Compound Interest Quiz Set 015 | Maths Aptitude Quiz Questions and Mock Test on Compound Interest Set 15 | mock tests for Bank PO, SSB/SSC Exams, SO Clerical Exam, GATE Exam, LIC AO, GIC AO, etc.

**Your Score**
Correct Answers:
Wrong Answers:
Unattempted:

Question 1

The compound amount after 2 years on a principal of Rs. P is same as that on a principal of Rs. (404 - P) after 3 years, then what is P if the rate of interest is 2% p.a. compounded yearly?

Rs. 204.

Rs. 304.

Rs. 104.

Rs. 404.

Soln.
Ans: a

We have P × $(1 + 2/100)^2$ = (404 - P) × $(1 + 2/100)^3$. Cancelling, we get P = (404 - P) × (1 + 2/100). Simplifying, P = ${404 × (100 + 2)}/(200 + 2)$, which gives P = Rs. 204.

Solution | Discuss! | Chapters»

Question 2

The difference between compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 216. What is the rate p.a. if principal is Rs. 60000?

6%.

8%.

7%.

9%.

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 × $√{216/60000}$ = 6%.

Solution | Discuss! | Chapters»

Question 3

An amount P is invested for 1 year @4% p.a. The simple interest is Rs. 4000. What would be the compound interest on the same amount, at the same rate and for the same time, compounded annually?

Rs. 4000.

Rs. 4100.

Rs. 3900.

Rs. 4200.

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.

Solution | Discuss! | Chapters»

Question 4

What is the difference between the simple interest and compound interest at the rate of 4% for 1 year? The compounding is half-yearly, and the principal is Rs. 50000.

Rs. 20.

Rs. 120.

Rs. 70.

Rs. 220.

Soln.
Ans: a

The simple interest SI = (P × r)/100 = (50000 × 4)/100 = Rs. 2000. Compound interest will have half interest rate and n = 2. By shortcut formula, we have CI = ${P × R × (R + 200)}/10000$ = ${50000 × 2 × (2 + 200)}/10000$ = Rs. 2020. The difference = Rs. 20.

Solution | Discuss! | Chapters»

Question 5

The difference in compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 512. What is the principal amount if the rate is 8% p.a.?

Rs. 80000.

Rs. 90000.

Rs. 70000.

Rs. 100000.

Soln.
Ans: a

The shortcut formula for the difference between compound and simple interest over a period of 2 years is $Difference = Principal × (\text"rate"/100)^2$. So Principal = $(Difference × 10000)/(rate × rate)$ = $(512 × 10000)/(8 × 8)$ = Rs. 80000.

Solution | Discuss! | Chapters»