Compound Interest Quiz Set 006 | Maths Aptitude Quiz Questions and Mock Test on Compound Interest Set 6 | mock tests for Bank PO, SSB/SSC Exams, SO Clerical Exam, GATE Exam, LIC AO, GIC AO, etc.

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Question 1

Rs. 412 is divided into parts such that the compound amount on first part after 8 years is same as that for the other part after 9 years. What is the first part if the rate of interest in both the cases is 6%?

Rs. 212.

Rs. 312.

Rs. 112.

Rs. 412.

Soln.
Ans: a

Let the parts P and (412 - P). We have P × $(1 + 6/100)^8$ = (412 - P) × $(1 + 6/100)^9$. Cancelling, we get P = (412 - P) × (1 + 6/100). Simplifying, P = ${412 × (100 + 6)}/(200 + 6)$, which gives P = Rs. 212.

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Question 2

What is the amount receivable on Rs. 2000000 after 9 months, invested at a rate of 24% compounded quarterly?

Rs. 2382032.

Rs. 2382132.

Rs. 2381932.

Rs. 2382232.

Soln.
Ans: a

In this case r = $24/4$% and n = 3 because compounding is quarterly, and in 9 months there are three quarters. So A = 2000000 × $(1 + 6/100)^3$, which equals 2 × 106 × 106 × 106, i.e., Rs. 2382032.

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Question 3

When a certain amount is invested in a simple interest scheme, it increases by 50% in 5 years. What will be compound interest after 3 years on an amount of Rs. 3000, at the same interest rate, and annual compounding?

Rs. 993.

Rs. 1093.

Rs. 893.

Rs. 1193.

Soln.
Ans: a

Simple interest on Rs. 100 in 5 years is Rs. 50, so rate is 50/5 = 10%. Compound interest for 3 years would be 3000 × $(1 + 10/100)^3$ = 3000 × $(11/10)^3$ = $(3000 × 11 × 11 × 11)/1000$ = Rs. 3993. Interest = A - P = 3993 - 3000 = Rs. 993.

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Question 4

An amount P is invested for 1 year @4% p.a. The simple interest is Rs. 3000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

Rs. 3000.

Rs. 3100.

Rs. 2900.

Rs. 3200.

Soln.
Ans: a

The compound interest and simple interest are exactly same for a period of 1 year if P and r are always same.

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Question 5

When a certain amount is invested in a simple interest scheme, it increases by 60% in 6 years. What will be compound interest after 3 years on an amount of Rs. 6000, at the same interest rate, and annual compounding?

Rs. 1986.

Rs. 2086.

Rs. 1886.

Rs. 2186.

Soln.
Ans: a

Simple interest on Rs. 100 in 6 years is Rs. 60, so rate is 60/6 = 10%. Compound interest for 3 years would be 6000 × $(1 + 10/100)^3$ = 6000 × $(11/10)^3$ = $(6000 × 11 × 11 × 11)/1000$ = Rs. 7986. Interest = A - P = 7986 - 6000 = Rs. 1986.

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