Compound Interest Questions and Answers
The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?
(A) 12.5%
(B) 20%
(C) 10%
(D) 5%
Correct Answer : C
A person lent certain sum of money at 5% per annum simple interest and in 15 years the interest amounted to Rs 250 less than the sum lent. What was the sum lent (in Rs)?
(A) 1500
(B) 1000
(C) 3000
(D) 2000
Correct Answer : B
A sum of Rs. 6400 amounts to Rs. 6724 at 10% p.a. compounded quarterly. Find the time period.
(A) 2 years
(B) 3 years
(C) 3/4 year
(D) 1/2 year
Correct Answer : D
A certain sum increases by 50 % in 5 years. Three sums x, y and z are lent for 10, 15 and 20 years respectively. If amount on each sum is equal, then find the ratio of x, y and z.
(A) 6 : 5 : 4
(B) 9 : 4 : 6
(C) 9 : 6 : 5
(D) 9 : 6 : 4
Correct Answer : D
Find the principal amount, the difference of which compound interest and simple interest for a period of 3 years at the rate of 10% per annum will be Rs 31-
(A) 1500
(B) 1100
(C) 1000
(D) 1200
Correct Answer : C
The difference between simple interest and compound interest on Rs. 1200 for one year at the rate of 10 percent half-yearly is-
(A) 3
(B) 8.80
(C) 0
(D) 13.20
Correct Answer : A
An amount of Rs.10000 becomes Rs.14641 in 2 years, if the interest is compounded half yearly. What is the rate of compound interest?
(A) 25%
(B) 21%
(C) 23%
(D) 24.5%
(E) 26.2%
Correct Answer : B
What would be the compound interest accrued on an amount of Rs.7850 at the rate of 14% per annum in two years?
(A) Rs.2351.86
(B) Rs.2880.37
(C) Rs.2518.22
(D) Rs.2290.23
(E) None of these
Correct Answer : A
Rashid borrowed Rs.15000 at the rate of 10% p.a. rate of compound interest, compound annually. He repaid a certain amount at the end of the first. Then he paid Rs. 12100 at the end of the 2nd year to completely discharge the loan. What amount did he repay at the end of 1st year?
(A) 4500
(B) 5500
(C) 6500
(D) 5800
(E) None of these
Correct Answer : B
Raman invested P for 2 years in scheme A which offered 20% p.a. compound interest (compounded annually). He lent the interest earned from scheme A to Shubh, at the rate of 7.5% p.a. simple interest. If at the end of 2 years, Shubh gave Rs.3,036/- to Raman and thereby repaid the whole amount (actual loan + interest), what is the value of P
(A) Rs. 6,000/-
(B) Rs. 5,800/-
(C) Rs. 6,800/-
(D) Rs. 5,400/-
(E) Rs. 6,400/-
Correct Answer : A