Aptitude - Compound Interest

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

A.  3

B.  4

C.  5

D.  6

View Answer  

Correct Answer :

4



Explanation :

P ( 1 + (20/100) )ⁿ > 2P

=> (6/5)ⁿ > 2

Now, [ (6/5) x (6/5) x (6/5) x (6/5) ]ⁿ > 2

So, n = 4 years


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?

A.  Rs. 2972

B.  Rs. 3120

C.  Rs. 3972

D.  Rs. 4120

View Answer  

Correct Answer :

Rs. 3972



Explanation :

Let P = Rs. 100. Then, S.I = Rs. 60 and T = 6 years

=> R = [ (100 x 60) / (100 x 6) ] = 10% p.a

Now, P = Rs. 12000. T = 3 years and R = 10% p.a

=> C.I = Rs. [ 1200 x { (1 + 10 / 100)³ - 1 } ]

=> C.I = Rs. [ 12000 x (331 / 1000) ]

=> C.I = Rs. 3972


The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A.  625

B.  630

C.  635

D.  640

View Answer  

Correct Answer :

625



Explanation :

Let the Principal be P, then

C.I = P x ( 1 + (4/100) )² - P = 51P/625

S.I = P x 4 x 2 / 100 = 2P/25

=> C.I - S.I = 1 = (51P/625) - (2P/25)

=> P = Rs. 625/-


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. 119

B.  Rs. 120

C.  Rs. 121

D.  Rs. 122

View Answer  

Correct Answer :

Rs. 121



Explanation :

Amount = Rs. [ 1600 x ( 1 + 5 / (2 x 100) )² + 1600 x ( 1 + 5 / (2 x 100) )­² ]

            = Rs. [ 1600 x (41/40) x (41/40) + 1600 x (41/40) ]

            = Rs. [ (1600 x 41 x 81) / (40 x 40) ]

            = Rs. 3321

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


Mr. Amin borrowed some money from Mr Vishwas. The of interest for first two years is 8% p.a., for the next tit years is 11 % p.a. and for the period beyond 5 years I p.a. Mr Vishwas got an amount of 210920 as an intere the end of eight years. Then what amount was borrowed  MrAmin?

A.  ?12000

B.  ?15000

C.  ?1400

D.  Data inadequate

E.  None of these

View Answer  

Correct Answer :

?12000



Explanation :
No Explanation available for this question

What will be the simple interest accured on a sum of Rs. 5,224 at a rate of 5 p.c.p.a. in 5 years?  

A.  Rs. 1,360

B.  Rs. 653

C.  Rs. 763

D.  Rs. 1,206

E.  None of these

View Answer  

Correct Answer :

None of these



Explanation :
No Explanation available for this question

Difference between the compound interest and the simple interest accrued on an amount of Z 18000, in two years was ?405 What was the rate of interest p.c.p.a?

A.  16

B.  12

C.  15

D.  Cannot be determined

E.  None of these

View Answer  

Correct Answer :

15



Explanation :
No Explanation available for this question

Raviraj invested an amount of ?10,000 at compound interest of 10 pcpa for a period of three years. How much amount, Raviraj get after three years?

A.  ?12,310

B.  ?13,210

C.  ?13,320

D.  ?13,120

E.  None of these

View Answer  

Correct Answer :

None of these



Explanation :
No Explanation available for this question

What would be the compound interest obtained on an amount of rs 8,800/- at the rate of 16 p.c.p.a. after 2 years?

A.   3,041.25/-

B.  3,014.28/-

C.  3,044.69/-

D.   3,041.28/-

E.  None of these

View Answer  

Correct Answer :

3,041.28/-



Explanation :
No Explanation available for this question

The simple interest accrued on a sum of certain principal is Rs. 2,000/- in five years at the rate of p.c.p.a. What would be the compound interest accrued on a principal at same rate in two years?

A.  Rs. 716/-

B.  Rs. 724/-

C.  Rs. 824/-

D.  Rs. 816/-

E.  None of these

View Answer  

Correct Answer :

Rs. 816/-



Explanation :
No Explanation available for this question