Compound Interest problems
- 1. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
Options- A. 3years
- B. 2years
- C. 4years
- D. 6years Also asked in: Bank Exams, Bank PO
Correct Answer: 2years
Explanation:
Amount = Rs. (30000 + 4347) = Rs. 34347.
Let the time be n years.
Then, 30000*(1+7/100)^n=34347
n= 2 years
- 2. What is the rate of compound interest? I. The principal was invested for 4 years. II. The earned interest was Rs. 1491.
Options- A. I alone sufficient while II alone not sufficient to answer
- B. II alone sufficient while I alone not sufficient to answer
- C. Either I or II alone sufficient to answer
- D. Either I or II alone sufficient to answer Also asked in: Bank Exams, Bank PO
Correct Answer: Either I or II alone sufficient to answer
Explanation:
Let Principal = Rs. P and Rate = R% p.a. Then,
Amount=
C.I =
Clearly, it does not give the answer
- 3. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time
Options- A. Rs.51.25
- B. Rs.61.25
- C. Rs.51
- D. Rs.42 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.51.25
Explanation:
Sum = Rs.(50*100)/2*5=Rs.500
Amount=Rs.[500*(1+5/100)2]
= Rs. 551.25
C.I = Rs.(551.25-500)= Rs.51.25
- 4. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is
Options- A. Rs.2
- B. Rs.3
- C. Rs.4
- D. Rs.5 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.3
Explanation:
S.I. = Rs.(1200*10*1)/100=rs.120
C.I. =rs[1200*(1+5/100)2-1200]=rs.123
Difference = Rs.(123-120) =Rs.3
- 5. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
Options- A. 8
- B. 10
- C. 12
- D. 14 Also asked in: Bank Exams, Bank PO
Correct Answer: 8
Explanation:
[15000*(1+r/100)2-15000]-(15000*r*2)/100=96
Rate=8%
- 6. An amount of money was lent for 3 years. What will be the difference between the simple and the compound interest earned on it at the same rate? I. The rate of interest was 8 p.c.p.a. II. The total amount of simple interest was Rs. 1200
Options- A. I alone sufficient while II alone not sufficient to answer
- B. alone sufficient while I alone not sufficient to answer
- C. Both I and II are not sufficient to answer
- D. Both I and II are necessary to answer Also asked in: Bank Exams, Bank PO
Correct Answer: Both I and II are necessary to answer
Explanation:
Given: T = 3 years.
I. gives: R = 8% p.a.
II. gives: S.I. = Rs. 1200.
Thus, P = Rs. 5000, R = 8% p.a. and T = 3 years.
Difference between C.I. and S.I. may be obtained.
So, the correct answer is (D).
- 7. If you deposit $6500 into an account paying 8% annual interest compounded monthly, how much money will be in the account after 7 years?
Options- A. 11358.24
- B. 12334
- C. 15789
- D. 12386 Also asked in: Bank Exams, Bank PO
Correct Answer: 11358.24
Explanation:
FV=P(1+r/n)^nt
- 8. How much money would you need to deposit today at 9% annual interest compounded monthly to have $12000 in the account after 6 years?
Options- A. 9007
- B. 4007
- C. 7007.08
- D. 8oo7 Also asked in: Bank Exams, Bank PO
Correct Answer: 7007.08
Explanation:
FV=P(1+r/n)^nt
- 9. You deposit $300 in a savings account that pays 4% simple annual interest. Find your account balance after 9 months.
Options- A. 309
- B. 409
- C. 609
- D. 509 Also asked in: Bank Exams, Bank PO
Correct Answer: 309
Explanation:
A = P + Prt
- 10. Simon deposits $400 in an account that pays 3% interest compounded annually. What is the balance of Simon?s account at the end of 2 years?
Options- A. 424.36
- B. 524.56
- C. 545.36
- D. 456.36 Also asked in: Bank Exams, Bank PO
Correct Answer: 424.36
Explanation:
I=Prt
I=12
Balance = P +Prt
412
Find the balance at the end of the second year.
I = Prt=12.36
Balance =P + Prt
424.36
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