Top 100+ Compound Interest Aptitude Questions and Answers - 1

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Question: 1

Mr Arunkumar invested Rs.20000 with rate of interest @ 20 p.c.p.a. The interest was compounded half yearly for first one year and in the next year it was compounded yearly. What will be the total interest earned at the end of 2 years?

(A) Rs. 8040

(B) Rs. 9040

(D) Rs. 9800

View Answer

Ans: B

Amount = Rs. $$[20000(1 + {10}/{100})$$² $$(1 + {20}/{100})]$$

= Rs. $$(20000 × {11}/{10} × {11}/{10} × {6}/{5})$$

= Rs. 29040.

∴ C.I. = Rs. (29040 - 20000) = Rs. 9040.

Question: 2

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 sum at the same rate and for the same time?

(A) Rs. 51.25

(B) Rs. 52

(D) Rs. 60

View Answer

Ans: A

Sum = Rs. $$({50 × 100} / {2 × 5})$$ = Rs. 500.

Amount = Rs. [500 × $$(1 +{5}/{100})$$²]

= Rs. $$(500 × {21}/{20} × {21}/{20})$$ = Rs. 551.25

C.I. = Rs. (551.25 - 500) = Rs. 51.25.

Question: 3

The present worth of Rs.169 due in 2 years at 4% per annum compound interest is

(A) Rs. 150.50

(B) Rs. 154.75

(D) Rs. 158

View Answer

Ans: C

Present worth = Rs. $$[169/ (1 +{4}/{100})^2]$$

= Rs. $$(169 × {25/26} × {25/26})$$ = Rs. 156.25.

Question: 4

What will be the difference between the simple interest and compound interest accrued on an amount of Rs. 19200 at the end of 3 years @12 p.c.p.a?

(A) Rs. 722.6826

(B) Rs. 798.1824

(D) Rs. 862.6176

View Answer

Ans: D

S.I. = Rs. $$({19200 × 12 × 3} /{100})$$ = Rs. 6912

C.I. = Rs. [19200 × $$(1 + {12}/{100})^3$$ - 19200]

= Rs. $$[(19200 × {28/25} × {28/25} × {28/25}) - 19200]$$

= Rs. $$({16859136} / {625} - 19200)$$

= Rs. (26974.6176 - 19200) = Rs. 7774.6176

Difference = Rs. (7774.6176 - 6912) = Rs. 862.6176

Question: 5

A bank offers 5% compound interest calculated on half yearly basis. A customer deposits Rs.1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is

(A) Rs. 120

(B) Rs. 121

(D) Rs. 123

View Answer

Ans: B

Amount = Rs.[1600 × $$(1 + { 5}/ {2 × 100})$$² + 1600 × $$(1 + {5}/{2 × 100})$$]

= Rs. $$[1600 × {41/40} × {41/40} + 1600 × {41/40}]$$

= Rs. $$[1600 × {41/40} ({41/40} + 1)]$$

= Rs. $$({1600 × 41 × 81} / {40 × 40})$$ = Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121.

Top 100+ Compound Interest Aptitude Questions and Answers - 1

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