Compound Interest

1. The time in which ` 80, 000 amounts to ` 92,610 at 10% 9. What sum of money will become ` 1352 in 2 years at 4
p.a. at compound interest, interest being compounded semi per cent per annum compound interest?
annually is : (1) ` 1200 (2) ` 1225
1 (3) ` 1250 (4) ` 1300
(1) 1 years (2) 2 years 10. The compound interest on ` 2000 in 2 years if the rate of
2
interest is 4% per annum for the first year and 3% per
1
(3) 2 years (4) 3 years annum for the second year, will be
2
(1) ` 142.40 (2) ` 140.40
2. The sum of money that yields a compound interest of ` 420
during the second year at 5% p.a. is (3) ` 141.40 (4) ` 143.40
(1) ` 4,000 (2) ` 42,000 11. What sum will give ` 244 as the difference between simple
(3) ` 8,000 (4) ` 21,000 1
interest and compound interest at 10% in 1 years
3. A sum of ` 3,200 invested at 10% p.a. compounded 2
compounded half yearly ?
quarterly amounts to ` 3,362. Compute the time period.
(1) ` 40,000 (2) ` 36,000
1 (3) ` 32,000 (4) ` 28,000
(1) year (2) 1 year
2 12. The difference between simple and compound interest on
a sum of money at 4% per annum for 2 years is ` 8. The
3
(3) 2 years (4) year sum is
4
(1) ` 400 (2) ` 800
4. The compound interest on ` 5,000 for 3 years at 10% p.a. (3) ` 4,000 (4) ` 5,000
will amount to
13. The difference between the compound interest and the
(1) ` 1,654 (2) ` 1,655 simple interest on a certain sum at 5% per annum for 2
(3) ` 1,600 (4) ` 1,565 years is ` 1.50. The sum is
5. A principal of ` 10,000, after 2 years compounded (1) ` 40,000 (2) ` 36,000
annually, the rate of interest being 10% per annum during (3) ` 32,000 (4) ` 28,000
the first year and 12% per annum during the second year
14. The difference between the simple and compound interest
(in rupees) will amount to :
on a certain sum of money for 2 years at 4% per annum
(1) ` 12,000 (2) ` 12,320 is ` 4. The sum is
(3) ` 12,500 (4) ` 11,320 (1) ` 2,500 (2) ` 2,400
6. A sum of ` 8000 will amount to ` 8820 in 2 years if the (3) ` 2,600 (4) ` 2,000
interest is calculated every year. The rate of compound
15. The difference between simple and compound interest on
interest is
a certain sum of money for 2 years at 4 per cent per annum
(1) 6 (2) 7 is ` 1. The sum of money is :
(3) 3 (4) 5 (1) ` 600 (2) ` 625
7. In what time will ` 1000 becomes ` 1331 at 10% per (3) ` 560 (4) ` 650
annum compounded annually ?
16. The difference between the compound interest (compounded
1 annually) and te simple interest on a sim of ` 1000 at a
(1) 3 years (2) 2 years
2 certain rate of interest for 2 years is ` 10. The rate of
interest per annum is :
1 (1) 5% (2) 6%
(3) 2 years (4) 3 years
2 (3) 10% (4) 12%
8. A sum of money invested at compound interest amounts 17. The difference between simple and compound interest
to ` 650 at the end of first year and ` 676 at the end of (compounded annually) on a sum of money for 2 years at
second year. The sum of money is : 10% per annum is ` 65. The sum is
(1) ` 600 (2) ` 540 (1) ` 65650 (2) ` 65065
(3) ` 625 (4) ` 560 (3) ` 6565 (4) ` 6500
 CAREER POWER Chapterwise SSC Quantitative Aptitude
22. If the compound interest on a certain sum for two years
3
18. If the amount is 3 times the sum after 3 years at at 12% per annum is ` 2.544, the simple interest on it at
8 the same rate for 2 years will be
compound interest compounded annually, then the rate of (1) ` 2,400 (2) ` 2,500
interest per annum is
(3) ` 2,480 (4) ` 2,440
(1) 25% (2) 50%
23. A certain amount of money at r%, compounded anually
2 2 after two and three years becomes ` 1440 and ` 1728
(3) 16 % (4) 33 % respectively. r is
3 3
19. If a sum of money compounded annually becomes 1.44 (1) 5 (2) 10
times of itself in 2 years, then the rate of interest per annum (3) 15 (4) 20
is 24. The compound interest on a certain sum for two successive
(1) 25% (2) 22% years are ` 225 and ` 238.50. The rate of interest per
(3) 21% (4) 20% annum is :
20. A sum of money at compound interest amounts to thrice 1
itself in 3 years. In now may years will it be 9 times itself? (1) 7 (2) 5
2
(1) 9 (2) 27 (3) 10 (4) 6
(3) 6 (4) 3
25. An amount of money at compound interest grows up to
21. A sum becomes ` 2,916 in 2 years at 8% per annum ` 3,840 in 4 years and up to ` 3,936 in 5 years. Find the
compound interest. The simple interest at 9% per annum rate of interest.
for 3 years on the same amount will be
(1) 2.5% (2)
(1) ` 600 (2) ` 675 2%
(3) ` 650 (4) ` 625 (3) 3.5% (4) 2-05%

