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Compound Interest Questions in English

Competitive Exam Quantitative Aptitude · Interest · Compound Interest

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Showing 50 of 197 questions in English

1
EasyMCQ
What would be the $C.I.$ on $Rs. 17500$ at the rate of $12$ $p.c.p.a.$ after $2$ years (in $Rs.$)?
A
$4442$
B
$4452$
C
$4462$
D
$4482$

Solution

(B) The formula for Compound Interest $(CI)$ is given by:
$CI = P \left[\left(1+\frac{R}{100}\right)^{n}-1\right]$
Where:
$P = 17500$
$R = 12\%$
$n = 2$
Substituting the values:
$CI = 17500 \left[\left(1+\frac{12}{100}\right)^{2}-1\right]$
$CI = 17500 \left[(1.12)^{2}-1\right]$
$CI = 17500 \left[1.2544-1\right]$
$CI = 17500 \times 0.2544$
$CI = 4452$
Thus,the compound interest is $Rs. 4452$.
2
EasyMCQ
What would be the $C.I.$ obtained on an amount of $Rs. 12000$ at the rate of $9 \,p.c.p.a$ for $3$ years (in $Rs.$)?
A
$3840$
B
$3740.75$
C
$3540$
D
$3640$

Solution

(C) The formula for Compound Interest $(C.I.)$ is given by: $C.I. = P \left[\left(1 + \frac{R}{100}\right)^{n} - 1\right]$
Given:
Principal $(P)$ = $Rs. 12000$
Rate $(R)$ = $9\% \, p.c.p.a$
Time $(n)$ = $3 \, \text{years}$
Substituting the values in the formula:
$C.I. = 12000 \left[\left(1 + \frac{9}{100}\right)^{3} - 1\right]$
$C.I. = 12000 \left[(1.09)^{3} - 1\right]$
$C.I. = 12000 \left[1.295029 - 1\right]$
$C.I. = 12000 \times 0.295029$
$C.I. = 3540.348$
Rounding to the nearest integer,the value is approximately $Rs. 3540$.
3
MediumMCQ
What would be the $C.I.$ obtained on an amount of $Rs. 4800$ at the rate of $5$ $p.c.p.a$ for $3$ years (in $Rs.$)?
A
$448.7$
B
$817.8$
C
$623.5$
D
$756.6$

Solution

(D) The formula for Compound Interest $(C.I.)$ is given by:
$C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$
Where:
$P = 4800$
$R = 5$
$n = 3$
Substituting the values:
$C.I. = 4800 \left[ \left( 1 + \frac{5}{100} \right)^3 - 1 \right]$
$C.I. = 4800 \left[ (1.05)^3 - 1 \right]$
$C.I. = 4800 \left[ 1.157625 - 1 \right]$
$C.I. = 4800 \times 0.157625$
$C.I. = 756.6$
Thus,the compound interest is $Rs. 756.6$.
4
EasyMCQ
What would be the $C.I.$ obtained on an amount of $12500$ at the rate of $12 \, p.c.p.a.$ after $2$ years (in $Rs.$)?
A
$3180$
B
$3360$
C
$3540$
D
$3720$

Solution

(A) The formula for Compound Interest $(C.I.)$ is given by:
$C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$
Given:
Principal $(P)$ = $12500$
Rate $(R)$ = $12 \, p.c.p.a.$
Time $(n)$ = $2 \, \text{years}$
Substituting the values:
$C.I. = 12500 \left[ \left( 1 + \frac{12}{100} \right)^2 - 1 \right]$
$C.I. = 12500 \left[ (1.12)^2 - 1 \right]$
$C.I. = 12500 \left[ 1.2544 - 1 \right]$
$C.I. = 12500 \times 0.2544$
$C.I. = 3180$
Thus, the compound interest is $Rs. 3180$.
5
EasyMCQ
The difference between simple and compound interest on a sum of $10000$ is $64$ for $2$ years. Find the rate of interest. (in $\%$)
A
$8$
B
$64$
C
$4$
D
$2$

Solution

(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by:
Difference $= \frac{P \times R^{2}}{100^{2}}$
Where $P$ is the principal amount and $R$ is the rate of interest.
Given: $P = 10000$,Difference $= 64$.
Substituting the values:
$64 = \frac{10000 \times R^{2}}{100 \times 100}$
$64 = \frac{10000 \times R^{2}}{10000}$
$64 = R^{2}$
$R = \sqrt{64} = 8 \%$
6
EasyMCQ
The difference between simple and compound interest compounded annually on a certain sum of money for $2$ years at $4 \%$ per annum is $Rs. 1$. The sum (in $Rs.$) is
A
$625$
B
$630$
C
$640$
D
$650$

Solution

(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by:
Difference $= \frac{P \times R^2}{100^2}$
Where $P$ is the principal sum and $R$ is the rate of interest per annum.
Given: Difference $= 1$,$R = 4$,and time $= 2$ years.
Substituting the values into the formula:
$1 = \frac{P \times 4^2}{100^2}$
$1 = \frac{P \times 16}{10000}$
$P = \frac{10000}{16}$
$P = 625$
Thus,the sum is $Rs. 625$.
7
MediumMCQ
Find the compound interest on $Rs. 12500$ at $8 \%$ per annum for $9$ months compounded quarterly (in $Rs.$).
A
$1020$
B
$1428$
C
$510$
D
$765$

Solution

(D) Given: Principal $(P) = 12500$,Rate $(R) = 8 \%$ per annum,Time $(T) = 9$ months.
Since the interest is compounded quarterly,we adjust the rate and time period:
Number of quarters in $9$ months $= 9 / 3 = 3$ quarters.
Quarterly rate $= 8 \% / 4 = 2 \%$.
Using the compound interest formula: $CI = P \times [(1 + R/100)^n - 1]$,where $n$ is the number of quarters.
$CI = 12500 \times [(1 + 2/100)^3 - 1]$
$CI = 12500 \times [(1.02)^3 - 1]$
$CI = 12500 \times [1.061208 - 1]$
$CI = 12500 \times 0.061208 = 765.1$
Rounding to the nearest integer,the compound interest is $Rs. 765$.
8
EasyMCQ
Find the compound interest on $Rs. 32000$ at $20 \%$ per annum for $1$ year,compounded half-yearly (in $Rs.$).
A
$6320$
B
$6720$
C
$6400$
D
$6500$

