Advertisements
- 6. Anusha gave Latha Rs.1250 on compound interest for 2 years at 4% per annum. How much loss would Anusha has suffered had she given it to Latha for 2 years at 4% per annum simple interest?
A.Rs.10
B.Rs.2
C.Rs.3
D.Rs.6
Answer & Explanation
Answer: Option B 
1250 = D(100/4)2
D = 2
View Answer
- 7. Murari borrowed Rs.4000 at 5% p.a compound interest. After 2 years, he repaid Rs.2210 and after 2 more year, the balance with interest. What was the total amount that he paid as interest?
A.Rs.636
B.Rs.635.50
C.Rs.635
D.Rs.634.50
Answer & Explanation
Answer: Option B
4000
200 ---- I
200
10 ---- II
---------------
4410
2210
--------
2000
110 ---- III
110
5.50 ---- IV
-----------
2425.50
2210
-----------
4635.50
4000
----------
635.50
View Answer
- 8. Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.64000?
A.Rs.81000
B.Rs.64000
C.Rs.80000
D.Rs.75000
Answer & Explanation
Answer: Option A
64000* 9/8 * 9/8 = 81000
View Answer
- 9. An amount at compound interest sums to Rs.17640/- in 2 years and to Rs.18522/- in 3 years at the same rate of interest. Find the rate percentage?
A.5%
B.7%
C.9%
D.11%
Answer & Explanation
Answer: Option A
The difference of two successive amounts must be the simple interest in 1 year on the lower amount of money.
S.I = 18522/- - 17640/- = Rs. 882/-
Rate of interest = (882/17640) × (100/1) => 8820/1764 = 5%
Principal = Amount/(1 + R/100)2
= 17640/(1 + 5/100)2
= 17640/(21/20 × 21/20)
= 17640/(1.05 × 1.05)
= 17640/1.1025
= 16000
Thus the principal is Rs.16000/- and the rate of interest is 5%
View Answer
- 10. Dhanumjay invested an amount of Rs.17400 for two years. Find the rate of compound interest that will fetch him an amount of Rs.1783.50 at the end of two years?
A.8% p.a.
B.5% p.a.
C.6% p.a.
D.4% p.a.
Answer & Explanation
Answer: Option B
Let the rate of interest be R% p.a.
17400[1 + R/100]2 = 17400 + 1783.50
[1 + R/100]2 = (17400 + 1783.50)/17400
= 1 + 1025/10000 = 1 + 41/400
= 441/400 = [21/20]2
[1 + R/100] = 21/20
R/100 = 1/20
∴ R = 5
View Answer
To whom this Compound Interest Questions and Answers section is beneficial?
Students can learn and improve on their skillset for using Verbal Ability effectively and can also prepare for competitive examinations like...
- All I.B.P.S and Public Sector Bank Competitive Exam
- Common Aptitude Test (CAT) Exams
- UPSC Paper-II or CSAT Exams
- SSC Competitive Exams
- Defence Competitive Exams
- L.I.C / G.I.C AO and Clerk Competitive Exams
- Railway Competitive Exam
- University Grants Commission (UGC)
- Career Aptitude Test (IT Companies) and etc.