HINTS & SOLUTIONS

.ANSWER KEY.
1. (1) 2. (3) 3. (1) 4. (2) 5. (2) 6. (1)

7. (1) 8. (3) 9. (3) 10. (1)- 11. (3) 12. (4)

13. (1) 14. (1) 15. (2) 16. (3) 17. (4) 18. (2)

19. (4) 20. (3) 21. (1) 22. (1) 23. (1) 24. (4)
25. (1)

1. (1) Time = t half year

é R öT ù PR
R = 5% per half year æ
2. (3) CI = P ê ç 1 + ÷ - 1ú -
êè 100 ø ú 100
T ë û
æ 5 ö
\ A = P ç1 +
è 100 ÷ø
éæ 5 ö
2 ù P ´5
Þ 420 = P êç1 + ÷ - 1ú -
T è 100 ø 100
92610 æ
= ç1 +
5 ö ëê ûú
Þ ÷
80000 è 100 ø
éæ 21 ö 2 ù 5P
T Þ 420 = P êç ÷ - 1ú -
9261 æ 21ö êëè 200 ø úû 100
Þ =ç ÷
8000 è 20 ø
Þ T = 3 half year æ 41P ö 5P 21P
Þ 420 = ç - =
è 400 ÷ø 100 400
3 T
æ 21ö æ 21ö
Þ çè ÷ø = çè ÷ø 420 ´ 400
20 20 Þ P= = ` 8000
21

2 CAREER POWER, G-7, Roots Tower, Laxmi Nagar, District Centre, Delhi-92, www.careerpower.in
Chapterwise SSC Quantitative Aptitude CAREER POWER

r 21 1
3.
æ
(1) A = P ç 1 +
R öT Þ = -1=
è 1 0 0 ÷ø 100 20 20
1
4t Þ r= ´ 100 = 5% per Annum
3362 æ 10 ö 20
Þ = ç1 + ÷
3200 è 400 ø 7. (1) Let the required time be n years. Then
4t é r ö ù
t n
1681 æ 41ö æ 10 ö æ
Þ =ç ÷ Þ 1331 = 1000 ç1 + ÷ \ ê P = P ç 1 + ÷ ú
1600 è 40 ø è 100 ø êë
1
è 100 ø úû
2 41
Þ æ 41ö æ 41ö 1331 æ 10 + 1 ö
n
çè ÷ø = çè ÷ø Þ =
1000 çè 10 ÷ø
40 40

1 n 3
Þ 4t = 2 Þ t = year æ 11 ö æ 11 ö
2 Þ ç 10 ÷ = ç 10 ÷
è ø è ø
é R ö T ù Þ n=3
æ
4. (2) C.I. = P ê ç 1 + - 1ú
ê 100 ÷ ú 8. (3) Interest on ` 650 for 1 year = 676 – 650 = ` 26
ëè ø û
26
So, r = ´ 100
éæ 10 ö
3 ù 650
= 5000 êç 1 + ÷ - 1ú
êëè 100 ø úû r = 4% per annum

