Compound Interest (C.I) is most common concept in our daily life. C.I. calculated annually, half-yearly and quarterly. C.I is the interest calculated on the principal and the interest accumulated over the previous period.
C.I = Amount − principal
Where P = Principal
R = Rate of Interest
n = no. of years
In competitive exams, the weitage of compound Interest is 2-3 marks. This topic is very useful in our daily routine as well. It is useful in Data Analysis and Data Sufficiency.
1. Find the compound interest on Rs.6000 at 20% p.a. for 2 years, compounded annually.
1) Rs.2600 2) Rs.2400
3) Rs.2640 4) Rs.2480 5) Rs.2550
2. In what time will Rs.8000 become Rs.9261 at 5% per annum compounded annually?
1) 5 yr 2) 3 yr 3) 4 yr 4) 2 yr 5) 6 yr
3. A sum of money amounts to Rs.1210 in 2 years and Rs.1331 in 3 years a compound interest (interest being compounded annually). Find the rate percent of interest per annum.
1) 8% 2) 10% 3) 10.5% 4) 11% 5) 20%
4. Rohan earns an interest of Rs.400 over 2 years on a simple interest basis and Rs.420 at the same interest rate on compound interest basis. What is the compound interest for 2nd year?
1) 230 2) 250 3) 220 4) 200 5) 225
5. The simple interest on a certain principal for a time period of 2 years at 16% p.a. is Rs.1280. If the same principal is invested at 10% p.a. compound interest compounded annually, what will be the amount after 2 years? (in Rs.)
1) 800 2) 900 3) 4840 4) 630 5) 1050
6. A person lent Rs.4000 to another person at certain rate of C.I after 2 years he got amount Rs.5760. Have he lent the same sum for the same time at the half of the previous rate of interest, how much amount he would have get?
1) Rs.4800 2) Rs.4840 3) Rs.4750
4) Rs.4640 5) Rs.5000
7. A man invests Rs.5000 for three years at 5% p.a. compound interest reckoned yearly. Income Tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year.
1) Rs.5624.32 2) Rs.5423.32
3) Rs.5634 4) Rs.5976.32 5) Rs.5630
8. The simple interest received on a sum of Rs.12600 at the rate of 8% in T years is Rs.5040. Find the compound interest received on the same sum in (T−3) years at the rate of 16.66% p.a. compounded annually.
1) Rs.4550 2) Rs.4650
3) Rs.4450 4) Rs.4750 5) Rs.4800
9. Abhiram invested Rs.X at the rate of 15% p.a. on compound interest for two years and gets total interest of Rs.5805. If Abhiram invested Rs.(X + 14000) for another two years at additional rate 15%, then what will be the compound intrest on that investment?
1) Rs.22080 2) Rs.24000 3) Rs.25200
4) Rs.26080 5) Rs.20080
10. B borrowed Rs.5,000 from A at 6% p.a. simple interest and lends it to C at compound interest of 10% p.a. If B collects the money back from C after 2 years and repays A, the profit made by B in the transaction is......
1) Rs.600 2) Rs.1,050 3) Rs.500
4) Rs.450 5) Rs.1,150
11. Veer invested Rs.2,75,000 on simple interest at the rate of 7% p.a. for two years and Rs.Y on compound interest at the rate of 10% p.a. for two years. If total simple interest obtained in two years is equal to compound interest only on second year then, find Y
1) Rs.3,50,000 2) Rs.3,00,000
3) Rs.4,00,000 4) Rs.2,50,000
12. The simple interest occurred on a sum of money at the rate of interest 5% per annum for two years is Rs.410. The compound interest is the same as simple interest as occurred on other sum of money at the same rate of interest and the same time. Find the differencebetween the two sums of money principal.
1) Rs.80 2) Rs.90 3) Rs.150
4) Rs.100 5) Rs.180
13. A money-lender borrows money at 4% per annum and pays the interest at the end of the year. He lends it at 6% per annum compound interest compounded half yearly and receives the interest at the end of the year. In this way, he gains Rs.3344 a year. The amount of money he borrows, is....
1) Rs.1,20,000 2) Rs.1,50,000
3) Rs.1,80,000 4) Rs.1,60,000
14. The difference in simple interest and compound interest on a certain sum of money in 3 years at 20% p.a. is Rs.640. The sum is...
1) Rs.5000 2) Rs.8500 3) Rs.8250
4) Rs.6000 5) Rs.4000
15. If a certain sum of money double itself in 3 years at certain rate of C.I. In how many years does it 16 times itself at the same rate of C.I?
1) 12 yr 2) 15 yr 3) 9 yr
4) 6 yr 5) 10 yr
16. The compound interest on a sum of money for 2 years is Rs.832 and the simple interest on the same sum for the same period is Rs.800. The difference between the compound interest and simple interest for3 years is.....
1) Rs.48 2) Rs.66.56 3) Rs.98.56
4) Rs.36.72 5) Rs.108.45
17. Rahul invested Rs.16,800 in scheme 'A' for 4 years. Scheme 'A' offers simple interest @ 8 p.c.p.a. for the first two years and compound interest @ 10 p.c.p.a. for the next two years. What will be total interest earned by Rahul after 4 years from scheme 'A'?
1) Rs.6336 2) Rs.6092 3) Rs.6216
4) Rs.6448 5) Rs.6400
18. A man gave 50% of his savings of Rs.84,100bto his wife and divided the remaining sumbbetween his two sons A and B of 15 and 13byears of age respectively. He divided it inbsuch a way that each of his sons, when theybattain the age of 18 years, would receive thebsame amount at 5% compound interest perbannum. The share of B was.....
1) Rs.20,000 2) Rs.20,050 3) Rs.22000
4) Rs.22,050 5) Rs.24,000