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Compound Interest Questions in English

Competitive Exam Quantitative Aptitude · Interest · Compound Interest

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51
MediumMCQ
If the compound interest on a certain sum for $3$ years at $5 \%$ p.a. exceeds the simple interest on the same sum for the same time and at the same rate by $Rs. 183$,find the sum (in $Rs.$).
A
$17560$
B
$21680$
C
$24000$
D
$26780$

Solution

(C) Let the principal sum be $P$. The rate of interest $R = 5 \%$ per annum and time $T = 3$ years.
Simple Interest $(SI)$ is given by: $SI = \frac{P \times R \times T}{100} = \frac{P \times 5 \times 3}{100} = \frac{15P}{100} = \frac{3P}{20}$.
Compound Interest $(CI)$ is given by: $CI = P \left[ (1 + \frac{R}{100})^T - 1 \right] = P \left[ (1 + \frac{5}{100})^3 - 1 \right] = P \left[ (\frac{21}{20})^3 - 1 \right] = P \left[ \frac{9261}{8000} - 1 \right] = P \left[ \frac{1261}{8000} \right]$.
According to the problem,$CI - SI = 183$.
Substituting the values: $\frac{1261P}{8000} - \frac{3P}{20} = 183$.
To subtract,make the denominators equal: $\frac{1261P}{8000} - \frac{1200P}{8000} = 183$.
$\frac{61P}{8000} = 183$.
$P = \frac{183 \times 8000}{61} = 3 \times 8000 = 24000$.
Thus,the sum is $Rs. 24000$.
52
MediumMCQ
If the compound interest on a certain sum of money for $3$ years at $5 \%$ p.a. is $Rs. 504.40$,find the corresponding simple interest. (In $Rs.$)
A
$329.24$
B
$384.78$
C
$435.45$
D
$480.00$

Solution

(D) The formula for compound interest is $CI = P \left[\left(1+\frac{R}{100}\right)^{n}-1\right]$.
Given $CI = 504.40$,$R = 5\%$,and $n = 3$ years.
$504.40 = P \left[\left(1+\frac{5}{100}\right)^{3}-1\right]$
$504.40 = P \left[\left(\frac{21}{20}\right)^{3}-1\right]$
$504.40 = P \left[\frac{9261}{8000}-1\right]$
$504.40 = P \left[\frac{1261}{8000}\right]$
$P = \frac{504.40 \times 8000}{1261} = 400 \times 0.8 = 3200$.
So,the principal $P = Rs. 3200$.
Now,calculate simple interest: $SI = \frac{P \times R \times T}{100}$.
$SI = \frac{3200 \times 5 \times 3}{100} = 32 \times 15 = 480$.
Thus,the simple interest is $Rs. 480$.
53
DifficultMCQ
Find the least number of complete years in which a sum of $Rs. 1500$ at $25 \%$ compound interest will be more than double.
A
$4$
B
$5$
C
$6$
D
$7$

Solution

(A) Given: Principal $(P) = Rs. 1500$,Rate $(R) = 25 \% \text{ per annum}$.
We need to find the minimum number of years $(n)$ such that the amount $(A)$ becomes more than double the principal,i.e.,$A > 2P$.
The formula for compound interest is $A = P(1 + R/100)^n$.
Substituting the values: $P(1 + 25/100)^n > 2P$.
Dividing both sides by $P$: $(1 + 1/4)^n > 2$,which simplifies to $(5/4)^n > 2$.
Calculating for different values of $n$:
For $n = 1: (1.25)^1 = 1.25 < 2$.
For $n = 2: (1.25)^2 = 1.5625 < 2$.
For $n = 3: (1.25)^3 = 1.953125 < 2$.
For $n = 4: (1.25)^4 = 2.44140625 > 2$.
Thus,the least number of complete years required is $4$.
54
MediumMCQ
If the compound interest on a certain sum of money for $2$ years is $Rs. 164$ whereas the simple interest for $3$ years at the same rate is $Rs. 240$ on the same sum,find the sum (in $Rs.$).
A
$1200$
B
$1400$
C
$1600$
D
$1800$

Solution

(C) Let the principal be $P$ and the rate of interest be $R\%$.
Simple Interest $(SI)$ for $3$ years $= Rs. 240$.
Therefore,$SI$ for $1$ year $= \frac{240}{3} = Rs. 80$.
$SI$ for $2$ years $= 80 \times 2 = Rs. 160$.
We know that $SI = \frac{P \times R \times T}{100}$,so for $2$ years: $160 = \frac{P \times R \times 2}{100} \Rightarrow PR = 8000$.
Compound Interest $(CI)$ for $2$ years $= Rs. 164$.
The difference between $CI$ and $SI$ for $2$ years is given by $CI - SI = P \left( \frac{R}{100} \right)^2$.
$164 - 160 = P \left( \frac{R}{100} \right)^2 \Rightarrow 4 = P \left( \frac{R}{100} \right)^2$.
Since $PR = 8000$,we have $R = \frac{8000}{P}$.
Substituting $R$ in the equation: $4 = P \left( \frac{8000/P}{100} \right)^2 = P \left( \frac{80}{P} \right)^2 = P \times \frac{6400}{P^2} = \frac{6400}{P}$.
$P = \frac{6400}{4} = 1600$.
Thus,the sum is $Rs. 1600$.
55
MediumMCQ
What would be the compound interest (in $Rs.$) accrued on an amount of $Rs. 7850$ at the rate of $14$ $p.c.p.a.$ in $2$ years?
A
$2351.86$
B
$2880.37$
C
$2518.22$
D
$2290.23$

Solution

(A) The formula for compound interest is $CI = P \left[\left(1+\frac{R}{100}\right)^{n}-1\right]$.
Given: Principal $(P)$ = $Rs. 7850$,Rate $(R)$ = $14\%$,Time $(n)$ = $2$ years.
Substituting the values into the formula:
$CI = 7850 \times \left[\left(1+\frac{14}{100}\right)^{2}-1\right]$
$CI = 7850 \times \left[(1.14)^{2}-1\right]$
$CI = 7850 \times [1.2996 - 1]$
$CI = 7850 \times 0.2996$
$CI = 2351.86$
Thus,the compound interest is $Rs. 2351.86$.
56
MediumMCQ
The compound interest accrued on an amount at the end of $3$ $years$ at $15$ $p.c.p.a.$ is $Rs. 6500.52$. What is the principal amount (in $Rs.$)?
A
$12480$
B
$10500$
C
$14800$
D
$13620$

