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 Aptitude Compound Interest Question in Answer with Solution (English)

COMPOUND INTEREST:-
Compound interest is calculated each period on the original principal and all Interest accumulated during post
periods although the interest may be slated a yearly rate the compounding periods can be yearly, semi-
annually, quarterly or even continuously.
Let Principal = P, Rate = R% per annum, Time = T Years,

When interest is compounded annually:-

Amount = P [1 + 100] T
When interest in compounded half-Yearly :-
/2
Amount = P [1 + 100] 2T
When interest in compounded quarterly :-
/4
Amount = P [1 + 100] 4T
1
When interest in compounded annually but time is in fraction say 5 3 years.
1

Amount = P [1 + 100] 5 3
[1 + 100]

When rates are different for different year say R, %, R2% & R3% for 1st, 2nd & 3rd year respectively.
1 2 3
Amount = P [1 + 100] [1 + 100] [1 + 100] ..[1 + 100]
Present worth of Rs. A due T year, hence

P=
[1+ ]
100

Important facts:-

Amount (A) = P+C.I. = P [1 + 100] T

C.I. = P [(1 + 100) 1]
If interest is payable for 1 year, then simple interest & compound interest will be equal.
In interest is compounded half-yearly, then rate of interest will be half (R/2) & time will be 2 times
(2T).
In interest is compounded quarterly, then rate of interest will be half (R/4) & time will be 4 times (4T).
The difference between compound interest & simple interest of a principle (P) in T year at R% per
annual rate of interest is

= P[(1 + 100) 1]
100

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 Aptitude Compound Interest Question in Answer with Solution (English)

1. Find compound interest on Rs. 8000 at 5 % per annum for 3 years, compounded annually.
(A) Rs. 1250 (B) Rs. 1261
(C) Rs. 1200 (D) Rs. 1150

2. Find the compound interest on Rs. 15000 in 3 years at 5 % per annum, the interest being compounded
half yearly?
(A) Rs. 2300 (B) Rs. 2250
(C) Rs. 2395.40 (D) Rs. 2295.40

3. Find the compound interest on Rs. 20000 at 8 % per annum for 9 months compounded annually.
(A) Rs. 1200 (B) Rs. 1224
(C) Rs. 1250 (D) Rs. 1150

4. If Rs. 500 amounts to Rs. 583.2 in 2 years compounded annually, find the rate of interest per annum?
(A) 5 % (B) 8 %
(C) 10 % (D) 4 %

5. If the simple interest on a sum of money at 4 % per annum for 2 years is Rs. 400, find the compound
interest on the same sum for the same period at the same rate.
(A) Rs. 400 (B) Rs. 408
(C) Rs. 450 (D) Rs. 500

6. In what time will Rs.7500 become Rs.8112 at rate of 4 % per annum compounded annually?
(A) 2 Years (B) 3 Years
(C) 2.5 Years (D) 3.5 Years

7. If Rs.10000 has been lent out at 10 % rate of interest for 3 years, the interest being compounded
annually, what is the interest for the third year?
(A) Rs. 1100 (B) Rs. 1150
(C) Rs. 1210 (D) Rs. 1250

8. The difference between simple interest and compound interest on Rs.1200 for one year at 10 % per
annum reckoned half yearly is :
(A) Rs. 2.5 (B) Rs. 3.75
(C) Rs. 3 (D) Rs. 4

9. The compound interest on Rs.30000 at 7 % per annum is Rs.4347. The period (in years) is :
(A) 2 Years (B) 2.5 Years
(C) 3 Years (D) 4 Years

10. A certain sum amounts to Rs.7350 in 2 years and Rs.8575 in 3 years. Find the sum.
(A) Rs. 5500 (B) Rs. 5400
(C) Rs. 5300 (D) Rs. 5200

11. What is the principal amount which earns Rs.132 as compound interest for the second year at 10%
per annum?
(A) Rs.900 (B) Rs.1150
(C) Rs.1200 (D) Rs.1250

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 Aptitude Compound Interest Question in Answer with Solution (English)

