Compound Interest

1. The compound interest earned by Suresh on a certain (1) ` 10,000 (2) ` 6,000
amount at the end of two years at the rate of 8 p.c .p.a was (3) ` 12,000 (4) ` 8,000
` 1,414.4. What was the total amount that Suresh got back (5) None of these
at the end of two years in the form of principal plus interest
8. What would be the compound interest obtained on an
earned ?
amount of ` 7,790 at the rate of 10 p.c.p.a. after two years?
(1) ` 9,414.4 (2) ` 9,914.4
(1) ` 1532.60 (2) ` 1495.90
(3) ` 9,014.4 (4) ` 8,914.4
(3) ` 1653.50 (4) ` 1635.90
(5) None of these
(5) None of these
2. The compound interest accurued on an amount at the end
of three years at 15 p.c.p.a. is ` 6500.52. What is the 9. The simple interest accrued on an amount of ` 22,500 at
amount ? the end of four years is ` 10,800. What would be the
compound interest accrued on the same amount at the same
(1) ` 12480 (2) ` 10500
rate at the end two years ?
(3) ` 14800 (4) ` 13620
(1) ` 14,908 (2) ` 5,724
(5) None of these
(3) ` 26,234 (4) ` 8,568
3. The simple interest accrued on an amount of ` 20,000 at
the end of three years is ` 7,200. What would be the (5) None of these
compound interest accrued on the same amount at the same 10. What is the difference between the simple and compound
rate in the same period ? interest on ` 7300 at the rate of 6 p.c.p.a. in 2 years ?
(1) ` 8398.36 (2) ` 8098.56 (1) ` 29.37 (2) ` 26.28
(3) ` 8246.16 (4) ` 8112.86 (3) ` 31.41 (4) ` 23.22
(5) None of these (5) ` 21.34
4. Mr. Rao invests a sum of ` 41,250 at the rate of 6 p.c.p.a. 11. The difference between the amount of compound interest
What approximate amount of compound interest will be and simple interest accured on an amount of ` 26,000 at
obtain at the end of 3 years ? the end of 3 years is ` 2994.134 What is the rate of interest
(1) ` 8,100 (2) ` 7,425 p.c.p.a. ?
(3) ` 8,210 (4) ` 7,879 (1) 22 (2) 17
(5) ` 7,295 (3) 19 (4) Cannot be determined
5. What will be the compound interest on a sum of ` 25,000 (5) None of these
after three years at the rate of 12 per cent p.a. ? 12. The simple interest accrued on a sum of certain principal
(1) ` 10123.20 (2) ` 9000.30 is ` 2,000 in five years at the rate of 4 p.c.p.a. What would
(3) ` 10483.20 (4) ` 9720 be the compound interest accrued on same principal at
(5) None of these same rate in two years ?
6. Sudharshan invested ` 15,000 at interest @ 10 p.c.p.a. for (1) ` 716 (2) ` 724
one year. If the interest is compounded every six months (3) ` 824 (4) ` 816
what amount will Sudharshan get at the end of the years? (5) None of these
(1) ` 16,537.50 (2) ` 16,500 13. Pamela invested an amount of ` 35,000 for two years at
(3) ` 16,525.50 (4) ` 18,150 the rate of 5 p.c.p.a. What amount of compound interest
(5) None of these would she receive at the end of two years ?
7. The difference between the simple interest on a certain sum (1) ` 3587.50 (2) ` 3500
at rate of 10% per annum for 2 years and compound interest (3) ` 3580.50 (4) ` 3565.50
which is compounded every 6 months is ` 124.05. What
(5) None of these
is the principal sum?