Solution

(B) Given: Principal $(P) = Rs. 32000$,Rate $(R) = 20 \%$ per annum,Time $(T) = 1$ year.
Since the interest is compounded half-yearly,the rate becomes $R' = \frac{20}{2} = 10 \%$ per half-year,and the time becomes $n = 1 \times 2 = 2$ half-years.
The formula for compound interest is $CI = P \left[ \left( 1 + \frac{R'}{100} \right)^n - 1 \right]$.
Substituting the values: $CI = 32000 \left[ \left( 1 + \frac{10}{100} \right)^2 - 1 \right]$.
$CI = 32000 \left[ (1.1)^2 - 1 \right] = 32000 [1.21 - 1] = 32000 \times 0.21$.
$CI = 6720$.
Therefore,the compound interest is $Rs. 6720$.
9
EasyMCQ
The difference between $C.I.$ and $S.I.$ on $Rs. 700$ in $2$ years at $5 \%$ per annum is (in $Rs.$):
A
$10$
B
$5$
C
$1$
D
$1.75$

Solution

(D) The formula for the difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $2$ years is given by: $\text{Difference} = \frac{P \times R^2}{100^2}$
Given:
Principal $(P)$ = $Rs. 700$
Rate $(R)$ = $5 \%$
Time $(n)$ = $2$ years
Substituting the values into the formula:
$\text{Difference} = \frac{700 \times 5^2}{100^2}$
$\text{Difference} = \frac{700 \times 25}{10000}$
$\text{Difference} = \frac{17500}{10000} = Rs. 1.75$
10
EasyMCQ
The difference between the compound and simple interest on a sum of money for $2$ years at $6 \frac{1}{4} \%$ per annum is $Rs. 10$. The sum (in $Rs.$) is
A
$2000$
B
$2200$
C
$2560$
D
$2600$

Solution

(C) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by: $\text{Difference} = \frac{PR^2}{100^2}$.
Given:
$\text{Difference} = Rs. 10$
$R = 6 \frac{1}{4} \% = \frac{25}{4} \%$
Substituting the values into the formula:
$10 = P \times \left[ \frac{25/4}{100} \right]^2$
$10 = P \times \left[ \frac{25}{400} \right]^2$
$10 = P \times \left[ \frac{1}{16} \right]^2$
$10 = P \times \frac{1}{256}$
$P = 10 \times 256 = 2560$.
Therefore,the sum is $Rs. 2560$.
11
MediumMCQ
If the difference between the $C.I.$ compounded half-yearly and simple interest on a sum at $10 \%$ per annum for one year is $Rs. 25$,the sum (in $Rs.$) is:
A
$9000$
B
$9500$
C
$10000$
D
$10500$

Solution

(C) Let the principal sum be $P$.
Given time $T = 1 \text{ year}$ and rate $R = 10 \% \text{ per annum}$.
For simple interest $(SI)$: $SI = \frac{P \times R \times T}{100} = \frac{P \times 10 \times 1}{100} = 0.1P$.
For compound interest $(CI)$ compounded half-yearly: The rate becomes $R' = \frac{10}{2} = 5 \% \text{ per half-year}$ and time $n = 2 \text{ half-years}$.
$CI = P(1 + \frac{R'}{100})^n - P = P(1 + \frac{5}{100})^2 - P = P(1.05)^2 - P = P(1.1025) - P = 0.1025P$.
The difference between $CI$ and $SI$ is $0.1025P - 0.1P = 0.0025P$.
Given $0.0025P = 25$.
$P = \frac{25}{0.0025} = \frac{250000}{25} = 10000$.
Thus,the sum is $Rs. 10000$.
12
EasyMCQ
The difference between compound and simple interest at a certain rate on $Rs. 2000$ at the end of two years is $Rs. 12.8$. The rate of interest (in $\%$) per annum is:
A
$6.8$
B
$8$
C
$12.8$
D
$16.8$

Solution

(B) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $2$ years is given by:
Difference $= \frac{P \times R^2}{100^2}$
Where $P$ is the principal amount and $R$ is the rate of interest per annum.
Given: $P = 2000$,Difference $= 12.8$.
Substituting the values in the formula:
$12.8 = \frac{2000 \times R^2}{10000}$
$12.8 = \frac{2 \times R^2}{10}$
$12.8 = 0.2 \times R^2$
$R^2 = \frac{12.8}{0.2} = 64$
$R = \sqrt{64} = 8$
Therefore,the rate of interest is $8 \%$ per annum.
13
EasyMCQ
$A$ sum of money doubles in $3$ years at compound interest,compounded annually. It will become $4$ times of itself in: (in $years$)
A
$12$
B
$9$
C
$8$
D
$6$

Solution

(D) Let the principal amount be $P$.
According to the compound interest formula,$A = P(1 + r/100)^n$.
Given that the sum doubles in $3$ years: $2P = P(1 + r/100)^3$,which implies $(1 + r/100)^3 = 2$.
We want to find the time $t$ in which the sum becomes $4$ times: $4P = P(1 + r/100)^t$.
This simplifies to $4 = (1 + r/100)^t$.
Since $4 = 2^2$,we can substitute $2 = (1 + r/100)^3$ into the equation:
$4 = ((1 + r/100)^3)^2 = (1 + r/100)^6$.
Comparing the exponents,we get $t = 6$ years.
14
MediumMCQ
If the amount is $6 \frac{1}{4}$ times the principal after $2$ years at compound interest,the rate of interest (in $\%$) per annum is
A
$130$
B
$140$
C
$125$
D
$150$

Solution

(D) Let the principal be $P = 100$.
The amount $A$ after $2$ years is $6 \frac{1}{4}$ times the principal,so $A = 100 \times \frac{25}{4} = 625$.
The formula for compound interest is $A = P(1 + \frac{r}{100})^n$,where $n = 2$.
Substituting the values: $625 = 100(1 + \frac{r}{100})^2$.
Dividing both sides by $100$: $6.25 = (1 + \frac{r}{100})^2$.
Taking the square root of both sides: $\sqrt{6.25} = 1 + \frac{r}{100}$.
$2.5 = 1 + \frac{r}{100}$.
$1.5 = \frac{r}{100}$.
$r = 1.5 \times 100 = 150 \%$.
15
MediumMCQ
Amit invested an amount of $Rs. 25000$ in a fixed deposit at a compound interest rate of $8 \%$ per annum for $2$ years. What amount (in $Rs.$) will Amit receive at the end of the period?
A
$28240$
B
$28540$
C
$29240$
D
$29160$

Solution

(D) The formula for the amount $A$ under compound interest is given by $A = P \left(1 + \frac{R}{100}\right)^n$,where $P$ is the principal,$R$ is the rate of interest,and $n$ is the time in years.
Given: $P = 25000$,$R = 8 \%$,$n = 2$.
Substituting the values into the formula:
$A = 25000 \left(1 + \frac{8}{100}\right)^2$
$A = 25000 \left(1 + 0.08\right)^2$
$A = 25000 \times (1.08)^2$
$A = 25000 \times 1.1664$
$A = 29160$.
Therefore,Amit will receive $Rs. 29160$.
16
MediumMCQ
Find the ratio of $S.I.$ and $C.I.$ on a certain sum of money at $5 \%$ per annum for $2$ years.
A
$50:51$
B
$40:41$
C
$30:31$
D
$45:46$

