Compound Interest problems
- 1. The population of a town was 3600 three years back. It is 4800 right now. What will be the population three years down the line, if the rate of growth of population has been constant over the years and has been compounding annually?
Options- A. Rs.600
- B. Rs,6400
- C. Rs.6500
- D. Rs.6600 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs,6400
Explanation:
The population grew from 3600 to 4800 in 3 years. That is a growth of 1200 on 3600 during three year span.
Therefore, the rate of growth for three years has been constant.
The rate of growth during the next three years will also be the same.
Therefore, the population will grow from 4800 by = 1600
Hence, the population three years from now will be 4800 + 1600 = 6400
- 2. Divide Rs. 1301 between A and B, so that the amount of A after 7 years is equal to the amount of B after 9 years, the interest being compounded at 4% per annum.
Options- A. Rs.625
- B. Rs.626
- C. Rs.286
- D. Rs.627 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.625
Explanation:
Let the two parts be Rs. x and Rs. (1301 - x).
=> 625x=676(1301-x)
1301x=676 x 1301x=676.
So,the parts are rs.676 and rs.(1301-676)i.e rs.676 and rs.625
- 3. A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year
Options- A. Rs.5624.32
- B. Rs.5423
- C. Rs.5634
- D. Rs.5976 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.5624.32
- 4. 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
- 5. 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
- 6. The present worth of Rs.169 due in 2 years at 4% per annum compound interest is
Options- A. Rs.156.25
- B. Rs.150
- C. Rs.140
- D. Rs125.25 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.156.25
Explanation:
Present Worth
=
=
= Rs.156.25
- 7. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
Options- A. Rs.1550
- B. Rs.1650
- C. Rs,1750
- D. Rs.1850 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs,1750
Explanation:
C.I.= Rs.[4000*(1+10/100)^2-4000]
=Rs.840
sum=Rs.(420 * 100)/3*8=Rs.1750
- 8. 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.
- 9. 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.
- 10. 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.
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