Introduction
What is compound interest?
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
Compound Interest is one of important topic in Quantitative Aptitude Section. In Compound Interest Quiz 11 article candidates can find questions with answer. By solving this questions candidates can improve and maintain, speed, and accuracy in the exams. Compound Interest Quiz 11 questions are very useful for different exams such as IBPS PO, Clerk, SSC CGL, SBI PO, NIACL Assistant, NICL AO, IBPS SO, RRB, Railways, Civil Services etc.
Q1
A sum of Rs.3,50,500 is to be paid back in 2 equal annual installments. How much is each installment, if the rate of interest charged 4% per annum compound annually?
- A. Rs.1,90,450
B. Rs.1,65,876
C. Rs.1,76,545
D. Rs.1,85,834
Total value of all the 3 installments
[latex][\frac {x \times 100}{104}] + [\frac {x \times 100 \times 100}{104}] = 3,50,500[/latex]
[latex]\frac {x \times 25}{26} + \frac {x \times 625}{676} = 3,50,500[/latex]
[latex]\frac {x \times 25}{26} [\frac {1 + 25}{26}] = 3,50,500[/latex]
[latex]\frac {x \times 25}{26} [\frac {51}{26}] = 3,50,500[/latex]
[latex]x = \frac{3,50,500 \times 676 }{25 \times 51} = 1, 85,833.72 = 1,85,834[/latex]
Q2
At CI, if a certain sum of money is doubled in 4 years, then the amount will be four fold in how many years?
- A. 7 years
B. 4 years
C. 10 years
D. 8 years
2n = [latex]2 \times 4[/latex] = 8 years
Q3
X has lent some money to A at 5% pa and B at 8% pa. At the end of the year he has gain the overall interest at 7% pa. In what ratio has he lent the money to A and B ?
- A. 2:1
B. 1:2
C. 3:1
D. 1:4
5.........8
....7....
1........2
Ratio A : B = 1 : 2
Q4
The difference between interest received by X and Y is Rs.315 on Rs.3500 for 3 years. What is the difference in rate of interest ?
- A. 1.5%
B. 2%
C. 3%
D. 2.7%
[latex]\frac {3500 \times 3}{100(R1 - R2)} = 315[/latex]
R1 - R2 = [latex]\frac {315 \times 100}{3500} = 3[/latex]%
Q5
What is the difference between the CI and SI on Rs.6500 at the rate of 4 Percent Compounded Per Annum in 3 yrs?
- A. 9.4
B. 10.4
C. 15.4
D. 14.5
SI = [latex]\frac {6500 \times 4 \times 2}{100} = 520[/latex]
CI = [latex]6500 \times (\frac {104}{100}) \times (\frac {104}{100}) = 7030.4 = 530.4[/latex]
530.4 - 520 = 10.4