Solution

(B) Let the principal amount be $P = 100$.
Rate $R = 5 \%$ per annum and time $T = 2$ years.
Simple Interest $(S.I.)$ $= \frac{P \times R \times T}{100} = \frac{100 \times 5 \times 2}{100} = 10$.
Compound Interest $(C.I.)$ $= P \left[ \left( 1 + \frac{R}{100} \right)^T - 1 \right] = 100 \left[ \left( 1 + \frac{5}{100} \right)^2 - 1 \right]$.
$C.I. = 100 \left[ \left( \frac{105}{100} \right)^2 - 1 \right] = 100 \left[ \left( \frac{21}{20} \right)^2 - 1 \right] = 100 \left[ \frac{441}{400} - 1 \right] = 100 \times \frac{41}{400} = \frac{41}{4} = 10.25$.
Ratio of $S.I. : C.I. = 10 : 10.25 = 1000 : 1025$.
Dividing both by $25$,we get $40 : 41$.
17
EasyMCQ
What is the difference between $C.I.$ and $S.I.$ on $Rs. 12000$ at $5 \%$ per annum for $2$ years?
A
$35$
B
$25$
C
$30$
D
$40$

Solution

(C) The formula for the difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $2$ years is given by:
Difference $= \frac{P \times R^2}{100^2}$
Where $P$ is the principal amount,and $R$ is the rate of interest per annum.
Given $P = 12000$ and $R = 5 \%$.
Difference $= \frac{12000 \times 5^2}{100^2}$
Difference $= \frac{12000 \times 25}{10000}$
Difference $= \frac{12000}{400} = 30$
Thus,the difference is $Rs. 30$.
18
EasyMCQ
Find the difference between $C.I.$ and $S.I.$ on $Rs. 15000$ at $3 \%$ per annum for $3$ years.
A
$40.91$
B
$73.91$
C
$39.91$
D
$30$

Solution

(A) The formula for the difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $3$ years is given by:
Difference $= \frac{P \times R^2 \times (300 + R)}{100^3}$
Given:
Principal $(P)$ $= Rs. 15000$
Rate $(R)$ $= 3 \%$
Time $(n)$ $= 3$ years
Substituting the values into the formula:
Difference $= \frac{15000 \times 3^2 \times (300 + 3)}{100^3}$
Difference $= \frac{15000 \times 9 \times 303}{1000000}$
Difference $= \frac{135000 \times 303}{1000000}$
Difference $= \frac{40905000}{1000000} = 40.905$
Rounding to two decimal places,the difference is $Rs. 40.91$.
19
MediumMCQ
Find the difference (in $Rs.$) between $C.I.$ and $S.I.$ on $Rs. 13000$ at $4 \%$ per annum for $3$ years.
A
$63.23$
B
$73.25$
C
$68.25$
D
$70.29$

Solution

(A) The formula for the difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $3$ years is given by:
Difference $= \frac{P \times R^2 \times (300 + R)}{100^3}$
Given:
Principal $(P)$ $= Rs. 13000$
Rate $(R)$ $= 4 \%$
Time $(T)$ $= 3$ years
Substituting the values into the formula:
Difference $= \frac{13000 \times 4^2 \times (300 + 4)}{100^3}$
Difference $= \frac{13000 \times 16 \times 304}{1000000}$
Difference $= \frac{13000 \times 4864}{1000000}$
Difference $= \frac{63232000}{1000000} = Rs. 63.232$
Rounding to two decimal places,the difference is $Rs. 63.23$.
20
MediumMCQ
$A$ certain sum of money (in $Rs.$) gives $Rs. 500$ as Simple Interest $(S.I.)$ at $5 \%$ per annum for $1$ year. What is the Compound Interest $(C.I.)$ on the same sum at the same rate at the end of $2$ years?
A
$1050$
B
$1015$
C
$1035$
D
$1025$

Solution

(D) Step $1$: Calculate the Principal $(P)$.
Given $S.I. = Rs. 500$,$R = 5 \%$,$T = 1$ year.
$P = \frac{S.I. \times 100}{R \times T} = \frac{500 \times 100}{5 \times 1} = Rs. 10,000$.
Step $2$: Calculate the Compound Interest $(C.I.)$ for $2$ years.
$C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$
$C.I. = 10,000 \left[ \left( 1 + \frac{5}{100} \right)^2 - 1 \right]$
$C.I. = 10,000 \left[ (1.05)^2 - 1 \right]$
$C.I. = 10,000 \left[ 1.1025 - 1 \right]$
$C.I. = 10,000 \times 0.1025 = Rs. 1,025$.
21
EasyMCQ
The difference between the $S.I.$ and $C.I.$ obtained on a principal amount at $5$ $p.c.p.a.$ after $2$ years is $Rs. 35$. What is the principal amount (in $Rs.$)?
A
$15000$
B
$10000$
C
$14000$
D
$13000$

Solution

(C) The formula for the difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $2$ years is given by: $\text{Difference} = \frac{P \times R^2}{100^2}$
Given:
$\text{Difference} = 35$
$R = 5\%$
$T = 2 \text{ years}$
Substituting the values into the formula:
$35 = \frac{P \times 5^2}{100^2}$
$35 = \frac{P \times 25}{10000}$
$35 = \frac{P}{400}$
$P = 35 \times 400$
$P = 14000$
Therefore,the principal amount is $Rs. 14000$.
22
MediumMCQ
The $C.I.$ on $Rs. 10000$ at $20 \%$ per annum at the end of $1$ year $6$ months,if the interest is calculated half-yearly,will be:
A
$4340$
B
$5320$
C
$3310$
D
$4590$

Solution

(C) Given: Principal $(P) = Rs. 10000$,Annual Rate $= 20 \%$,Time $= 1$ year $6$ months $= 1.5$ years.
Since the interest is calculated half-yearly:
Rate $(R) = \frac{20}{2} = 10 \%$ per half-year.
Time $(n) = 1.5 \times 2 = 3$ half-years.
Compound Interest $(C.I.) = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$.
$C.I. = 10000 \left[ \left( 1 + \frac{10}{100} \right)^3 - 1 \right]$.
$C.I. = 10000 \left[ \left( \frac{11}{10} \right)^3 - 1 \right]$.
$C.I. = 10000 \left[ \frac{1331}{1000} - 1 \right]$.
$C.I. = 10000 \left[ \frac{331}{1000} \right] = Rs. 3310$.
23
MediumMCQ
The $S.I.$ is $Rs. 7200$ at $12$ $p.c.p.a.$ for $6$ years on a sum. What is the $C.I.$ (in $Rs.$) on the same sum at $5$ $p.c.p.a.$ for $2$ years?
A
$1020$
B
$1055$
C
$1050$
D
$1025$

