What is the rate of interest p.c.p.a.? I. An amou | Compound Interest Questions & Answers

Q:

The difference between the compound interest and the simple interest accrued on an amount of Rs. 18,000 in 2 years was Rs. 405. What was the rate of interest p.c.p.a. ?

A) 12%	B) 13%
C) 14%	D) 15%

Answer & Explanation Answer: D) 15%

Explanation:

Let the rate be R% p.a. Then,

$[1800 {(1 + \frac{R}{100})}^{2} - 1800] - (\frac{1800 * R * 2}{100}) = 405$

$1800 [\frac{{(100 + R)}^{2}}{10000} - 1 - \frac{2 R}{100}] = 405$

$1800 [\frac{{(100 + R)}^{2} - 10000 - 200 R}{10000}] = 405$

$\Leftrightarrow$

$\frac{9}{5} * R^{2} = 405 \Leftrightarrow R^{2} = (\frac{405 * 5}{9}) = 225 \Leftrightarrow R = 15$
Rate = 15%.

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Q:

The difference between the compound interest and simple interest on a certain sum at 10% per annum for 2 years is Rs. 631. Find the sum.

A) 60100	B) 61100
C) 62100	D) 63100

Answer & Explanation Answer: D) 63100

Explanation:

Let the sum be Rs. x. Then,
C.I. = x ( 1 + ( 10 /100 ))^2 - x = 21x / 100 ,
S.I. = (( x * 10 * 2) / 100) = x / 5
(C.I) - (S.I) = ((21x / 100 ) - (x / 5 )) = x / 100
( x / 100 ) = 632 * x = 63100.
Hence, the sum is Rs.63,100.

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Q:

If the compound interest on a certain sum at $16 \frac{2}{3}$ % to 3 years is Rs.1270, find the simple interest on the same sum at the same rate and f or the same period.

A) 1080	B) 1090
C) 1180	D) 1109

Answer & Explanation Answer: A) 1080

Explanation:

Let the sum be Rs. x. Then,

$C . I = [x * {(\frac{50}{300 * 100})}^{3} - x] = (\frac{343 x}{216} - x) = \frac{127 x}{216}$

$\Leftrightarrow \frac{127 x}{216} = 1270$

$x = 2160$

Thus, the sum is Rs. 2160

$S . I = R s . [2160 * \frac{50}{3} * 3 * \frac{1}{100}] = R s 1080$

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Q:

In what time will Rs. 1000 become Rs. 1331 at 10% per annum compounded annually?

A) 1years	B) 2years
C) 3years	D) 4years

Answer & Explanation Answer: C) 3years

Explanation:

Principal = Rs. 1000; Amount = Rs. 1331; Rate = 10% p.a. Let the time be n years. Then,
[ 1000 (1+ (10/100))^n ] = 1331 or (11/10)^n = (1331/1000) = (11/10)^3
n = 3 years

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Q:

If the simple interest on a sum of money at 5% per annum for 3 years is Rs. 1200, find the compound interest on the same sum for the same period at the same rate.

A) 1261	B) 1271
C) 1281	D) 1291

Answer & Explanation Answer: A) 1261

Explanation:

Clearly, Rate = 5% p.a., Time = 3 years, S.I.= Rs. 1200. . .
So principal=RS [100*1200]/3*5=RS 8000
Amount = Rs. 8000 x [1 +5/100]^3 - = Rs. 9261.
.. C.I. = Rs. (9261 - 8000) = Rs. 1261.

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Q:

Find the compound interest on Rs. 16,000 at 20% per annum for 9 months, compounded quarterly

A) 2422	B) 2522
C) 2622	D) 2722

Answer & Explanation Answer: B) 2522

Explanation:

Principal = Rs. 16000; Time = 9 months =3 quarters;
Rate = 20% per annum = 5% per quarter.
Amount = Rs. [16000 x (1+(5/100))3] = Rs. 18522.

CJ. = Rs. (18522 - 16000) = Rs. 2522

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Q:

Find the compound interest on Rs. 10,000 in 2 years at 4% per annum, the interest being compounded half-yearly.

A) 524.32	B) 624.32
C) 724.32	D) 824.32

Answer & Explanation Answer: D) 824.32

Explanation:

Principal = Rs. 10000; Rate = 2% per half-year; Time = 2 years = 4 half-years.
Amount == Rs. 10824.32.

$R s . [10000 * {(1 + \frac{2}{100})}^{4}] = R s . [10000 * \frac{51}{50} * \frac{51}{50} * \frac{51}{50} * \frac{51}{50}]$

$\therefore$ C.I. = Rs. (10824.32 - 10000) = Rs. 824.32.

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Q:

Find compound interest on Rs. 8000 at 15% per annum for 2 years 4 months, compounded annually

A) 2109	B) 3109
C) 4109	D) 6109

Answer & Explanation Answer: B) 3109

Explanation:

Time = 2 years 4 months = 2(4/12) years = 2(1/3) years.
Amount = Rs'. [8000 X (1+(15/100))^2 X (1+((1/3)*15)/100)]
=Rs. [8000 * (23/20) * (23/20) * (21/20)]
= Rs. 11109. .
:. C.I. = Rs. (11109 - 8000) = Rs. 3109.

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A) I only	B) II and III only
C) All I, II and III	D) I only or II and III only

What is the rate of interest p.c.p.a.?

I. An amount doubles itself in 5 years on simple interest.

II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400.

III. Simple interest earned per annum is Rs. 2000

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What is the rate of interest p.c.p.a.? I. An amount doubles itself in 5 years on simple interest. II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400. III. Simple interest earned per annum is Rs. 2000

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What is the rate of interest p.c.p.a.?

I. An amount doubles itself in 5 years on simple interest.

II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400.

III. Simple interest earned per annum is Rs. 2000