Solution

(A) The formula for compound interest is $CI = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$.
Given $CI = 6500.52$,$R = 15$,and $n = 3$.
$6500.52 = P \left[ \left( 1 + \frac{15}{100} \right)^3 - 1 \right]$
$6500.52 = P \left[ \left( 1.15 \right)^3 - 1 \right]$
$6500.52 = P \left[ 1.520875 - 1 \right]$
$6500.52 = P \times 0.520875$
$P = \frac{6500.52}{0.520875} = 12480$.
Thus,the principal amount is $Rs. 12480$.
57
MediumMCQ
What would be the compound interest (in $Rs.$) accrued on an amount of $Rs. 7400$ at $13.5$ $p.c.p.a.$ at the end of $2$ years? (rounded off to two digits after decimal)
A
$2136.87$
B
$2306.81$
C
$2032.18$
D
$2132.87$

Solution

(D) The formula for compound interest is $CI = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$.
Given: Principal $(P)$ = $Rs. 7400$,Rate $(R)$ = $13.5\%$,Time $(n)$ = $2$ years.
$CI = 7400 \left[ \left( 1 + \frac{13.5}{100} \right)^2 - 1 \right]$
$CI = 7400 \left[ (1.135)^2 - 1 \right]$
$CI = 7400 \left[ 1.288225 - 1 \right]$
$CI = 7400 \times 0.288225$
$CI = 2132.865$
Rounding off to two decimal places,we get $Rs. 2132.87$.
58
MediumMCQ
The compound interest earned by Shivam on a certain amount at the end of $2$ years at the rate of $8 \, p.c.p.a.$ was $Rs. 1414.4$. What was the total amount that Shivam got back at the end of $2$ years in the form of principal plus interest earned (in $Rs.$) (in $.4$)?
A
$9414$
B
$9914$
C
$9014$
D
$8914$

Solution

(B) The formula for compound interest is $CI = P \left[\left(1 + \frac{R}{100}\right)^n - 1\right]$.
Given $CI = 1414.4$,$R = 8$,and $n = 2$.
$1414.4 = P \left[\left(1 + \frac{8}{100}\right)^2 - 1\right]$
$1414.4 = P \left[(1.08)^2 - 1\right]$
$1414.4 = P \left[1.1664 - 1\right]$
$1414.4 = P \times 0.1664$
$P = \frac{1414.4}{0.1664} = 8500$.
The total amount received is $Principal + CI = 8500 + 1414.4 = 9914.4$.
59
MediumMCQ
What sum of money (in $Rs.$) at compound interest will amount to $Rs. 5305.53$ in $3$ years,if the rate of interest is $1 \%$ for the first year,$2 \%$ for the second year,and $3 \%$ for the third year?
A
$4800$
B
$5000$
C
$5200$
D
$5400$

Solution

(B) The formula for compound interest with varying rates is given by:
$A = P \left(1 + \frac{R_1}{100}\right) \left(1 + \frac{R_2}{100}\right) \left(1 + \frac{R_3}{100}\right)$
Given:
$A = 5305.53$
$R_1 = 1\%$,$R_2 = 2\%$,$R_3 = 3\%$
Substituting the values:
$5305.53 = P \left(1 + \frac{1}{100}\right) \left(1 + \frac{2}{100}\right) \left(1 + \frac{3}{100}\right)$
$5305.53 = P \times (1.01) \times (1.02) \times (1.03)$
$5305.53 = P \times 1.061106$
Solving for $P$:
$P = \frac{5305.53}{1.061106}$
$P = 5000$
Thus,the sum of money is $Rs. 5000$.
60
MediumMCQ
If the difference between the simple interest and compound interest earned on an amount at $15$ $p.c.p.a.$ at the end of $3$ years is $Rs. 595.35$,what is the amount (in $Rs.$)?
A
$8400$
B
$9200$
C
$6800$
D
Cannot be determined

Solution

(A) The formula for the difference between compound interest $(CI)$ and simple interest $(SI)$ for $3$ years is given by:
Difference $= \frac{P \times r^2}{100^2} \times \left(\frac{r}{100} + 3\right)$
Here,$r = 15$ and the difference $= 595.35$.
Substituting the values:
$595.35 = \frac{P \times 15^2}{100^2} \times \left(\frac{15}{100} + 3\right)$
$595.35 = \frac{P \times 225}{10000} \times (0.15 + 3)$
$595.35 = \frac{P \times 225}{10000} \times 3.15$
$595.35 = \frac{P \times 708.75}{10000}$
$P = \frac{595.35 \times 10000}{708.75}$
$P = \frac{5953500}{708.75} = 8400$
Thus,the principal amount is $Rs. 8400$.
61
DifficultMCQ
$A$ man gets a simple interest of $Rs. 1000$ on a certain principal at the rate of $5$ $p.c.p.a.$ in $4$ years. What compound interest (in $Rs.$) will the man get on twice the principal in two years at the same rate?
A
$1050$
B
$1005$
C
$1025$
D
$125$

Solution

(C) Step $1$: Calculate the original principal $(P)$.
Simple Interest $(SI)$ $= \frac{P \times R \times T}{100}$
$1000 = \frac{P \times 5 \times 4}{100}$
$1000 = \frac{P \times 20}{100}$
$P = \frac{1000 \times 100}{20} = Rs. 5000$
Step $2$: Calculate the new principal $(P')$ and Compound Interest $(CI)$.
New Principal $(P')$ $= 2 \times P = 2 \times 5000 = Rs. 10000$
Rate $(R)$ $= 5\%$,Time $(T)$ $= 2$ years.
$CI = P' \left[ \left( 1 + \frac{R}{100} \right)^T - 1 \right]$
$CI = 10000 \left[ \left( 1 + \frac{5}{100} \right)^2 - 1 \right]$
$CI = 10000 \left[ \left( \frac{105}{100} \right)^2 - 1 \right]$
$CI = 10000 \left[ \frac{11025}{10000} - 1 \right]$
$CI = 10000 \left[ \frac{11025 - 10000}{10000} \right]$
$CI = 10000 \times \frac{1025}{10000} = Rs. 1025$
62
DifficultMCQ
The simple interest accrued on an amount of $Rs. 20000$ at the end of $3$ years is $Rs. 7200$. What would be the compound interest accrued on the same amount at the same rate in the same period?
A
$8342.36$
B
$8098.56$
C
$8246.16$
D
$8112.86$

Solution

(B) Step $1$: Calculate the rate of interest $(R)$ using the simple interest formula.
$SI = \frac{P \times R \times T}{100}$
$7200 = \frac{20000 \times R \times 3}{100}$
$7200 = 600 \times R$
$R = \frac{7200}{600} = 12\% \text{ per annum}$.
Step $2$: Calculate the compound interest $(CI)$ for the same principal,rate,and time.
$CI = P \left[ \left( 1 + \frac{R}{100} \right)^T - 1 \right]$
$CI = 20000 \left[ \left( 1 + \frac{12}{100} \right)^3 - 1 \right]$
$CI = 20000 \left[ (1.12)^3 - 1 \right]$
$CI = 20000 \left[ 1.404928 - 1 \right]$
$CI = 20000 \times 0.404928 = 8098.56$.
Thus,the compound interest is $Rs. 8098.56$.
63
MediumMCQ
The population of a state increases by $10 \%$ every year. If its population in the year $2003$ was $15$ lakhs,what was its population in the year $2005$ (in lakhs)?
A
$16.5$
B
$15.5$
C
$17.25$
D
$18.15$

