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Compound Interest Quiz 2

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Compound Interest Quiz 2

shape Introduction

What is compound interest? Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Compound Interest is one of important topic in Quantitative Aptitude Section. In Compound Interest Quiz 2 article candidates can find questions with answer. By solving this questions candidates can improve and maintain, speed, and accuracy in the exams. Compound Interest Quiz 2 questions are very useful for different exams such as IBPS PO, Clerk, SSC CGL, SBI PO, NIACL Assistant, NICL AO, IBPS SO, RRB, Railways, Civil Services etc.

shape Q1

What sum will give Rs. 488 as the difference between simple interest and compound interest at 10% in 1 1/2 years compounded half yearly ?
    A. 80,000 B. 72,000 C. 64,000 D. 68,000

SPLessons

Let sum = 100 Rs.
S.I = 15 Rs.
C.I. = 15.6725 Rs.
Difference = 0.6725 [latex]\rightarrow 100 \rightarrow \frac {488}{0.7625} \times 100[/latex] = Rs. 64,000

shape Q2

A certain sum is interested at compound. The interest accrued in the first two years is Rs. 544 and that in the first three years is Rs. 868. Find the rate per cent.
    A. 12.5% B. 7.5% C. 17.5% D. 25%

SPLessons

544 = p [latex][{(1 + \frac {R}{100})}^{2} - 1][/latex]______(1)
868 = p [latex][{(1 + \frac {R}{100})}^{3} - 1][/latex]______(1)
[latex](2) \div (1)[/latex]
[latex]\frac {{q}^{3} - 1}{{q}^{2} - 1} = \frac {868}{544},q = (1 + \frac {R}{100})[/latex]
[latex]\frac {{q}^{2} + q + 1}{q + 1} = \frac {217}{136}[/latex], solving the eq'n
q = [latex]\frac {9}{8}, 1 + \frac {R}{100} = \frac {9}{8}[/latex]
R = 12.5%

shape Q3

What sum of money at compound interest will amount to Rs. 2249.52 in 3 years, if the rate of interest is 3% for the first year, 4% for the second year and 5% for the third year ?
    A. Rs. 20140 B. Rs. 1980 C. Rs. 2000 D. Rs. 2180

SPLessons

Required amount = 2249.52 [latex]\times \frac {100}{103} \times \frac {100}{104} \times \frac {100}{105} = [/latex] Rs. 2000

shape Q4

The C.I. on a certain sum for 2 years is Rs. 786 and S.I. is Rs. 750. If the sum is invested such that the S.I. is Rs. 1296 and the number of years is equal to the rate per cent per annum, Find the rate of interest?
    A. 4% B. 5% C. 6% D. 8%

SPLessons

CI for 2 years = Rs. 786
SI for 2 years = Rs. 750
[latex]\frac {36}{360} \times[/latex] 100 = 10%
P for first year = 3600
[latex]\frac {p \times x \times x \times}{100} [/latex] = 1296
x = 6%

shape Q5

Rs.20,000 was invested by Mahesh in a FD @ 10% pa at CI. However every year he has to pay 20% tax on the CI. How much money does Mahesh have after 3 years?
    A. 25694 B. 25594 C. 25394 D. 25194

SPLessons

[latex](20000 \times {(1.08)}^{3}) = 25194[/latex]

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