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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)

Total Questions : 1171 | Page 9 of 118 pages
Question 81.

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.     25000 x   ( 1 + 12 ) 3   100   = Rs.   25000 x   
28   x 
28   x  
28   25 25 25  
= Rs. 35123.20  
  C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20
Question 82.

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
  5.    None of these
 Discuss Question
Answer: Option B. -> 4
 -    P  ( 1 + 20  ) n > 2P           ( 6 )  n  > 2. 100 5  
Now, ( 6   x   6   x   6   x 6  )   > 2. 5 5 5 5
  So, n = 4 years.
Question 83.

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%
  5.    None of these
 Discuss Question
Answer: Option D. -> 6.09%
 -     Amount of Rs. 100 for 1 year 
  when compounded half-yearly   }   = Rs.    100 x   (   1 + 3  ) 2   = Rs. 106.09 100
  Effective rate = (106.09 - 100)% = 6.09%
Question 84.

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

  1.    Rs 1550
  2.    Rs 1650
  3.    Rs 1750
  4.    Rs 2000
  5.    None of these
 Discuss Question
Answer: Option C. -> Rs 1750
 -     C.I. = Rs.   4000 x ( 1 + 10 ) 2 - 4000   100   = Rs. ( 4000 x 11 x 11 - 4000 ) 10 10  
= Rs. 840.  
 Sum = Rs.   420 x 100   = Rs. 1750. 3 x 8
Question 85.

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
  5.    None of these
 Discuss Question
Answer: Option A. -> Rs 51.25
 -   Sum = Rs.    50 x 100    = Rs. 500. 2 x 5  
Amount =  Rs.   500 x   (   1 +   5  ) 2   100  
= Rs.  
500  x 
21   x 
21   20 20  
= Rs. 551.25  
  C.I. = Rs. (551.25 - 500) = Rs. 51.25
Question 86.

The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

  1.    Rs 2.5
  2.    Rs 3
  3.    Rs 3.75
  4.    Rs 4
  5.    None of these
 Discuss Question
Answer: Option B. -> Rs 3
 -   S.I. = Rs     1200 x 10 x 1     = Rs. 120. 100  
C.I. = Rs. [   1200 x  (  1 + 5  ) 2  - 1200  ]  = Rs. 123. 100
  Difference = Rs. (123 - 120) = Rs. 3.
Question 87.

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%
 -     [  15000  x  (  1 + R  ) 2 - 15000  ]  -   (   15000 x R x 2  )   = 96 100 100  
Question 88.

The population of a town is 50,000. It decreases by 20 per thousand per year. Find out the population after 2 years?

  1.    Rs. 46,000
  2.    Rs. 46,020
  3.    Rs. 48,000
  4.    Rs. 48,020
  5.    None of these
 Discuss Question
Answer: Option D. -> Rs. 48,020
 -   Required population     = Initial population  ( 1 - r  ) n   1000       = 50,000  ( 1 - 20  ) 2   1000       = 48,020
Question 89.

What sum invested for 2 years at 12% compounded annually will grow to Rs. 4390.40?

  1.    Rs. 4000
  2.    Rs. 3875
  3.    Rs. 3800
  4.    Rs. 3500
  5.    None of these
 Discuss Question
Answer: Option D. -> Rs. 3500

 -     P  ( 1 + R  ) T = Amount     100         P ( 1 + 12 ) 2  = 4390.40       100             P ( 112  ) 2  = 4390.40       100             P = 
43904000  = 3500.     112 x 112
   

Compound interest is interest that is calculated not only on the initial principal amount but also on the accumulated interest of previous periods. In other words, compound interest is interest on interest.

The compound interest formula is given by
\begin{equation}
A = P \times \left( 1 + \frac{r}{n} \right)^{nt}
\end{equation}

Where,
A = Total amount
P = Principal amount
r = Interest rate
n = Number of times the interest is compounded per year
t = Time (in years)

In the given problem,
Principal Amount (P) = Rs. 3500
Interest Rate (r) = 12%
Number of times the interest is compounded (n) = 1 (annually)
Time (t) = 2

Substituting the above values in the compound interest formula,
A = 3500 x (1 + 0.12/1)2
A = 3500 x (1.12)2
A = 4390.40

Hence, Rs. 3500 will grow to Rs. 4390.40 in 2 years at 12% compounded annually.

If you think the solution is wrong then please provide your own solution below in the comments section .

Question 90.

A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:

  1.    Rs. 96,000
  2.    Rs. 1,20,000
  3.    Rs. 1,24,000
  4.    Rs. 1,92,000
  5.    None of these
 Discuss Question
Answer: Option D. -> Rs. 1,92,000
 -     12000 x  ( 1 + R  ) 5  = 24000         100             (  1 + R  ) 5 = 2         100               (  1 + R  ) 5 100   4  = 24 = 16        ( 1 + R  ) 20 100  = 16       P (  1 + R  ) 20 100  = 16P        12000  ( 1 + R )  20  = 16 x 12000 = 192000     100    

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