)$$1 + r/200 = 282.15/270$$r/200 = 282.15/270$ - 1$r/200 = {12.15}/270$r = ${12.15 × 200}/270 = 9%$
Question 28. A certain amount of money earns Rs.540 as Simple Interest in 3 years. If it earns a Compound Interest of Rs.376.20 at the same rate of interest in 2 years, find the amount (in Rupees).
  1.    2100
  2.    1600
  3.    2000
  4.    1800
 Discuss Question
Answer: Option C. -> 2000
Answer: (c)S.I. for 2 years= $2/3$ × 540 = Rs.360C.I. - S.I.= 376.20 - 360 = Rs.16.20Rate of interest= ${16.20}/180$ × 100 = 9% per annumPrincipal = $\text"S.I. × 100"/\text"Time × Rate"$= ${180 × 100}/{1 × 9}$ = Rs.2000
Question 29. The simple interest on a sum of money at 4% per annum for 2 years is Rs.80. The compound interest in the same sum for the same period is
  1.    Rs.81.60
  2.    Rs.82.60
  3.    Rs.81.80
  4.    Rs.82.20
 Discuss Question
Answer: Option A. -> Rs.81.60
Answer: (a)Principal = $\text"S.I. × 100"/ \text"Time × Rate"$= ${80 × 100}/{2 × 4}$ = Rs.1000C.I. = P$[(1 + R/100)^T - 1]$= 1000$[(1 + 4/100)^2 - 1]$= 1000$[(25/26)^2 - 1]$= 1000$(676/625 - 1)$= 1000$({676 - 625}/625)$= ${1000 × 51}/625$= Rs.81.60Using Rule 10,Here, S.I. = Rs.80, R = 4%, C.I. = ?C.I.= S.I.$(1 + R/200)$C.I.= 80$(1 + 4/200)$= $80(1 + 1/50)$= 80 × $51/50$ = Rs.81.60
Question 30. There is 40% increase in an amount in 8 years at simple interest. What will be the compound interest (in rupees) of Rs 30000 after 2 years at the same rate ?
  1.    3075
  2.    6150
  3.    4612.5
  4.    7687.5
 Discuss Question
Answer: Option A. -> 3075
Answer: (a)According to the question,If principal= Rs.100 then interest = Rs.40.Case I.Rate = $\text"S.I. × 100"/ \text"Principal × Time"$= ${40 × 100}/{100 × 8}$ = 5% per annumCase II.A = P$(1 + R/100)^T$= 30000$(1 + 5/100)^2$= 30000$(1 + 1/20)^2$= 30000$({20 + 1}/20)^2$= 30000$ × 21/20 × 21/20$= Rs.33075C. I. = Rs.(33075 - 30000) = Rs.3075

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