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Aptitude - Compound Interest

Exercise : Compound Interest - General Questions
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.?
Rs. 9000.30
Rs. 9720
Rs. 10123.20
Rs. 10483.20
None of these
Answer: Option
Explanation:

Amount
= Rs. 25000 x 1 + 12 3
100
= Rs. 25000 x 28 x 28 x 28
25 25 25
= Rs. 35123.20

C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20

7.
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?
6%
6.5%
7%
7.5%
Answer: Option
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

1 + R 2 = 106 2
100 100

1 + R = 106
100 100

R = 6%

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:
3
4
5
6
Answer: Option
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?
Rs. 8600
Rs. 8620
Rs. 8820
None of these
Answer: Option
Explanation:
Amount
= Rs. 8000 x 1 + 5 2
100
= 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:
6.06%
6.07%
6.08%
6.09%
Answer: Option
Explanation:

Amount of Rs. 100 for 1 year
when compounded half-yearly		 = Rs. 100 x 1 + 3 2 = Rs. 106.09
100

Effective rate = (106.09 - 100)% = 6.09%

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