Solution

(D) Step $1$: Calculate the principal sum $(P)$ using the Simple Interest formula: $S.I. = (P \times R \times T) / 100$.
Given $S.I. = 7200$,$R = 12$,$T = 6$.
$7200 = (P \times 12 \times 6) / 100$
$7200 = (P \times 72) / 100$
$P = (7200 \times 100) / 72 = 10000$.
Step $2$: Calculate the Compound Interest $(C.I.)$ on the principal $P = 10000$ at $R = 5$ $p.c.p.a.$ for $T = 2$ years.
$C.I. = P \times [(1 + R/100)^T - 1]$
$C.I. = 10000 \times [(1 + 5/100)^2 - 1]$
$C.I. = 10000 \times [(1.05)^2 - 1]$
$C.I. = 10000 \times [1.1025 - 1]$
$C.I. = 10000 \times 0.1025 = 1025$.
Thus,the $C.I.$ is $Rs. 1025$.
24
EasyMCQ
If the difference between $S.I.$ and $C.I.$ is $Rs. 25$ on $10000$ for $2$ years,then what is the rate of interest (in $\%$)?
A
$6$
B
$4$
C
$5$
D
$3$

Solution

(C) The formula for the difference between $Compound Interest$ $(C.I.)$ and $Simple Interest$ $(S.I.)$ for $2$ years is given by:
$Difference = \frac{P \times R^2}{100^2}$
Given:
$Principal (P) = 10000$
$Difference = 25$
$Time (T) = 2$ years
Substituting the values into the formula:
$25 = \frac{10000 \times R^2}{10000}$
$25 = R^2$
$R = \sqrt{25} = 5 \%$
Therefore,the rate of interest is $5 \%$ per annum.
25
DifficultMCQ
If the ratio of $C.I.$ and $S.I.$ interest for the same principal and rate of interest for $2$ years is $1.2,$ find the rate of interest (in $\%$).
A
$300$
B
$15$
C
$140$
D
$40$

Solution

(D) For $2$ years,the Compound Interest $(C.I.)$ is given by $C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^2 - 1 \right] = P \left[ \frac{2R}{100} + \frac{R^2}{10000} \right]$.
The Simple Interest $(S.I.)$ for $2$ years is $S.I. = \frac{P \times R \times 2}{100} = \frac{2PR}{100}$.
The ratio is given as $\frac{C.I.}{S.I.} = 1.2$.
Substituting the expressions: $\frac{P \left( \frac{2R}{100} + \frac{R^2}{10000} \right)}{\frac{2PR}{100}} = 1.2$.
Simplifying the expression: $\frac{\frac{2R}{100} (1 + \frac{R}{200})}{\frac{2R}{100}} = 1 + \frac{R}{200} = 1.2$.
Therefore,$\frac{R}{200} = 0.2$,which gives $R = 0.2 \times 200 = 40 \%.$
26
MediumMCQ
What is $C.I.$ (in $Rs.$) on $Rs. 7500$ for $4$ years if the rate of interest is $10 \%$ p.a. for the first $2$ years and $20 \%$ p.a. for the next $2$ years?
A
$5273$
B
$5568$
C
$5724$
D
$5325$

Solution

(B) The formula for the amount $A$ with varying rates of interest is $A = P \times (1 + \frac{R_1}{100})^{n_1} \times (1 + \frac{R_2}{100})^{n_2}$.
Given: Principal $P = 7500$,$R_1 = 10 \%$,$n_1 = 2$ years,$R_2 = 20 \%$,$n_2 = 2$ years.
First,calculate the total amount $A$:
$A = 7500 \times (1 + \frac{10}{100})^2 \times (1 + \frac{20}{100})^2$
$A = 7500 \times (1.1)^2 \times (1.2)^2$
$A = 7500 \times 1.21 \times 1.44$
$A = 7500 \times 1.7424 = 13068$.
Now,calculate the Compound Interest $(C.I.)$:
$C.I. = A - P$
$C.I. = 13068 - 7500 = 5568$.
Thus,the compound interest is $Rs. 5568$.
27
MediumMCQ
What will be $C.I.$ (in $Rs.$) on an amount of $Rs. 10000$ at the rate of $20$ $p.c.p.a.$ in two years if the interest rate is compounded half-yearly?
A
$4525$
B
$4232$
C
$4641$
D
$4461$

Solution

(C) Given: Principal $(P) = Rs. 10000$,Rate $(R) = 20 \% \text{ per annum}$,Time $(T) = 2 \text{ years}$.
Since the interest is compounded half-yearly:
New Rate $(r) = \frac{20}{2} = 10 \% \text{ per half-year}$.
New Time $(n) = 2 \times 2 = 4 \text{ half-years}$.
The formula for Compound Interest $(C.I.)$ is $C.I. = P \left[ \left( 1 + \frac{r}{100} \right)^n - 1 \right]$.
Substituting the values: $C.I. = 10000 \left[ \left( 1 + \frac{10}{100} \right)^4 - 1 \right]$.
$C.I. = 10000 \left[ (1.1)^4 - 1 \right]$.
$C.I. = 10000 \left[ 1.4641 - 1 \right]$.
$C.I. = 10000 \times 0.4641 = Rs. 4641$.
28
MediumMCQ
Find the difference between $S.I.$ and $C.I.$ (in $Rs.$) at $12 \%$ per annum for $2$ years on $Rs. 10000$.
A
$169$
B
$12$
C
$144$
D
$24$

Solution

(C) The formula for the difference between Simple Interest $(S.I.)$ and Compound Interest $(C.I.)$ for $2$ years is given by:
Difference $= \frac{P \times R^{2}}{100^{2}}$
Where $P$ is the principal amount and $R$ is the rate of interest.
Given: $P = 10000$,$R = 12 \%$,and $T = 2$ years.
Substituting the values in the formula:
Difference $= \frac{10000 \times (12)^{2}}{100^{2}}$
Difference $= \frac{10000 \times 144}{10000}$
Difference $= 144$
Thus,the difference between $S.I.$ and $C.I.$ is $Rs. 144$.
29
EasyMCQ
Find the difference between $S.I.$ and $C.I.$ (in $Rs.$) at $14 \%$ per annum for $2$ years on a principal of $Rs. 10000$.
A
$144$
B
$169$
C
$124$
D
$196$

