Top 100+ Compound Interest Questions and Answers - 2

Question: 6

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

(A) 10%

(B) 11%

(C) 12%

(D) 15%

Ans: B

Difference in C.I. and S.I. for 2 years = Rs. (696.30 – 660) = Rs. 36.30.

S.I. for one year = Rs. 330

∴ S.I. on Rs. 330 for 1 year = Rs. 36.30.

∴ Rate = $$({100 × 36.30} / {330 × 1})$$% = 11%.

Question: 7

Sam invested Rs. 15,000 @ 10% per annum for one year. If the interest is compounded half yearly, then the amount received by Sam at the end of the year will be

(A) Rs. 16,525.50

(B) Rs. 16,537.50

(C) Rs. 18,150

(D) Rs. 16,500

Ans: B

P = Rs. 15000; R = 10% p.a. = 5% per half year, T = 1 year = 2 half years.

Amount = Rs. $$[15000 × (1 + {5} / {100})^2]$$

= Rs. $$(15000 × {21} / {20} × {21} / {20})$$ = Rs. 16537.50.

Question: 8

Albert invested an amount o Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?

(A) Rs. 8500

(B) Rs. 8600

(C) Rs. 8620

(D) Rs. 8800

Ans: D

Amount = Rs. $$[8000 × (1 + {5} /{100})^2]$$

= Rs. $$(8000 × {21} / {20} × {21} / {20})$$ = Rs. 8800.

Question: 9

A man gets a simple interest of Rs. 1000 on a certain principal at the rate of 5 p.c.p.a. in 4 years. What compound interest will the man get on twice the principal in 2 years at the same rate?

(A) Rs. 1005

(B) Rs. 1025

(C) Rs. 10125

(D) Rs. 11025

Ans: B

Principal = Rs. $$({100 × 1000} / {5 × 4})$$ = Rs. 5000.

Now, P = Rs. 10000, T = 2 years, R = 5%.

Amount = Rs. $$[10000× (1 +{ 5} /{100})^2]$$

= Rs. $$(10000 × {21} / {20} × {21} / {20})$$ = Rs. 11025.

∴ C.I. = Rs. (11025 – 10000) = Rs. 1025.

Question: 10

What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a?

(A) Rs. 9720

(B) Rs. 10123.20

(C) Rs. 10483.20

(D) Rs. 10682.20

Ans: B

Amount = Rs.$$[25000 × (1 + {12} / {100})^3]$$

              = Rs. $$(25000 × {28} / {25} × {28} / {25} × {28} / {25})$$ = Rs. 35123.20.

C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20.

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