A 650
éæ 11 ö 3 ù P= t
= 1
= 5000 êç ÷ - 1ú é r ù é 4 ù
êëè 10 ø úû êë1 + 100 úû êë1 + 100 úû

5000´ 331 650 25

= =` 1655 = = 650 ´ ` 625
1000 26 26
25
æ r öæ r ö
5. (2) A = P ç1 + 1 ÷ ç 1 + 2 ÷ Note : A sum at a rate of interest compounded yearly
è 100 ø è 100 ø
becomes ` A, in n years and ` A2 in (n + 1) years,
æ 10 ö æ 12 ö æA ö
= 10000 ç1 + 1+
è 100 ø è 100 ÷ø
÷ ç then P = A1 = ç 1 ÷
è A2 ø
11 28 9. (3) Let the sum be ` x.
= 10000 ´ ´ = ` 12320
10 25
2
6. (1) If the rate of C.I. be r% per annum, then æ 4 ö
\ 1352 x ç1 + ÷
è 100 ø
æ R öT
A = P ç1 +
1 0 0 ÷ø
2
è æ 26 ö
or, 1352 = x ç ÷
è 25 ø
2
æ r ö
Þ 8820 = 8000 ç1 +
è 100 ÷ø or, x =
1352 ´ 25 ´ 25
= ` 1250
26 ´ 26
2
8820 æ r ö
10. (1) Amount = 2000 æç1 +
Þ = ç1 + ÷ 4 öæ 3 ö
1+
8000 è 100 ø è 100 ÷ø çè 100 ÷ø
2 2 = 2000 × 1.04 × 1.03
441 æ 21ö æ r ö
Þ = ç ÷ = ç1 +
è 100 ÷ø
= ` 2142,40
400 è 20 ø
\ CI = ` (2142.40 – 2000)
r 21 = ` 142.40
Þ 1+ =
100 20

CAREER POWER, G-7, Roots Tower, Laxmi Nagar, District Centre, Delhi-92, www.careerpower.in 3
 CAREER POWER Chapterwise SSC Quantitative Aptitude

2 2
æ 8 ö æ r ö 10
11. (1) 5832 = P ç 1 + Þ ç 100 ÷ = 1000
è 100 ÷ø è ø
2
æ 2 ö r 1 1
Þ 5832 = P ç 1 + Þ = =
è 125 ÷ø 100 100 10

27 27 100
Þ P´ ´ Þ r= = 10%
25 25 10
17. (4) Let the sum be`` x. Then
5832 ´ 25 ´ 25
Þ P= = ` 32000 2
27 ´ 27 æ 10 ö 21x
C.I. = x ç 1 + ÷ -x=
12. (4) Let the sum be ` x. è 100 ø 100
When difference between the compound interest and
simple interest on a cetain sum of money for 2 years x ´ 10 ´2 x
S.I. = =
at r% rate is ` x. then the sum is given by : 100 5
2 21x x x
\ - =
Sum = Difference × æç 100 ö÷
C.I. – S.I. =
100 5 100
è Rate ø
x
2 \ = 65
æ 100 ö 100
= `8× ç ÷
è 4 ø \ x = 6500
= ` 8 × 25 × 25 = ` 5000 Hence, the sum ` 6500.
T
PR 2 18. (2) A = P æç 1 +
R ö
13. (1) Differenc = ÷
100 ø
(100)2 è
3
P´5´5 27 æ R ö
= 1.50 = Þ x = x ç1 +
(100)2 8 è 100 ÷ø

