Compound Interest - Quantitative Aptitude (MCQ) questions

1)   Find the principal amount invested if the difference between Compound Interest and Simple Interest obtained for 3 years at rate of interest of 25% is Rs. 320?
- Published on 17 Mar 17

a. Rs. 1550
b. Rs. 1575.38
c. Rs. 1525.50
d. Rs. 1545.78
Answer  Explanation 

ANSWER: Rs. 1575.38

Explanation:
compound interest


2)   Amit gave his friend Rs. 11000. This loan was to be repaid in 3 yearly installments with a rate of interest of 20% compounded annually. How much would be the value of each installment?
- Published on 15 Mar 17

a. Rs. 3666.67
b. Rs. 5221.97
c. Rs. 5000
d. Rs. 4528.69
Answer  Explanation 

ANSWER: Rs. 5221.97

Explanation:
compound interest


3)   An amount becomes 4 times in 6 years. In how many years will it become 64 times if the rate of interest remains unchanged?
- Published on 15 Mar 17

a. 24 years
b. 18 years
c. 16 years
d. 12 years
Answer  Explanation 

ANSWER: 18 years

Explanation:
compound interest


4)   Amit gave his friend Rs. 11000. This was to be repaid in 2 yearly installments with a rate of interest of 20% compounded annually. How much would be the value of each installment?
- Published on 15 Mar 17

a. Rs. 7200
b. Rs. 8200
c. Rs. 5500
d. Rs. 6400
Answer  Explanation 

ANSWER: Rs. 7200

Explanation:
compound interest


5)   How much money invested at compound interest will yield Rs. 6350.40 at the end of 3 years? For the first year the rate of interest is 5%; for second year it increases to 12% and for third year it decreases to 8%.
- Published on 15 Mar 17

a. Rs. 5800
b. Rs. 5500
c. Rs. 6000
d. Rs. 5000
Answer  Explanation 

ANSWER: Rs. 5000

Explanation:
compound interest


6)   A town has population of 50,000 in 1988. In one year i.e. by 1989 it increased by 25%. Next year i.e. in 1990, it decreased by 30%. The next year in 1991 there was an increase of 40%. What is the population at end of 1991?
- Published on 15 Mar 17

a. 60250
b. 62250
c. 66550
d. 61250
Answer  Explanation 

ANSWER: 61250

Explanation:
compound interest


7)   What compound interest will Rs. 5000 fetch in 3 years 10 months at 30% per annum?
- Published on 15 Mar 17

a. Rs. 8725.25
b. Rs. 8735.50
c. Rs. 8856.55
d. Rs. 8731.25
Answer  Explanation 

ANSWER: Rs. 8731.25

Explanation:
compound interest


8)   The population of a city is 50,000 at present. It increases at the rate of 10% per annum. What was its population 4 years ago from present?
- Published on 10 Mar 17

a. 36, 561
b. 35, 450
c. 34,151
d. 33,333
Answer  Explanation 

ANSWER: 34,151

Explanation:
compound interest


9)   What will be the interest earned on sum of Rs. 5500 kept for 6 months at 25% interest rate compounded quarterly?
- Published on 10 Mar 17

a. Rs. 825
b. Rs. 735.5
c. Rs. 855
d. Rs. 815
Answer  Explanation 

ANSWER: Rs. 825

Explanation:
compound interest


10)   The population of a city is 50,000 at present. It increases at the rate of 10% per annum. What will be its population 3 yr from now?
- Published on 10 Mar 17

a. 67,250
b. 65,550
c. 60,500
d. 66,550
Answer  Explanation 

ANSWER: 66,550

Explanation:
compound interest


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