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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 103 of 118 pages
Question 1021. The S.I. on a certain sum of money for 3 years at 8% per annum is half the C.I. on Rs. 4000 for 2 years at 10% per annum. The sum placed on S.I. is?
  1.    Rs. 1550
  2.    Rs. 1650
  3.    Rs. 1750
  4.    Rs. 2000
 Discuss Question
Answer: Option C. -> Rs. 1750


C.I. = [4000 * (1 + 10/100)2 - 4000] = (4000 * 11/10 * 11/10 - 4000) = Rs. 840. Sum = (420 * 100)/(3 * 8) = Rs. 1750


Question 1022. The C.I. on a certain sum for 2 years at 10% per annum is Rs. 525. The S.I. 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,  [P(1 + 10/100)2 - p] = 525 P[(11/10)2 - 1] = 525 P = (525 * 100) / 21 = 2500 Sum = Rs. 2500 So, S.I. = (2500 * 5 * 4)/100 = Rs. 500


Question 1023. A sum of money placed at C.I. interest doubles itself in 5 years. It will amount to eight times itself at the same rate of interest in?
  1.    7 years
  2.    10 years
  3.    15 years
  4.    20 years
 Discuss Question
Answer: Option C. -> 15 years


P(1 + R/100)5 = 2P => (1 + R/100)5 = 2 Let P(1 + R/100)n = 8P => (1 + R/100)n = 8 = 23 = {(1 + R/100)5}3 => (1 + R/100)n = (1 + R/100)15 => n = 15
Required time = 15 years.


Question 1024. A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?
  1.    Rs. 1620
  2.    Rs. 1640
  3.    Rs. 1680
  4.    Rs. 1700
 Discuss Question
Answer: Option B. -> Rs. 1640


Principal = (P.W. of Rs. 882 due 1 year hence) + (P.W. of Rs. 882 due 2 years hence) = [882/(1 + 5/100) + 882/(1 + 5/100)2] = (882 * 20)/21 + (882 * 400)/441 = Rs. 1640.


Question 1025. The least number of complete years in which a sum of money put out at 20% C.I. will be more than doubled is?
  1.    3
  2.    4
  3.    5
  4.    6
 Discuss Question
Answer: Option B. -> 4


P(1 + 20/100)n > 2P or (6/5)n > 2 Now, (6/5 * 6/5 * 6/5 * 6/5) > 2. So, n = 4 years.


Question 1026. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
  1.    Rs. 550
  2.    Rs. 551.25
  3.    Rs. 560
  4.    Rs. 560.75
 Discuss Question
Answer: Option B. -> Rs. 551.25


Let each installment be Rs. x. Then, x/(1 + 5/100) + x/(1 + 5/100)2 = 1025
820x + 1025 * 441x = 551.25So, value of each installment = Rs. 551.25


Question 1027. The difference between C.I. and S.I. 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
 Discuss Question
Answer: Option A. -> 8


[15000 * (1 + R/100)2 - 15000] - (15000 * R * 2)/100 = 96 15000[(1 + R/100)2 - 1 - 2R/100] = 96 15000[(100 + R)2 - 10000 - 200R]/10000 = 96 R2 = (96 * 2)/3 = 64 => R = 8 Rate = 8%


Question 1028. The difference between the simple interest and the compound interest on Rs 5000 at 10% P.a for 3 years is:
  1.    Rs 145
  2.    Rs 150
  3.    Rs 165
  4.    Rs180
  5.    None of these
 Discuss Question
Answer: Option E. -> None of these

S.I = Rs(5000 — 10/100 — 3)=Rs 1500 
 The Difference Between The Simple Interest And The Compound...
                          = Rs (6655-5000)=Rs 1655 
(c.I) “ (S.I) = Rs (1655-1500) = Rs 155.


Question 1029. The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is
  1.    Rs 50
  2.    Rs 60
  3.    Rs 61
  4.    Rs 600
 Discuss Question
Answer: Option C. -> Rs 61


S.I = Rs(8000 × 5/100 ×3) = Rs 1200 
C.I = Rs [8000 × (1+5/100)3- 8000 
= Rs [(8000 × 21/20×21/20×21/20)-8000]
=Rs (9261-8000)=Rs 1261 
 (c.I)-(S.I) = Rs (1261 “ 1200) = Rs61.


Question 1030. How much would a sum of Rs 16000 approximately amount to in 2 years at 10% P.a compounded half-yearly?
  1.    Rs 17423
  2.    Rs 18973
  3.    Rs 19448
  4.    Rs 19880
 Discuss Question
Answer: Option C. -> Rs 19448


P = Rs 16000, R = (10/2)% 
Per half-year , t= 4 half-years 
Therefore Amount = Rs [16000 × (1+5/100)4
= Rs (16000 × 21/20 × 21/20 × 21/20 × 21/20)
= Rs 1448.10 ~ Rs 19448


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