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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 57 of 118 pages
Question 561.

What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?


  1.    Rs. 9000.30
  2.    Rs. 9720
  3.    Rs. 10123.20
  4.    Rs. 10483.20
  5.    None of these
 Discuss Question
Answer: Option C. -> Rs. 10123.20

Amount = Rs.  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 25000 x  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 1 + 12  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 3  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 100 = Rs.  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 25000 x 28 x 28 x 28  What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... 25 25 25 = Rs. 35123.20

 What Will Be The Compound Interest On A Sum Of Rs. 25,000 A... C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20


Question 562.
A sum of money on compound interest amounts to Rs. 8240 in 2 years and Rs. 9888 in 3 years. The rate of interest is
  1.    10%
  2.    25%
  3.    20%
  4.    12%
 Discuss Question
Answer: Option C. -> 20%

Answer : Option C

Explanation :

--------------------------------------------------------------------------------------
Solution 1
---------------------------------------------------------------------------------------
Let the sum be P and rate of interest be R% per annum.
Amount after 2 year = 8240
$MF#%\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 8240\\\\ \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^2 = 8240 \quad \color{#F00}{\text{--- ( 1)}}$MF#%
Amount after 3 year = 9888
$MF#%\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 9888\\\\ \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^3 = 9888 \quad \color{#F00}{\text{--- (2)}}$MF#%
$MF#%\color{#F00}{\text{(2)÷(1) =>}} \dfrac{\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^3 }{\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^2} = \dfrac{9888}{8240}\\\\ 1 + \dfrac{\text{R}}{100} = \dfrac{9888}{8240}\\\\ \dfrac{\text{R}}{100} = \left(\dfrac{9888}{8240} - 1\right) = \dfrac{1648}{8240} = \dfrac{1}{5}\\\\ \text{R} = \dfrac{100}{5} = 20\%$MF#%
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Solution 2
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If a certain sum of money at compound interest amounts to Rs.x in t1 years and Rs.y in t2 years, then the rate of interest per annum can be given by
$MF#%\text{R} = \left[\left(\dfrac{y}{x}\right)^{\text{1}/(\text{t}_2-\text{t}_1)}- 1\right] \times 100 \%$MF#%

Question 563.
The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound and simple interest for 3 years will be
  1.    Rs. 48
  2.    Rs. 66.56
  3.    None of these
  4.    Rs. 98.56
 Discuss Question
Answer: Option D. -> Rs. 98.56

Answer : Option D

Explanation :

Given that simple interest for 2 years is Rs.800
i.e., Simple interest for 1st year is Rs.400
and simple interest for 2nd year is also Rs.400
Compound interest for 1st year will be 400
and Compound interest for 2nd year will be 832 - 400 = 432
you can see that compound interest for 2nd year is more than simple interest for 2nd year by 432 - 400 = Rs.32
i.e, Rs. 32 is the interest obtained for Rs.400 for 1 year
$MF#%\text{Rate, R = }\dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times 32}{400 \times 1} = 8\%$MF#%
Difference between compound and simple interest for the 3rd year
= Simple Interest obtained for Rs.832
$MF#%= \dfrac{\text{PRT}}{100} = \dfrac{832 \times 8 \times 1}{100} = \text{Rs. 66.56}$MF#%
Total difference between the compound and simple interest for 3 years
= 32 + 66.56 = Rs.98.56


Question 564.
A certain sum amounts to rs.7350 in 2 years and to rs.8575 in 3 years. Find the sum and rate percent.



  1.    5400, 20/3%
  2.    5400, 18/3%
  3.    5500, 20/3%
  4.    5500, 18/3%
 Discuss Question
Answer: Option A. -> 5400, 20/3%

S.I on Rs.7350 for 1 year=Rs.(8575-7350)=Rs.1225
Rate=(100*1225/7350*1)%= 20/3%
Let the sum be Rs.x.
X(1+50/3*100)^2=7350
X*7/6*7/6=7350
X=(7350*36/49)=5400
Sum=Rs.5400



Question 565.
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
  1.    6.07%
  2.    6.08%
  3.    6.06%
  4.    6.09%
 Discuss Question
Answer: Option D. -> 6.09%

Answer : Option D

Explanation :

Let principal, P be Rs.100
Amount after 1 year on Rs.100 at 6% per annum when interest is compounded half-yearly
$MF#%=\text{P}\left(1 + \dfrac{\text{(R/2)}}{100}\right)^\text{2T} = 100\left(1 + \dfrac{(6/2)}{100}\right)^{2 \times 1}\\\\= 100\left(1 + \dfrac{3}{100}\right)^2= 100\left(\dfrac{103}{100}\right)^2= \dfrac{100 \times 103 \times 103}{100 \times 100}= \dfrac{103 \times 103}{100} = 106.09$MF#%
This means, if interest is compounded half-yearly at 6%, Rs.100 becomes Rs.106.09 after 1 year
Now, we need to find out the rate of interest on which Rs.100 becomes Rs.106.09 after 1 year
when the interest is compounded annually
$MF#%\begin{align}&\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 106.09\\\\ &100\left(1 + \dfrac{\text{R}}{100}\right)^1 = 106.09\\\\ &100\left(1 + \dfrac{\text{R}}{100}\right) = 106.09\\\\ &100 + \text{R} = 106.09\\\\ &\text{R} = 106.09 - 100 = 6.09\%\end{align}$MF#%
i.e, effective annual rate of interest is 6.09%


Question 566.