Þ P = 400 ´ 1.5 = ` 600 3 3

Þ æ 3ö æ R ö
çè ÷ø = çè1 + ÷
2 2 100 ø
æ 100 ö
14. (1) Sum = Differenc ç ÷
è r ø R 3
Þ 1+ =
100 2
2
æ 100 ö
= 4´ç ÷ = ` 2500 R 3 1
è r ø Þ = -1 =
100 2 2
15. (2) When difference between the CI and SI on a certain
sum of money for 2 years at r% rate is ` x, then 1
Þ R= ´ 100 = 50% per annum
2 2
æ 100 ö
Sum = x ´ ç
è r ÷ø T
æ R ö
19. (4) A = P ç 1 + ÷
æ 100 ö
2 è 100 ø
= 1´ ç ÷ = ` 625
è 4 ø 2
æ R ö
Þ 1.44P = P ç1 +
16. (3) When difference between the compound interest and è 100 ÷ø
simple interest on a certain sum of money for 2 years
at r% rate is ` x, then 2
æ R ö
Þ (1.2)2 = ç1 +
æ r ö
2 è 100 ÷ø
x = Sum ç ÷
è 100 ø
R
Þ 1+ = 1.2
2 100
Þ æ r ö
10 = 1000 ç ÷ Þ R = 0.2 ´ 100 = 20%
è 100 ø

4 CAREER POWER, G-7, Roots Tower, Laxmi Nagar, District Centre, Delhi-92, www.careerpower.in
Chapterwise SSC Quantitative Aptitude CAREER POWER

T 23. (4) If the principal be ` P, then

20. (3) æ R ö
A = P ç1 +
è 100 ÷ø
T
æ r ö
A = P ç1 +
è 100 ÷ø
3
Þ æ R ö
3 = 1ç 1 +
è 100 ÷ø
2
æ r ö
Þ 1440 = P ç1 +
è 100 ÷ø
..... (i)
On squaring both sides,
6 3
æ R ö æ r ö
9 = 1ç 1 + Þ 1728 = P ç 1 +
è 100 ÷ø è 100 ÷ø
..... (ii)

T On dividing equation (ii) by (i),

æ R ö
21. (1) A = P ç1 +
è 100 ÷ø 1728
= 1+
r
1440 100
2
æ 8 ö r 1728
Þ 2916 = x ç1 +
è 100 ÷ø \ =
100 1440
-1

æ 27 ö
2 1728 - 1440 288
Þ 2916 = x ç ÷ = =
è 25 ø 1440 1440
288 ´ 100
2916 ´ 25 ´ 25 Þ r= = 20% per annum
Þ x= = ` 2500 1440
27 ´ 27
24. (4) Difference = 238.50 - 225 = ` 13.50
P×R×T
\ S.I. = = S.I. on ` 225 for 1 year
100
S.I. ×100
2500 × 9 × 3 \ Rate = Principal × Time
= = ` 675
100
13.50 ´ 100
é T ù = = 6% per annum
æ R ö 225 ´ 1
22. (1) C.I. = P êç1 + ÷ - 1ú
êè 100 ø ú
ë û
T
æ R ö
éæ 2 ù 25. (1) A = P ç1 +
Þ 2544 = P ê ç1 +
12 ö
÷ - 1ú è 100 ÷ø
êë è 100 ø úû
4
æ R ö
\ 3840 = P ç1 +
è 100 ÷ø
éæ 28 ö ù 2 ..... (i)
Þ 2544 = P êç ÷ - 1ú
êëè 25 ø úû
5
æ R ö
3936 = P ç1 + ..... (ii)
æ 784 ö è 100 ÷ø
Þ 2544 = P ç -1
è 625 ÷ø dividing equation (ii) by equation (i),

æ 784 - 625 ö P ´ 150 3936 R

Þ 2544 = P ç = = 1+
è 625 ÷ø 625 3840 100

2544 ´ 625 R 3936 3936 - 3840 96

Þ P= Þ = -1 = =
159 100 3840 3840 3840
= ` 1000 96
Þ R= ´ 100 = 2.5%
P´T´ R 3840
\ S.I. =
100
10000 × 2 ×12
= = ` 2400
100

CAREER POWER, G-7, Roots Tower, Laxmi Nagar, District Centre, Delhi-92, www.careerpower.in 5