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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 73 of 118 pages
Question 721. The simple interest on a certain sum of money for 2 years at 5% is Rs.1600. The compound interest at the same rate after 3 years interest compound annually, is
  1.    Rs.2535
  2.    Rs.2520
  3.    Rs.2555
  4.    Rs.2522
 Discuss Question
Answer: Option D. -> Rs.2522
Answer: (d)Principal = $\text"S.I. × 100"/\text"Time × Rate"$= ${1600 × 100}/{5 × 2}$ = Rs.16000C.I. = P$[(1 + R/100)^T - 1]$= 16000$[(1 + 5/100)^3 –1]$= 16000$[(21/20)^3 - 1]$= $16000(9261/8000 - 1)$= ${16000 × 1261}/8000$ = Rs.2522
Question 722. A sum of money invested at compound interest amounts in 3 years to Rs.2,400 and in 4 years to Rs.2,520. The interest rate per annum is :
  1.    12%
  2.    5%
  3.    10%
  4.    6%
 Discuss Question
Answer: Option B. -> 5%
Answer: (b)S.I. on Rs.2400 for 1 year= Rs.(2, 520 - 2, 400) = Rs.120Rate = $\text"S.I. × 100"/ \text"Principal × Time"$%= ${120 × 100}/{2400 × 1}$ = 5%Using Rule 7(i),Here, b - a = 4 - 3 = 1B = Rs.2520, A = Rs.2400R% = $(B/A - 1)$ × 100%= $[2520/2400 - 1] × 100%$= $[{2520 - 2400}/2400] × 100%$= $120/2400 × 100%$ = 5%
Question 723. On a certain sum of money, the simple interest for 2 years is Rs.350 at the rate of 4% per annum. It was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned?
  1.    Rs.35
  2.    Rs.3.50
  3.    Rs.14
  4.    Rs.7
 Discuss Question
Answer: Option D. -> Rs.7
Answer: (d)Principal = $\text"S.I. × 100"/ \text"Time × Rate"$= ${350 × 100}/{2 × 4}$ = Rs.4375C.I. = P$[(1 + R/100)^T - 1]$= 4375$[(1 + 4/100)^2 - 1]$= 4375$[(1 + 1/25)^T - 1]$= 4375$[(26/25)^2 - 1]$= 4375$(676/625 - 1)$= ${4375 × 51}/625$ = Rs.357Required difference= Rs.(357 - 350) = Rs.7
Question 724. A sum becomes Rs.4500 after two years and Rs.6750 after four years at compound interest. The sum is
  1.    Rs.3050
  2.    Rs.4000
  3.    Rs.3000
  4.    Rs.2500
 Discuss Question
Answer: Option C. -> Rs.3000
Answer: (c)P$(1 + r/100)^2$ = 4500 ...(i)P$(1 + r/100)^4$ = 6750 .....(ii)On dividing equation (ii) by equation (i), we get$(1 + r/100)^2 = 6750/4500$From equation (i),P × $6750/4500$ = 4500P = ${4500 × 4500}/6750$ = Rs.3,000Using Rule 7(ii),Here, b - a = 4 - 2 = 2B = Rs.6750, A = Rs.4500R% = $[(B/A)^{1/2} - 1]$ × 100%= $[(6750/4500)^{1/2} - 1] × 100%$= $[(3/2)^{1/2} - 1] ×$ 100%$(3/2)^{1/2} = 1 + R/100$$3/2 = (1 + R/100)^2$A = P$(1 + R/100)^2$4500 = P × $3/2$ ⇒ P = Rs.3000
Question 725. A sum of money is invested at 20% compound interest (compounded annually). It would fetch Rs. 723 more in 2 years if interest is compounded half yearly. The sum is
  1.    Rs.7,500
  2.    Rs.15,000
  3.    Rs.20,000
  4.    Rs.30,000
 Discuss Question
Answer: Option D. -> Rs.30,000
Answer: (d)Let the principal be Rs. x.When the interest is compounded annually,C.I. = P$[(1 + R/100)^T - 1]$= P$[(1 + 20/100)^2 - 1]$= P$[(6/5)^2 - 1]$= P$(36/25 - 1)$ = Rs.${11P}/25$When the interest is compounded half–yearly,C.I. = P$[(1 + 10/100)^4 - 1]$= P$[(11/10)^4 - 1]$= P$(14641/10000 - 1)$= Rs.${4641P}/10000$${4641P}/10000 - {11P}/25$ = 723${4641P - 4400P}/10000$ = 723${241P}/10000$ = 723P = ${723 × 10000}/241$ = Rs.30000
Question 726. An amount of money at compound interest grows up to Rs.3,840 in 4 years and up to Rs.3,936 in 5 years. Find the rate of interest.
