Simple and Compound Interest Questions

Multiple choice
  1. 42%

  2. 28%

  3. 50%

  4. 60%

Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice
  1. 926.84

  2. 929.48

  3. 931.72

  4. 934.65

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The interest in successive years forms a geometric progression because it is compounded annually. The ratio of the third year interest to the second year interest is 866.72 / 806.25 = 1.075. Multiplying the third year interest by this ratio gives 866.72 * 1.075 = 931.724.

Multiple choice
  1. 3,436

  2. 2,436

  3. 2,346

  4. 1,436

Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice
  1. 62.5%

  2. 37.5%

  3. 60%

  4. 40%

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the two parts of the investment be P1 and P2. The simple interest on the first part is P1 * 0.15 * 4 = 0.60 * P1, and on the second part is P2 * 0.12 * 3 = 0.36 * P2. Equating the two interests gives 0.60 * P1 = 0.36 * P2, which simplifies to the ratio P1 / P2 = 3 / 5. Thus, the percentage of savings in the first part is 3 / (3 + 5) = 37.5%.

Multiple choice
  1. 900

  2. 700

  3. 1,000

  4. 800

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total interest = 0.05 * 20000 = 1000. Interest from A = 8000 * 0.055 = 440. Interest from B = 5000 * 0.056 = 280. Interest from C = 1000 - (440 + 280) = 280. Remaining amount for C = 20000 - 8000 - 5000 = 7000. Rate x = (280/7000) * 100 = 4%. If all 20000 were in C, interest = 20000 * 0.04 = 800.

Multiple choice
  1. 10,000

  2. 15,000

  3. 20,000

  4. 25,000

  5. 30,000

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let Scheme B investment be x, then Scheme A is x + 5000. Interest from A = 0.08 * (x + 5000) * 2 = 0.16x + 800. Interest from B = x * (1.06^2 - 1) = 0.1236x. Total interest 0.2836x + 800 = 3636 leads to 0.2836x = 2836, so x = 10000. Total investment = (x + 5000) + x = 25000.

Multiple choice
  1. Rs. 927.27

  2. Rs. 947.47

  3. Rs. 967.67

  4. Rs. 987.87

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Principal = 10000, Rate = 12% per annum, quarterly = 3% per quarter. Time = 9 months = 3 quarters. Amount = 10000 * (1 + 3/100)^3 = 10000 * (1.03)^3 = 10000 * 1.092727 = 10927.27. Interest = 927.27.

Multiple choice
  1. 23

  2. 24

  3. 25

  4. 26

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A = P(1 + r/100)^n. 100P < P(1.2)^n => 100 < 1.2^n. n * log(1.2) < log(100). n * (log 12 - log 10) < 2. n * (log(3*4) - 1) < 2. n * (log 3 + 2*log 2 - 1) < 2. n * (0.477 + 0.602 - 1) < 2. n * (0.079) < 2. n > 2/0.079 = 25.31. The least integer n is 26.

Multiple choice
  1. Rs. 6,000

  2. Rs. 7,000

  3. Rs. 8,000

  4. Rs. 10,000

  5. Rs. 20,000

Reveal answer Fill a bubble to check yourself
D Correct answer
Multiple choice
  1. $5,000
  2. $8,000
  3. $10,000
  4. $15,000
  5. $18,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let x be the amount in the 9% account. Then (50000-x) is in the 4% account. 0.09x + 0.04(50000-x) >= 2500. 0.09x + 2000 - 0.04x >= 2500. 0.05x >= 500. x >= 10000.