Compound Interest problems
- 1. The difference between the simple interest on a certain sum at the rate of 10%per annum for 2 years and compound interest which is compounded every 6 months is Rs.124.05. what is the principal sum
Options- A. Rs.6000
- B. Rs.8000
- C. Rs.12000
- D. none of these Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.8000
Explanation:
Compound Interest on P at 10% for 2 years when interest is compounded half-yearly
=
Simple Interest on P at 10% for 2 years =
Given that difference between compound interest and simple interest = 124.05
=>
P=8000
- 2. If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.
Options- A. 1261
- B. 1271
- C. 1281
- D. 1291 Also asked in: Bank Exams, Bank PO
Correct Answer: 1261
Explanation:
Clearly, Rate = 5% p.a., Time = 3 years, S.I.= Rs. 1200. . .
So principal=RS [100*1200]/3*5=RS 8000
Amount = Rs. 8000 x [1 +5/100]^3 - = Rs. 9261.
.. C.I. = Rs. (9261 - 8000) = Rs. 1261.
- 3. A certain sum amounts to Rs.7350 in 2 years and to Rs.8575 in 3 years.find the sum and rate percent
Options- A. 3400
- B. 4400
- C. 5400
- D. 6400 Also asked in: Bank Exams, Bank PO
Correct Answer: 5400
Explanation:
Interest for 1 year is the same whether it's simple interest or the compound interest.
Now interest of third year = 8575 - 7350 = 1225; means principal for this interest is 7350 if comound interest is takenIf 7350 is the principal interest = 1225
if 100 is the principal interest =(1225/7350) * 100 = 50/3 %
When a thing increases for two successive times the overall increase on initial amount = a + b + (a * b)/100
Therefore overall interest for two years = 50/3 + 50/3 + [(50/3)*(50/3)]/100 = 325/9 %
Therefore amount after 2 years = 100 + 325/9 = 1225/9
If 1225/9 is the amount principal =100
if 7350 is the amount principal =(900/1225)*7350 =5400
So sum = 5400; Rate = 50/3 %
- 4. Find the compound interest on Rs. 16,000 at 20% per annum for 9 months, compounded quarterly
Options- A. 2422
- B. 2522
- C. 2622
- D. 2722 Also asked in: Bank Exams, Bank PO
Correct Answer: 2522
Explanation:
Principal = Rs. 16000; Time = 9 months =3 quarters;
Rate = 20% per annum = 5% per quarter.
Amount = Rs. [16000 x (1+(5/100))3] = Rs. 18522.
CJ. = Rs. (18522 - 16000) = Rs. 2522
- 5. The compound interest on a sum of money for 2 years is rs.832 and the simple interest on the same sum for the same period is rs.800 .the difference between the compound interest and simple interest for 3 years
Options- A. Rs.48
- B. Rs.66.56
- C. Rs.98.56
- D. None of these Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.98.56
Explanation:
difference in C.I and S.I in 2years =Rs.32
S.I for 1year =Rs.400
S.I for Rs.400 for one year =Rs.32
rate=[100*32)/(400*1)%=8%
difference between in C.I and S.I for 3rd year
=S.I on Rs.832= Rs.(832*8*1)/100=Rs.66.56
- 6. In what time will Rs. 1000 become Rs. 1331 at 10% per annum compounded annually?
Options- A. 1years
- B. 2years
- C. 3years
- D. 4years Also asked in: Bank Exams, Bank PO
Correct Answer: 3years
Explanation:
Principal = Rs. 1000; Amount = Rs. 1331; Rate = 10% p.a. Let the time be n years. Then,
[ 1000 (1+ (10/100))^n ] = 1331 or (11/10)^n = (1331/1000) = (11/10)^3
n = 3 years
- 7. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate
Options- A. Rs.4972
- B. Rs.3972
- C. Rs.5972
- D. Rs.2972 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.3972
Explanation:
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.
R= =10% p.a
Now, P = Rs. 12000. T = 3 years and R = 10% p.a.
C.I=
=Rs.3972
- 8. On a sum of money, the simple interest for 2 years is Rs. 660,while the compound interest is Rs.696.30,the rate of interest being the same in both the cases. The rate of interest is
Options- A. 10%
- B. 11%
- C. 12%
- D. 13% Also asked in: Bank Exams, Bank PO
Correct Answer: 11%
Explanation:
Difference in C.I and S.I for 2 years
= Rs(696.30-660)
=Rs. 36.30.
S.I for one years = Rs330.
S.I on Rs.330 for 1 year =Rs. 36.30
Rate
= (100x36.30/330x1)%
= 11%
- 9. 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
- 10. Find compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.
Options- A. 612
- B. 712
- C. 812
- D. 912 Also asked in: Bank Exams, Bank PO
Correct Answer: 612
Explanation:
Amount = Rs [7500*(1+(4/100)2] = Rs (7500 * (26/25) * (26/25) ) = Rs. 8112.
therefore, C.I. = Rs. (8112 - 7500) = Rs. 612.
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