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Home Aptitude Compound Interest Comments

  • Question
  • Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received Rs.550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received Rs.605 as interest. What was the value of his total savings before investing in thesetwo bonds?


  • Options
  • A. Rs.2543
  • B. Rs.2534
  • C. Rs.2546
  • D. Rs.2750

  • Correct Answer
  • Rs.2750 

    Explanation

     

    Shawn received an extra amount of (Rs.605 ? Rs.550) Rs.55 on his compound interest paying bond as the interest that he received in the first year also earned interest in the second year.

     

    The extra interest earned on the compound interest bond = Rs.55

     

    The interest for the first year =550/2 = Rs.275

     

    Therefore, the rate of interest = 55 275 * 100 = 20% p.a.

     

    20% interest means that Shawn received 20% of the amount he invested in the bonds as interest.

     

    If 20% of his investment in one of the bonds = Rs.275, then his total investment in each of the  bonds = 275 20 * 100  = 1375. 

    As he invested equal sums in both the bonds, his total savings before investing = 2 x 1375 =Rs.2750.

  • Tags: Bank Exams, Bank PO

    Compound Interest problems


    Search Results


    • 1. What is the compound interest (in Rs) for 1 year on a sum of Rs 20000 at the rate of 40% per annum compounding half yearly?

    • Options
    • A. 8000
    • B. 8650
    • C. 8750
    • D. 8800
    • Discuss
    • 2. A woman invests Rs. 2000 at the start of each year at 5% C.I. per annum. How much will her investments be at the end of the 2nd year?

    • Options
    • A. Rs. 4305
    • B. Rs. 430
    • C. Rs. 4355
    • D. Rs. 4350
    • Discuss
    • 3. Calculate the amount on Rs. 1875 for 2 year at 4% per annum, compounded yearly.

    • Options
    • A. Rs. 676
    • B. Rs. 776
    • C. Rs. 1778
    • D. Rs. 2028
    • Discuss
    • 4. If you deposit $4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years ?

    • Options
    • A. 3387.42
    • B. 4387.42
    • C. 5387.42
    • D. 6387.42
    • Discuss
    • 5. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is

    • Options
    • A. Rs.4000
    • B. Rs.500
    • C. Rs.600
    • D. Rs.800
    • Discuss
    • 6. Mr. Mike borrowed Rs. 8500 at 4% per annum C.I. The C.I. compounded annally for 2 years is :

    • Options
    • A. Rs. 9139.6
    • B. Rs. 639.6
    • C. Rs. 9193.6
    • D. Rs. 693.6
    • Discuss
    • 7. If a sum of Rs.12500 is invested for 1 year at 12% per annum interest being compounded semi-annually, then interest earned is

    • Options
    • A. Rs.1505
    • B. Rs.1535
    • C. Rs.1545
    • D. Rs.1550
    • Discuss
    • 8. What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded annually?

    • Options
    • A. Rs.2592
    • B. Rs.2492
    • C. Rs.2352
    • D. Rs.2352
    • Discuss
    • 9. Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be repaid if he is repaying the entire amount at the end of 2 years? I. The rate of interest is 5 p.c.p.a. II. Simple interest fetched on the same amount in one year is Rs. 600. III. The amount borrowed is 10 times the simple interest in 2 years.

    • Options
    • A. .I only
    • B. III only
    • C. I or II
    • D. II and Either I or III only
    • Discuss
    • 10. At 3% annual interest compounded monthly, how long will it take to double your money?

    • Options
    • A. 20.1
    • B. 21.1
    • C. 22.1
    • D. 23.1
    • Discuss


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