Compound Interest Quiz Set 010 | Maths Aptitude Quiz Questions and Mock Test on Compound Interest Set 10 | mock tests for Bank PO, SSB/SSC Exams, SO Clerical Exam, GATE Exam, LIC AO, GIC AO, etc.

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Question 1

The compound interest on a certain sum of money at 6% for a period of 2 years is Rs. 8652. What is the SI on this sum if the rate is halved, and time doubled?

Rs. 8400.

Rs. 8500.

Rs. 8300.

Rs. 8600.

Soln.
Ans: a

The shortcut formula is CI = Pr(r + 200)/10000. Putting CI = 8652, r = 6, we get 8652 = ${P × 6 × (6 + 200)}/10000$. We can solve it to get P = Rs. 70000. The SI = P × (2 × t) × (r / 200) = P × t × (r / 100). Putting t = 2, r = 6 and P = 70000, we get SI = Rs. 8400.

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Question 2

How much interest does an amount of Rs. 30000 earn @8% compounded annually for 2 years?

Rs. 4992.

Rs. 5092.

Rs. 4892.

Rs. 5192.

Soln.
Ans: a

Amount A = 30000 × $(1 + 8/100)^2$, which equals 30000 × $108/100$ × $108/100$ = 3 × 108 × 108 = Rs. 34992. So interest = A - P = 34992 - 30000 = Rs. 4992.

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Question 3

The difference between compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 28. What is the rate p.a. if principal is Rs. 70000?

2%.

4%.

3%.

5%.

Soln.
Ans: a

If d is the difference, r is the rate and P is the principal, then the shortcut formula for the difference between compound and simple interest over a period of 2 years is d = P × $(r/100)^2$. So rate = 100 × $√{d/P}$ = 100 × $√{28/70000}$ = 2%.

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Question 4

An amount P is invested for 1 year @2% 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

An amount P is invested for 2 years @7% p.a. The simple interest is Rs. 6000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

Rs. 6210.

Rs. 6310.

Rs. 6110.

Rs. 6410.

Soln.
Ans: a

Let SI, P, r, t have usual meanings. Then, for 2 years, SI = (P × r × 2)/100. So P = $(50 × SI)/r$. The compound interest for 2 years by shortcut formula is ${P × r × (200 + r)}/10000$. Putting P here, it becomes, ${{(50 × SI)/r} × r × (200 + r)}/10000$ = ${SI × (r + 200)}/200$ = ${6000 × (7 + 200)}/200$ = Rs. 6210.

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