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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 60 of 118 pages
Question 591.
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.(50 x 100/2x5)
=Rs.500.
Amount=[Rs.(500 x(1+5/100)2]
=Rs(500x21/20x21/20).
=Rs.551.25
C.I=Rs.(551.25 - 500)
=Rs.51.25



Question 592.
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. 123
  4.    Rs. 122
 Discuss Question
Answer: Option B. -> Rs. 121

Answer : Option B

Explanation :

Amount after 1 year on Rs. 1600 (deposited on 1st Jan) at 5% when interest calculated half-yearly
$MF#%= \text{P}\left(1 + \dfrac{\text{(R/2)}}{100}\right)^\text{2T}
= 1600\left(1 + \dfrac{\text{(5/2)}}{100}\right)^{2 \times 1}
= 1600\left(1 + \dfrac{1}{40}\right)^2$MF#%
Amount after 1/2 year on Rs. 1600 (deposited on 1st Jul) at 5% when interest calculated half-yearly
$MF#%= \text{P}\left(1 + \dfrac{\text{(R/2)}}{100}\right)^\text{2T} = 1600\left(1 + \dfrac{\text{(5/2)}}{100}\right)^{2 \times \frac{1}{2}} = 1600\left(1 + \dfrac{1}{40}\right)$MF#%
Total Amount after 1 year
$MF#%=1600\left(1 + \dfrac{1}{40}\right)^2 + 1600\left(1 + \dfrac{1}{40}\right)
= 1600\left( \dfrac{41}{40}\right)^2 + 1600\left(\dfrac{41}{40}\right)
= 1600\left( \dfrac{41}{40}\right)\left[1 + \dfrac{41}{40}\right]\\\\ = 1600\left( \dfrac{41}{40}\right)\left( \dfrac{81}{40}\right) = 41 \times 81 = \text{Rs. }3321$MF#%
Compound Interest = Rs.3321 - Rs.3200 = Rs.121


Question 593.

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:


  1.    625
  2.    630
  3.    640
  4.    650
 Discuss Question
Answer: Option A. -> 625

Let the sum be Rs. x. Then,

C.I. =  The Difference Between Simple And Compound Interests Compou... x  The Difference Between Simple And Compound Interests Compou... 1 + 4  The Difference Between Simple And Compound Interests Compou... 2 - x  The Difference Between Simple And Compound Interests Compou... =  The Difference Between Simple And Compound Interests Compou... 676 x - x  The Difference Between Simple And Compound Interests Compou... = 51 x. 100 625 625

S.I. =  The Difference Between Simple And Compound Interests Compou... x x 4 x 2  The Difference Between Simple And Compound Interests Compou... = 2x . 100 25

 The Difference Between Simple And Compound Interests Compou... 51x - 2x = 1 625 25

 The Difference Between Simple And Compound Interests Compou... x = 625.


Question 594.
The population of a town is 40,000. It decreases by 20 per thousand per year. Find out the population after 2 years.
  1.    38484
  2.    38266
  3.    38416
  4.    38226
 Discuss Question
Answer: Option C. -> 38416

Answer : Option C

Explanation :

This problem is similar to the problems we saw in compound interest. We can use the formulas of compound interest here as well.
In compound interest, interest (a certain percentage of the principal) will be added to the principal after every year. Similarly, in this problem, a certain count(a certain percentage of the population) will be decreased from the total population after every year
$MF#%\text{i.e., the formula becomes, A = }\text{P}\left(1 - \dfrac{\text{R}}{100}\right)^\text{T}$MF#%

where Initial population = P, Rate = R% per annum, Time = T years and A = the population after T years
Please note that we have to use the -ve sign here instead of the + sign as the population gets decreased

Question 595.
Albert invested an amount of Rs.8000 in a fixed deposit scheme for 2
years at compound interest rate 5 p.c.p.a. How much amount will Albert
get on maturity of the fixed deposit ?



  1.    Rs. 8600
  2.    Rs. 8620
  3.    Rs. 8840
  4.    Rs. 8820
 Discuss Question
Answer: Option D. -> Rs. 8820

Amount=Rs.[8000x(1+5/100)2]
=Rs.
[8000 x 21/20x21/20]
=Rs.8820.



