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Home Aptitude Compound Interest Comments

  • Question
  • A five-year promissory note with a face value of $3500, bearing interest at 11% compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly.What amount was paid for the note


  • Options
  • A. 4336.93
  • B. 5336
  • C. 6336
  • D. 7336

  • Correct Answer
  • 4336.93 

    Explanation

    i=j/m

    Maturity value = PV(1 + i)^n

    Term = 5 years - 21 months=  3.25 years

    Price paid = FV(1+ i )^-n

  • Tags: Bank Exams, Bank PO

    Compound Interest problems


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    • 1. $10,000 face value strip bond has 15 years remaining until maturity. If the prevailing market rate of return is 6.5% compounded semiannually, what is the fair market value of the strip bond?

    • Options
    • A. 1710.29
    • B. 2710.29
    • C. 3710.29
    • D. 4710.29
    • Discuss
    • 2. If you deposit $8000 into an account paying 7% annual interest compounded quarterly, how long until there is $12400 in the account?

    • Options
    • A. 2.3
    • B. 3.3
    • C. 4.3
    • D. 6.3
    • Discuss
    • 3. What would be the least number of years in which the simple interest on Rs.2600 at % will be an exact number of rupees ?

    • Options
    • A. 2
    • B. 3
    • C. 4
    • D. 5
    • Discuss
    • 4. What is the least number of complete years in which a sum of money put out at 40% annual compound interest will be more than trebled?

    • Options
    • A. 3
    • B. 4
    • C. 5
    • D. 6
    • Discuss
    • 5. An article costs Rs 50 presently. The rate of inflation is 300%. What will be cost of this article after two years?

    • Options
    • A. Rs 200
    • B. Rs 600
    • C. Rs 800
    • D. Rs 1000
    • Discuss
    • 6. There is 50% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate ?

    • Options
    • A. Rs. 5422
    • B. Rs. 5489
    • C. Rs. 3972
    • D. Rs. 6145
    • Discuss
    • 7. Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest ?

    • Options
    • A. 20% p.a
    • B. 15% p.a
    • C. 18% p.a
    • D. 24% p.a
    • Discuss
    • 8. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 12% per annum is Rs 900. What is the value of given sum (in Rs)?

    • Options
    • A. 125000
    • B. 250000
    • C. 62500
    • D. 187500
    • Discuss
    • 9. At what rate of compound interest per annum will a sum of Rs 20000 become Rs 23328 in 2 years?

    • Options
    • A. 8 percent
    • B. 16 percent
    • C. 24 percent
    • D. 12 percent
    • Discuss
    • 10. On a certain principal if the simple interest for two years is Rs 1400 and compound interest for the two years is Rs 1449, what is the rate of Interest?

    • Options
    • A. 7 percent
    • B. 3.5 percent
    • C. 14 percent
    • D. 10 percent
    • Discuss


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