  1.    2.05%
  2.    2.5%
  3.    3.5%
  4.    2%
 Discuss Question
Answer: Option B. -> 2.5%
Answer: (b)A = P$(1 + R/100)^T$3840 = P$(1 + R/100)^4$ ....(i)3936 = P$(1 + R/100)^5$ ...(ii)Dividing equation (ii) by equation (i),$3936/3840 = 1 + R/100$$R/100 = 3936/3840$ - 1= ${3936 - 3840}/3840 = 96/3840$R = $96/3840 × 100$ = 2.5%Using Rule 7(i),Here, b - a = 5 - 4 = 1B = Rs.3,936, A = Rs.3,840R%= $(B/A - 1)$ × 100%= $(3936/3840 - 1)$ × 100%= $({3936 - 3840}/3840) × 100%$= $96/3840 × 100% = 10/4%$ = 2.5%
Question 727. The difference between the compound interest and simple interest for the amount 5,000 in 2 years is 32. The rate of interest is
  1.    12%
  2.    5%
  3.    10%
  4.    8%
 Discuss Question
Answer: Option D. -> 8%
Answer: (d)Using Rule 6,Difference of 2 years= ${p × r^2}/10000$32 = ${5000 × r^2}/10000$$r^2 = {32 × 10000}/5000$ = 64r = $√{64}$ = 8%
Question 728. On a certain sum of money, the difference between the compound interest for a year, payable half-yearly, and the simple interest for a year is 180. If the rate of interest in both the cases is 10%, then the sum is
  1.    54,000
  2.    60,000
  3.    62,000
  4.    72,000
 Discuss Question
Answer: Option D. -> 72,000
Answer: (d)If the interest is compounded half yearly,C.I. = P$[(1 + R/100)^T - 1]$= P$[(1 + 5/100)^2 - 1]$= P$[(21/20)^2 - 1] = {41P}/400$S.I. = ${P × R × T}/100 = {P × 10}/100 = P/10$${41P}/400 - P/10$ = 180${41P - 40P}/400$ = 180$P/400 = 180$P = Rs.72000Using Rule 6,Here, C.I. - S.I. = Rs.180Interest is compounded half yearlyR = $10/5$ = 5%, T = 2 yearsC.I. - S.I. = P$(R/100)^2$180 = P$(5/100)^2$P = 180 × 20 × 20 ⇒ P = Rs.72000
Question 729. On what sum does the difference between the compound interest and the simple interest for 3 years at 10% is 31 ?
  1.    1000
  2.    1500
  3.    1100
  4.    1200
 Discuss Question
Answer: Option A. -> 1000
Answer: (a)Let the sum be xr = 10%, n = 3 yearsS.I. = ${x × r × n}/100$S.I.= ${x × 10 × 3}/100 = 3/10x$C.I.= $[(1 + r/100)^n - 1]x$= $[(1 + 10/100)^3 - 1]x$= $[(11/10)^3 - 1]x$$(1331/1000 - 1)x = 331/1000x$$331/1000x - 3/10x$ = 31or $({331 - 300})/1000x = 31$or $31/1000x$ = 31or x = 1000Sum = Rs.1000Using Rule 6,Here, C.I. - S.I. = Rs.31, R = 10%, T = 3 years, P = ?C.I. - S.I. = P × $(R/100)^2 × (3 + R/100)$31 = P × $(10/100)^2(3 + 10/100)$31 = P × $1/100 × 31/10$ ⇒ P = Rs.1000
Question 730. The difference between compound interest and simple interest of a sum for 2 years at 8 per cent is 768. The sum is
  1.    1,70,000
  2.    1,00,000
  3.    1,20,000
  4.    1,10,000
 Discuss Question
Answer: Option C. -> 1,20,000
Answer: (c)Using Rule 6,Simple ApproachSum = (CI - SI)$(100/r)^2$= 768 × $(100/8)^2$ = Rs.1,20,000

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