Compound Interest

Compound Interest

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Aptitude miscellaneous
  1. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?








  1. View Hint View Answer Discuss in Forum

    Here , Amount ( A ) = ₹ 1348.32 , P = ₹ 1200 , Rate ( R ) = ? , Time = 2 years

    A = P1 +
    R
    		T
    100

    ⇒ 1348.32 = 12001 +
    R
    		2
    100

    ⇒ 
    1348.32
    		 = 1 +
    R
    		2
    1200100

    ⇒ 
    134832
    		 = 1 +
    R
    		2
    120000100

    ⇒ 
    11236
    		 = 1 +
    R
    		2
    10000100

    ⇒
    106
    		2 = 1 +
    R
    		2
    100100

    ⇒ 
    106
    		 = 1 +
    R
    100100

    Correct Option: D

    Here , Amount ( A ) = ₹ 1348.32 , P = ₹ 1200 , Rate ( R ) = ? , Time = 2 years

    A = P1 +
    R
    		T
    100

    ⇒ 1348.32 = 12001 +
    R
    		2
    100

    ⇒ 
    1348.32
    		 = 1 +
    R
    		2
    1200100

    ⇒ 
    134832
    		 = 1 +
    R
    		2
    120000100

    ⇒ 
    11236
    		 = 1 +
    R
    		2
    10000100

    ⇒
    106
    		2 = 1 +
    R
    		2
    100100

    ⇒ 
    106
    		 = 1 +
    R
    100100

    ⇒  1 +
    6
    		 = 1 +
    R
    100100

    ⇒  R = 6% per annum.

  1. In how many years will ₹ 2,000 amounts to 2,420 at 10% per annum compound interest?








  1. View Hint View Answer Discuss in Forum

    Given that , P = ₹ 2,000 , A = ₹ 2420 , r = 10%, n = t years
    Using the given formula ,

    A = P1 +
    r
    		n
    100

    2420 = 20001 +
    10
    		t
    100

    2420
    		 =
    11
    		t
    200010

    ⇒
    11
    		t =
    121
    10100

    Correct Option: C

    Given that , P = ₹ 2,000 , A = ₹ 2420 , r = 10%, n = t years
    Using the given formula ,

    A = P1 +
    r
    		n
    100

    2420 = 20001 +
    10
    		t
    100

    2420
    		 =
    11
    		t
    200010

    ⇒
    11
    		t =
    121
    10100

    ⇒
    11
    		t =
    11
    		2
    1010

    ∴  t = 2 years

  1. The difference between simple interest and compound interest on Rs. 600 for 1 years at 10% per annum,reckoned half yearly is ?








  1. View Hint View Answer Discuss in Forum

    S.I. = Rs. (600 x 5 x 2)/100 = Rs.60
    C.I.= Rs. [600 x (1 + 5/100)2 - 600] = Rs. 61.50

    Correct Option: D

    S.I. = Rs. (600 x 5 x 2)/100 = Rs.60
    C.I.= Rs. [600 x (1 + 5/100)2 - 600] = Rs. 61.50

    ∴ Requred Difference = Rs. (61.50 - 60) = Rs.1.50

  1. The simple interest on a certain sum for 2 years at 10% per annum is Rs.90. The corresponding compound interest is?








  1. View Hint View Answer Discuss in Forum

    Principle = (100 x interest) / (time x rate)
    ⇒ Sum = (100 x 90) / (2 x 10) = Rs. 450

    Correct Option: C

    Principle = (100 x interest) / (time x rate)
    ⇒ Sum = (100 x 90) / (2 x 10) = Rs. 450

    C.I. =Rs.[ 450 x (1 + 10/100)2 - 450] = Rs. 94.50

  1. What is the principle amount which earns Rs. 132 as compound interest for the second years at 10% per annum ?








  1. View Hint View Answer Discuss in Forum

    Let P the principle at the end of first year.
    Then (P x 10 x 1)/100 =132
    ⇒ P =1320

    Let Q be the original principle
    Then, Q + (Q x 10 x 1)/100 =1320
    ⇒ Q =1200

    Correct Option: B

    Let P the principle at the end of first year.
    Then (P x 10 x 1)/100 =132
    ⇒ P =1320

    Let Q be the original principle
    Then, Q + (Q x 10 x 1)/100 =1320
    ⇒ Q =1200