Quantitative Aptitude

Simple and Compound Interest

3,394 Questions
All Simple interest and its inverse forms 768 Compound interest with annual compounding 742 Simple-interest growth and split sums 626 Difference between compound and simple interest 479 Half-yearly and quarterly compounding 252 Changing rates and fractional years 201 Installments (CI based) 190 Ratio of principal to interest 118 Population growth and depreciation 16

Simple and Compound Interest Questions

Multiple choice

How much more does a man get by investing 40000 at 40% p.a. compound interest, compounded half yearly, than at 40% p.a. compound interest, compounded yearly per one year?

  1. 1000

  2. 1200

  3. 1500

  4. 1600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = 40000, Rate = 40%. Yearly: A = 40000 * (1 + 0.4) = 56000. Interest = 16000. Half-yearly: Rate = 20%, Time = 2 periods. A = 40000 * (1 + 0.2)^2 = 40000 * 1.44 = 57600. Interest = 17600. Difference = 17600 - 16000 = 1600.

Multiple choice

Jessica opened a bank account that earns $2$ percent interest compounded annually. Her initial deposit was $ $100$, and she uses the expression $ $100{ \left( x \right) }^{ t }$ to find the value of the account after $t$ years. What is the value of $x$ in the expression?

  1. 1.01

  2. 1.02

  3. 1.03

  4. 1.2
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The formula for compound interest is A = P(1 + r/100)^t. Here, P = 100, r = 2, so the expression is 100(1 + 2/100)^t = 100(1.02)^t. Thus, x = 1.02.

Multiple choice

A father divides his property between his two sons A and B. A invests the amount at compound interest of $8\%$ p.a. B invests the amount at 10% p.a simple interest. At the end of $2$ years , the interest received by B is Rs $1336$ more than the interest received by A. Find A 's share in the father's father's property of Rs $25, 000$.
  1. Rs $12,000$
  2. Rs $13,000$
  3. Rs $10,000$
  4. Rs $12,500$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let A's share be x, B's be 25000-x. Interest for A = x(1.08^2 - 1) = 0.1664x. Interest for B = (25000-x) * 0.1 * 2 = 5000 - 0.2x. Given (5000 - 0.2x) - 0.1664x = 1336 => 3664 = 0.3664x => x = 10000.

Multiple choice

If Rs. $44,200$ is divided between Ram and John so that Ram's share at the end of $6$ years is equal to John's share at the end of $4$ years, the rate of interest being $10$ per cent compounded yearly. Then John's share is.
  1. $42400$
  2. $44200$
  3. $24200$
  4. $42040$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let Ram's share be R and John's be J. R * (1.1)^6 = J * (1.1)^4. Thus R * (1.1)^2 = J, or 1.21R = J. Since R + J = 44200, R + 1.21R = 44200 => 2.21R = 44200 => R = 20000. John's share J = 1.21 * 20000 = 24200.