12. Ram invested an amount of 15000 in amount of 15000 in a fixed deposit for 2 years at compound
interest rate of 6% per annum. How much ram will get on the maturity of the fixed deposit?
(A) Rs.16854 (B) Rs.16000
(C) Rs.17000 (D) Rs.17500

13. If Rs 15000 amounts to Rs 16224 in 2 years compounded annually, find the rate of interest per
annum.
(A) 3% (B) 4%
(C) 5% (D) 6%

14. If Rs.1301 divide between A and B in such a way, so that the amount of A after 7 years is equal to the
amount of B after 9 years, the interest being compounded at 4% per annum. Then what will be the
share of A.
(A) Rs.500 (B) Rs.550
(C) Rs.676 (D) Rs.600

15. What will be the difference between simple and compound interest at 10% per annum on a sum of
Rs.1000 after 4 years?
(A) Rs.31 (B) Rs.32.10
(C) Rs.40.40 (D) Rs.64.10

16. In how many years will a sum of Rs 800 at 10% per annum compounded semi annually becomes
Rs.926.10?
(A) 1 year 6 month (B) 1 year 6 month
(C) 2 years (D) 1 years

17. The compound interest on a certain sum for 2 years at 10% per annum is Rs.525. the simple interest
on the same sum for double the time at half the rate percent per annum is:
(A) Rs.400 (B) Rs.500
(C) Rs.600 (D) Rs.800

18. The difference between compound interest and simple interest on an amount of Rs 15000 for 2
years is Rs.96. what is the rate of interest per annum?
(A) 8% (B) 6%
(C) 5% (D) 4%

19. On a sum of money the simple interest for 2 years is Rs.660, while compound interest is Rs 696.30,
the rate of interest being the same in both the cases. The rate of interest is:
(A) 10% (B) 10.5%
(C) 12% (D) 11%

20. A sum of money invested at compound interest amounts to Rs 800 in 3 years and to Rs 840 in 4
years. The rate of interest per annum is:
(A) 25/4% (B) 10% (C) 25/2% (D) 8%

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 Aptitude Compound Interest Question in Answer with Solution (English)

Answers
1. [B] 2. [C] 3. [B] 4. [B] 5. [B] 6. [A] 7. [C] 8. [C] 9. [A] 10. [B]
11. [C] 12. [A] 13. [B] 14. [C] 15. [D] 16. [A] 17. [B] 18. [A] 19. [D] 20. [A]

Solutions

5 3
1. C. I. = 8000 [(1 + 100) 1]
105 3
= 8000 [(100) 1]
= 1261
In other way:-
5 3
A = 8000 (1 + 100)
105 3
= 8000 (100) = 9261
C. I. = 9261 8000 = 1261

2.5 6
2. C. I. = 15000 [(1 + 100) 1]
102.5 6
= 15000 [( ) 1] = 2395.40
100
In other way:-
2.5 6
A = 15000 (1 + 100)
102.5 6
= 15000 ( 100 ) = 17395.40
C. I. = 17395.40 15000 = 2395.40

3. Principal = Rs. 20000, Time = 9 Months = 3 Quarters,

Rate = 8 % per annum = 2 % per quarter
2 3 102 3
C. I. = 20000 [(1 + 100) 1] = 20000 [(100) 1]
= Rs. 1224

4. Principal = Rs. 500, Amount = Rs. 583.2, Time = 2 Years,

Let the rate be R % per annum. Then
2
500 (1 + 100) = 583.2
2 583.2
(1 + 100) = 500
2 58322 11664
(1 + 100) = =
5002 10000
2 108 2
(1 + 100) = (100)
108
1+ =
100 100
100 + = 108
R = 108 100 = 8 %.