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
 Discuss Question
Answer: Option A. -> Rs. 51.25

Sum = Rs.  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 50 x 100  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... = Rs. 500. 2 x 5

Amount = Rs.  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 500 x  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 1 + 5  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 2  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 100 = Rs.  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 500 x 21 x 21  If The Simple Interest On A Sum Of Money For 2 Years At 5% ... 20 20 = Rs. 551.25

 If The Simple Interest On A Sum Of Money For 2 Years At 5% ... C.I. = Rs. (551.25 - 500) = Rs. 51.25


Question 567.
If the difference between the simple interest and compound interests on some principal amount at 20% for 3 years is Rs. 48, then the principal amount is
  1.    Rs. 365
  2.    Rs. 325
  3.    Rs. 395
  4.    Rs. 375
 Discuss Question
Answer: Option D. -> Rs. 375

Answer : Option D

Explanation :

--------------------------------------------------------------------------------------
Solution 1
---------------------------------------------------------------------------------------
Let the sum be Rs.x
Amount after 3 years on Rs.x at 20% per annum when interest is compounded annually
$MF#%= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = \text{x}\left(1 + \dfrac{20}{100}\right)^3 = \text{x}\left(\dfrac{120}{100}\right)^3 = \text{x}\left(\dfrac{6}{5}\right)^3\\\\ \text{Compound Interest = }\text{x}\left(\dfrac{6}{5}\right)^3 - x = x\left[\left(\dfrac{6}{5}\right)^3 - 1\right] = x\left[\dfrac{216}{125} - 1\right] = \dfrac{91x}{125}\\\\ \text{Simple Interest = }\dfrac{\text{PRT}}{100} = \dfrac{x \times 20 \times 3}{100} = \dfrac{3x}{5} $MF#%
Given that difference between compound interest and simple interest is Rs.48
$MF#%\dfrac{91x}{125} - \dfrac{3x}{5} = 48\\\\ \dfrac{91x - 75x}{125} = 48\\\\ \dfrac{16x}{125} = 48\\\\ x = \dfrac{48 \times 125}{16} = 3 \times 125 = \text{Rs. 375}$MF#%
i.e, the sum is Rs.375
--------------------------------------------------------------------------------------
Solution 2
---------------------------------------------------------------------------------------
The difference between compound interest and simple interest on Rs. P for 3 years at R% per annum
$MF#%= \text{P}\left(\dfrac{\text{R}}{100}\right)^2\left(\dfrac{\text{R}}{100}+3\right)$MF#%

Question 568.
A sum amounts to Rs. 882 in 2 years at 5% compound interest. The sum is
  1.    Rs. 800
  2.    Rs. 822
  3.    Rs. 840
  4.    Rs. 816
 Discuss Question
Answer: Option A. -> Rs. 800

Answer : Option A

Explanation :

Let the sum be P
$MF#%\text{Amount After 2 years }= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = \text{P}\left(1 + \dfrac{5}{100}\right)^2=\text{P}\left(\dfrac{105}{100}\right)^2=\text{P}\left(\dfrac{21}{20}\right)^2$MF#%
Given that amount After 2 years = 882
$MF#%=> \text{P}\left(\dfrac{21}{20}\right)^2 = 882\\\\ => \text{P} = \dfrac{882 \times 20 \times 20}{21 \times 21} = 2\times 20 \times 20 = \text{Rs. 800}$MF#%


Question 569.
Arun invested an amount of Rs. 20000 in a fixed deposit scheme for 2 years at compound interest rate 4 p.c.p.a. How much amount will Arun get on maturity of the fixed deposit?
  1.    20342
  2.    21632
  3.    22324
  4.    24120
 Discuss Question
Answer: Option B. -> 21632

Answer : Option B

Explanation :

$MF#%\begin{align}&\text{Amount after 2 years = }\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T}\\\\ &= 20000\left(1 + \dfrac{4}{100}\right)^2 = 20000\left(\dfrac{104}{100}\right)^2 \\\\&= \dfrac{20000 \times 104 \times 104}{100 \times 100} = 2 \times 104 \times 104 = \text{Rs. }21632\end{align}$MF#%


Question 570.
A bank offers 10% interest rate compounded annually. A person deposits Rs. 20,000 every year in his account. If he does not withdraw any amount, then how much balance will his account show after four years?
  1.    Rs. 102102
  2.    Rs. 102220
  3.    Rs. 104202
  4.    Rs. 104222
 Discuss Question
Answer: Option A. -> Rs. 102102

Answer : Option A

Explanation :

$MF#%\text{Rs.20000 after 4 years } = 20000\left(1 + \dfrac{10}{100}\right)^4 = 20000\left(\dfrac{11}{10}\right)^4 = \text{Rs. 29282}\\\\ \text{Rs.20000 after 3 years} = 20000\left(1 + \dfrac{10}{100}\right)^3 = 20000\left(\dfrac{11}{10}\right)^3 = \text{Rs. 26620}\\\\ \text{Rs.20000 after 2 years } = 20000\left(1 + \dfrac{10}{100}\right)^2 = 20000\left(\dfrac{11}{10}\right)^2 = \text{Rs. 24200}\\\\ \text{Rs.20000 after 1 year } = 20000\left(1 + \dfrac{10}{100}\right)^1 = 20000\left(\dfrac{11}{10}\right) = \text{Rs. 22000}$MF#%
Total amount after 4 years = 29282 + 26620 + 24200 + 22000 = Rs. 102102


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