Compound Interest - Aptitude Questions and Answers | Online Compound Interest MCQ Aptitude Test
Quiz Name
Compound Interest
Category
Online Aptitude Test
Number of Questions
30
Time
30 Minutes
Exam Type
MCQ (Multiple Choice Questions)
1. A bank provides a 5% compound interest rate computed every half-year. On the first of January and the first of July of each year, a client deposits Rs. 1600. The amount he would have gained in interest at the end of the year is:
a. Rs. 120
b. Rs. 121
c. Rs. 122
d. Rs. 123
Answer: B
Explanation:
Amount = (1600 x 1 + 5/2 x 100) rupees,2 + 1600 x 1 + 5/2 x100 = Rs.1600 x 41/40 x 41/40 = Rs. 1600 x 41/40 (41 + 1 /40 ).C.I. = Rs. (3321 - 3200) = Rs. 121. = Rs. 1600 x 41 x 81/ 40 x 40 = Rs. 3321.
2. The difference between simple and compound yearly interest compounded on a specific quantity of money for two years at a rate of 4% per annum is Rs. 1.
a. 625
b. 630
c. 640
d. 650
Answer: A
Explanation:
Let's say the total is Rs. x. Then,x (1 + 4 /100) = C.I.x =676/625 x - x =51/625 x=x x 4 x 2/100 =2x/25 =51x/625 -2x/25 = 1 = x = 625 S.I. =x x 4 x 2/100 =2x/25 =51x/625
3. A six-year period results in a 60 percent rise in a sum at simple interest. After three years at the same rate, what would the compound interest on Rs. 12,000 be?
a. Rs. 2160
b. Rs. 3120
c. Rs. 3972
d. Rs. 6240
Answer: C
Explanation:
Let P be equal to Rs. 100. Then T = 6 years and S.I. Rs. 60.R = 100 x 60 /100 x 6 = 10% p.a. R = 100 x 60 /100 x 6 = 10% p.a.P is now equal to Rs. 12000. T equals three years, and R equals ten percent every year.C.I. = Rs.12000 multiplied by (1 + 10/100) to the third power - 1= Rs.12000 x 331 /1000=The number 3972.
4. What is the difference between compound interest on Rs. 5000 compounded yearly and half-yearly for 1 year at 4% per annum?
a. Rs. 2.04
b. Rs. 3.06
c. Rs. 4.80
d. Rs. 8.30
Answer: A
Explanation:
C.I. when interest is compounded annually = Rs. 5000 x 1 + 4/100 x 1= Rs. 5000 x 26/25 x 51/50 = Rs. 5304. C.I. when interest is compounded half-yearly = Rs. 5000 x 1 + 2 /100 to the power 3 = Rs. 5000 multiplied by 51/50=(5306.04 - 5304) = Rs. 2.04
5. At a rate of 7% per year, the compound interest on Rs. 30,000 is Rs. 4347. The time frame is as follows (in years):
a. 2
b. 2 1/2
c. 3
d. 4
Answer: A
Explanation:
Amount = Rs. 34347 (rs. 30000 + 4347). Let's say it's been n years. After that, 30000 1 + 7 /100n= 34347 =107/100 n =34347/30000 =11449/10000 =107/100 to the power2 = n = 2 years
6. At a rate of 12 percent per annum, what will be the compound interest on an amount of Rs. 25,000 after three years?
a. Rs. 9000.30
b. Rs. 9720
c. Rs. 10123.20
d. Rs. 10483.20
Answer: C
Explanation:
Amount = 25000 x 1 + 12 /100 to the third power= Rs. 25000 x 28/25 x 28/25 x 28/25 =(35123.20 - 25000) = Rs. 10123.20 C.I. = Rs. 35123.20 C.I. = Rs. 35.
7. In two years, at what rate of compound interest would an amount of Rs. 1200 become Rs. 1348.32?
a. 6%
b. 6.5%
c. 7%
d. 7.5%
Answer: A
Explanation:
Let's say the rate is R percent each year. Then 1200 x 1 + R/100 to the power2 = 1348.32 = 1 + R/100 to the power2=134832/12000=11236/10000= 1 + R/100 to the power 2 =106/100 to the power 2 = 1 + R/100=106/100 =R = 6%
8. The shortest period of time in which a quantity of money invested at 20% compound interest will be more than doubled is:
a. 3
b. 4
c. 5
d. 6
Answer: B
Explanation:
P 1 + 20/100 n > 2P 6 /5n > 2. 100 5 Now, 6/5 x 6/5 x 6/5 x 6/5=As a result, n equals four years.