Solution

(D) The population growth follows the compound interest formula: $A = P(1 + \frac{r}{100})^n$.
Here,the initial population $P = 15$ lakhs.
The rate of increase $r = 10 \%$ per year.
The time period $n = 2005 - 2003 = 2$ years.
Substituting the values into the formula:
$A = 15 \times (1 + \frac{10}{100})^2$
$A = 15 \times (1 + 0.1)^2$
$A = 15 \times (1.1)^2$
$A = 15 \times 1.21$
$A = 18.15$ lakhs.
Therefore,the population in the year $2005$ was $18.15$ lakhs.
64
MediumMCQ
The value of a machine depreciates at the rate of $12\%$ per annum. It was purchased $3$ years ago. Its present value is $Rs. 29644.032$. What was the purchase price (in $Rs.$) of the machine?
A
$48700$
B
$43500$
C
$38900$
D
$39000$

Solution

(B) The present value of the machine is $P = Rs. 29644.032$.
The rate of depreciation is $r = 12\%$ per annum.
The time period is $n = 3$ years.
The formula for the depreciated value is given by $V = P_0 \times (1 - \frac{r}{100})^n$,where $P_0$ is the initial purchase price.
To find the purchase price $P_0$,we rearrange the formula:
$P_0 = \frac{V}{(1 - \frac{r}{100})^n}$
Substituting the given values:
$P_0 = \frac{29644.032}{(1 - \frac{12}{100})^3}$
$P_0 = \frac{29644.032}{(0.88)^3}$
$P_0 = \frac{29644.032}{0.681472}$
$P_0 = 43500$
Therefore,the purchase price of the machine was $Rs. 43500$.
65
MediumMCQ
In the year $2008$,$5000$ students were admitted to a college. It is found that the number of students admitted is constantly increasing by $24\%$ per year. How many students will be admitted to the college in the year $2010$?
A
$7688$
B
$7868$
C
$7400$
D
$7480$

Solution

(A) The initial number of students admitted in $2008$ $(P)$ is $5000$.
The rate of increase $(r)$ is $24\%$ per year.
The time period $(n)$ from $2008$ to $2010$ is $2010 - 2008 = 2$ years.
Since the number of students increases at a constant percentage rate,we use the compound growth formula: $A = P \left(1 + \frac{r}{100}\right)^n$.
Substituting the values: $A = 5000 \left(1 + \frac{24}{100}\right)^2$.
$A = 5000 \times (1.24)^2$.
$A = 5000 \times 1.5376$.
$A = 7688$.
Therefore,the number of students admitted in the year $2010$ will be $7688$.
66
DifficultMCQ
The simple interest accrued on an amount of $Rs. 19800$ at the end of $3$ years is $Rs. 7128$. What would be the compound interest (in $Rs.$) accrued on the same amount at the same rate in the same period?
A
$8934.6784$
B
$8017.5744$
C
$7861.8754$
D
$6871.6734$

Solution

(B) Given: Principal $(P) = Rs. 19800$,Simple Interest $(SI) = Rs. 7128$,Time $(T) = 3$ years.
First,calculate the rate of interest $(R)$ using the formula: $SI = \frac{P \times R \times T}{100}$.
$7128 = \frac{19800 \times R \times 3}{100} \Rightarrow 7128 = 198 \times R \times 3$.
$7128 = 594 \times R \Rightarrow R = \frac{7128}{594} = 12 \%$.
Now,calculate the compound interest $(CI)$ using the formula: $CI = P \left[ (1 + \frac{R}{100})^T - 1 \right]$.
$CI = 19800 \left[ (1 + \frac{12}{100})^3 - 1 \right] = 19800 \left[ (1.12)^3 - 1 \right]$.
$(1.12)^3 = 1.404928$.
$CI = 19800 \times (1.404928 - 1) = 19800 \times 0.404928$.
$CI = Rs. 8017.5744$.
67
MediumMCQ
If the difference between the simple and the compound interest earned on a sum of money at the rate of $5$ $p.c.p.a.$ for $2$ $years$ is $Rs. 16$,find the principal (in $Rs.$).
A
$6200$
B
$6400$
C
$6250$
D
$6750$

Solution

(B) For a period of $2$ $years$,the difference between Compound Interest $(CI)$ and Simple Interest $(SI)$ is given by the formula:
$\text{Difference} = P \times \left( \frac{R}{100} \right)^2$
Where:
$P$ = Principal
$R$ = Rate of interest $(5\%)$
$\text{Difference} = 16$
Substituting the values:
$16 = P \times \left( \frac{5}{100} \right)^2$
$16 = P \times \left( \frac{1}{20} \right)^2$
$16 = P \times \frac{1}{400}$
$P = 16 \times 400$
$P = 6400$
Thus,the principal amount is $Rs. 6400$.
68
MediumMCQ
The production of a factory grows at a $8 \%$ $p.a.$ What will be its production (in $lakh$ tonnes) for the year $2010$,if its production in $2008$ was $70$ $lakh$ tonnes?
A
$63.48$
B
$81.648$
C
$81$
D
$80.68$

Solution

(B) The production of the factory in $2008$ is given as $P = 70$ $lakh$ tonnes.
The growth rate is $R = 8 \%$ $p.a.$
The time period from $2008$ to $2010$ is $n = 2$ years.
Since the production grows at a compound rate,we use the formula for compound growth:
$A = P \left(1 + \frac{R}{100}\right)^n$
Substituting the values:
$A = 70 \left(1 + \frac{8}{100}\right)^2$
$A = 70 \left(1 + 0.08\right)^2$
$A = 70 \times (1.08)^2$
$A = 70 \times 1.1664$
$A = 81.648$ $lakh$ tonnes.
Therefore,the production in $2010$ will be $81.648$ $lakh$ tonnes.
69
MediumMCQ
$A$ deposited $Rs. 6000$ in a bank at $5 \%$ per annum simple interest. $B$ deposited $Rs. 5000$ at $8 \%$ $p.a.$ compound interest. After $2$ years,the difference between their interests (in $Rs.$) will be:
A
$230$
B
$232$
C
$600$
D
$832$

Solution

(B) For $A$ (Simple Interest):
$SI = \frac{P \times R \times T}{100} = \frac{6000 \times 5 \times 2}{100} = Rs. 600$.
For $B$ (Compound Interest):
Amount $= P \left(1 + \frac{R}{100}\right)^n = 5000 \left(1 + \frac{8}{100}\right)^2 = 5000 \left(\frac{108}{100}\right)^2 = 5000 \times 1.1664 = Rs. 5832$.
$CI = \text{Amount} - P = 5832 - 5000 = Rs. 832$.
Difference between their interests $= 832 - 600 = Rs. 232$.
70
MediumMCQ
If the rate of interest is $4 \%$ per annum for the first year,$5 \%$ per annum for the second year,and $6 \%$ per annum for the third year,then the compound interest on $Rs. 10000$ for $3$ years will be (in $Rs.$):
A
$1575.20$
B
$1600$
C
$1625.80$
D
$2000$

