Simple & Compound Interest(Quantitative Aptitude > Interest ) Questions and answers for exam Preparation

Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)

Total Questions : 1171 | Page 98 of 118 pages

Question 971. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:

Rs 6.06%
Rs 6.07%
Rs 6.08%
Rs 6.09%

Discuss Question

Answer: Option D. -> Rs 6.09%

Let the sum be Rs 100.
Then
P = Rs 100, R = 3 %
per half “ year, t = 2 half “ years
Amount = Rs [100 Ã— (1 + 3/100)2]
= Rs (100 Ã— 103/100 Ã— 103/100)
= Rs 10609/100 = Rs 106.09
Effective Annual Rate = 6.09%

Question 972. The difference between simple and compound interest (compounded-annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is

Rs 6500
Rs 6565
Rs 65065
Rs 65650

Discuss Question

Answer: Option A. -> Rs 6500

Let the sum be Rs x.
Then
[x Ã— (1 +10/100)² - x] “ (x Ã— 10/100 Ã— 2) = 65
=> (x Ã— 11/10 Ã— 11/10 - x) “ x/5 = 65
=> (121x/100 - x) “ x/5 = 65
=> (21x/100 “ x/5) = 65
=> (21x “ 20x) = 6500
=> X = 6500

Question 973. A sum of Rs.4800 is invested at a compound interest for three years, the rate of interest being 10% p.a., 20% p.a. and 25% p.a. for the 1st, 2nd and the 3rd years respectively. Find the interest received at the end of the three years.

Rs.2520
Rs.3120
Rs.3320
Rs.2760
None of these

Discuss Question

Answer: Option B. -> Rs.3120

Let A be the amount received at the end of the three years. A = 4800[1 + 10/100][1 + 20/100][1 + 25/100] A = (4800 * 11 * 6 * 5)/(10 * 5 * 4) A = Rs.7920 So the interest = 7920 - 4800 = Rs.3120

Question 974. A man gets a simple interest of Rs.500 on a certain principal at the rate of 5% p.a in two years. Find the compound interest the man will get on twice the principal in two years at the same rate.

Rs.500
Rs.250
Rs.5012.50
Rs.5062.50
None of these.

Discuss Question

Answer: Option E. -> None of these.

Let the principal be Rs.P S.I at 5% p.a in 8 years on Rs.P = Rs.500(P)(8)(5)/100 = 500P = 1250C.I on Rs.2P i.e., Rs.2500 at 5% p.a in two years=2500{ [1 + 5/100]² - 1} = 2500{ 21² - 20² /20²} = 2500/400(441 - 400)= 25/4(41) = 1025/4 = Rs.256.25

Question 975. The simple interest accrued on an amount of Rs.49500 at he end of three is Rs.17820. What would be the compound interest accured on the same amount at teh same rate in the same period? (Round off your answer to two decimal places)

Rs.20043.94
Rs.18654.81
Rs.20264.46
Rs.19612.41
None of these

Discuss Question

Answer: Option A. -> Rs.20043.94

Let the rate of interest be R% p.a. (49500)(3)(R)/100 = 17820 495R = 5940 R = 12 CI on Rs.49500 at 12% p.a. for three years =
49500{[1 + 12/100]³ - 1} = 69543.936 - 49500 = Rs.20043.94 when rounded off to two decimal places.

Question 976. A person got Rs.48 more when he invested a certain sum at compound interest instead of simple interest for two years at 8% p.a. Find the sum?

Rs.7500
Rs.7000
Rs.8000
Rs.6500
None of these

Discuss Question

Answer: Option A. -> Rs.7500

P = (d * 100²) / R² => (48 * 100 * 100) / 8 * 8 = Rs.7500

Question 977. The compound interest accrued on an amount of Rs.44000 at the end of two years is Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in the same period?

Rs.10,840
Rs.10,720
Rs.10,560
Rs.10,280
None of these.

Discuss Question

Answer: Option C. -> Rs.10,560

Let the rate of interest be R% p.a. 4400{[1 + R/100]² - 1} = 11193.60 [1 + R/100]² = (44000 + 11193.60)/44000[1 + R/100]² = 1 + 2544/1000 = 1 + 159/625 [1 + R/100]² = 784/625 = (28/25)² 1 + R/100 = 28/25 R/100 = 3/25 Therefore R = 12
SI on Rs.44000 at 12% p.a. for two years = 44000(2)(12)/100 =Rs.10560

Question 978. The compound and the simple interests on a certain sum at the same rate of interest for two years are Rs.11730 and Rs.10200 respectively. Find the sum.

Rs.18000
Rs.17000
Rs.18500
Rs.17500
None of these.

Discuss Question

Answer: Option B. -> Rs.17000

The simple interest for the first year is 10200/2 is Rs.5100 and compound interest for first year also is Rs.5100.
The compound interest for second year on Rs.5100 for one year So rate of the interest = (100 * 1530)/ (5100 * 1) = 30% p.a. So P = (100 * 10200)/ (30 * 2) = Rs.17000

Question 979. Siddharth wants to borrow Rs.6000 at rate of interest 6% p.a. at S.I and lend the same amount at C.I at same rate of interest for two years. What would be his income in the above transaction?

Rs.21.60
Rs.24.00
Rs.25.20
Rs.27.80
None of these

Discuss Question

Answer: Option A. -> Rs.21.60

Amount of money Siddharth borrowed at S.I at 6% p.a. for two years = Rs.6,000 He lend the same amount for C.I at 6% p.a. for two years. => Siddharth's income = C.I - S.I = p[1 + r/ 100]ⁿ - p - pnr/100 = p{ [1 + r/ 100]² - 1 - nr/100 = 6,000{ [1 + 6/100]² - 1 - 12/100} = 6,000 {(1.06)²- 1 - 0.12} = 6,000(1.1236 - 1 - 0.12) = 6,000 (0.0036) = 6 * 3.6 = Rs.21.60

Question 980. Ravi invested certain amount for two rates of simple interests at 6% p.a. and 7% p.a. What is the ratio of Ravi's investments if the interests from those investments are equal?

4 : 3
3 : 2
6 : 5
7 : 6
None of these

Discuss Question

Answer: Option D. -> 7 : 6

Let x be the investment of Ravi in 6% and y be in 7% x(6)(n)/100 = y(7)(n)/100 => x/y = 7/6x : y = 7 : 6