Question 596.
If the compound interest on a certain sum for 2 years in Rs. 80.80 and the simple interest Rs. 80; then the rate of interest per annum is
  1.    2%
  2.    1%
  3.    3%
  4.    4%
 Discuss Question
Answer: Option A. -> 2%

Answer : Option A

Explanation :

Let the sum be P and Rate of Interest be R% per annum
Simple Interest on Rs.P for 2 years = 80
$MF#%\dfrac{\text{PRT}}{100} = 80\\\\ \dfrac{\text{PR}\times 2}{100} = 80\\\\ \dfrac{\text{PR}}{50} = 80\\\\ \text{PR} = 4000 \quad \color{#F00}{\text{--- (equation 1)}}$MF#%
$MF#%\text{Compound Interest = }\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} - \text{P} \\\\= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^2 - \text{P} \\\\ = \text{P}\left[\left(1 + \dfrac{\text{R}}{100}\right)^2 - 1\right]
= \text{P}\left[\left(1 + \dfrac{\text{2R}}{100} + \dfrac{\text{R}^2}{10000}\right) - 1\right]
= \text{P}\left( \dfrac{\text{2R}}{100} + \dfrac{\text{R}^2}{10000}\right) \\\\ = \dfrac{\text{2PR}}{100} + \dfrac{\text{PR}^2}{10000}\\\\ = \dfrac{\text{2PR}}{100} + \dfrac{\text{PR} \times \text{R}}{10000}\\\\ = \dfrac{2 \times 4000}{100} + \dfrac{4000 \times \text{R}}{10000} \quad \color{#F00}{\text{ (∵ substituted the value of PR from equation 1)}}\\\\ = 80 + 0.4\text{R}$MF#%
Given that compound interest = Rs.80.80
=> 80 + 0.4R = 80.80
=> 0.4R = 0.80
$MF#%=> \text{R} = \dfrac{0.80}{0.4} = 2\%$MF#%
--------------------------------------------------------------------------------------
Solution 2
---------------------------------------------------------------------------------------
The difference between compound interest and simple interest on Rs. P for 2 years at R% per annum
$MF#%= \text{P}\left(\dfrac{\text{R}}{100}\right)^2$MF#%

Question 597.
The compound interest on Rs. 20,000 at 8% per annum is Rs. 3,328. What is the period (in year)?
  1.    1 year
  2.    4 years
  3.    3 years
  4.    2 years
 Discuss Question
Answer: Option D. -> 2 years

Answer : Option D

Explanation :

Let the period be n years.
Amount after n years = Rs.20000 + Rs.3328 = Rs. 23328
$MF#%\text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 23328\\\\ 20000\left(1 + \dfrac{8}{100}\right)^\text{n} = 23328\\\\ 20000\left(\dfrac{108}{100}\right)^\text{n} = 23328\\\\ \left(\dfrac{108}{100}\right)^\text{n} = \dfrac{23328}{20000} = \dfrac{11664}{10000} = \left(\dfrac{108}{100}\right)^2\\\\ \text{n = 2 years}$MF#%


Question 598.
On a sum of money, the simple interest for 2 years is Rs. 660,while the
compound interest is Rs.696.30,the rate of interest being the same in
both the cases. The rate of interest is



  1.    10%
  2.    11%
  3.    12%
  4.    10.5%
 Discuss Question
Answer: Option B. -> 11%

Difference in C.I and S.I for 2 years= Rs(696.30-660)
=Rs.36.30.
S.I for one years= Rs330.
S.I on Rs.330 for 1 year=Rs.36.30
Rate=(100x36.30/330x1)%
=11%.



Question 599.
A sum is invested at compounded interest payable annually. The interest in the first two successive years was Rs. 400 and Rs. 420. The sum is
  1.    Rs. 8000
  2.    Rs.7500
  3.    Rs. 8500
  4.    Rs. 8200
 Discuss Question
Answer: Option A. -> Rs. 8000

Answer : Option A

Explanation :

This means that, simple Interest on Rs.400 for 1 year = 420 - 400 = 20
$MF#%\text{Rate = }\dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times 20}{400 \times 1}= 5\%$MF#%
Rs.400 is the interest on the sum for 1st year
$MF#%\text{Hence, sum = }\dfrac{100 \times \text{SI}}{\text{RT}}= \dfrac{100 \times 400}{5 \times 1} = \text{Rs. 8000}$MF#%


Question 600.
The Simple interest on a certain sum for 2 years at 20% per annum is Rs. 80. The corresponding compound interest is
  1.    Rs. 66
  2.    Rs. 82
  3.    Rs. 86
  4.    Rs. 88
 Discuss Question
Answer: Option D. -> Rs. 88

Answer : Option D

Explanation :

$MF#%\text{Principal, P} = \dfrac{100 \times \text{SI}}{\text{RT}} = \dfrac{100 \times 80}{20 \times 2} = \text{Rs. 200}$MF#%
Amount after 2 year on Rs.200 at 20% per annum when interest is compounded annually
$MF#%= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 200\left(1 + \dfrac{20}{100}\right)^2 = 200\left(\dfrac{120}{100}\right)^2 = \dfrac{200 \times 120 \times 120}{100 \times 100}\\\\ = \dfrac{2 \times 120 \times 120}{100}= 2 \times 12 \times 12 = \text{Rs. 288}$MF#%
Compound Interest = 288 - 200 = Rs.88


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