Solution

(A) The formula for the amount $A$ with varying rates of interest $R_1, R_2, R_3$ is given by $A = P \times (1 + \frac{R_1}{100}) \times (1 + \frac{R_2}{100}) \times (1 + \frac{R_3}{100})$.
Given $P = 10000$,$R_1 = 4$,$R_2 = 5$,$R_3 = 6$.
$A = 10000 \times (1 + \frac{4}{100}) \times (1 + \frac{5}{100}) \times (1 + \frac{6}{100})$
$A = 10000 \times \frac{104}{100} \times \frac{105}{100} \times \frac{106}{100}$
$A = 10000 \times \frac{26}{25} \times \frac{21}{20} \times \frac{53}{50}$
$A = 10000 \times \frac{28938}{25000} = 4 \times 2893.8 = 11575.20$
Compound Interest $(CI) = A - P = 11575.20 - 10000 = Rs. 1575.20$.
71
MediumMCQ
Sita deposited $Rs. 5000$ at $10\%$ simple interest for $2$ years. How much more money (in $Rs.$) will Sita have in her account at the end of $2$ years,if it is compounded semi-annually?
A
$50$
B
$40$
C
$77.50$
D
$85.50$

Solution

(C) Principal $(P) = Rs. 5000$,Rate $(R) = 10\%$ per annum,Time $(T) = 2$ years.
Simple Interest $(SI) = \frac{P \times R \times T}{100} = \frac{5000 \times 10 \times 2}{100} = Rs. 1000$.
For compound interest compounded semi-annually:
Rate $(r) = \frac{10}{2} = 5\%$ per half-year.
Time $(n) = 2 \times 2 = 4$ half-years.
Amount $(A) = P \left(1 + \frac{r}{100}\right)^n = 5000 \left(1 + \frac{5}{100}\right)^4 = 5000 \left(1.05\right)^4$.
$A = 5000 \times 1.21550625 = Rs. 6077.53125$.
Compound Interest $(CI) = A - P = 6077.53125 - 5000 = Rs. 1077.53$.
Difference $= CI - SI = 1077.53 - 1000 = Rs. 77.53$.
Rounding to the nearest option,the difference is $Rs. 77.50$.
72
MediumMCQ
If the compound interest on a certain sum for $2$ $years$ at $3 \%$ per annum is $Rs. 101.50$,then the simple interest (in $Rs.$) on the same sum at the same rate and for the same time will be:
A
$90.00$
B
$95.50$
C
$100.00$
D
$98.25$

Solution

(C) Let the principal sum be $P$.
Given: Compound Interest $(CI)$ = $Rs. 101.50$,Rate $(r)$ = $3 \%$,Time $(t)$ = $2$ $years$.
The formula for compound interest is $CI = P \left[ \left( 1 + \frac{r}{100} \right)^t - 1 \right]$.
Substituting the values: $101.50 = P \left[ \left( 1 + \frac{3}{100} \right)^2 - 1 \right]$.
$101.50 = P \left[ (1.03)^2 - 1 \right] = P [1.0609 - 1] = P(0.0609)$.
$P = \frac{101.50}{0.0609} = \frac{1015000}{609} = Rs. \frac{5000}{3}$.
Now,calculate Simple Interest $(SI)$ using $SI = \frac{P \times r \times t}{100}$.
$SI = \frac{(5000/3) \times 3 \times 2}{100} = \frac{5000 \times 2}{100} = Rs. 100$.
73
MediumMCQ
The compound interest on a certain sum for $2$ years at $12 \%$ per annum,compounded annually is $Rs. 1272$. The simple interest (in $Rs.$) for that sum at the same rate and for the same period will be?
A
$1296$
B
$1196$
C
$1220$
D
$1200$

Solution

(D) Given: Compound Interest $(CI)$ = $Rs. 1272$,Time $(t)$ = $2$ years,Rate $(r)$ = $12 \%$ per annum.
The formula for compound interest is: $CI = P \left[\left(1 + \frac{r}{100}\right)^t - 1\right]$
Substituting the values: $1272 = P \left[\left(1 + \frac{12}{100}\right)^2 - 1\right]$
$1272 = P \left[(1.12)^2 - 1\right]$
$1272 = P [1.2544 - 1]$
$1272 = P \times 0.2544$
$P = \frac{1272}{0.2544} = 5000$
Now,calculate the simple interest $(SI)$ using the formula: $SI = \frac{P \times r \times t}{100}$
$SI = \frac{5000 \times 12 \times 2}{100}$
$SI = 50 \times 24 = 1200$
Therefore,the simple interest is $Rs. 1200$.
74
DifficultMCQ
An amount of money at compound interest grows up to $Rs. 3840$ in $4$ $years$ and up to $Rs. 3936$ in $5$ $years$. Find the rate of interest (in $\%$)?
A
$2.5$
B
$2$
C
$3.5$
D
$2.05$

Solution

(A) The formula for compound interest is $A = P(1 + \frac{r}{100})^t$,where $A$ is the amount,$P$ is the principal,$r$ is the rate of interest,and $t$ is the time in years.
For $t = 4$ years,$3840 = P(1 + \frac{r}{100})^4$ --- $(i)$
For $t = 5$ years,$3936 = P(1 + \frac{r}{100})^5$ --- (ii)
Dividing equation (ii) by equation $(i)$:
$\frac{3936}{3840} = \frac{P(1 + \frac{r}{100})^5}{P(1 + \frac{r}{100})^4}$
$\frac{3936}{3840} = 1 + \frac{r}{100}$
$\frac{3936}{3840} - 1 = \frac{r}{100}$
$\frac{3936 - 3840}{3840} = \frac{r}{100}$
$\frac{96}{3840} = \frac{r}{100}$
$r = \frac{96 \times 100}{3840} = \frac{9600}{3840} = 2.5$
Therefore,the rate of interest is $2.5 \%$ per annum.
75
MediumMCQ
The difference between the simple and compound interest on a certain sum of money for $2$ years at $4 \%$ per annum is $Rs. 4$. Find the sum (In $Rs.$)?
A
$2500$
B
$2400$
C
$2600$
D
$2000$

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 $= 4$,$r = 4 \%$,time $= 2$ years.
Substituting the values into the formula:
$4 = \frac{P \times 4^2}{100^2}$
$4 = \frac{P \times 16}{10000}$
$P = \frac{4 \times 10000}{16}$
$P = \frac{10000}{4}$
$P = 2500$
Thus,the sum is $Rs. 2500$.
76
EasyMCQ
If $64000$ is deposited at $5 \%$ compound interest for a period of $18$ months,interest being compounded half-yearly,find the amount.
A
$69821$
B
$68921$
C
$62891$
D
$62981$