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 CAREER POWER Chapterwise Bank PO Quantitative Aptitude
14. What will be the approximate difference in the simple and 1
compound interest accrued on an amount of ` 2600 at the 20. The compound interest (in Rupees) on ` 5,600 for 1
2
rate of 15 p.c.p.a. at the end of three years ? years at 10% per annum, compounded annually, is
(1) ` 167 (2) ` 194 (1) 882.70 (2) 873.50
(3) ` 202 (4) ` 172 (3) 868 (4) 840
(5) ` 184 21. A sum money becomes ` 13,380 after 3 years and ` 20,070
15. A man gets a simple interest of ` 1,000 on a certain after 6 years on compound interest. The sum (in Rupees)
principal at the rate of 5 p.c.p.a. in years. What compound is :
interest will the man get on twice the principal in two years (1) 8800 (2) 8890
at the same rate ? (3) 8920 (4) 9040
(1) ` 1,050 (2) ` 1,005 22. The simple interest accrued on a sum of certain principal
(3) ` 11,025 (4) ` 10,125 is – ` 6500 in eight years at the rate of
13 per cent per year. What would be the compound interest
(5) None of these
accrued on that principal at the rate of 8 percent per year
16. Sonika invested an amount of ` 5,800 for 2 years. At what in 2 years ?
rate of compound interest will she get an amount of ` 594.5 (1) ` 1040 (2) ` 1020
at the end of two years ?
(3) ` 1060 (4) ` 1200
(1) 5 p.c.p.a. (2) 4 p.c.p.a. (5) None of these
(3) 6 p.c.p.a. (4) 8 p.c.p.a. 23. The simple interest accrued on an amount of ` 40,000 at
(5) None of these the end of three years is ` 12,000. What would be the
17. What would be the compound interest accrued on an compound interest accrued on the same amount at the same
amount of ` 45,400 at the end of two years at the ratio rate in the same period ?
of 15 p.c.p.a. ? (1) ` 18,765 (2) ` 15,350
(1) ` 16411.5 (2) ` 14461.5 (3) ` 21,555 (4) ` 13,240
(3) ` 16461.5 (4) ` 14641.5 (5) None of these
(5) None of these 24. The compound interest accrued on an amount of ` 22.000
18. What would be the compound interest accrued on an at the end of two years is ` 5,596.8. What would be the
amount of ` 7,400 at the rate of 13.5 p.c.p.a at the end of simple interest accrued on the same amount at the same rate
two years? (rounded off to two digits after decimal) in the same perid ?
(1) ` 2,136.87 (2) ` 2,306.81 (1) ` 5,420 (2) ` 5,360
(3) ` 2,032.18 (4) ` 2,132.87 (3) ` 5,280 (4) ` 5,140
(5) None of these
(5) None of these
25. Mr. Duggal invested ` 20,000 with rate of interest at 20
19. The simple interest accrued on an amount of 27,500 at the
p.c.p.a. The interest was compounded half yearly for first
end of three years is ` 10,230. what would be the
year and in the next year it was compounded yearly. What
approximate compound interest accrued on the same
will be the total interest earned at the end of two years?
amount at the same rate in the same priod ?
(1) ` 8,800 (2) ` 9,040
(1) ` 11,550 (2) ` 12,620
(3) ` 8,040 (4) ` 9,800
(3) ` 10,950 (4) ` 11,900
(5) None of these
(5) ` 13,500

HINTS & SOLUTIONS

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

7. (4) 8. (4) 9. (2) 10. (2) 11. (3) 12. (4)

13. (1) 14. (5) 15. (5) 16. (1) 17. (4) 18. (4)

19. (1) 20. (3) 21. (3) 22. (1) 23. (4) 24. (3)
25. (2)

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 Chapterwise Bank PO Quantitative Aptitude CAREER POWER

éæ R ö
T ù ìïæ 12 ö
3 üï
(2) CI = P êç1 + ÷ - 1ú 5. (1) C.I. = 25000 íç1 + - 1 ý
1.
êëè 100 ø úû è 100 ÷ø
îï þï

éæ 2 ù é ì T üï ù
êQ C.I. = P ïíæç 1 +
8 ö R ö
Þ 1414.4 = P êç1 + ÷ - 1ú ÷ - 1 ýú
êëè 100 ø úû êë îïè 100 ø ïþ úû

Þ 1414.4 = P × 0.1664 = 25000 {(1.12)3–1}

= 25000 (1.404928 – 1)
1414.4
Þ P= = ` 8500 = 25000 × 0.404928 = `10123.2
0.1664
6. (1) Interest is compounded half yearly.
\ Amount = ` (8500 + 1414.4) ` = 9914.4
10
2. (1) Let the principal be ` P. Hence rate of interest = = 5%
According to the question, 2
No. of periods = 2
éæ R ö T ùú
C.1.= P ê ç 1 + -1 2
êè 100 ÷ø ú
æ
\ Amount = 15000 ç1 +
5 ö
÷
ë û è 100 ø
éæ 15 ö
3 ù 21 21
Þ 6500.52 = P êç1 + ÷ - 1ú = 15000 ´ ´ = ` 16537.50
êëè 100 ø úû 20 20
7. (4) Let the principal sum be ` P
Þ 6500.52 = P (1.520875 – 1)
PRT
650052 SI =
Þ P= = ` 12480 100
0.520875
é nt ù
CI = êæç1 +
R ö
S.I.×100 ÷ - 1ú
3. (2) Rate = êëè 100 ø úû
Princepal × Time
R = 10%, T = 2 years, n = 2
7200 ´ 100
= = 12% per annum because CI is compounded half
20000 ´ 3
P ´ 10 ´ 2 P
SI = =
é
æ R öT ùú 100 5
\ C.I. = P êç1 + -1
êè 100 ÷ø ú 2´ 2
ë û é ù
CI = P êæç1 +
10 ö
÷ - 1ú
êëè 100 ´ 2 ø úû
éæ 12 ö
3 ù
é 3 ù
= 2000 êç1 + ÷ - 1ú = 2000 êë(1.12 ) - 1úû
êëè 100 ø úû é 21 4 ù
CI = P êæç ö÷ - 1ú
= 2000 × (1.404928 – 1) = ` 8098.56 êëè 20 ø úû
éæ R ö
T ù
4. (4) C.I. = P êç1 + ÷ - 1ú éæ 194481ö ù
êëè 100 ø úû CI = P êç ÷ - 1ú
ëè 160000 ø û