Solution

(D) The formula for the difference between Simple Interest $(S.I.)$ and Compound Interest $(C.I.)$ for $2$ years is given by: $\text{Difference} = \frac{P \times r^2}{100^2}$.
Here,the principal $P = 10000$ and the rate $r = 14 \%$.
Substituting the values into the formula:
$\text{Difference} = \frac{10000 \times 14^2}{100^2}$
$\text{Difference} = \frac{10000 \times 196}{10000}$
$\text{Difference} = 196$.
Thus,the difference between $S.I.$ and $C.I.$ is $Rs. 196$.
30
DifficultMCQ
Aditya invests $Rs. 50,000$ in a fixed deposit at $10 \%$ $C.I.$ for $2$ years. At the end of $2$ years,she puts the money in another deposit at $12 \%$ $S.I.$ for $3$ years. What was the final value (in $Rs.$) of the initial investment?
A
$80000$
B
$81280$
C
$82280$
D
$83280$

Solution

(C) Step $1$: Calculate the amount after $2$ years of compound interest $(C.I.)$.
Amount $A = P(1 + R/100)^n$
$A = 50000(1 + 10/100)^2 = 50000(1.1)^2 = 50000 \times 1.21 = Rs. 60500$.
Step $2$: Calculate the simple interest $(S.I.)$ on this amount for $3$ years at $12 \%$ per annum.
$S.I. = (P \times R \times T) / 100$
$S.I. = (60500 \times 12 \times 3) / 100 = 605 \times 36 = Rs. 21780$.
Step $3$: Calculate the final total amount.
Final Amount = Principal for $S.I. + S.I. = 60500 + 21780 = Rs. 82280$.
31
MediumMCQ
There is a $60 \%$ increase in an amount in $6$ years at simple interest. What will be the compound interest (in $Rs.$) on $Rs. 12,000$ after $3$ years at the same rate?
A
$2160$
B
$3120$
C
$3972$
D
$6240$

Solution

(C) Let the principal $P = 100$. The amount increases by $60 \%$,so the simple interest $I = 60$.
Using the simple interest formula $I = \frac{P \times R \times T}{100}$,we have $60 = \frac{100 \times R \times 6}{100}$,which gives $R = 10 \%$.
Now,for compound interest on $P = 12,000$ at $R = 10 \%$ for $T = 3$ years:
The amount $A = P(1 + \frac{R}{100})^T = 12,000(1 + \frac{10}{100})^3 = 12,000(1.1)^3$.
$A = 12,000 \times 1.331 = 15,972$.
The compound interest $CI = A - P = 15,972 - 12,000 = 3,972$.
32
MediumMCQ
$A$ bank offers $5 \%$ compound interest calculated on a half-yearly basis. $A$ customer deposits $Rs. 1600$ each on $1^{st}$ January and $1^{st}$ July of a year. At the end of the year,the amount (in $Rs.$) he would have gained by way of interest is:
A
$120$
B
$121$
C
$122$
D
$123$

Solution

(B) The interest is calculated on a half-yearly basis,so the rate per half-year is $r = \frac{5}{2} \% = 2.5 \% = 0.025$.
The first deposit of $Rs. 1600$ is made on $1^{st}$ January. It earns interest for two half-yearly periods (one year).
Amount of first deposit at the end of the year: $A_1 = 1600 \times (1 + 0.025)^2 = 1600 \times (1.025)^2 = 1600 \times 1.050625 = Rs. 1681$.
The second deposit of $Rs. 1600$ is made on $1^{st}$ July. It earns interest for one half-yearly period (six months).
Amount of second deposit at the end of the year: $A_2 = 1600 \times (1 + 0.025)^1 = 1600 \times 1.025 = Rs. 1640$.
Total amount at the end of the year: $A = A_1 + A_2 = 1681 + 1640 = Rs. 3321$.
Total principal deposited: $P = 1600 + 1600 = Rs. 3200$.
Interest gained: $CI = A - P = 3321 - 3200 = Rs. 121$.
33
DifficultMCQ
Aditya invested a certain amount in two different schemes $A$ and $B$. Scheme $A$ offers $S.I.$ at $12$ $p.c.p.a.$ and scheme $B$ offers $C.I.$ at $10$ $p.c.p.a.$ The interest accrued on the amount invested in scheme $A$ in $2$ years was $Rs. 3600$ and the total amount invested was $Rs. 35000$. What was the interest accrued on the amount (in $Rs.$) invested in scheme $B$?
A
$4500$
B
$4200$
C
$4000$
D
Cannot be determined

Solution

(B) Let the amount invested in scheme $A$ be $P_A$ and in scheme $B$ be $P_B$.
Given,total investment $P_A + P_B = 35000$.
For scheme $A$,$S.I. = 3600$,$R = 12\%$,$T = 2$ years.
Using the formula $S.I. = (P_A \times R \times T) / 100$:
$3600 = (P_A \times 12 \times 2) / 100$
$3600 = P_A \times 0.24$
$P_A = 3600 / 0.24 = 15000$.
Now,$P_B = 35000 - 15000 = 20000$.
For scheme $B$,$P_B = 20000$,$R = 10\%$,$T = 2$ years,compounded annually.
$C.I. = P_B \times [(1 + R/100)^T - 1]$
$C.I. = 20000 \times [(1 + 10/100)^2 - 1]$
$C.I. = 20000 \times [(1.1)^2 - 1]$
$C.I. = 20000 \times [1.21 - 1]$
$C.I. = 20000 \times 0.21 = 4200$.
Thus,the interest accrued in scheme $B$ is $Rs. 4200$.
34
MediumMCQ
Abhinav invested a certain amount at the rate of $8$ $p.c.p.a.$ for $5$ years and obtained a $SI$ of $Rs. 3800$. Had he invested the same amount at the same interest rate for $2$ years,how much amount (in $Rs.$) would he have obtained as $CI$ at the end of $2$ years?
A
$1520$
B
$1550.5$
C
$1550$
D
$1580.8$

Solution

(D) Step $1$: Calculate the Principal $(P)$.
Given $SI = Rs. 3800$,$R = 8\%$,and $T = 5$ years.
Formula: $SI = \frac{P \times R \times T}{100}$
$3800 = \frac{P \times 8 \times 5}{100}$
$3800 = \frac{40P}{100} = 0.4P$
$P = \frac{3800}{0.4} = Rs. 9500$.
Step $2$: Calculate the Compound Interest $(CI)$ for $2$ years.
Formula: $CI = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$
$CI = 9500 \left[ \left( 1 + \frac{8}{100} \right)^2 - 1 \right]$
$CI = 9500 \left[ (1.08)^2 - 1 \right]$
$CI = 9500 \left[ 1.1664 - 1 \right]$
$CI = 9500 \times 0.1664 = Rs. 1580.8$.
35
MediumMCQ
Which of the statements given below are sufficient to answer the following question?
What is the rate of interest $p.c.p.a.$ on the amount of $Rs. 15000$ taken as a loan?
$(I)$ The difference between $C.I.$ and $S.I.$ for $2$ years is $Rs. 170$.
$(II)$ The $S.I.$ for $2$ years is $Rs. 2500$.
A
Only $I$
B
Only $II$
C
Either $I$ or $II$
D
Neither $I$ nor $II$

