Simple and Compound Interest MCQs for Competitive Examination
Solve the following problems.
Q. 61
The compound interest on Rs 12000 for 9 months at 20% per annum, interest being compounded quarterly is
(A) Rs 1750
(B) Rs 2089.70
(C) Rs 1891.50
(D) Rs 2136.40
Answer: (C) Rs 1891.50
Explanation: N/A
Q. 62
The principal that yields a compound interest of Rs 420 during the second year at 5% per annum is
(A) Rs 7000
(B) Rs 5000
(C) Rs 8000
(D) Rs 6000
Answer: (C) Rs 8000
Explanation: According to the question, P(1 + R/100)² – P(1 + R/100) = 420
Solving we get P = 8000
Q. 63
When principal is Rs S, rate of interest is 2r % per annum, then what amount a person will get after 3 years at compound interest?
(A) (6Sr/100)
(B) S(1 + r/100)³
(C) S(1 + r/50)³
(D) 3S(1 + r/100)³
Answer: (C) S(1 + r/50)³
Explanation: N/A
Q. 64
A man borrows Rs 21000 at 10% compound interest. How much he has to pay annually at the end of each year, to settle his loan in two years
(A) Rs 12000
(B) Rs 12100
(C) Rs 12200
(D) Rs 12300
Answer: (B) Rs 12100
Explanation: We have, A = (X/(1 + R/100)) + (X/(1 + R/100)²), Where A = amount, X = Annual installment, R = Rate of interest
Q. 65
If the rate of interest be 4% per annum for first year, 5% per annum for second year and 6% per annum for third year, then the compound interest of Rs 10000 for 3 years will be
(A) Rs 1600
(B) Rs 1625.80
(C) Rs 1575.20
(D) Rs 2000
Answer: (C) Rs 1575.20
Explanation: N/A
Q. 66
The compound interest on a certain sum for 2 yr at 10% per annum is Rs 525. The simple interest on the same sum for double the time at half the rate per cent per annum is
(A) Rs 520
(B) Rs 550
(C) Rs 500
(d) Rs 515
Answer: (C) Rs 500
Explanation: N/A
Q. 67
A man borrowed some money from a private organization at 5% simple interest per annum. He lends 50% of this money to another person at 10% compound interest per annum and thereby the man made a profit of Rs 3205 in 4 years. How much did the man borrow?
(A) Rs 80000
(B) Rs 100000
(C) Rs 120000
(D) Rs 150000
Answer: (B) Rs 100000
Explanation: N/A
Q. 68
Find the difference between the compound interest and the simple interest on Rs 32000 at 10% p.a. for 4 years.
(A) Rs 2051.20
(B) Rs 2052.50
(C) Rs 2025.20
(D) Rs 2501.20
Answer: (A) Rs 2051.20
Explanation: N/A
Q. 69
On what sum of money will the difference between S.I and C.I for 2 years at 5% per annum will be equal to 25?
(A) Rs 10000
(B) Rs 10500
(C) Rs 9500
(D) Rs 9000
Answer: (A) Rs 10000
Explanation: N/A
Q. 70
What sum will give Rs 244 as the difference between simple interest and compound interest at 10% in 1(1/2) years when compounded half-yearly?
(A) Rs 40000
(B) Rs 36000
(C) Rs 32000
(D) Rs 28000
Answer: (C) Rs 32000
Explanation: N/A
Q. 71
On what sum does the difference between the compound interest and the simple interest for 3 years at 10% is Rs 31?
(A) Rs 1500
(B) Rs 1200
(C) Rs 1100
(D) Rs 1000
Answer: (D) Rs 1000
Explanation: N/A
Q. 72
If the difference between the compound interest and simple interest on a sum at 5% rate of interest per annum for three years is Rs 36.60, then the sum is
(A) Rs 8000
(B) Rs 8400
(C) Rs 4400
(D) Rs 4800
Answer: (D) Rs 4800
Explanation: N/A
Q. 73
If the difference between the compound interest, compounded every six months and the simple interest on a certain sum of money at the rate of 12% per annum for one year is Rs 36, the sum is
(A) Rs 10000
(B) Rs 12000
(C) Rs 15000
(D) Rs 9000
Answer: (A) Rs 10000
Explanation: N/A
Q. 74
If a sum of money compounded annually becomes 1.44 times of itself in 2 years, then the rate of interest per annum is
(A) 25%
(B) 22%
(C) 21%
(D) 20%
Answer: (D) 20%
Explanation: N/A
Q. 75
A sum of money at compound interest will amount to Rs 650 at the end of the first year and Rs 676 at the end of the second year. The amount of money is
(A) Rs 1300
(B) Rs 650
(C) Rs 1250
(D) Rs 625
Answer: (D) Rs 625
Explanation: N/A
Q. 76
An amount of money appreciates to Rs 7000 after 4 years and to Rs 10000 after 8 years at a certain compound interest compounded annually. The initial amount of money was
(A) Rs 4700
(B) Rs 4900
(C) Rs 4100
(D) Rs 4300
Answer: (B) Rs 4900
Explanation: N/A
Q. 77
An amount of Rs 16820 is divided between two brothers of age 27 years and 25 years. They invested their money at 5% per annum compound interest in such a way that both will receive equal money at the age of 40 years. The share of elder brother is
(A) Rs 8280
(B) Rs 8410
(C) Rs 8820
(D) Rs 8000
Answer: (C) Rs 8820
Explanation: N/A
Q. 78
A sum of Rs 210 was taken as a loan. This is to be paid back in two equal instalments. If the rate of interest be 10% compounded annually, then the value of each instalment is
(A) Rs 127
(B) Rs 121
(C) Rs 210
(D) Rs 225
Answer: (B) Rs 121
Explanation: N/A
Q. 79
Kamal took Rs 6800 as a loan which along with interest is to be repaid in two equal annual instalments. If the rate of interest is 12(1/2)%, which is compounded annually, then the value of each instalment is
(A) Rs 8100
(B) Rs 4150
(C) Rs 4050
(D) Rs 4000
Answer: (C) Rs 4050
Explanation: N/A
Q. 80
A man buys a scooter on making a cash down payment of Rs 16224 and promises to pay two more yearly instalments of an equivalent amount in the next two years. If the rate of interest is 4% per annum, compounded yearly, the cash value of the scooter is
(A) Rs 40000
(B) Rs 46824
(C) Rs 46000
(D) Rs 50000
Answer: (B) Rs 46824
Explanation: Let the principal for the first year = X, and the principal for the second year = Y
Now, 16224 = X(1 + 4/100); X= 15600
And, 16224 = Y(1 + 4/100)², Y = 15000
Cash value of the scooter = (16224 + 15600 + 15000) = 46, 824