Solution

(B) Given: Principal $(P) = 64000$,Rate $(R) = 5 \%$ per annum,Time $(n) = 18$ months.
Since the interest is compounded half-yearly,the rate for half-year $(r) = \frac{5}{2} = 2.5 \%$.
The number of half-yearly periods $(n) = \frac{18}{6} = 3$.
The formula for the amount $(A)$ is $A = P(1 + \frac{r}{100})^n$.
Substituting the values: $A = 64000(1 + \frac{2.5}{100})^3$.
$A = 64000(1 + 0.025)^3 = 64000(1.025)^3$.
$A = 64000 \times (\frac{41}{40})^3 = 64000 \times \frac{68921}{64000}$.
$A = 68921$.
77
MediumMCQ
An amount of ₹ $12500$ is deposited for a period of $2$ years at an interest rate of $4 \%$ per annum. Find the difference between the simple interest and the compound interest (in ₹) for the deposit.
A
$10$
B
$20$
C
$50$
D
$40$

Solution

(B) The formula for the difference between compound interest and simple interest for $2$ years is given by: $\text{Difference} = P \times \left(\frac{r}{100}\right)^2$.
Here,the principal $P = ₹ 12500$ and the rate $r = 4 \%$.
Substituting the values:
$\text{Difference} = 12500 \times \left(\frac{4}{100}\right)^2$
$\text{Difference} = 12500 \times \left(\frac{1}{25}\right)^2$
$\text{Difference} = 12500 \times \frac{1}{625}$
$\text{Difference} = 20$.
Thus,the difference between the simple interest and the compound interest is ₹ $20$.
78
MediumMCQ
An amount of ₹ $8000$ was deposited at simple interest for $3$ years at $7.5$ $\%$ per annum. How much more would have been gained (in ₹) had it been deposited at the same rate per cent compound interest?
A
$135.75$
B
$138.75$
C
$138.375$
D
$138.753$

Solution

(C) The formula for the difference between compound interest and simple interest for $3$ years is given by: $\text{Difference} = \frac{P \times r^2(300 + r)}{100^3}$.
Here,$P = 8000$,$r = 7.5$,and $n = 3$ years.
Substituting the values into the formula:
$\text{Difference} = \frac{8000 \times (7.5)^2 \times (300 + 7.5)}{100^3}$
$\text{Difference} = \frac{8000 \times 56.25 \times 307.5}{1000000}$
$\text{Difference} = \frac{450000 \times 307.5}{1000000}$
$\text{Difference} = \frac{138375000}{1000000} = ₹ 138.375$.
79
MediumMCQ
$A$ certain sum at compound interest amounts in two years to ₹ $2809$ and in three years to ₹ $2977.54$. Find the rate of interest and the original sum (in ₹).
A
$1500$
B
$2000$
C
$2500$
D
$3000$

Solution

(C) Let the principal be $P$ and the rate of interest be $R \%$.
The amount after $n$ years is given by $A = P(1 + \frac{R}{100})^n$.
For $2$ years: $2809 = P(1 + \frac{R}{100})^2$ --- $(i)$
For $3$ years: $2977.54 = P(1 + \frac{R}{100})^3$ --- $(ii)$
Dividing $(ii)$ by $(i)$:
$\frac{2977.54}{2809} = 1 + \frac{R}{100}$
$1.06 = 1 + \frac{R}{100}$
$\frac{R}{100} = 0.06 \implies R = 6 \%$.
Now,substitute $R = 6$ in equation $(i)$:
$2809 = P(1 + \frac{6}{100})^2$
$2809 = P(1.06)^2$
$2809 = P(1.1236)$
$P = \frac{2809}{1.1236} = 2500$.
Thus,the rate of interest is $6 \%$ and the original sum is ₹ $2500$.
80
EasyMCQ
The difference between simple interest and compound interest on a certain sum for $3$ years at $5 \%$ per annum is ₹ $122$. Find the sum (in ₹).
A
$14000$
B
$16000$
C
$18000$
D
$20000$

Solution

(B) For a period of $3$ years,the difference $(D)$ between compound interest $(CI)$ and simple interest $(SI)$ is given by the formula: $D = P \times \left(\frac{r}{100}\right)^2 \times \left(\frac{300+r}{100}\right)$.
Given: $D = ₹ 122$,$r = 5 \%$,$t = 3$ years.
Substituting the values: $122 = P \times \left(\frac{5}{100}\right)^2 \times \left(\frac{300+5}{100}\right)$.
$122 = P \times \left(\frac{1}{20}\right)^2 \times \left(\frac{305}{100}\right)$.
$122 = P \times \frac{1}{400} \times \frac{305}{100}$.
$122 = P \times \frac{305}{40000}$.
$P = \frac{122 \times 40000}{305}$.
$P = \frac{122 \times 8000}{61}$.
$P = 2 \times 8000 = ₹ 16000$.
81
MediumMCQ
$A$ sum of money invested at compound interest amounts to ₹ $800$ in $3$ years and to ₹ $840$ in $4$ years. The rate of interest (in $\%$) per annum is
A
$2.5$
B
$4$
C
$5$
D
$6.67$

Solution

(C) Let $P$ be the principal and $R$ be the rate of interest per annum.
The amount after $n$ years at compound interest is given by $A = P(1 + R/100)^n$.
For $3$ years: $P(1 + R/100)^3 = 800$ --- (Equation $1$)
For $4$ years: $P(1 + R/100)^4 = 840$ --- (Equation $2$)
Dividing Equation $2$ by Equation $1$:
$\frac{P(1 + R/100)^4}{P(1 + R/100)^3} = \frac{840}{800}$
$(1 + R/100) = 1.05$
$R/100 = 1.05 - 1 = 0.05$
$R = 0.05 \times 100 = 5 \%$
Thus,the rate of interest is $5 \%$ per annum.
82
DifficultMCQ
The difference between the simple interest on a certain sum at the rate of $10 \%$ per annum for $2$ years and compound interest which is compounded every $6$ months is ₹ $124.05$. What is the principal (in ₹)?
A
$6000$
B
$8000$
C
$10000$
D
$12000$

Solution

(B) Let the principal be $P$.
Simple Interest $(SI)$ for $2$ years at $10 \%$ per annum:
$SI = P \times \frac{10 \times 2}{100} = 0.2P$
Compound Interest $(CI)$ for $2$ years compounded half-yearly:
Rate $R = 10 \% / 2 = 5 \%$ per half-year.
Time $n = 2 \times 2 = 4$ half-years.
$CI = P \left(1 + \frac{5}{100}\right)^4 - P = P \left(1.05^4 - 1\right)$
$CI = P (1.21550625 - 1) = 0.21550625P$
Difference $= CI - SI = 0.21550625P - 0.2P = 0.01550625P$
Given,$0.01550625P = 124.05$
$P = \frac{124.05}{0.01550625} = 8000$
Thus,the principal is ₹ $8000$.
83
MediumMCQ
The difference between simple interest and compound interest compounded annually on a certain sum of money for $2$ years at $4 \%$ per annum is ₹ $1$. The sum (in ₹) is
A
$625$
B
$630$
C
$640$
D
$650$