Solution

(C) To find the rate of interest $R$,we analyze the statements:
From statement $(I)$: The difference between $C.I.$ and $S.I.$ for $2$ years is given by the formula $D = \frac{P R^2}{100^2}$. Here,$P = 15000$ and $D = 170$. Since $P$ and $D$ are known,we can solve for $R$.
From statement $(II)$: The $S.I.$ for $2$ years is given by $S.I. = \frac{P \times R \times T}{100}$. Here,$P = 15000$,$T = 2$,and $S.I. = 2500$. Since $P$,$T$,and $S.I.$ are known,we can solve for $R$.
Therefore,either statement $(I)$ or statement $(II)$ is sufficient to answer the question.
36
EasyMCQ
Which of the statements given below are sufficient to answer the following question?
What is the rate of interest per annum on an investment of $Rs. 800$?
$(I)$ The income from $S.I.$ at the end of $3$ years at the same rate of interest is $19$.
$(II)$ $C.I.$ is $15.76$ more than $S.I.$ on the same sum and same rate in $2$ years.
A
Only $I$
B
Only $II$
C
Either $I$ or $II$
D
Neither $I$ or $II$

Solution

(C) To find the rate of interest $(R)$,we can use either statement.
From statement $(I)$: Simple Interest $(S.I.)$ = $19$,Principal $(P)$ = $800$,Time $(T)$ = $3$ years. Using the formula $S.I. = (P \times R \times T) / 100$,we get $19 = (800 \times R \times 3) / 100$,which allows us to solve for $R$.
From statement $(II)$: The difference between Compound Interest $(C.I.)$ and Simple Interest $(S.I.)$ for $2$ years is given by the formula $Difference = P \times (R/100)^2$. Given $Difference = 15.76$ and $P = 800$,we can substitute these values to solve for $R$.
Since both statements independently provide enough information to calculate the rate of interest,the correct answer is 'Either $I$ or $II$'.
37
MediumMCQ
Which information given below is sufficient to know the principal amount if the difference between the $C.I.$ and $S.I.$ for $2$ years is $18$?
$(I)$ The rate is same at which an amount of $Rs. 1000$ becomes $1120$ in $2$ years under $S.I.$
$(II)$ The principal is $Rs. 2000$.
A
Only $I$
B
Only $II$
C
Either $I$ or $II$
D
Both $I$ and $II$ together

Solution

(A) The formula for the difference between $C.I.$ and $S.I.$ for $2$ years is given by: $Difference = P \times (R/100)^2$.
From statement $(I)$,we can calculate the rate of interest $(R)$:
$S.I. = (P \times R \times T) / 100$
$120 = (1000 \times R \times 2) / 100$
$120 = 20R \implies R = 6\%$.
From statement $(II)$,we are given the principal $(P = 2000)$.
To find the principal amount when the difference is $18$,we need both the rate $(R)$ and the difference. Since statement $(I)$ provides the rate and statement $(II)$ provides the principal,we need to check if they are consistent or if both are required to solve for a missing variable. Actually,if we use the formula $18 = P \times (R/100)^2$,we have two variables ($P$ and $R$). Statement $(I)$ gives $R=6\%$. If we use this in the formula,we can find $P$. Thus,statement $(I)$ alone is sufficient. However,if the question asks to verify the principal,statement $(I)$ is sufficient. Given the options,$(I)$ alone is sufficient.
38
MediumMCQ
Suneeta borrowed a certain sum from Reena for $2 \,yr$ at simple interest. Suneeta lent this sum to Venu at the same rate for $2 \,yr$ at compound interest. At the end of $2 \,yr$,she received $Rs. 110$ as compound interest but paid $Rs. 100$ as simple interest. Find the sum and the rate of interest.
A
$Rs. 250$,rate $10 \%$ p.a.
B
$Rs. 250$,rate $20 \%$ p.a.
C
$Rs. 250$,rate $25 \%$ p.a.
D
$Rs. 250$,rate $30 \%$ p.a.

Solution

(B) Let the principal sum be $P$ and the rate of interest be $R \%$.
Given: Simple Interest $(SI) = Rs. 100$,Compound Interest $(CI) = Rs. 110$,Time $(t) = 2$ years.
For $2$ years,the formula for Simple Interest is $SI = \frac{P \times R \times t}{100} = \frac{P \times R \times 2}{100} = 100$,which implies $P \times R = 5000$.
The difference between Compound Interest and Simple Interest for $2$ years is given by $CI - SI = \frac{P \times R^2}{100^2}$.
Substituting the values: $110 - 100 = \frac{P \times R^2}{10000} \Rightarrow 10 = \frac{(P \times R) \times R}{10000}$.
Since $P \times R = 5000$,we have $10 = \frac{5000 \times R}{10000} \Rightarrow 10 = \frac{R}{2} \Rightarrow R = 20 \%$.
Now,substitute $R = 20$ into $P \times R = 5000$: $P \times 20 = 5000 \Rightarrow P = 250$.
Therefore,the sum is $Rs. 250$ and the rate of interest is $20 \%$ p.a.
39
MediumMCQ
Find the least number of complete years in which a sum of money put out at $20 \%$ compound interest will be more than double?
A
$3$
B
$4$
C
$5$
D
$8$

Solution

(B) Let the principal sum be $P$.
The formula for the amount $A$ under compound interest is $A = P(1 + \frac{R}{100})^n$,where $R$ is the rate of interest and $n$ is the number of years.
According to the question,we want the amount to be more than double the principal,so $A > 2P$.
Substituting the values: $P(1 + \frac{20}{100})^n > 2P$.
Dividing both sides by $P$: $(1.2)^n > 2$.
Now,test values for $n$:
For $n = 3$: $(1.2)^3 = 1.728 < 2$.
For $n = 4$: $(1.2)^4 = 2.0736 > 2$.
Thus,the least number of complete years required is $4$.
40
DifficultMCQ
The population of a country is $10$ crore and it is expected that the population will become $13.31$ crore in $3$ years. What will be the annual growth rate in percent?
A
$8$
B
$12.7$
C
$10$
D
$15$

Solution

(C) Given,initial population $P = 10$ crore.
Population after $n = 3$ years $A = 13.31$ crore.
The formula for population growth is $A = P(1 + \frac{R}{100})^n$.
Substituting the values: $13.31 = 10(1 + \frac{R}{100})^3$.
Dividing both sides by $10$: $\frac{13.31}{10} = (1 + \frac{R}{100})^3$.
$1.331 = (1 + \frac{R}{100})^3$.
Since $1.331 = (1.1)^3$ or $(\frac{11}{10})^3$,we have $(1.1)^3 = (1 + \frac{R}{100})^3$.
Taking the cube root on both sides: $1.1 = 1 + \frac{R}{100}$.
Subtracting $1$ from both sides: $0.1 = \frac{R}{100}$.
Therefore,$R = 0.1 \times 100 = 10 \%$.
The annual growth rate is $10 \%$.
41
DifficultMCQ
$A$ man borrows $Rs. 5100$ to be paid back with compound interest at the rate of $4 \%$ p.a. by the end of $2$ years in two equal yearly instalments. How much (in $Rs.$) will be each instalment?
A
$2704$
B
$2800$
C
$3000$
D
$2500$