9. Albert put Rs. 8000 into a two-year fixed deposit programme with a compound interest rate of 5% per annum. When Albert's fixed deposit matures, how much money will he receive?
a. Rs. 8600
b. Rs. 8620
c. Rs. 8820
d. None of these
Answer: C
Explanation:
Amount = Rs. 8000 x 1 + 5/100 to the second power= Rs. 8000 multiplied by 21/20= 8820 rupees.
10. The effective annual rate of interest, which corresponds to a nominal rate of 6% per annum and is paid half-yearly, is:
a. 6.06%
b. 6.07%
c. 6.08%
d. 6.09%
Answer: D
Explanation:
When a sum of Rs. 100 is compounded half-yearly, it becomes Rs. 100 x1 + 3/100 to the power 2= Rs. 106.09, with an effective rate of (106.09 - 100) percent = 6.09
11. Simple interest on an amount of money for three years at an annual rate of 8% is half the compound interest on Rs. 4000 for two years at a rate of 10%. The amount set aside for simple interest is:
a. Rs. 1550
b. Rs. 1650
c. Rs. 1750
d. Rs. 2000
Answer: C
Explanation:
C.I. = Rs. 4000 x 1 + 10 /100 to the second power - 4000= 4000 x 11/10= 840 rupee,Sum = 420 x 100/3 x 8 = 1750 rupees
12. If the simple interest on a quantity of money is Rs. 50 after two years at 5% per annum, what is the compound interest at the same rate and for the same period?
a. Rs. 51.25
b. Rs. 52
c. Rs. 54.25
d. Rs. 60
Answer: A
Explanation:
Sum = 50 x 100/2 x 5 = 500 rupees=Amount = 500 x 1 + 5/100 to the second power= Rs. 500 x 21/20 = Rs. (551.25 - 500) = Rs. 51.25
13. The difference between simple and compound interest on Rs. 1200 for a year at a rate of 10% per annum calculated half-yearly is:
a. Rs. 2.50
b. Rs. 3
c. Rs. 3.75
d. Rs. 4
Answer: B
Explanation:
S.I = Rs 1200 × 10 x 1 /100 = Rs 120 C.I. = Rs. 1200 x 1 +5/100 to the power C.I. = Rs. 1200 x 1 +5/100 to the power C.I. = Rs. 2 x 1200 = 123 rupees (123 - 120) Equals Rs. 3 (difference)
14.On a sum of Rs. 15,000 over two years, the difference between compound and simple interest is Rs. 96. How much does it cost to borrow money and how much does it cost to borrow money?
a. 8
b. 10
c. 12
d. Cannot be determined
Answer: A
Explanation:
96 = 15000 (100 + R)2 - 10000 (200 x R)/1000 =64 = R2 = 96 x 2/3=8=R.
15. At a rate of 10% per year, the compound interest on a specific money for two years is Rs. 525. The simple interest on the same money over double the period at half the annual rate is:
a. Rs. 400
b. Rs. 500
c. Rs. 600
d. Rs. 800
Answer: B
Explanation:
Let's say the amount is Rs. P.P (1 +10/100 to the power 2) - P = 525 =P (11/10 to the power 2) - 1 = 525 P =525 x 100/21 =2500 rupees is the whole amount. As a result, S.I. equals Rs. 2500 x 5 x 4/100 = Rs. 500.
16. What is the compound interest rate?
I. The first investment was made for a period of four years.
II. The interest earned was Rs. 1491.
a. I alone sufficient while II alone not sufficient to answer
b. II alone sufficient while I alone not sufficient to answer
c. Either I or II alone sufficient to answer
d. Both I and II are not sufficient to answer
Answer: D
Explanation:
Let's say the principal is Rs. P and the rate is R percent per annum. Then,Amount = Rs. (P 1 + R/100 to the fourth power).P (1 + R/100 to the power 4 )- 1 = C.I.= P (1 + R /100 to the fourth power )- 1 = 1491.Clearly, it does not provide the solution.
