Compound Interest Questions Quiz for CDS, CLAT, SSC and Bank Clerk

Pre Exams.
Compound Interest Quiz 7
Directions: Kindly study the following Questions carefully and choose the right answer:
1. Rs. 6100 was partly invested in Scheme A at 10% pa compound interest (compounded
annually) for 2 years and partly in Scheme B at 10% pa simple interest for 4 years. Both the
schemes earn equal interests. How much was invested in Scheme A?

A. Rs. 3750 B. Rs. 4500 C. Rs. 4000 D. Rs. 3250 E. Rs. 5000

2. A sum of Rs. 198 deposited at CI doubles itself after 4 years. After 20 years it will become

A. Rs. 6336 B. Rs. 5894 C. Rs. 9250 D. Rs. 7932 E. None of these

3. Lata had Rs. 40000. She invested some amount in scheme A at CI at 15% and the
remaining amount in scheme B at SI at 10%. If she got the same interest from both the
investments at the end of one year. How much in Rs. did she invest in scheme B?

A. Rs. 34000 B. Rs. 24000 C. Rs. 16000 D. Rs. 18000 E. Rs. 20000

4. An amount of Rs. 110000 is invested at compound interest payable annually. If the rate of
interest is 11% pa, what will be the total interest after two years?

A. Rs. 23481 B. Rs. 25531 C. Rs. 24200 D. Rs. 26416 E. None of these

5. Find the compound interest on Rs. 12000 for 2 years, the rate of interest being 3% per
annum.
A. Rs. 840.8 B. Rs. 935.7 C. Rs. 1035.6 D. Rs. 730.8 E. Rs. 473.5

6. A man invests equal sums at the rate of 10% per annum compound interest and simple
interest respectively for 2 years. After 2 years, the difference between the compound
interest and the simple interest is Rs. 1000. Then the sum is
A. Rs. 100500 B. Rs. 110000 C. Rs. 120000 D. Rs. 100000 E. Rs. 900000
7. An amount is given at an interest of 8% pa. What is the amount if the difference of
compound and simple interest for 2 years is Rs. 352 ?
A. Rs. 55000 B. Rs. 50000 C. Rs. 45000 D. Rs. 40000 E. Rs. 35000

8. The difference between the simple interest and the compound interest compounded
annually at the same rate of interest on a sum of money at the end of two years is Rs. 162.
What is definitely the rate per cent per annum?

A. 4 B. 7.5 C. 10 D. Data inadequate E. 5

9. What is the difference between the compound interest and the simple interest accrued on
an amount of Rs. 16,200 at the end of three years @ 25%? (Rounded off to two digits after
decimal)

A. 3213.44 B. 3302.42 C. 3495.28 D. 3290.63 E. None of these

10. The simple interest accrued on a certain principal at a rate of 9% p.c.p.a. in 5 years is Rs.
14,400. What would be the compound interest accrued on the same principle in 2 years at
the rate of 4 p.c.p.a. ?

A. Rs. 2614.60 B. Rs. 2641.60 C. Rs. 2611.20 D. Rs. 2624.20 E. None of these
Correct Answers:
1 2 3 4 5 6 7 8 9 10
C A B B D D A D D C

Explanations:
1. Let the amount invested in Scheme A is Rs. x.
Then, the amount invested in Scheme B be Rs. (6100 – x)
Now, according to the question,

10 2 (6100 – x) × 10 × 4
x (1 + ) –x =
100 100

121 (6100 – x) × 40
⇒ x( – 1) =
100 100

21x (6100 – x) × 40
⇒ =
100 100

⇒ 21x = 6100 × 40 – 40x

⇒ 61x = 6100 × 40

6100 × 40
⇒ x= = Rs. 4000
61
∴ The amount invested in Scheme A is ₹4000.
Hence, option C is correct.

2.
R 4
P (1 + ) = 2P
100

R 4
⇒ (1 + ) =2 ...(i)
100

After 20 years,
20
R R 4 5 5
(1 + 100) = [ (1 +
100
) ] = 2 = 32

Thus, the amount becomes 32 times.

So, amount = 198 × 32 = Rs. 6336
Hence, option A is correct.
3. Let the amount invested in Scheme A is Rs. x.
Then, the amount invested in Scheme B therefore will be Rs. (40000 – x)
We know that for the 1st year both Simple Interest and Compound Interest on a sum remains the same. Now,
according to the question,
⇒ 15% of x = 10% of (40000 – x)
⇒ 15x = 400000 – 10x
⇒ 25x = 400000
⇒ x = 16000
∴ Amount invested in scheme B = 40000 – 16000 = 24000.
Hence, option B is correct.