Solution

(A) Let the value of each equal annual instalment be $P$.
The formula for the present value of instalments paid at the end of each year under compound interest is:
$P \times (1 + r/100)^{-1} + P \times (1 + r/100)^{-2} = \text{Principal}$
Given,Principal = $5100$,Rate $(r)$ = $4 \%$,Time = $2$ years.
$\Rightarrow \frac{P}{(1 + 4/100)} + \frac{P}{(1 + 4/100)^2} = 5100$
$\Rightarrow \frac{P}{(26/25)} + \frac{P}{(26/25)^2} = 5100$
$\Rightarrow \frac{25P}{26} + \frac{625P}{676} = 5100$
Taking $676$ as the common denominator:
$\Rightarrow \frac{25 \times 26 \times P + 625P}{676} = 5100$
$\Rightarrow \frac{650P + 625P}{676} = 5100$
$\Rightarrow \frac{1275P}{676} = 5100$
$P = \frac{5100 \times 676}{1275}$
$P = 4 \times 676 = 2704$
Thus,each instalment is $Rs. 2704$.
42
DifficultMCQ
Divide $Rs. 2602$ between $X$ and $Y$,so that the amount of $X$ after $7 \,yr$ is equal to the amount of $Y$ after $9 \,yr$,the interest being compounded at $4 \%$ per annum.
A
$Rs. 1352$,$Rs. 1250$
B
$Rs. 1400$,$Rs. 1350$
C
$Rs. 1215$,$Rs. 1300$
D
$Rs. 1500$,$Rs. 1450$

Solution

(A) Let the first part given to $X$ be $Rs. a$ and the second part given to $Y$ be $Rs. (2602 - a)$.
According to the question,the amount of $X$ after $7 \,yr$ is equal to the amount of $Y$ after $9 \,yr$ with interest compounded at $4 \%$ per annum.
Formula for amount: $A = P(1 + \frac{r}{100})^n$.
So,$a(1 + \frac{4}{100})^7 = (2602 - a)(1 + \frac{4}{100})^9$.
Dividing both sides by $(1 + \frac{4}{100})^7$,we get:
$a = (2602 - a)(1 + \frac{4}{100})^2$.
$a = (2602 - a)(1 + \frac{1}{25})^2 = (2602 - a)(\frac{26}{25})^2$.
$a = (2602 - a) \times \frac{676}{625}$.
$625a = 676(2602 - a)$.
$625a = 1758952 - 676a$.
$1301a = 1758952$.
$a = \frac{1758952}{1301} = 1352$.
Thus,the first part is $Rs. 1352$ and the second part is $2602 - 1352 = Rs. 1250$.
43
DifficultMCQ
If $Rs. 3000$ amounts to $Rs. 4320$ at compound interest in a certain time,then what will $Rs. 3000$ amount to in half of that time (in $Rs.$)?
A
$3400$
B
$3600$
C
$3800$
D
$3520$

Solution

(B) Let the rate of interest be $R\%$ per annum and the time be $n$ years.
Given that the amount $A = P(1 + R/100)^n$.
Substituting the given values: $4320 = 3000(1 + R/100)^n$.
Therefore,$(1 + R/100)^n = 4320 / 3000 = 1.44$.
We need to find the amount for half the time,i.e.,for $n/2$ years.
The required amount is $A' = 3000(1 + R/100)^{n/2}$.
Since $(1 + R/100)^n = 1.44$,taking the square root on both sides gives $(1 + R/100)^{n/2} = \sqrt{1.44} = 1.2$.
Thus,the required amount $A' = 3000 \times 1.2 = Rs. 3600$.
44
DifficultMCQ
$A$ sum of money lent at compound interest for $2 \, yr$ at $20 \% \, p.a.$ would fetch $Rs. 964$ more,if the interest was payable half-yearly than if it was payable annually. What is the sum (in $Rs.$)?
A
$40000$
B
$60000$
C
$90000$
D
$500000$

Solution

(A) Let the principal be $P$.
When interest is compounded half-yearly,the rate $R = 20/2 = 10 \% \, p.a.$ and time $T = 2 \times 2 = 4$ half-years.
$CI_{half-yearly} = P \left[ (1 + 10/100)^4 - 1 \right] = P \left[ (1.1)^4 - 1 \right] = P (1.4641 - 1) = 0.4641 P$.
When interest is compounded annually,the rate $R = 20 \% \, p.a.$ and time $T = 2$ years.
$CI_{annually} = P \left[ (1 + 20/100)^2 - 1 \right] = P \left[ (1.2)^2 - 1 \right] = P (1.44 - 1) = 0.44 P$.
According to the question,the difference is $Rs. 964$:
$0.4641 P - 0.44 P = 964$
$0.0241 P = 964$
$P = 964 / 0.0241 = 40000$.
Thus,the sum is $Rs. 40000$.
45
DifficultMCQ
$A$ sum of $Rs. 8448$ is to be divided between $X$ and $Y$ who are respectively $18$ and $19 \,yr$ old,in such a way that if their shares be invested at $6.25 \%$ per annum at compound interest,they will receive equal amounts on attaining the age of $21 \,yr$. The present share of $X$ is (In $Rs.$)
A
$4225$
B
$4352$
C
$4096$
D
$4000$

Solution

(C) Let the shares of $X$ and $Y$ be $Rs. x$ and $Rs. (8448 - x)$ respectively.
$X$ is $18$ years old,so the time remaining until age $21$ is $21 - 18 = 3$ years.
$Y$ is $19$ years old,so the time remaining until age $21$ is $21 - 19 = 2$ years.
The rate of interest $R = 6.25 \% = \frac{6.25}{100} = \frac{1}{16}$.
According to the problem,the amounts received by both at age $21$ are equal:
$x(1 + \frac{1}{16})^3 = (8448 - x)(1 + \frac{1}{16})^2$
Dividing both sides by $(1 + \frac{1}{16})^2$:
$x(1 + \frac{1}{16}) = 8448 - x$
$x(\frac{17}{16}) = 8448 - x$
$17x = 16(8448 - x)$
$17x = 135168 - 16x$
$33x = 135168$
$x = \frac{135168}{33} = 4096$.
Thus,the present share of $X$ is $Rs. 4096$.
46
DifficultMCQ
Monica deposited a total of $Rs. 10500$ with a bank in two different deposit schemes at $10 \%$ $p.a.$,interest being compounded annually. As per the schemes,she gets the same amount after $2 \,years$ on the first deposit as she gets after $3 \,years$ on the second deposit. How much money (In $Rs.$) did she deposit for $3 \,years$?
A
$4500$
B
$5000$
C
$6500$
D
$7200$