Solution

(A) Let the principal sum be $P$.
For $2$ years,the simple interest $(SI)$ is given by $SI = \frac{P \times R \times T}{100} = \frac{P \times 4 \times 2}{100} = \frac{8P}{100} = 0.08P$.
The compound interest $(CI)$ compounded annually is given by $CI = P \left(1 + \frac{R}{100}\right)^T - P = P \left(1 + \frac{4}{100}\right)^2 - P = P \left(1.04^2 - 1\right) = P(1.0816 - 1) = 0.0816P$.
The difference between $CI$ and $SI$ is given as ₹ $1$.
$0.0816P - 0.08P = 1$
$0.0016P = 1$
$P = \frac{1}{0.0016} = \frac{10000}{16} = 625$.
Thus,the sum is ₹ $625$.
84
MediumMCQ
The simple interest on a certain sum of money for $3$ years at $8 \%$ per annum is half the compound interest on ₹ $4000$ for $2$ years at $10 \%$ per annum. The sum placed on simple interest (in ₹) is
A
$1550$
B
$1650$
C
$1750$
D
$2000$

Solution

(C) Let the principal sum be $P$.
The Simple Interest ($S$.$I$.) for $3$ years at $8 \%$ per annum is given by:
$S.I. = \frac{P \times 3 \times 8}{100} = \frac{24P}{100} = 0.24P$ (Equation $1$)
The Compound Interest ($C$.$I$.) on ₹ $4000$ for $2$ years at $10 \%$ per annum is:
$C.I. = 4000 \left(1 + \frac{10}{100}\right)^2 - 4000$
$C.I. = 4000 \left(\frac{11}{10}\right)^2 - 4000 = 4000 \times 1.21 - 4000 = 4840 - 4000 = 840$ (Equation $2$)
According to the problem,the simple interest is half of the compound interest:
$S.I. = \frac{1}{2} \times C.I.$
$0.24P = \frac{1}{2} \times 840$
$0.24P = 420$
$P = \frac{420}{0.24} = \frac{42000}{24} = 1750$
Thus,the sum placed on simple interest is ₹ $1750$.
85
MediumMCQ
If the compound interest on a sum for $2$ years at $12 \frac{1}{2} \%$ per annum is ₹ $510$,the simple interest (in ₹) on the same sum at the same rate for the same period of time is:
A
$400$
B
$450$
C
$460$
D
$480$

Solution

(D) Let the principal amount be $P$.
Given rate $R = 12 \frac{1}{2} \% = \frac{25}{2} \% = 12.5 \% = \frac{1}{8}$ per annum.
Time $T = 2$ years.
Compound Interest ($C$.$I$.) formula: $C.I. = P \left[ \left(1 + \frac{R}{100} \right)^T - 1 \right]$.
$510 = P \left[ \left(1 + \frac{1}{8} \right)^2 - 1 \right]$.
$510 = P \left[ \left( \frac{9}{8} \right)^2 - 1 \right] = P \left[ \frac{81}{64} - 1 \right] = P \left( \frac{17}{64} \right)$.
$P = \frac{510 \times 64}{17} = 30 \times 64 = ₹ 1920$.
Now,Simple Interest ($S$.$I$.) = $\frac{P \times R \times T}{100} = \frac{1920 \times 12.5 \times 2}{100} = \frac{1920 \times 25}{100} = 1920 \times 0.25 = ₹ 480$.
86
DifficultMCQ
The principal that amounts to ₹ $4913$ in $3$ years at $6 \frac{1}{4} \%$ per annum compound interest compounded annually (in ₹) is:
A
$3096$
B
$4076$
C
$4085$
D
$4096$

Solution

(D) Let the principal be $P$.
The formula for compound interest is $A = P(1 + \frac{R}{100})^n$.
Given: $A = 4913$,$R = 6 \frac{1}{4} \% = \frac{25}{4} \%$,$n = 3$ years.
Substituting the values:
$4913 = P(1 + \frac{25/4}{100})^3$
$4913 = P(1 + \frac{25}{400})^3$
$4913 = P(1 + \frac{1}{16})^3$
$4913 = P(\frac{17}{16})^3$
$P = 4913 \times (\frac{16}{17})^3$
Since $17^3 = 4913$,we have:
$P = 4913 \times \frac{4096}{4913} = 4096$.
Thus,the principal is ₹ $4096$.
87
MediumMCQ
The compound interest on ₹ $30000$ at $7 \%$ per annum is ₹ $4347$. The period (in years) is
A
$2$
B
$2.5$
C
$3$
D
$4$

Solution

(A) Let the period of deposit be $N$ years.
Given,Principal $(P)$ = ₹ $30000$,Rate $(R)$ = $7 \%$,Compound Interest $(CI)$ = ₹ $4347$.
The formula for compound interest is $CI = P \left[ \left(1 + \frac{R}{100} \right)^N - 1 \right]$.
Substituting the values: $4347 = 30000 \left[ \left(1 + \frac{7}{100} \right)^N - 1 \right]$.
$4347 = 30000 \left[ \left(1.07 \right)^N - 1 \right]$.
Divide both sides by $30000$: $\frac{4347}{30000} = (1.07)^N - 1$.
$0.1449 = (1.07)^N - 1$.
$(1.07)^N = 1.1449$.
Since $(1.07)^2 = 1.1449$,we have $(1.07)^N = (1.07)^2$.
Therefore,$N = 2$ years.
88
MediumMCQ
What will be the difference between simple and compound interest (in ₹) at $10 \%$ per annum on a sum of ₹ $1000$ after $4$ years?
A
$31$
B
$32.10$
C
$40.40$
D
$64.10$

Solution

(D) Simple Interest ($S$.$I$.) on ₹ $1000$ at $10 \%$ per annum for $4$ years is calculated as:
$S.I. = \frac{P \times R \times T}{100} = \frac{1000 \times 10 \times 4}{100} = ₹ 400$.
Compound Interest ($C$.$I$.) on ₹ $1000$ at $10 \%$ per annum for $4$ years is calculated as:
$C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^T - 1 \right] = 1000 \left[ \left( 1 + \frac{10}{100} \right)^4 - 1 \right]$
$= 1000 \left[ (1.1)^4 - 1 \right] = 1000 [1.4641 - 1] = 1000 \times 0.4641 = ₹ 464.10$.
The difference between Compound Interest and Simple Interest is:
$C.I. - S.I. = 464.10 - 400 = ₹ 64.10$.
89
DifficultMCQ
Find the compound interest (in ₹) on ₹ $15625$ for $9$ months at $16 \%$ per annum compounded quarterly.
A
$1851$
B
$1941$
C
$1951$
D
$1961$

