Quantitaitve Aptitude: Simple/Compound Interest Set 06

Simple Interest/Compound Interest Questions for IBPS PO, SBI PO, NIACL, NICL, LIC, Dena Bank PO PGDBF, BOI, Bank of Baroda and other competitive exams

  1. Reena is borrowed a sum of RS. 6000 from Raveena  at the rate of 14% for 2 years. She then added some more money to the borrowed sum and lent it to Sameera at the rate of 18% of simple interest for the same time. If Reena gained Rs. 650 in the whole transaction , then what sum did he lend to Sameera?
    A) Rs.6427.12
    B) Rs.8015.41
    C) Rs.6472.22
    D) Rs.7541.2
    E) Rs.6758.2
    View Answer
      Option C
    Solution:
    Let the money lent to Sameera be Rs.x
    Therefore ,
    x*(18/100)*2 – 6000*(14/100)*2 = 650
    => x= 6472.22
  2. The rate of interest on a sum of money is 4% per annum for the first  2 years , 6% per annum for the period next 4 years, 8% per annum for the period beyond 6 years.If the simple interest accrued by the sum for a total period of 9 years is Rs. 1680 ,what is the sum ?
    A) Rs.3000
    B) Rs.5000
    C) Rs.4700
    D) Rs.5500
    E) Rs.7580
    View Answer
      Option  A
    Solution:
    SI at the rate of 4% for 2 years ,
    =( P* 4*2)/100  = 8P/100
    SI at the rate of 6% for 4 years ,
    (P*6*4)/100 = 24P/100
    SI for the next 3 years
    SI =  (P*8*3)/100 = 24P/100
    Total SI = 8P/100 + 24P/100 + 24P/100
    =>P = (1680*100 )/56 = 3000
  3. The simple interest on a certain sum for 2 years at the rate of 5% per annum is Rs.160. What would be the difference of compound interest and simple interest for the same period and at the same rate of interest?
    A) Rs.2
    B) Rs.10
    C) Rs.6
    D) Rs.4
    E) Rs.8
    View Answer
      Option D
    Solution:
    For 2 years
    SI = 5* 2= 10 % of the sum
    CI = 5 + 5+ (5*5)/100 = 10.25% of the sum
    required diff. = 10.25 – 10 = 0.25% of the sum
    Therefore ,
    the required diff. = (160/10) * 0.25 = Rs.4
  4. What is the difference between   CI and SI ,if sum is Rs.10,000 for 3  years at the rate of 3%?
    A) Rs.42
    B) Rs.30
    C) Rs.27.27
    D) Rs.35
    E) Rs.25
    View Answer
      Option C
    Solution:
    Difference = [sum * r^2 (300 + r)]/(100)^3
    = [10000 * 3 * 3 (300+3)]/(100)^3 = 27.27
  5. Arjun lent out a sum of money at compound interest rate of  30% per annum for 2 years .It would fetch Rs. 500 more if interest is compounded half –yearly.
    A)  Rs.8000
    B)  Rs.8041.12
    C) Rs.8145
    D) Rs.8457.2
    E) Rs.8333.33
    View Answer
      Option E
    Solution:
    P[1+(15/100)]^4  – P[1 +(30/100)]^2 = 500
    => P = 8333.33
  6. At what rate of % per annum will Rs.2304 amount  to Rs. 2500 in 2 years compounded annually.
    A) 5.2%
    B) 4.16%
    C) 3.45%
    D) 4.5%
    E) 3.2%
    View Answer
      Option B
    Solution:
    Shortcut::
    2304 == 2500
    576 == 625
    Take square roots
    24 == 25

