1. Home
  2. Quantitative Aptitude
  3. Compound Interest
NumbersHCF and LCMFractionsSimplificationSquare and Cube RootAverageProblems on AgesSurds and IndicesPercentageProfit and LossRatio and ProportionPartnershipTime and WorkPipes and CisternTime and DistanceProblems on TrainsBoats and StreamsAlligation or MixtureSimple InterestCompound InterestLogarithmAreaVolume and Surface AreaRaces And GamesCalendarClocksPermutation and CombinationProbabilityDiscountHeight and DistanceAlgebraTrianglesTrigonometryQuadrilateral

Compound Interest- Aptitude Questions and Answers

View in English View in Hindi

The difference between the simple and the compound interest on a certain sum of money at 4% per annum in 2 years is 10 rs. What is the sum ?

A)

5,000


B)

6,000


C)

6,250


D)

7,500



Correct Answer :

6,250


Explanation :

Let the sum is 100 then
S.I. = 100* 4* 2 / 100 = 8
C.I = 100 *(1 + 4/100)2 - 100 = 100*( 26/25) 2 - 100 = 204/25
Difference between C.I and S.I = 204/25 - 8 = 4/25 = .16

So, 0.16 : 10 : : 100 : P
∴ P = (10* 100) / 0.16 = 6250

The effective annual rate of interest corresponding to a nominal rate of 22% per annum payable half-yearly is?

A)

44%


B)

23.21%


C)

46.42%


D)

22%



Correct Answer :

23.21%


Explanation :

Amount = P[1+(R/2)/100]2n , if interest is payable half-yearly

Let the amount is 100 for one year
So, effective amount = 100*(1 + 11/100)2
= 100*(1 + 11/100)*(1 + 11/100)
= 111*1.11
= 123.21

Then, Effective rate = 123.21 -100 = 23.21%

Raj borrowed Rs. 5000 at 10% per annum on simple interest and lent the same amount at 15% per annum on compound interest. At the end of 2 years, he would ?

A)

Gain Rs. 612.5


B)

Gain Rs. 621.5


C)

Loss Rs. 612.5


D)

Loss Rs. 621.5



Correct Answer :

Gain Rs. 612.5


Explanation :

Simple interest paid by Raj At the end of 2 years
simple interest =P*R*T /100 = 5000*10*2 /100 = 1000

Amount gained by Raj on lent it on compound interest
Amount = P*(1+ R/100) T
=5000(1 + 15/100)2
=5000(1.15)2
=6612.5
compound interest = 6612.5 - 5000 = 1612.5

Amount gain by Raj = 1612.5 - 1000 = 612.5

The difference between the compound interest and the simple interest earned at the end of the third year on a sum of money at a rate of 10% per annum is Rs 77.5. What is the sum?

A)

Rs 3500


B)

Rs 2500


C)

Rs 3000


D)

Rs 2000



Correct Answer :

Rs 2500


Explanation :

Let Principle Amount =P, Time T = 3 and Rate R = 10%
Simple Interest, SI = PTR/100
= 3*10*P/100
= 0.3P
Compound Interest, CI = A-P
= P[1+(R/100)]T - P
= P[1+(10/100)]3 - P
= P[1.1]3 - P
= 1.331P - P
= 0.331P

Now, CI - SI = 77.5
=> 0.331P - 0.3P = 77.5
=> 0.031P = 77.5
Principle Amount, P = 77500/31 = Rs 2500

Relevant links

Compound Interest - Important Formulas,Tricks and Examples

Latest Updates

Indian Geography

What is the approximate distance between earth and the moon?
Indian History

In which year was the battle of ‘Koregaon Bhima’ fought?

The approach that is very useful in organizing the content in history is.
General Knowledge of India

NITI Aayog stands for _____.
General Knowledge of MP

India’s first Ramayan art museum was established at?
Errors Identification

Read the sentence carefully and choose the option that has an error in it:
The management’s trusted employee was suspected of stealing large sum of money.

Read the sentence carefully and choose the option that has an error in it:
The teacher asked the child to repeat again because he spoke feebly.
Fill in the blank

Fill in the blank with the most appropriate preposition in the given sentence.
Let’s sit _________ the shade of this beautiful tree.

Choose the most appropriate determiner for the given sentence.
________of what he said was very sensible.
Substitution

Choose the option that substitutes the given phrase appropriately.
A work of art made by carving
Correct sentence

Choose the option that best transforms the sentence into its Indirect form:
‘What country do you come from?’ said the police officer.
Alternative Phrase

Choose the option that best explains the highlighted expression:
All human beings have feet of clay.
Fill in the blank

Choose an appropriate modal for the given sentence:
My doctor said that I_____ stop smoking as one of my lungs got infected.

Choose the appropriate prepositions for the given sentence:
My parents have been married ________ forty-nine years, but you can still see the love ________ their eyes.

Choose the appropriate conjunction for the given sentence:
______ it rains, the college will declare the holiday.
Antonyms

Choose the appropriate antonym for the highlighted word in the given sentence.
The family protracted their visit by several days.
Tenses

Choose the appropriate tenses to fill in the blanks in the given sentence:
Please _________ a noise. Ritu __________ to sleep.
Synonyms

Choose the appropriate synonym for the highlighted word in the given sentence.
Does he really expect us to believe such a flimsy excuse?

Latest Job Notifications

Jobs in Punjab

Punjab Police Sub-Inspectors - 288 Posts - 28/02/2023 Last Date

Punjab Police Constables - 1746 Posts - 08/03/2023 Last Date
Government Jobs

Intelligence Bureau Assistant/MTS Recruitment - 1675 Posts - 17/02/2023 Last Date
Jobs in Punjab

PSSSB Fireman & Driver/ Operator - 1317 Posts - 28/02/2023 Last Date
Jobs in Assam

Assam Police Cook, Barber & Other - 110 Posts - 06/02/2023 Last Date

Assam Police FORESTER/GUARD/CONSTABLE/DRIVER - 2649 Posts - 06/02/2023 Last Date

Assam Police Jail Warder - 253 Posts - 11/02/2023 Last Date
Government Jobs

India Post Office Gramin Dak Sevaks (GDS) - 40889 Posts - 16/02/2023 Last Date
Banking Jobs

Central Bank of India Chief Manager & Sr Manager Recruitment - 250 Posts - 11/02/2023 Last Date
Defence Jobs

CISF Constables/Driver and Constable/DCPO - 451 Posts - 22/02/2023 Last Date