17. How much will be compounded?
I. Rs. 200 was borrowed for 192 months at a compounded annual interest rate of 6%.
II. A loan of Rs. 200 was taken out for 16 years at a rate of 6%.
a. I alone sufficient while II alone not sufficient to answer
b. II alone sufficient while I alone not sufficient to answer
c. Either I or II alone sufficient to answer
d. Both I and II are not sufficient to answer
Answer: C
Explanation:
I. Amount = Rs. 200 x 1 + Rs. 200 x 6 /100 16,1II. Sum = Rs. 200 x 1 + 6 /100 16.
18. A sum of money was lent for a period of three years. What is the difference between simple and compound interest collected on the same amount of money? The point of interest was 8 p.c.p.a. Simple interest amounted to Rs. 1200 in total.
a. I alone sufficient while II alone not sufficient to answer
b. II alone sufficient while I alone not sufficient to answer
c. Either I or II alone sufficient to answer
d. Both I and II are necessary to answer
Answer: D
Explanation:
Given T = 3 years, I. produces R = 8% p.a.S.I. = Rs. 1200, according to II.As a result, P = Rs. 5000, R = 8% p.a., and T = 3 years.
19. What is the p.c.p.a. rate of interest?
I.On simple interest, a sum doubles after 5 years.
II.The difference between compound and simple interest generated on a given sum over two years is Rs. 400.
III.The annual simple interest received is Rs. 2000.
a. I only
b. II and III only
c. All I, II and III
d. I only or II and III only
Answer: D
Explanation:
P x R x 5/100 = P R = 20. I. P x R x 5/100 = P R = 20.II. P 1 + R/100 TO THE POWER 2- P - P x R x 2 /100= 400 PR2 = 4000000 P 1 + R/100 TO THE POWER 2- P - P x R x 2 /100= 400 PR2 = 4000000III. P x R x 1/100 = 2000 PR = 200000 P x R x 1/100 = 2000=PR2/PR= 4000000 / 200000 = 20.
20. In two years, what would be the compound interest on a sum of Rs. 5000?
I. In 5 years, the simple interest on the same money at the same rate is Rs. 2000.
II. The simple and compound interest earned in one year are the same.
III. In ten years, the sum had more than doubled due to compound interest.
a. I only
b. I and II only
c. II and III only
d. I and III only
Answer: A
Explanation:
T = 2 years, P = 5000 rupees.In five years, I. S.I. on Rs. 5000 is Rs. 2000.2000 R = 5000 x R x 5/100 = 5000 R = 5000 R = 5000 R = 5000 R = 5000 R = 5000 RAs a result, I merely provide the response.
21. Mr. Gupta took out a loan with compound interest. What would be the repayment amount if he repays the whole amount at the conclusion of the two-year period?
I. The interest rate is 5% per annum.
II. One year's simple interest on the same money is Rs. 600.
III. In two years, the amount borrowed is 10 times the basic interest.
a. I only
b. I and II only
c. II and III only
d. I and III only
Answer: D
Explanation:
Rate = 5% p.a., according to I.S.I. for a year Equals Rs. 600, according to II.III. reveals that total = 10 x (S.I. for 2 years).Now I and II add up the total.C.I. and therefore amount may be calculated for this sum.As a result, III is superfluous.S.I. for two years = Rs. (600 x 2) = Rs. 1200, according to II.Now, sum Equals Rs. (10 x 1200) = Rs. 12000 (from III).As a result, Rate = 100 x 1200 = 5% p.a. 2 x 1200.As a result, C.I. for two years may be gained, and therefore an amount can be obtained.As a result, I am superfluous.As a result, I or III are no longer necessary.
22. What is the amount of compound interest received after three years?
I. The simple interest received at the same rate and for the same term on that amount is Rs. 4500.
II. The interest rate is ten percent each annum.
III. For a period of three years, compound interest is Rs. 465 more than simple interest.
a. I only
b. I and II only
c. II and III only
d. I and III only
Answer: D
Explanation:
S.I. for three years Equals Rs. 4500, according to I.Rate = 10% p.a., according to II.(C.I.) - (S.I.) = Rs. 465, according to III.Clearly, C.I. = Rs. (465 + 4500) is obtained by combining I and III.As a result, II is superfluous.We also obtain sum = 100 x 4500 = 15000 from I and II.3 x 10.C.I. on Rs. 15000 at 10% p.a. for three years is now available.As a result, III is superfluous.
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