    diff. = 1
    = (1/24) * 100 = 4.16%
  7. The ratio of the amount for 2 years under compound interest annually and for 1 year under simple interest is 5:4 when the rate of interest is same then find  the rate of interest?
    A) 20%
    B) 25%
    C) 60%
    D) 30%
    E) 40%
    View Answer
      Option B
    Solution:
    rate /100 = 5/4 -1
    rate = 25%
  8. Anu borrowed Rs.800 at rate of interest 10% . He repaid Rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?
    A) Rs.650
    B) Rs.528
    C) Rs.490
    D) Rs.780
    E) Rs.472
    View Answer
      Option B
    Solution:
    Amount paid at the end of 1 year  = 800[1 + 10/100] = 880
    Amount left as principal for the second year = 880-400 = 480
    Amount to be paid after 2nd year = 480 [1 + 10/100] = Rs.528
  9. Sahil has lent some money to Anita at 6% per annum and Sheetal at 8% per annum. At the end of the year he has gain the overall interest at 7% per annum.In what ratio has he lent the money to Anita and Sheetal?
    A) 3:8
    B) 1:2
    C) 2:5
    D) 1:1
    E)  4:5
    View Answer
      Option D
    Solution:
    6……………..8
    ………7
    1     :        1
  10. What is the ratio of the simple interest earned by certain amount for 4 years and 8 years at the same rate of interest?
    A) 3:2
    B) 2:1
    C) 1:2
    D) 4:3
    E) 3:5
    View Answer
      Option C
    Solution:
    ratio = 4PR / 8PR = 1 : 2

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28 Thoughts to “Quantitaitve Aptitude: Simple/Compound Interest Set 06”

  1. anurag agarwal

    Dear sir
    Please explain the logic of question 7

    1. cActi

      P[1 +(r/100)]^2 / P[1 + (r/100)]^1 = 4/5
      1 + (r/100) = 4/5
      r/100 = 1/4
      r=25%

      1. Pooja?

        6th me 24 kse aya

        1. Oliver Queen

          i’m also thinking the same

          1. cActi

            2304………… 2500
            1156…………1250
            576…………625
            24…………..25
            diff.
            25-24=1
            Therefore,
            (1/24)*100= 25/6= 4.16%.

          2. Oliver Queen

            when we’re taking ratio to fir square kaise le lia,? ye logic samjh nahi hai, mtlab
            jab hm log ratio niklte to both side ko same value de divide karte h na ki square lenege
            576:625 ye value same digit se divide nhi hogi

          3. Yes

            But shortcut is being used here, we can do like this

            Shortcut::
            2304 == 2500
            576 == 625
            Take square roots
            24 == 25
            diff. = 1
            = (1/24) * 100 = 4.16%

        2. cActi

          2304………… 2500
          1156…………1250
          576…………625
          24…………..25
          diff.
          25-24=1
          Therefore,
          (1/24)*100= 25/6= 4.16%

          1. Pooja?

            Got it thanks

          1. vikas

            2304………… 2500
            48 (root) 50 (root)
            2/48=4.16

      2. Oliver Queen

        1st mein 6472.22 kaise aa rha?
        pura solve kariye khud se

        1. cActi

          x(18/100)*2 – 6000*(14/100)*2 = 650
          0.36x – 1680 = 650
          0.36x= 2330
          x = 2330/0.36
          x= 6472.22

          1. Oliver Queen

            thanks, got it, galti kr rha tha main

      3. Pablo Escobar

        Isn’t it compounded??? But in question it’s si

        1. yes take SI
          SI and CI for 1st year are same na
          so u can take any, it wont affect answer

    2. thinker

      Logic is simple first year simple and compound interest are equal.and second if rate is equal we earn money more than on the first years simple interest.

  2. Saheba

    please explain no. 8.. my answer comes 616.
    Amount paid at the end of 2 year = (800*10*2)/100 + 800 = 960
    Amount left as principal for the second year = 560
    Amount to be paid after 2nd year = (560*10)/100 +560 = Rs.616

    1. ครђ

      will count for 1 year = (800*10*1)/100+800 = 880

      1. Saheba

        why 1 year?? we are to find out Amount paid at the end of 2 year, right?

        1. 400 Rs is paid after a year

          so 1st we will find for 1 year which is 880 the

          880-400 = 480 is principal for 2nd year

  3. ครђ

    Thanks Banya Ma’am :))

  4. Jellyfish

    10/10 ty az

  5. ~lonely~hanker~nitrous oxide~

    tq mam

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