Compound Interest Quiz 4

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Compound Interest Quiz 4

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 4 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 4 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

There is 50% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?
A. Rs. 2255 B. Rs. 2792 C. Rs. 3580 D. Rs. 3972

D
In S.I,
Let P = 100, I = 50, T = 5 yrs
R = $\frac {\frac {50}{100}}{\frac {100}{5}}$ = 10%
In C.I,
P = 12000, T = 3 yrs, R = 10%
C.I = $[12000 × {(1 + \frac {10}{100})}^{3} – 1 ]$ C.I = 3972.

Q2

A man borrows 3000 rupees at 10% compound interest. At the end every year he pays rupees 1000 back. How much amount should he pay at the end of the fourth Year to clear all his debt?
A. Rs. 680.5 B. Rs. 651.3 C. Rs. 751.3 D. Rs. 790.3

C
After one year amount = $3000 × \frac {110}{100} = 3300$
He pays 1000 back, so remaining = 3300 - 1000 = 2300
After two year amount = $2300 × \frac {110}{100} = 2530$
He pays 1000 back, so remaining = 2530 - 1000 = 1530
After three year amount = $1530 × \frac {110}{100} = 1683$
He pays 1000 back, so remaining = 1683 - 1000 = 683
After fouth year = 683 × $\frac {110}{100} = 751.3$

Q3

Rahul saves an amount of 800 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.
A. Rs. 1822.8 B. Rs. 2252 C. Rs. 2550.50 D. Rs. 2912.8

D
800$\times {(\frac {11}{10})}^{3}$= 1064.8
800 $\times {(\frac {11}{10})}^{2}$ = 968
800 $\times (\frac {11}{10})$ = 880
Total amount = 2912.8

Q4

Find the compound interest at the rate of 8% for 3 years on that principal which in 3 years at the rate of 10% per annum gives 300 as simple interest.
A. 180.515 B. 220.25 C. 259.712 D. 289.624

C
SI = 300
Per yr = 100
Rate = 10%
C.I = $1000 \times {(\frac {108}{100})}^{3}$ - 1000
C.I = 259.712

Q5

The CI on Rs.6000 for 3 years at 8% for first year, 7% for second year, 6% for the third year will be
A. Rs.1430 B. Rs.1530 C. Rs.1250 D. Rs.1350

D
A = $6000 × \frac{108}{100} × \frac{107}{100} × \frac {106}{100}$
= 6000 × 1.08 × 1.07 × 1.06 = 7349.616 = 7350
CI = 7350 - 6000 = 1350

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