Solution

(C) Given: Principal $(P) = ₹ 15625$,Rate $(R) = 16 \%$ per annum,Time $(n) = 9$ months.
Since the interest is compounded quarterly,the rate per quarter is $R' = 16 / 4 = 4 \%$ and the number of quarters is $n' = 9 / 3 = 3$.
The formula for compound interest is $CI = P \left[ (1 + R'/100)^{n'} - 1 \right]$.
Substituting the values: $CI = 15625 \left[ (1 + 4/100)^3 - 1 \right]$.
$CI = 15625 \left[ (1 + 1/25)^3 - 1 \right] = 15625 \left[ (26/25)^3 - 1 \right]$.
$CI = 15625 \times \left( \frac{17576 - 15625}{15625} \right)$.
$CI = 17576 - 15625 = ₹ 1951$.
90
DifficultMCQ
$A$ bank offers $5 \%$ compound interest calculated on a half-yearly basis. $A$ customer deposits ₹ $1600$ each on $1^{st}$ January and $1^{st}$ July of a year. At the end of the year,the amount (in ₹) he would have gained by way of interest is
A
$120$
B
$121$
C
$122$
D
$123$

Solution

(B) The interest is calculated half-yearly at a rate of $5 \%$ per annum,so the half-yearly rate is $r = 2.5 \% = 0.025$.
For the first deposit of ₹ $1600$ made on $1^{st}$ January,it earns interest for two half-yearly periods (one year).
Amount after one year for the first deposit $= 1600(1 + 0.025)^2 = 1600(1.025)^2 = 1600(1.050625) = 1681$.
For the second deposit of ₹ $1600$ made on $1^{st}$ July,it earns interest for one half-yearly period (six months).
Amount after six months for the second deposit $= 1600(1 + 0.025)^1 = 1600(1.025) = 1640$.
Total amount at the end of the year $= 1681 + 1640 = 3321$.
Total principal deposited $= 1600 + 1600 = 3200$.
Total interest earned $= 3321 - 3200 = ₹ 121$.
91
MediumMCQ
What will be the compound interest on a sum of ₹ $25000$ after $3$ years at the rate of $12 \%$ per annum?
A
$9000.30$
B
$9720$
C
$10123.20$
D
$10483.20$

Solution

(C) The formula for compound interest is $CI = P \left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]$.
Given: Principal $(P) = ₹ 25000$,Rate $(R) = 12 \%$,Time $(n) = 3 \text{ years}$.
$CI = 25000 \left[ \left( 1 + \frac{12}{100} \right)^3 - 1 \right]$
$CI = 25000 \left[ \left( 1.12 \right)^3 - 1 \right]$
$CI = 25000 \left[ 1.404928 - 1 \right]$
$CI = 25000 \times 0.404928$
$CI = ₹ 10123.20$
92
MediumMCQ
Albert invested an amount of ₹ $8000$ in a fixed deposit scheme for $2$ years at a compound interest rate of $5 \%$ per annum. How much amount (in ₹) will Albert get on maturity of the fixed deposit?
A
$8600$
B
$8620$
C
$8800$
D
$8820$

Solution

(D) The formula for the amount $A$ under compound interest is given by $A = P(1 + \frac{R}{100})^N$,where $P$ is the principal,$R$ is the rate of interest,and $N$ is the time period in years.
Given: $P = ₹ 8000$,$R = 5 \%$,$N = 2$ years.
Substituting the values into the formula:
$A = 8000(1 + \frac{5}{100})^2$
$A = 8000(1 + 0.05)^2$
$A = 8000(1.05)^2$
$A = 8000 \times 1.1025$
$A = 8820$
Therefore,Albert will get ₹ $8820$ on maturity.
93
MediumMCQ
Sam invested ₹ $15000$ at $10 \%$ per annum for one year. If the interest is compounded half-yearly,then the amount (in ₹) received by Sam at the end of the year will be:
A
$16500$
B
$16525.50$
C
$16537.50$
D
$18150$

Solution

(C) The formula for compound interest is $A = P(1 + \frac{R}{n \times 100})^{n \times T}$,where $P$ is the principal,$R$ is the annual rate,$n$ is the number of times interest is compounded per year,and $T$ is the time in years.
Given: $P = 15000$,$R = 10 \%$,$T = 1$ year,and interest is compounded half-yearly $(n = 2)$.
Effective rate per half-year = $\frac{10 \%}{2} = 5 \%$.
Number of half-years $(N)$ = $1 \times 2 = 2$.
Amount $A = 15000(1 + \frac{5}{100})^2$.
$A = 15000(1 + 0.05)^2 = 15000(1.05)^2$.
$A = 15000 \times 1.1025 = 16537.50$.
Thus,the amount received at the end of the year is ₹ $16537.50$.
94
DifficultMCQ
What is the difference between the compound interests (in ₹) on ₹ $5000$ for $1 \frac{1}{2}$ years at $4 \%$ per annum compounded yearly and half-yearly?
A
$2.04$
B
$3.06$
C
$4.80$
D
$8.30$

Solution

(A) Principal $(P)$ = ₹ $5000$,Rate $(R)$ = $4 \%$ per annum,Time $(n)$ = $1 \frac{1}{2}$ years = $3$ half-years.
Case $1$: Compounded yearly.
For the first year,interest is calculated yearly. For the remaining half-year,simple interest is applied.
Amount $= 5000 \times (1 + \frac{4}{100})^1 \times (1 + \frac{2}{100})^1 = 5000 \times \frac{26}{25} \times \frac{51}{50} = 200 \times 26 \times \frac{51}{50} = 4 \times 26 \times 51 = ₹ 5304$.
Compound Interest $(CI_1)$ $= 5304 - 5000 = ₹ 304$.
Case $2$: Compounded half-yearly.
Rate $(r)$ = $4/2 = 2 \%$ per half-year,Time $(n)$ = $3$ half-years.
Amount $= 5000 \times (1 + \frac{2}{100})^3 = 5000 \times (1.02)^3 = 5000 \times 1.061208 = ₹ 5306.04$.
Compound Interest $(CI_2)$ $= 5306.04 - 5000 = ₹ 306.04$.
Difference $= CI_2 - CI_1 = 306.04 - 304 = ₹ 2.04$.
95
DifficultMCQ
What annual payment (in ₹) will discharge a debt of ₹ $1025$ due in $2$ years at the rate of $5 \%$ compound interest?
A
$550$
B
$551.25$
C
$560$
D
$560.75$