4. Method I :
P = Rs. 110000; R = 11%; n = 2 years
R n
CI = P (1 + ) –P
100
11 2
CI = 110000 (1 + ) – 110000
100
2
111
= 110000 (100) – 110000

= 135531 – 110000 = Rs. 25531

_________________________________________
Method II :
To solve this question, we can apply the net% effect formula
xy
Net% effect = (x + y + )%
100
Here, x = y = 11% (because rate of interest is same for both the years)
By the net% effect, we get effective rate of interest
11 × 11
= (11 + 11 + ) % = 23.21%
100
Therefore, 23.21% of 110000 = Rs. 25531
Hence, option B is correct.

5. Method I : P = Rs. 12000; R = 3%; n = 2 years

R n
CI = P (1 + ) –P
100
3 2
CI =12000 (1 + ) – 12000
100
103 103
= 12000 × × – 12000
100 100

= 12730.8 – 12000 = Rs. 730.8

Method II :
To solve this question, we can apply the net% effect formula
xy
Net% effect = (x + y + )%
100

Here, x = y = 3% (because rate of interest is same for both the years)

By the net% effect, we get effective rate of interest

3×3
= (3 + 3 + ) % = 6.09%
100

Therefore, 6.09% of 110000 = Rs. 730.8

Hence, option D is correct.

6. Method I :
To solve this question, we can apply a short trick approach

Difference × 1002
Sum =
R2

Given, Difference = Rs. 1000, R = 10%

By the short trick approach, we get
1000 × 1002
Sum = = Rs. 100000
102
_____________________________________________
Method II :
Let the sum be Rs. P.
According to the question,
10 2 P × 2 × 10
[P(1 + 100) – P] – 100 = 1000
11 11 P
⇒ [P × × – P] – = 1000
10 10 5

21P P
⇒ – = 1000
100 5

P
⇒ = 1000
100

⇒ P = Rs. 100000

Hence, option D is correct.

7. Method I :
To solve this question, we can apply a short trick approach

Difference × 1002
Amount =
R2

Given, Difference = Rs. 352, R = 8%

By the short trick approach, we get

352 × 1002
Amount = = Rs. 55000
82
________________________________________________

Method II :
We can solve it by the net% formula,
Rate % of SI for 2 yr at 8% pa = 8 × 2 = 16%
Rate % of CI for 2 yr at 8%,
8×8
=8+8+ = 16.64%
100

% rate difference of CI and SI = 16.64% – 16% = 0.64%

Let the amount be Rs. x, then
0.64% of x = 352
352 × 100
x= = Rs. 55000
0.64

Hence, option A is correct.

8. To solve this question, we can apply a short trick approach

Difference × 1002
Sum =
R2
Given, Difference = Rs. 162
By the short trick approach, we get
162 × 1002
Sum =
R2

162 × 1002
⇒ R2 =
Sum

The sum is not given.

∴ We can't find rate of interest.
Hence, option D is correct.
9. Method I :
When difference between CI and SI on a certain sum of money for 3 years, we can apply a short trick approach
Sum × R2(300 + R)
Difference =
1003
16200 × (25)2 × (300 + 25)
=
1000000
16200 × 625 × 325
= = 3290.625 ≈ 3290.63
1000000
__________________________________________
Method II : SI for 3 years at the rate of 25% = 25 × 3 = 75%
CI for 3 years at the rate of 25%, applying the net% effect for first 2 years
25 × 25
= 25 + 25 + = 56.25%
100
56.25 × 25
For next year = 56.25 + 25 + = 95.3125%
100
Here we can see that in 3 years the given compound interest rate of interest is 95.3125%.
Difference between CI and SI for 3 years = (95.3125 – 75) % = 20.3125%

20.3125 × 16200
Now, 20.3125% of 16200 = = 3290.625 ≈ 3290.63
100
Hence, option D is correct.

10. Method I :
SI for 5 years at the rate of 9% = 5 × 9 = 45%
CI for 2 years at the rate of 4%, applying the net% effect
4×4
=4+4+ = 8.16%
100
45% ≡ Rs. 14400
So, 8.16% ≡ Rs. x
By cross multiplication, we get
14400 × 8.16
x= = Rs. 2611.20
45
_____________________________________________
Method II : Clearly, Rate = 9%, Time = 5 years, SI = Rs. 14400
SI × 100 14400 × 100
So, Principal = = = Rs. 32000
R×T 9×5
4 2
Now, CI = 32000 (1 + ) – 32000
100
26 26
= 32000 × × – 32000
25 25
= 34611.20 – 32000 = Rs. 2611.20
Hence, option C is correct.