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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 83 of 118 pages
Question 821. Mr. Dutta desired to deposit his retirement benefit of Rs. 3 lakhs partly to a post office and partly to a bank at 10% and 6% interests respectively. If his monthly interest income was Rs. 2000, then the difference of his deposits in the post office and in the bank was :
  1.    Rs.1,00,000
  2.    Rs.50,000
  3.    Nil
  4.    Rs.40,000
 Discuss Question
Answer: Option C. -> Nil
Answer: (c)Using Rule 1,Let the amount deposited in Post Office be Rs.x lakhs.Amount deposited in bank = Rs.(3 - x) lakhsAccording to the question,${x × 10 × 1}/{100 × 12} + {(3 - x) × 6 × 1}/{100 × 12}$= $2000/100000 = 1/50$10x + 18 - 6x= $1/50$ × 1200 = 244x = 24 - 18 = 6x = $6/4$ = Rs.$3/2$ lakhs∴ Required difference = 0
Question 822. The income of a company increases 20% per year. If the income is Rs. 26,64,000 in the year 2012, then its income in the year 2010 was :
  1.    Rs.21,20,000
  2.    Rs.28,55,000
  3.    Rs.28,20,000
  4.    Rs.18,50,000
 Discuss Question
Answer: Option D. -> Rs.18,50,000
Answer: (d)Using Rule 1,Let the income of company in 2010 be Rs.PAccording to the question,A = P$(1 + R/100)^T$2664000 = P$(1 + 20/100)^2$2664000 = P$(1 + 1/5)^2$2664000 = P × $(6/5)^2$P = ${2664000 × 5 × 5}/{6 × 6}$ = Rs.1850000
Question 823. A certain amount grows at an annual interest rate of 12%, compounded monthly. Which of the following equations can be solved to find the number of years, y, that it would take for the investment to increase by a factor of 64 ?
  1.    8 = (1.01)6y
  2.    64 = $(1.01)^{12y}$
  3.    64 = (1.04)12y
  4.    $1/64$ = (1.04)12y
 Discuss Question
Answer: Option B. -> 64 = $(1.01)^{12y}$
Answer: (b)Rate of interest = 12% p.a.= 1% per monthTime = 12y monthsA = P$(1 + R/100)^T$64 = 1$(1 + 1/100)^{12y}$64 = $1(1.01)^{12y}$
Question 824. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525 . The simple interest on the same sum for double the time at half the rate per cent per annum is :
  1.    Rs.515
  2.    Rs.520
  3.    Rs.500
  4.    Rs.550
 Discuss Question
Answer: Option C. -> Rs.500
Answer: (c)C.I. = P$[(1 + R/100)^T - 1]$525 = P$[(1 + 10/100)^2 - 1]$525 = P$(121/100 - 1)$525 = ${P × 21}/100$P = ${525 × 100}/21$ = Rs.2500Again, new rate = 5% per annumS.I. = $\text"Principal × Time × Rate"/100$= ${2500 × 5 × 4}/100$ = Rs.500
Question 825. A sum of money at compound interest will amount to Rs.650 at the end of the first year and Rs.676 at the end of the second year. The amount of money is
  1.    Rs.625
  2.    Rs.1,300
  3.    Rs.1,250
  4.    Rs.650
 Discuss Question
Answer: Option A. -> Rs.625
Answer: (a)Principal = Rs.P (let)Rate = R% per annumA = P$(1 + R/100)^T$650 = P$(1 + R/100)$$650/P = (1 + R/100)$ ...(i)Again, 676 = P$(1 + R/100)^2$676 = P$(650/P)^2$= ${P × 650 × 650}/P^2$P = ${650 × 650}/676$ = Rs.625
Question 826. The compound interest on a certain sum for two successive years are Rs.225 and Rs.238.50. The rate of interest per annum is :
  1.    6%
  2.    7$1/2$%
  3.    10%
  4.    5%
 Discuss Question
Answer: Option A. -> 6%
Answer: (a)Difference = 238.50 - 225 = Rs.13.50= S.I. on Rs.225 for 1 yearRate = $\text"S.I. × 100"/\text"Principal × Time"$= ${13.50 × 100}/{225 × 1}$ = 6% per annumUsing Rule 7(i),Here, b - a = 1B = Rs.238.50, A = Rs.225R% = $(B/A - 1)$ × 100%= $({238.50}/225 - 1) × 100%$= $({238.50 - 225}/225) × 100%$= $({13.5}/225) × 100%$ = 6%
Question 827. A sum of money amounts to Rs.4,840 in 2 years and to Rs.5,324 in 3 years at compound interest compounded annually. The rate of interest per annum is :
  1.    8%
  2.    10%
  3.    11%
  4.    9%
 Discuss Question
Answer: Option B. -> 10%
Answer: (b)Let the rate of interest be r% per annum,According to the question,4840 = P$(1 + r/100)^2$ ..... (i)and 5324 = P$(1 + r/100)^3$....(ii)On dividing equation (ii) by equation (i), we have,$1 + r/100 = 5324/4840 = 1 + 484/4840$$r/100 = 484/4840$ ⇒ r = 10%Using Rule 7,If on compound interest, a sum becomes Rs.A in 'a' years and Rs.B in 'b' years then,(i) If b - a = 1, then, R% = $(B/A - 1)$ × 100%(ii) If b - a = 2, then, R% = $(√{B/A} - 1)$ × 100%(iii) If b - a = n then, R% = $[(B/A)^{1/n} - 1]$ × 100%where n is a whole number.
