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Compound Interest

Important Instructions
11.

When difference between compound and simple interest for three years is Rs. 122 at 5% rate per annum, the principal is ______

Answer: D

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12.

Find the compound interest on Rs. 25000 in 2 years at 4% per annum. The interest being compounded half yearly.

Answer: C

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13.

The simple interest on Rs.12000 at a certain rate of interest in five years is Rs.7200. Find the compound interest on the same amount for five years at the same rate of interest.

Answer: D

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14.

Compound interest earned on a sum for the second and the third years are Rs.1200 and Rs.1440 respectively. Find the rate of interest?

Answer: C

Rs.1440 - 1200 = Rs.240 is the interest on Rs.1200 for one year. 

Rate of interest = (100 * 240) / (100 * 1) = 20% p.a

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15.

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?

Answer: C

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16.

In one year, the population, of a village increased by 10% and in the next year, it decreased by 10%. If at the end of 2nd year, the population was 7920, what was it in the beginning?

Answer: B

x*110/100 * 90/100 = 7920

 X*0.99=7920

 X=7920/0.99

=> 8000

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17.

A sum of money deposited at C.I. amounts to Rs.2420 in 2 years and to Rs.2662 in 3 years. Find the rate percent?

Answer: B

2420 --- 242

100 --- ? => 10%

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18.

What is the difference between the compound interest on Rs.12000 at 20% p.a. for one year when compounded yearly and half yearly?

Answer: B

When compounded annually, interest 

= 12000[1 + 20/100] - 12000 = Rs.2400 

When compounded semi-annually, interest

 = 12000[1 + 10/100]⊃2; - 12000 = Rs.2520 

Required difference = 2520 - 2400 = Rs.120

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19.

A sum of money invested at compound interest amounts to Rs. 800 in 3 years and to Rs. 840 in 4 years. The rate of interest per annum is

Answer: C

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20.

If at same rate of interest, in 2 years, the simple interest is Rs. 40 and compound interest is Rs. 41, then what is the principal?

Answer: B

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