Aptitude - Compound Interest
Overview Exercise "Everything you can imagine is real."
- Pablo Picasso
6.
What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?
A. Rs. 9000.30 B. Rs. 9720 C. Rs. 10123.20 D. Rs. 10483.20 E. None of these
Answer: E
Explanation:
Amount
= Rs.
25000 x
1 +
12
3
100
= Rs.
25000 x
28
x
28
x
28
25
25
25
= Rs. 35123.20
7.
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
Answer: B
Explanation:
Let the rate be R% p.a.
Then, 1200 x
1 +
R
2
= 1348.32
100
1 +
R
2
=
134832
=
11236
100
120000
10000
R
=
106
100
100
8.
The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
Answer: D
Explanation:
P
1 +
20
n > 2P
6
n > 2.
100
5
Now,
6
x
6
x
6
x
6
> 2.
5
5
5
5
So, n = 4 years.
9.
Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
A. Rs. 8600 B. Rs. 8620 C. Rs. 8820 D. None of these
Answer: B
Explanation:
Amount
= Rs.
8000 x
21
x
21
20
20
= Rs. 8820.
10.
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
Answer: A
Explanation:
Amount of Rs. 100 for 1 year
= Rs.
100 x
1 +
3
2
= Rs. 106.09
100
C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20
