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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 63 of 118 pages
Question 621.
Find the compound interest on Rs. 10,000 in 2 years at 4% per annum, the interest being compounded half-yearly.



  1.    824.32
  2.    824.52
  3.    825.32
  4.    825.52
 Discuss Question
Answer: Option A. -> 824.32


Principal = Rs. 10000; Rate = 2% per half-year; Time = 2 years = 4 half-years.
Amount = Rs [10000 * (1+(2/100))^4] = Rs(10000 * (51/50) * (51/50) * (51/50) * (51/50))
= Rs. 10824.32
C.I. = Rs. (10824.32 - 10000) = Rs. 824.32.



Question 622.
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 60, what is the compound interest on the same at the same rate and for the same time?
  1.    Rs. 63.5
  2.    Rs. 62
  3.    Rs. 61.5
  4.    Rs. 64
 Discuss Question
Answer: Option C. -> Rs. 61.5

Answer : Option C

Explanation :

$MF#%\text{Sum, P = }\dfrac{100 \times \text{SI}}{\text{RT}} = \dfrac{100 \times 60}{5 \times 2} = \text{Rs. }600$MF#%
Amount after 2 years on Rs.600 at 5% per annum when interest is compounded annually
$MF#%= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 600\left(1 + \dfrac{\text{5}}{100}\right)^2\\\\ = 600\left(\dfrac{105}{100}\right)^2 = \dfrac{600 \times 105 \times 105}{100 \times 100} = \dfrac{6 \times 105 \times 105}{100} = \text{Rs. 661.5}$MF#%
Compound Interest = 661.5 - 600 = 61.5


Question 623.
Divide Rs. 1301 between A and B, so that the amount of A after 7 years
is equal to the amount of B after 9 years, the interest being compounded
at 4% per annum.



  1.    666, 635
  2.    676, 625
  3.    680, 621
  4.    690, 611
 Discuss Question
Answer: Option B. -> 676, 625

Let the two parts be Rs. x and Rs. (1301 - x).
x(1+4/100)^7 =(1301-x)(1+4/100)^9
x/(1301-x)=(1+4/100)^2=(26/25*26/25)
625x=676(1301-x)
1301x=676*1301
x=676
So,the parts are rs.676 and rs.(1301-676)i.e rs.676 and rs.625.



Question 624.
The Compound interest on Rs. 20,480 at 6 1⁄4 % per annum for 2 years 73 days, is :
  1.    Rs. 2929
  2.    Rs. 2219
  3.    Rs. 3021
  4.    Rs. 3049
 Discuss Question
Answer: Option A. -> Rs. 2929

Answer : Option A

Explanation :

$MF#%\text{Time, T = 2 years 73 days = }2\dfrac{1}{5}\text{ year}\\\\\text{Rate, R}= 6\dfrac{1}{4}\% = \dfrac{25}{4}\%$MF#%
$MF#%\text{ Amount after 2 years 73 days} = 20480\left(1 + \dfrac{\left(\dfrac{25}{4}\right)}{100}\right)^2 \times \left(1 + \dfrac{\dfrac{1}{5}\left(\dfrac{25}{4}\right)}{100}\right) \\\\ = 20480\left(1 + \dfrac{25}{4 \times 100}\right)^2 \times \left(1 + \dfrac{\left(\dfrac{5}{4}\right)}{100}\right) = 20480\left(1 + \dfrac{1}{16}\right)^2 \times \left(1 + \dfrac{1}{80}\right)\\\\ = 20480\left(\dfrac{17}{16}\right)^2 \times \left(\dfrac{81}{80}\right) = \dfrac{20480 \times 17 \times 17 \times 81}{16 \times 16\times 80}= \dfrac{256 \times 17 \times 17 \times 81}{16 \times 16}
\\\\= 17 \times 17 \times 81 = \text{Rs. 23409}$MF#%
Compound Interest = 23409 - 20480 = Rs.2929


Question 625.
There is 80% increase in an amount in 8 years at simple interest. What will be the compound interest of Rs. 14,000 after 3 years at the same rate?
  1.    Rs.3794
  2.    Rs.3714
  3.    Rs.4612
  4.    Rs.4634
 Discuss Question
Answer: Option D. -> Rs.4634

Answer : Option D

Explanation :

Let P = Rs.100
Simple Interest = Rs. 80 ( ∵ 80% increase is due to the simple interest)
$MF#%\text{Rate of interest} =\dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times 80}{100 \times 8} = 10\%\text{ per annum}$MF#%
Now let's find out the compound interest of Rs. 14,000 after 3 years at 10%
P = Rs.14000
T = 3 years
R = 10%
$MF#%\text{Amount after 3 years } = \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 14000\left(1 + \dfrac{10}{100}\right)^3 \\\\ = 14000\left(\dfrac{110}{100}\right)^3 = 14000\left(\dfrac{11}{10}\right)^3 = 14 \times 11^3 = 18634$MF#%
Compound Interest = Rs.18634 - Rs.14000 = Rs.4634


