## Compound Interest : Aptitude Test

• 1. What would be the compound interest on Rs.7700/- at 15 ¼% per annum for 2 years compounded annually
A.) Rs.2725.75/-
B.) Rs.2527.57/-
C.) Rs.2227.57/-
D.) Rs.2520.57/-

Principal = Rs. 7700/-
time = 2 years
rate = 15 ¼%
Amount = P(1+R/100)n
= 7700 × (1 + 61/(4 × 100)2)
= 7700 × [(1 + 61/400)2]
= 7700 × [(461/400)2)]
= 7700 × 461/400 × 461/400
= 7700 × 1.1525 × 1.1525
= 7700 × 1.32825625
= 10227.573125
C.I = 10227.573125 - 7700 = 2527.57/-

• 2. Certain sum becomes 3 times it self at compound interest in 10 years. In how many years it becomes 9 times?
A.) 25 years
B.) 27 years
C.) 30 years
D.) 20 years

P(1 + R/100)10 = 3P
=> P(1 + R/100)10 = 3
Let P(1 + R/100)n = 9P
=> (1 + R/100)n = 9
=> 32 = [(1 + R/100)10]2
=> (1 + R/100)n => (1 + R/100)20
=> n = 20 Years.

• 3. An amount at compound interest sums to Rs.17640/- in 2 years and to Rs.18522/- in 3 years at the same rate of interest. Find the rate percentage?
A.) 5%
B.) 6%
C.) 4%
D.) 10%

The difference of two successive amounts must be the simple interest in 1 year on
the lower amount of money.
S.I = 18522/- - 17640/- = Rs. 882/-
Rate of interest = (882/17640) × (100/1) => 8820/1764 = 5%
Principal = Amount/(1 + R/100)n
= 17640/(1 + 5/100)2
= 17640/(21/20 × 21/20)
= 17640/(1.05 × 1.05)
= 17640/1.1025
= 16000

• 4. Certain loan amount was repaid in two annual installments of Rs.1331/- each. If the rate of interest be 10% per annum Compounded annually the sum borrowed was?
A.) Rs.121/-
B.) Rs.2130/-
C.) Rs.2310/-
D.) Rs.1331/-

Principal = (P.W of Rs. 1331/- due 1 year hence) + (P.W of Rs. 1331/- due 2 years hence)
= [1331/(1 + 10/100) + 1331/(1 + 10/100)2
= [1331/(110/100) + 1331/(110/100 × 110/100)]
= 13310/11 + 133100/121 = 1210 + 1100 = Rs.2310/-

• 5. The difference between the compound interest and simple interest on a certain sum of money at 5% per annum for 2 years is 45. Then the original sum is?
A.) Rs.16000/-
B.) Rs.15000/-
C.) Rs.18000/-
D.) Rs.20000/-

For 2 years = (1002D)/R2
= (1002 × 45)/(5 × 5) = (10000 × 45)/25 = Rs.18000/-

• 6. The Compound interest in a particular amount for the first year at 8% is Rs.50/-.The compound interest for 2 years at the same rate on the amount will be?
A.) Rs.52/-
B.) Rs.104/-
C.) Rs.102/-
D.) Rs.54/-

Rs.104/-

• 7. The present worth of Rs.9826/- due 2 years at 6 ¼% per annum compound interest is:
A.) Rs.7804/-
B.) Rs.8704/-
C.) Rs.8760/-
D.) Rs.8504/-

Rs.8704/-

• 8. The Compound interest of Rs.10240/- at 6 ¼% per annum for 2 years 292days is:
A.) Rs.1898/-
B.) Rs.1798/-
C.) Rs.1688/-
D.) Rs.1698/-

Rs.1898/-

• 9. A person borrows a certain amount from his friend at the rate of 15% per annum compound interest, interest being compounded annually and agrees to return it in 2 equal yearly installments of Rs.529/- each. Find the amount borrow.
A.) Rs.820/-
B.) Rs.880/-
C.) Rs.860/-
D.) Rs.840/-

Rs.860/-

To whom this Compound Interest Question and Answers section is beneficial?

Students can learn and improve on their skillset for using Compound Interest effectively and can also prepare for competitive examinations like...

• All I.B.P.S and Public Sector Bank Competitive Exam
• Common Aptitude Test (CAT) Exams
• UPSC Paper-II or CSAT Exams
• SSC Competitive Exams
• Defence Competitive Exams
• NIIT online mock test
• L.I.C Assistant Administrative Officer (AAO)/ G.I.C AAO and Clerk Competitive Exams
• Railway Competitive Exam
• University Grants Commission (UGC)
• Career Aptitude Test (IT Companies) and etc.