Quantitative Aptitude > Interest
SIMPLE & COMPOUND INTEREST MCQs
Compound Interest, Simple Interest, Interest (combined)
 - 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
 - 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.
 - 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%
 - 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
 - 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
 - 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.
 - [ 15000 x ( 1 + R ) 2 - 15000 ] - ( 15000 x R x 2 ) = 96 100 100
 - Required population = Initial population ( 1 - r ) n 1000 = 50,000 ( 1 - 20 ) 2 1000 = 48,020
- 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 .
 - 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