Solution

(B) Let the amount invested in the first scheme be $Rs. x$ and in the second scheme be $Rs. (10500 - x)$.
The rate of interest is $10 \% \, p.a.$ compounded annually.
The amount after $n$ years is given by $A = P(1 + r/100)^n$.
For the first scheme,the amount after $2 \, years$ is $A_1 = x(1 + 10/100)^2 = x(1.1)^2 = 1.21x$.
For the second scheme,the amount after $3 \, years$ is $A_2 = (10500 - x)(1 + 10/100)^3 = (10500 - x)(1.1)^3 = 1.331(10500 - x)$.
Since the amounts are equal,$1.21x = 1.331(10500 - x)$.
$1.21x = 13975.5 - 1.331x$.
$1.21x + 1.331x = 13975.5$.
$2.541x = 13975.5$.
$x = 13975.5 / 2.541 = 5500$.
The amount deposited for $3 \, years$ is $(10500 - x) = 10500 - 5500 = Rs. 5000$.
47
DifficultMCQ
$A$ sum of $Rs. 1000$ after $3 \, \text{years}$ at compound interest becomes a certain amount that is equal to the amount that is the result of a $3 \, \text{year}$ depreciation from $Rs. 1728$. Find the difference between the rates (in $\%$) of $C.I.$ and depreciation? (Given $C.I.$ is $10 \% \, p.a.$)
A
$1.7$
B
$2.9$
C
$4$
D
$7.6$

Solution

(A) The amount of $Rs. 1000$ at $10 \% \, p.a.$ after $3 \, \text{years}$ becomes:
$\Rightarrow A = P(1 + \frac{R}{100})^n = 1000(1 + \frac{10}{100})^3 = 1000(1.1)^3 = 1000 \times 1.331 = Rs. 1331$.
Now,$Rs. 1728$ depreciates at rate $R_d \%$ per annum for $3 \, \text{years}$ to become $Rs. 1331$:
$\Rightarrow A = P(1 - \frac{R_d}{100})^n$
$\Rightarrow 1331 = 1728(1 - \frac{R_d}{100})^3$
$\Rightarrow (1 - \frac{R_d}{100})^3 = \frac{1331}{1728} = (\frac{11}{12})^3$
$\Rightarrow 1 - \frac{R_d}{100} = \frac{11}{12}$
$\Rightarrow \frac{R_d}{100} = 1 - \frac{11}{12} = \frac{1}{12}$
$\Rightarrow R_d = \frac{100}{12} = 8.33 \%$.
The difference between the rates is $10 \% - 8.33 \% = 1.67 \%$,which is approximately $1.7 \%$.
48
MediumMCQ
$A$ certain sum of money invested at compound interest becomes $1.44$ times of itself in $2$ years. If twice this sum were lent at simple interest, in how many years would it double itself?
A
$2$
B
$2.5$
C
$3$
D
$5$

Solution

(D) Let the principal (sum of money) be $P = 100$.
Given that the amount after $2$ years at compound interest is $1.44$ times the principal, so $A = 144$.
Using the compound interest formula: $A = P(1 + \frac{R}{100})^n$
$144 = 100(1 + \frac{R}{100})^2$
$(1 + \frac{R}{100})^2 = \frac{144}{100} = 1.44$
$1 + \frac{R}{100} = \sqrt{1.44} = 1.2$
$\frac{R}{100} = 0.2 \Rightarrow R = 20\%$.
Now, we consider twice the original sum, so the new principal $P' = 2 \times 100 = 200$.
We want this sum to double itself, so the new amount $A' = 2 \times 200 = 400$.
The simple interest required is $SI = A' - P' = 400 - 200 = 200$.
Using the simple interest formula: $SI = \frac{P' \times R \times T}{100}$
$200 = \frac{200 \times 20 \times T}{100}$
$200 = 40 \times T$
$T = \frac{200}{40} = 5$ years.
49
DifficultMCQ
$A$ sum of money at compound interest amounts in two years to Rs. $2809,$ and in three years to Rs. $2977.54.$ Find the rate of interest and the original sum.
A
$4 \%, Rs. 2500$
B
$6 \%, Rs. 1800$
C
$4 \%, Rs. 1800$
D
$6 \%, Rs. 2500$

Solution

(D) The difference in the amount of money over one year represents the compound interest for that year.
Hence,the interest for the third year is Rs. $[2977.54 - 2809] = Rs. 168.54$.
This interest is earned on the principal amount at the end of the second year,which is Rs. $2809$.
Using the formula for simple interest for one year (since $CI$ for one year equals $SI$):
$R = \frac{Interest \times 100}{Principal \times Time} = \frac{168.54 \times 100}{2809 \times 1} = \frac{16854}{2809} = 6 \%$.
Now,to find the original sum $P$,we use the amount formula for $2$ years:
$A = P(1 + \frac{R}{100})^n$
$2809 = P(1 + \frac{6}{100})^2$
$2809 = P(1.06)^2$
$2809 = P(1.1236)$
$P = \frac{2809}{1.1236} = 2500$.
Thus,the rate of interest is $6 \%$ and the original sum is Rs. $2500$.
50
DifficultMCQ
If $Rs. 1200$ amounts to $Rs. 1323$ in $2$ years at compound interest compounded annually,what will $Rs. 1600$ amount (in $Rs.$) to in $3$ years at the same rate?
A
$1780.45$
B
$1852.50$
C
$1945.55$
D
$2166.76$

Solution

(B) The formula for the amount under compound interest is $A = P(1 + \frac{R}{100})^n$.
Given $P = 1200$,$A = 1323$,and $n = 2$ years.
$1323 = 1200(1 + \frac{R}{100})^2$
$\frac{1323}{1200} = (1 + \frac{R}{100})^2$
$\frac{441}{400} = (1 + \frac{R}{100})^2$
$(\frac{21}{20})^2 = (1 + \frac{R}{100})^2$
Taking the square root on both sides: $1 + \frac{R}{100} = \frac{21}{20} = 1.05$.
Thus,$\frac{R}{100} = 0.05$,which means $R = 5\%$.
Now,for $P = 1600$,$n = 3$ years,and $R = 5\%$:
$A = 1600(1 + \frac{5}{100})^3$
$A = 1600(1.05)^3$
$A = 1600 \times 1.157625 = 1852.50$.
Therefore,the amount is $Rs. 1852.50$.

Interest — Compound Interest · Frequently Asked Questions

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