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 Aptitude Compound Interest Question in Answer with Solution (English)

5. Given, Rate = 4 % P.A., Time = 2 Years, S. I. = Rs. 400

100400
So, P = 42 = 5000,
4 2
C. I. = 5000 [(1 + 100) 1]
105 2
= 5000 [(100) 1]
= 408

4
6. 7500 (1 + 100) = 8112
104 8112
( ) =
100 7500
26 676 67612
(25) = {62512}
625
26 26 2
(25) = (25)
T = 2 Year

7. Amount at the end of the second year will be the principal for the third year.
Amount at the end of the second year
2 10 2 110 2
= P (1 + 100) = 10000 (1 + 100) = 10000 (100)

= Rs. 12100
The interest on this sum for one year will be the interest for the third year.
10 1
Interest for the third year = 12100 [(1 + 100) 1]
= 12100 [0.1] = 1210
= Rs. 1210

1200101
8. S. I. = Rs. [ ] = . 120
100
5 2
C. I. = Rs. [1200 (1 + 100) 1200] = . 123
Difference = Rs. (123 - 120) = Rs. 3

9. Amount = Rs. (30000 + 4347) = Rs. 34347

Let the Time be T Years. Then
7
30000 [1 + 100] = 34347
107 34347 11449 107 2
[100] = 10030000 = 10000 = [100]

T = 2 Years

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 Aptitude Compound Interest Question in Answer with Solution (English)

10. S. I. on Rs. 7350 for 1 Year = Rs. (8575 - 7350) = Rs. 1225
1001225 2
Rate = [ ] % = 16 3 %
73501
Let the sum be x then
50 2
[1 + 3100] = 7350
7 67
6 = 7350
6
735036
= = 5400
49
= . 5400

11. Let the principal at the end of first year be

10 1
Then = = 132 = 1320
100
Now let original principal P
10 1 11
Amount after 1 year = P + =
100 10
11
Hence = 1320 P = 1200
10

6 2
12. Amount = [15000 (1 + 100) ]
53 53
= 15000 50 50
= 16854

13. Principal = Rs 15000, Amount = Rs 16224 , Time = 2 years

Let the rate of interest per annum is R %
R 2
Than [15000 (1 + 100) ] = 16224
R 2 16224 16224 6 97344 312 2
(1 + 100) = 15000 = 15000 6 = 90000 = [300]
312 312 12
1 + 100 = 100 = 300 - = 300
300
12 100
R= 4%
300

14. Let , the share of = , Then the share of B = (1301 - )

4 7 4 9
[1 + 100] = (1301 ) [1 + 100]
4 2 26 26
(1301 )
= [1 + 100] = [25 ]
25
625 = 676 (1301 - )
625 = 676 1301 676
1301 = 676 1301
= 676

1000 10 4
15. S.I. = Rs. [ ] = Rs.400
100
10 4
C.I. = Rs. [15000 (1 + 100) 1000] = Rs.464.10
Difference = Rs. (464.10 - 400) = 64.10

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 Aptitude Compound Interest Question in Answer with Solution (English)

16. Let the time be N years, then

5 2n
800 [1 + 100] = 926.10
5 2n 926.10 9261
Or [1 + 100] = = 8000
800
21 2n 21 3
Or [20] = [20]
Or 2n = 3
3 1
Or n = 2 = 1 2 years

17. Let the sum be Rs. P, then,

10 2
[ (1 + 100) ] = 525
11 2
Or P [(10) 1] = 525
121
Or P [100 1] = 525
121
Or p [100] = 525
525 100
Or P = = 2500
21
2500 5 4
S.I. = = 500
100

R 2 15000 R 2
18. [15000 (1 + 100) 15000] - [ ] = 96
100
R 2 2
Or 15000 [(1 + 100) 1 100] = 96
(100+)2 10000200R
Or 15000 [ ] = 96
10000
96 2
Or R2 = = 64 .......... On Solving
3
Or R = 8
Rate of interest is 8%.

19. Difference in C.I and S.I for 2 years

= 696.30 660 = 36.30

S.I. for one year = = Rs.330

S.I. on Rs 330 for 1 year = 36.30

100 36.30
Rate = [ ]% = 11%
3301

20. S.I. on Rs.800 for 1 year = Rs. (840 - 800) = Rs.40

100 40 1
Rate = [ 8001 ] % = 6 4%

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