Question 626.
Simple interest on a certain sum of money for 4 years at 5% per annum is half the compound interest on Rs. 3000 for 2 years at 10% per annum. The sum placed on simple interest is:
  1.    Rs.1575
  2.    Rs. 2200
  3.    Rs. 1200
  4.    Rs. 1625
 Discuss Question
Answer: Option A. -> Rs.1575

Answer : Option A

Explanation :

Amount after 2 year on Rs.3000 at 10% per annum when interest is compounded annually
$MF#%= \text{P}\left(1 + \dfrac{\text{R}}{100}\right)^\text{T} = 3000\left(1 + \dfrac{10}{100}\right)^2 = 3000\left(\dfrac{110}{100}\right)^2 \\\\= \dfrac{3000 \times 110 \times 110}{100 \times 100} = 3 \times 11 \times 110 = 3630$MF#%
Compound Interest = 3630 - 3000 = Rs.630
Given that simple interest on a certain sum of money for 4 years at 5% per annum is half of the compound interest.
$MF#%\text{i.e., simple interest = }\dfrac{630}{2}\text{ = Rs.315}\\\\ \text{P} = \dfrac{100 \times \text{SI}}{\text{RT}} = \dfrac{100 \times 315}{5 \times 4} = \dfrac{20 \times 315}{4} = 5 \times 315 = \text{Rs. 1575}$MF#%


Question 627.

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:


  1.    6.06%
  2.    6.07%
  3.    6.08%
  4.    6.09%
 Discuss Question
Answer: Option D. -> 6.09%

Amount of Rs. 100 for 1 year
when compounded half-yearly  The Effective Annual Rate Of Interest Corresponding To A No... = Rs.  The Effective Annual Rate Of Interest Corresponding To A No... 100 x  The Effective Annual Rate Of Interest Corresponding To A No... 1 + 3  The Effective Annual Rate Of Interest Corresponding To A No... 2  The Effective Annual Rate Of Interest Corresponding To A No... = Rs. 106.09 100

 The Effective Annual Rate Of Interest Corresponding To A No... Effective rate = (106.09 - 100)% = 6.09%


Question 628.

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:


  1.    3
  2.    4
  3.    5
  4.    6
 Discuss Question
Answer: Option B. -> 4

P  The Least Number Of Complete Years In Which A Sum Of Money ... 1 + 20  The Least Number Of Complete Years In Which A Sum Of Money ... n > 2P      The Least Number Of Complete Years In Which A Sum Of Money ...      The Least Number Of Complete Years In Which A Sum Of Money ... 6  The Least Number Of Complete Years In Which A Sum Of Money ... n > 2. 100 5

Now,  The Least Number Of Complete Years In Which A Sum Of Money ... 6 x 6 x 6 x 6  The Least Number Of Complete Years In Which A Sum Of Money ... > 2. 5 5 5 5

So, n = 4 years.


Question 629.

The difference between compound interest and simple interest 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
  5.    None of these
 Discuss Question
Answer: Option A. -> 8

 The Difference Between Compound Interest And Simple Interes... 15000 x  The Difference Between Compound Interest And Simple Interes... 1 + R  The Difference Between Compound Interest And Simple Interes... 2 - 15000  The Difference Between Compound Interest And Simple Interes... -  The Difference Between Compound Interest And Simple Interes... 15000 x R x 2  The Difference Between Compound Interest And Simple Interes... = 96 100 100

 The Difference Between Compound Interest And Simple Interes... 15000  The Difference Between Compound Interest And Simple Interes...  The Difference Between Compound Interest And Simple Interes... 1 + R  The Difference Between Compound Interest And Simple Interes... 2 - 1 - 2R  The Difference Between Compound Interest And Simple Interes... = 96 100 100

 The Difference Between Compound Interest And Simple Interes... 15000  The Difference Between Compound Interest And Simple Interes... (100 + R)2 - 10000 - (200 x R)  The Difference Between Compound Interest And Simple Interes... = 96 10000

 The Difference Between Compound Interest And Simple Interes... R2 =  The Difference Between Compound Interest And Simple Interes... 96 x 2  The Difference Between Compound Interest And Simple Interes... = 64 3

 The Difference Between Compound Interest And Simple Interes... R = 8.

 The Difference Between Compound Interest And Simple Interes... Rate = 8%.


Question 630.
What will be the amount if a sum of Rs. 10000 is placed at compound interest for 3 years while rate of interest for the first, second and third years is 2, 5 and 10 percent, respectively?
  1.    Rs. 11781
  2.    Rs. 11244
  3.    Rs. 11231
  4.    Rs. 11658
 Discuss Question
Answer: Option A. -> Rs. 11781

Answer : Option A

Explanation :


$MF#%\text{Amount after 3 years = }10000\left(1 + \dfrac{2}{100}\right)\left(1 + \dfrac{5}{100}\right)\left(1 + \dfrac{10}{100}\right) \\\\ = 10000\left(\dfrac{102}{100}\right)\left(\dfrac{105}{100}\right)\left(\dfrac{110}{100}\right)
= \dfrac{102 \times 105 \times11}{10} = \text{Rs. 11781}$MF#%


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