Quantitative Aptitude: Simple Interest/Compound Interest Set 2

Simple Interest/Compound Interest Questions Bank PO for SBI PO, IBPS PO, NIACL, NICL, LIC, Dena Bank PO PGDBF, BOI, Bank of Baroda and other competitive exams

1. If a sum amounts to Rs 6000 in 2 years on CI. What will it become after 4 years on C.I, if the principal amount was Rs 4500?
   A) Rs 7500
   B) Rs 8000
   C) Rs 8500
   D) Rs 9000
   E) None of these
   
   View Answer

   Option B
   Solution:
   a————–b————-c
   .   2 years—–2 years
   a:b = b:c
   4500:6000 = 6000:x
   x = 8000
   
2. If Compound Interest on certain sum for 2 years is 352 at some rate of interest and Simple Interest on same rate for 3 years is 480, then find the sum.
   A) Rs 800
   B) Rs 1000
   C) Rs 700
   D) Rs 900
   E) None of these
   
   View Answer

   Option A
   Solution:
   SI for 1 years= 480/3 =160 (as SI is same for every year)
   SI for 2 years=320
   CI for w year=352; diff=32
   32=20% of 160
   hence r=20%
   20%=160
   100%=800
3. If a sum of RS 2744000 becomes Rs 3176523 in three years on Compound Interest then find the rate of interest.
   A) 10%
   B) 5%
   C) 8%
   D) 20%
   E) None of these
   
   View Answer

   Option B
   Solution:
   Find the cube root of both numbers. Cube root-> 3 years
   cube root(2744000): cube root(3176523)
   140:147
   rate=(147-140)/140*100==5
4. If the difference between Simple Interest and Compound Interest at 20% rate of Interest in 3 years is 5120, then find the sum.
   A) Rs 40,000
   B) Rs 50,000
   C) Rs 60,000
   D) Rs 30,000
   E) None of these
   
   View Answer

   Option A
   Solution:
   On SI interest=20% *3 =60%
   On CI interest =20%= 1/5
   5——-6
   5——-6
   5——-6
   ________
   125—-216
   (216-125)/125*100=72.8%
   diff=72.8-60=12.8%
   12.8%=5120
   100%=40,000
   
5. Find the Compound Interest on Rs 30,000, if the rate of interest for first year is 5% second year is 10% and on the third year is 20%
   A) 11580
   B) 11500
   C) 10500
   D) 10000
   E) None of these
   
   View Answer

   Option A
   Solution:
   1^st year 5%=1/20————20———21
   2^nd year 10% =1/10———10———11
   3^rd year 20% =1/5———–5———-6
   ——————————–=1000——1386
   (1386-1000)/1000*200=38.6%
   38.6% of 30000=11580
6. What is the difference between Simple Interest and Compound Interest on Rs 70,000 ar 20% rare of interest in one and a half year if Compound Interest is compounded half yearly.
   A) Rs 2070
   B) Rs 2160
   C) Rs 2170
   D) Rs 2060
   E) None of these
   
   View Answer

   Option C
   Solution:
   SI on 1 (1/2) year= 20*1.5=30%
   SI on 1 (1/2) years of compounded half yearly make rate half yearly and time double
   r=10%=1/10 ; t=3 years
   10——11
   10——11
   10——11
   1000—-1331
   r=331/1000*100=33.1
   33.1%of 70,000 = 2170
7. Divide Rs 20,816 between A and B so that A’s share at the end of 7 years is equal to B’s share at the end of 9 years with compound interest being 4% p.a
   A) 10716, 10100
   B) 10616, 10200
   C) 10816, 10000
   D) 10800, 10016
   E) None of these
   
   View Answer

   Option C
   Solution:
   second part + (4+4 +16/100) of second part = first part
   second part + 8.16% of second part= first part
   first part/second part= 108.16/100 = 10816/10000
8. Find the simple interest and compound interest of Rs 15000 at 20% rate of interest after 3 years.
   A) 9000, 11000
   B) 8000, 11920
   C) 9000, 10920
   D) 6000, 9000
   E) None of these
   
   View Answer

   Option C
   Solution:
   SI= 20*3=60%=9000
   CI=
   3000 ———— 3000 ———3000
   ——————-600————–600
   ————————————–600
   ————————————–120
   => 9000+1800+120=10920
9. A man borrows Rs 8000 at 10% compounded rate of interest. At the end of each year he pays back Rs 2200. How much amount should he pay at the end of the third year to clear all his dues?
   A) Rs 5500
   B) Rs 5466
   C) Rs 5666
   D) Rs 5566
   E) None of these
   
   View Answer

   Option D
   Solution:
   first year=8000+800=8800-2200=6600
   second year=6600+660=7260-2200=5060
   third year=5060+506=5566
10. What sum of money at compound interest will amount to Rs 32000 in 3 years at the rate of interest 20% in first years, 16 (2/3)% in second year and 14 (2/7)% in third year.
    A) Rs 18,000
    B) Rs 20,000
    C) Rs 22,000
    D) Rs 25,000
    E) None of these
    
    View Answer

    Option B
    Solution:
    1^st year = 20% =1/5————-5 ————-6
    2^nd year = 16 (2/3)= 1/6——-6————–7
    3^rd year = 14 (2/7) =1/7 ——-7————–8
    ———————————-= 210———336 on simplifying = 5:8
    r=(8-5)/5*100=60%
    160%=32000
    100%=20000