Compound Interest problems
- 1. The difference between simple interest and compound interest of a certain sum of money at 20% per annum for 2 years is Rs. 56. Then the sum is :
Options- A. Rs. 3680
- B. Rs. 2650
- C. Rs. 1400
- D. Rs. 1170 Also asked in: AIEEE, Bank Exams, CAT, GATE, GRE, TOEFL, Analyst, Bank Clerk, Bank PO
Correct Answer: Rs. 1400
Explanation:
We know thatThe Difference between Compound Interest and Simple Interest for n years at R rate of interest is given by
Here n = 2 years, R = 20%, C.I - S.I = 56
- 2. Compound interest on a certain sum of money at 20% per annum for 2 years is Rs.5995. What is the SI on the same money at 8% per annum for 6 years ?
Options- A. Rs. 5989
- B. Rs. 6540
- C. Rs. 7844
- D. Rs. 6789 Also asked in: GATE, CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk
Correct Answer: Rs. 6540
- 3. A certain sum is invested for 2 years in scheme M at 20% p.a. compound interest (compounded annually), Same sum is also invested for the same period in scheme N at k% p.a. simple interest. The interest earned from scheme M is twice of that earned from scheme N. What is the value of k?
Options- A. 7
- B. 11
- C. 9
- D. 13 Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: 11
Explanation:
Interest earned in scheme M =
Interest earned in scheme N =
Now, from the given data,
k = 11
- 4. Find the compound interest on Rs. 6,500 for 4 years if the rate of interest is 10% p.a. for the first 2 years and 20% per annum for the next 2 years?
Options- A. Rs. 3845
- B. Rs. 4826
- C. Rs. 5142
- D. Rs. 4415 Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO, Database Administrator, IT Trainer
Correct Answer: Rs. 4826
Explanation:
We know the formula for calculating
The compound interest where P = amount, r = rate of interest, n = time
Here P = 5000, r1 = 10, r2 = 20
Then
C = Rs. 4826.
- 5. What is the interest rate per annum, if a sum of money invested at compound interest amount to Rs. 2400 in 3 years and in 4 years to Rs. 2,520?
Options- A. 3.5%
- B. 4%
- C. 5%
- D. 6.5% Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO, Database Administrator, IT Trainer
Correct Answer: 5%
Explanation:
Let 'R%' be the rate of interest
From the given data,
Hence, the rate of interest R = 5% per annum.
- 6. A sum is equally invested in two different schemes on CI at the rate of 15% and 20% for two years. If interest gained from the sum invested at 20% is Rs. 528.75 more than the sum invested at 15%, find the total sum?
Options- A. Rs. 7000
- B. Rs. 4500
- C. Rs. 9000
- D. Rs. 8200 Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO, Database Administrator, IT Trainer
Correct Answer: Rs. 9000
Explanation:
Let Rs. K invested in each scheme
Two years C.I on 20% = 20 + 20 + 20x20/100 = 44%
Two years C.I on 15% = 15 + 15 + 15x15/100 = 32.25%
Now,
(P x 44/100) - (P x 32.25/100) = 528.75
=> 11.75 P = 52875
=> P = Rs. 4500
Hence, total invested money = P + P = 4500 + 4500 = Rs. 9000.
- 7. The compound interest on Rs. 8000 for 3 year at 10% p.a. is
Options- A. 2648
- B. 2145
- C. 2587
- D. 2784 Also asked in: AIEEE, Bank Exams, CAT, Bank Clerk, Bank PO
Correct Answer: 2648
Explanation:
8000 × 33.1% = 2648
- 8. What is the difference between the compound interests on Rs. 5000 for 11?2 years at 4% per annum compounded yearly and half-yearly?
Options- A. Rs. 1.80
- B. Rs. 2.04
- C. Rs. 3.18
- D. Rs. 4.15 Also asked in: GATE, CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk, Analyst
Correct Answer: Rs. 2.04
Explanation:
Compound Interest for 1 1?2 years when interest is compounded yearly = Rs.(5304 - 5000)
Amount after 11?2 years when interest is compounded half-yearly
Compound Interest for 1 1?2 years when interest is compounded half-yearly = Rs.(5306.04 - 5000)
Difference in the compound interests = (5306.04 - 5000) - (5304 - 5000)= 5306.04 - 5304 = Rs. 2.04
- 9. At a certain rate of interest the compound interest of 3 years and simple interest of 5 years for certain sum of money is respectively Rs. 1513.2 and Rs. 2400. Find the common rate of interest per annum ?
Options- A. 5%
- B. 6%
- C. 4%
- D. 3% Also asked in: GATE, CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk
Correct Answer: 5%
Explanation:
Given compound interest for 3 years = Rs. 1513.2
and simple interest for 5 years = Rs. 2400
Now, we know that C.I =
=> 1513.2 = ...........(A)
And S.I = PTR/100
=> 2400 = P5R/100 ..................(B)
By solving (A) & (B), we get
R = 5%.
- 10. Find the compound interest on Rs. 2680 at 8% per annum for 2 years ?
Options- A. Rs. 664.21
- B. Rs. 548.68
- C. Rs. 445.95
- D. Rs. 692.57 Also asked in: GATE, CAT, Bank Exams, AIEEE, Bank PO, Bank Clerk, Analyst
Correct Answer: Rs. 445.95
Explanation:
We know Compound Interest = C.I. = P1+r100t - 1
Here P = 2680, r = 8 and t = 2
C.I. = 26801 + 81002-1= 268027252-12= 26802725+12725-1= 2680 5225×225
= (2680 x 52 x 2)/625
= 445.95
Compound Interest = Rs. 445.95
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