Aptitude - Compound Interest

Why Aptitude Compound Interest?

In this section you can learn and practice Aptitude Questions based on "Compound Interest" and improve your skills in order to face the interview, competitive examination and various entrance test (CAT, GATE, GRE, MAT, Bank Exam, Railway Exam etc.) with full confidence.

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IndiaBIX provides you lots of fully solved Aptitude (Compound Interest) questions and answers with Explanation. Solved examples with detailed answer description, explanation are given and it would be easy to understand. All students, freshers can download Aptitude Compound Interest quiz questions with answers as PDF files and eBooks.

Where can I get Aptitude Compound Interest Interview Questions and Answers (objective type, multiple choice)?

Here you can find objective type Aptitude Compound Interest questions and answers for interview and entrance examination. Multiple choice and true or false type questions are also provided.

How to solve Aptitude Compound Interest problems?

You can easily solve all kind of Aptitude questions based on Compound Interest by practicing the objective type exercises given below, also get shortcut methods to solve Aptitude Compound Interest problems.

1. 

A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123

Answer: Option B

Explanation:

Amount
= Rs. 1600 x 1 + 5 2 + 1600 x 1 + 5
2 x 100 2 x 100
= Rs. 1600 x 41 x 41 + 1600 x 41
40 40 40
= Rs. 1600 x 41 41 + 1
40 40
= Rs. 1600 x 41 x 81
40 x 40
= Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121


2. 

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

A. 625
B. 630
C. 640
D. 650

Answer: Option A

Explanation:

Let the sum be Rs. x. Then,

C.I. = x 1 + 4 2 - x = 676 x - x = 51 x.
100 625 625

S.I. = x x 4 x 2 = 2x .
100 25

51x - 2x = 1
625 25

x = 625.


3. 

There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these

Answer: Option C

Explanation:

Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.

R = 100 x 60 = 10% p.a.
100 x 6

Now, P = Rs. 12000. T = 3 years and R = 10% p.a.

C.I.
= Rs. 12000 x 1 + 10 3 - 1
100
= Rs. 12000 x 331
1000
= 3972.


4. 

What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?

A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30

Answer: Option A

Explanation:

C.I. when interest
compounded yearly    
= Rs. 5000 x 1 + 4 x 1 + x 4
100 100
= Rs. 5000 x 26 x 51
25 50
= Rs. 5304.

C.I. when interest is
compounded half-yearly
= Rs. 5000 x 1 + 2 3
100
= Rs. 5000 x 51 x 51 x 51
50 50 50
= Rs. 5306.04

Difference = Rs. (5306.04 - 5304) = Rs. 2.04


5. 

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

A. 2
B.
2 1
2
C. 3
D. 4

Answer: Option A

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347.

Let the time be n years.

Then, 30000 1 + 7 n = 34347
100

107 n = 34347 = 11449 = 107 2
100 30000 10000 100

n = 2 years.





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