Question 828. A sum of money invested at compound interest amounts to Rs.650 at the end of first year and Rs.676 at the end of second year. The sum of money is :
  1.    Rs.560
  2.    Rs.600
  3.    Rs.625
  4.    Rs.540
 Discuss Question
Answer: Option C. -> Rs.625
Answer: (c)Interest on Rs.650 for 1 year= 676 - 650 = Rs.26So, r = $26/650 × 100$r = 4% per annumP = $A/[1 + r/100]^t = 650/[1 + 4/100]^1$= $650/{26/25} = 650 × 25/26$ = Rs.625Using Rule 7(i),Here, b - a = 1B = Rs.676, A = Rs.650R% = $(B/A - 1)$ × 100%= $[676/650 - 1] × 100%$= $[{676 - 650}/650] × 100%$= $26/650 × 100% = 100/25$ = 4%Amount= P$(1 + R/100)^1$650 = P$(1 + 4/100)$P = ${650 × 100}/104$ = Rs.625Note : A sum at a rate of interest compounded yearly becomes Rs.$A_1$, in n years and Rs. $A_2$ in (n + 1) years, thenP = $A_1(A_1/A_2)^n$
Question 829. A certain amount of money at r%, compounded annually after two and three years becomes Rs.1440 and Rs.1728 respectively. r is
  1.    20
  2.    5
  3.    15
  4.    10
 Discuss Question
Answer: Option A. -> 20
Answer: (a)If the principal be Rs.P, thenA = P$(1 + R/100)^T$1440 = P$(1 + R/100)^2$ ...(i)and 1728 = P$(1 + R/100)^3$ ...(ii)On dividing equation (ii) by (i),$1728/1440 = 1 + r/100$$r/100 = 1728/1440$ - 1= ${1728 - 1440}/1440 = 288/1440$r = ${288 × 100}/1440$r = 20% per annumUsing Rule 7(i),Here, b - a = 3 - 2 = 1B = Rs.1728, A = Rs.1440R% = $(B/A - 1)$ × 100%= $(1728/1440 - 1) × 100%$= $({1728 - 1440}/1440) × 100%$= $[288/1440] × 100%$ = 20%
Question 830. A certain sum of money amounts to Rs.2,420 in 2 years and Rs.2,662 in 3 years at some rate of compound interest, compounded annually. The rate of interest per annum is
  1.    10%
  2.    6%
  3.    9%
  4.    8%
 Discuss Question
Answer: Option A. -> 10%
Answer: (a)Let the rate of interest = R% per annum.We know thatA = P$(1 + R/100)^T$2420 = P$(1 + R/100)^2$ ....(i)2662 = P$(1 + R/100)^3$ ...(ii)Dividing equation (ii) by (i),$1 + R/100 = 2662/2420$$R/100 = 2662/2420$ - 1$R/100 = {2662 - 2420}/2420$= $242/2420 = 1/10$R = $1/10 × $100 = 10%Using Rule 7(i),Here, b - a = 3 - 2 = 1B = Rs.2,662, A= Rs.2,420R% = $(B/A - 1)$ × 100%= $(2662/2420 -1)$ × 100%= $[{2662 - 2420}/2420]$ × 100%= $242/2420 × 100%$ = 10%

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