Solution

(B) Let each annual instalment be ₹ $x$.
The present value of the instalments must equal the total debt:
$\frac{x}{(1 + \frac{5}{100})^1} + \frac{x}{(1 + \frac{5}{100})^2} = 1025$
Simplify the fractions:
$\frac{x}{1.05} + \frac{x}{(1.05)^2} = 1025$
$\frac{x}{21/20} + \frac{x}{(21/20)^2} = 1025$
$\frac{20x}{21} + \frac{400x}{441} = 1025$
Find a common denominator $(441)$:
$\frac{420x + 400x}{441} = 1025$
$\frac{820x}{441} = 1025$
$x = \frac{1025 \times 441}{820}$
$x = 1.25 \times 441 = 551.25$
Thus,the annual payment is ₹ $551.25$.
96
DifficultMCQ
$A$ sum of money placed at compound interest doubles itself in $5 \, \text{years}$. It will amount to eight times itself at the same rate of interest in (in $\text{years}$):
A
$7$
B
$10$
C
$15$
D
$20$

Solution

(C) The formula for compound interest is $A = P(1 + \frac{R}{100})^n$, where $A$ is the amount, $P$ is the principal, $R$ is the rate, and $n$ is the time in years.
Given that the sum doubles in $5 \, \text{years}$, we have $2P = P(1 + \frac{R}{100})^5$, which simplifies to $(1 + \frac{R}{100})^5 = 2$.
We want to find the time $N$ such that the sum becomes $8$ times itself: $8P = P(1 + \frac{R}{100})^N$.
This simplifies to $(1 + \frac{R}{100})^N = 8$.
Since $8 = 2^3$, we can substitute $2 = (1 + \frac{R}{100})^5$ into the equation:
$(1 + \frac{R}{100})^N = [(1 + \frac{R}{100})^5]^3$.
$(1 + \frac{R}{100})^N = (1 + \frac{R}{100})^{15}$.
Comparing the exponents, we get $N = 15 \, \text{years}$.
97
DifficultMCQ
Mr. Dua invested money in two schemes $A$ and $B$ offering compound interest at $8 \%$ per annum and $9 \%$ per annum respectively. If the total amount of interest accrued through two schemes together in two years was ₹ $4818.30$ and the total amount invested was ₹ $27000$. What was the amount (in ₹) invested in scheme $A$?
A
$12000$
B
$13500$
C
$15000$
D
Cannot be determined

Solution

(A) Let the amount invested in scheme $A$ be $₹ x$.
Then,the amount invested in scheme $B$ is $₹ (27000 - x)$.
Compound interest for $2$ years is given by the formula $P[(1 + r/100)^n - 1]$.
For scheme $A$: $CI_A = x[(1 + 8/100)^2 - 1] = x[(1.08)^2 - 1] = x[1.1664 - 1] = 0.1664x$.
For scheme $B$: $CI_B = (27000 - x)[(1 + 9/100)^2 - 1] = (27000 - x)[(1.09)^2 - 1] = (27000 - x)[1.1881 - 1] = 0.1881(27000 - x)$.
The total interest is $4818.30$.
So,$0.1664x + 0.1881(27000 - x) = 4818.30$.
$0.1664x + 5078.7 - 0.1881x = 4818.30$.
$-0.0217x = 4818.30 - 5078.7$.
$-0.0217x = -260.4$.
$x = 260.4 / 0.0217 = 12000$.
Thus,the amount invested in scheme $A$ is ₹ $12000$.
98
MediumMCQ
On a sum of money,the simple interest for $2$ years is ₹ $660$,while the compound interest is ₹ $696.30$,the rate of interest being the same in both the cases. The rate of interest (in $\%$) is
A
$10$
B
$10.5$
C
$12$
D
$11$

Solution

(D) Let the principal be $P$ and the rate of interest be $R \%$.
Simple Interest $(S.I.)$ for $2$ years is given by:
$S.I. = \frac{P \times R \times 2}{100} = 660$ --- $(1)$
Compound Interest $(C.I.)$ for $2$ years is given by:
$C.I. = P \left[ \left(1 + \frac{R}{100}\right)^2 - 1 \right] = 696.30$ --- $(2)$
Dividing equation $(2)$ by equation $(1)$:
$\frac{P \left[ \left(1 + \frac{R}{100}\right)^2 - 1 \right]}{\frac{P \times 2R}{100}} = \frac{696.30}{660}$
$\frac{\frac{R^2}{10000} + \frac{2R}{100}}{\frac{2R}{100}} = 1.055$
$\frac{R}{200} + 1 = 1.055$
$\frac{R}{200} = 0.055$
$R = 0.055 \times 200 = 11$
Thus,the rate of interest is $11 \%$.
99
MediumMCQ
There is a $60 \%$ increase in an amount in $6$ years at simple interest. What will be the compound interest (in ₹) of ₹ $12000$ after $3$ years at the same rate?
A
$2160$
B
$3120$
C
$3972$
D
$6240$

Solution

(C) Simple Interest ($S$.$I$.) for $6$ years $= 0.6P$.
Since $S.I. = \frac{P \times R \times T}{100}$,we have $0.6P = \frac{P \times R \times 6}{100}$.
Solving for $R$,we get $R = \frac{0.6 \times 100}{6} = 10 \% \text{ per annum}$.
Now,we calculate the Compound Interest ($C$.$I$.) for $P = ₹ 12000$,$R = 10 \%$,and $T = 3$ years.
$C.I. = P \left[ \left( 1 + \frac{R}{100} \right)^T - 1 \right]$.
$C.I. = 12000 \left[ \left( 1 + \frac{10}{100} \right)^3 - 1 \right] = 12000 \left[ (1.1)^3 - 1 \right]$.
$C.I. = 12000 \times (1.331 - 1) = 12000 \times 0.331 = ₹ 3972$.
100
EasyMCQ
The compound interest on a certain sum for $2$ years at $10 \%$ per annum is ₹ $525$. The simple interest (in ₹) on the same sum for double the time at half the rate per cent per annum is
A
$400$
B
$500$
C
$600$
D
$800$

Solution

(B) Let the principal sum be $P$.
Given compound interest ($C$.$I$.) for $n = 2$ years at $r = 10 \%$ per annum is ₹ $525$.
Formula for $C$.$I$. $= P \left[ \left( 1 + \frac{r}{100} \right)^n - 1 \right] = 525$.
$P \left[ \left( 1 + \frac{10}{100} \right)^2 - 1 \right] = 525$
$P \left[ (1.1)^2 - 1 \right] = 525$
$P [1.21 - 1] = 525$
$P (0.21) = 525$
$P = \frac{525}{0.21} = \frac{52500}{21} = ₹ 2500$.
Now,we need to find simple interest ($S$.$I$.) for double the time ($n' = 2 \times 2 = 4$ years) at half the rate ($r' = \frac{10}{2} = 5 \%$ per annum).
$S$.$I$. $= \frac{P \times r' \times n'}{100} = \frac{2500 \times 5 \times 4}{100} = 25 \times 20 = ₹ 500$.

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