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 99 of 118 pages

Question 981. The simple interest on Rs.12000 at a certain rate of interest in five years is Rs.7200. Find the compound interest on the same amount for five years at the same rate of interest.

Rs.3502.80
Rs.3052.40
Rs.3054.8
Rs.3052.80
None of these

Discuss Question

Answer: Option D. -> Rs.3052.80

R = 100 I / PT => R = (100 * 7200)/ (12000 * 5) = 12% CI = P{ [1 + R /100]ⁿ - 1} = 12000 { [ 1 + 12 / 100]² - 1} = Rs.3052.80

Question 982. What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?

Rs.140
Rs.120
Rs.130
Rs.110
None of these.

Discuss Question

Answer: Option B. -> Rs.120

When compounded annually, interest = 12000[1 + 20/100]¹ - 12000 = Rs.2400 When compounded semi-annually, interest = 12000[1 + 10/100]² - 12000 = Rs.2520 Required difference = 2520 - 2400 = Rs.120

Question 983. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9% p.a. in 5 years. What is the sum?

Rs. 4462.50
Rs. 8032.50
Rs. 8900
Rs. 8925

Discuss Question

Answer: Option D. -> Rs. 8925

Principal = (100 * 4016.25) / (9 * 5) = Rs. 8925.

Question 984. Nitin borrowed some money at the rate of 6% p.a. for the first three years, 9% p.a. for the next five years and 13% p.a. for the period beyond eight years. If the total interest paid by him at the end of eleven years is Rs. 8160, how much money did he borrow?

Rs. 8000
Rs. 10000
Rs. 12000
Data inadequate

Discuss Question

Answer: Option A. -> Rs. 8000

Let the sum be Rs. x. Then,
[(x * 6 * 3)/100] + [(x * 9 * 5)/100] + [(x * 13 * 3)/100] = 816018x + 45x + 39x = (8160 * 100)102x = 816000 => x = 8000.

Question 985. What will be the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years?

1:3
1:4
2:3
Data inadequate

Discuss Question

Answer: Option C. -> 2:3

Let the principal be P and rate of interest be R%.Required ratio = [(P * R * 6)/100] / [(P * R * 9)/100] = 6PR/9PR = 6/9 = 2:3

Question 986. Rs. 800 becomes Rs. 956 in 3 years at a rate of S.I. If the rate of interest is increased by 4%, what amount will Rs. 800 become in 3 years?

Rs. 1020.80
Rs. 1025
Rs. 1052
None of these

Discuss Question

Answer: Option C. -> Rs. 1052

S.I. = (956 - 800) = Rs. 156.Rate = (100 * 156) / (800 * 3) = 6 1/2 %Now rate = (6 1/2 + 4) = 10 1/2 %New S.I. = (800 * 21/2 * 3/100) = Rs. 252New amount = (800 + 252) = Rs. 1052.

Question 987. A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?

Rs. 35
Rs. 245
Rs. 350
Cannot be determined

Discuss Question

Answer: Option D. -> Cannot be determined

We need to know the S.I., principal and time to find the rate. Since the principal is not given, so data is inadequate.

Question 988. An automobile financier claims to be lending money at S.I., but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes?

10%
10.25%
10.5%
None of these

Discuss Question

Answer: Option B. -> 10.25%

Let the sum be Rs. 100. Then,S.I. for first 6 months = (100 * 10 *1) / (100 * 2) = Rs. 5S.I. for last 6 months = (105 * 10 * 1) / (100 * 2) = Rs. 5.25So, amount at the end of 1 year = (100 + 5 + 5.25) = Rs. 110.25Effective rate = (110.25 - 100) = 10.25%.

Question 989. A sum of money lent out at S.I. amounts to Rs. 720 after 2 years and to Rs. 1020 after a further period of 5 years. The sum is?