éæ 3 ù 34481
6 ö CI = P
ê
= 42150 ç 1 + ÷ - 1ú 16000
êëè 100 ø úû
34481 P
= 41250 [(1.06)3 – 1] CI – SI = P-
160000 5
= 41250 (1.191 – 1)
= 41250 × 0.191 34481 - 32000
= P
= ` 7878.75 160000
= ` 7879

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 CAREER POWER Chapterwise Bank PO Quantitative Aptitude

2481 Þ r2 (r + 300) = 19 × 19 (300 + 19)

= P \ r = 19% per annum.
160000
2481 SI ´100 2000 ´ 100
\ P = 124.05 12. (4) Princepal = = = ` 10000
Time ´ Rate 5´ 4
16000
124.05 ´ 160000 é T ù
æ T ö
P= = ` 8000 \ C.I. = P ê ç 1 + - 1ú
2481 êè 1 0 0 ÷ø ú
ë û
éæ R ö T ùú
8. (4) C.I. = P ê ç 1 + -1 éæ 2 ù
êè 100 ÷ø ú = 10000 êç1 +
4 ö
ë û ÷ - 1ú
êëè 100 ø úû
éæ 10 ö
2 ù
= 7790 êç1 + ÷ - 1ú éæ 26 ö2 ù
êëè 100 ø úû = 10000 × êç ÷ - 1ú
êëè 25 ø úû
æ 121 ö
= 7790 ç - 1÷ æ 676 ö
è 100 ø = 10000 ç - 1÷
è 625 ø
7790 ´ 21
= = ` 1635.9 10000 ´ 51
100 = = ` 816
625
S.I.´100
9. (2) Rate = éæ T ù
Pr incipal ´ Time R ö
13. (1) Compound interest = P êç1 + ÷ - 1ú
êëè 100 ø úû
10800 ´100
= = 12% per annum
22500 ´ 4
éæ 5 ö
2 ù
= 35000 êç1 + ÷ - 1ú
é
æ R öT ù
êëè 100 ø úû
\ CI = P ê ç 1 + - 1 ú
êè 1 0 0 ÷ø ú
ë û
41
= 35000 × = ` 3587.5
éæ 2 ù éæ 28 ö2 ù 400
12 ö
= 22500 êç1 + ÷ - 1ú = 22500 êç ÷ - 1ú
êëè 100 ø úû êëè 25 ø úû éæ R öT ù
14. (5) A = P êç1 + ÷ - 1ú
êëè 100 ø úû
é 784 - 625 ù 22500 ´ 159
= 22500 ê ú = = ` 5724
ë 625 û 625
éæ 15 ö
3 ù
= 2600 êç1 + ÷ - 1ú
P ´ R2 êëè 100 ø úû
10. (2) Difference =
(100) 2 = 2600 × 0.5209 = ` 1354
7300 ´ 36 P´R´T
= = ` 26.28 Simple interest =
10000 100

Difference ´ (100)3 =
2600 ´ 15 ´ 3
= ` 1170
11. (3) Princepal = 100
r 2 (r + 300)
\ Difference = ` (1354 – 1170) = `184
3
2994.134 ´ (100 ) SI ´100
Þ 26000 = 15. (5) Principal =
2
r ( r + 300 ) Time ´ Rate

2994134000 1000 ´100

Þ r2 (r + 300) = = 115159 = = ` 5000
26000 4´5

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 Chapterwise Bank PO Quantitative Aptitude CAREER POWER

Case II S1 ´ 100
Princepal ` 10000 19. (1) Interest =
Pr incepal ´ Time
éæ Rateö Time ù 10230 ´ 100
\ C.I. = P êç1+ ÷ - 1ú = = 12.4% per year
êè 100 ø ú 27500 ´ 3
ë û
éæ R ö T ùú
éæ 2 ù \ CI = P ê ç 1 + -1
5 ö
= 10000 êç1 + ÷ - 1ú êè 100 ÷ø ú
êëè 100 ø úû ë û

éæ 24 ö
3 ù
éæ 21 ö2 ù
= 27500 êç1 + ÷ - 1ú
= 10000 × êç ÷ - 1ú êëè 100 ø úû
êëè 20 ø úû
41 = 27500 (1.42 – 1)
= 10000 × = ` 1025 = 27500 × 0.42 = ` 11550
400
Time
20. (3) Amount = Princepal æç 1 +
T Rate ö
æ R ö ÷
16. (1) Amount = P ç 1 + è 100 ø
è 100 ÷ø
Þ 5800 + 594.5 é 1 ù
1
ê æ 10 ö 2 ú
2 = ` ê5600 ç 1 + ÷ ú
æ R ö è 100 ø ú
Þ 5800 ç 1 + ÷ ê
è 100 ø ë û

2 2 é
63945 æ R ö 441 æ R ö æ 1 öù
Þ = ç1 + = ç1 + ê ´ 100 ÷ ú
5800 ÷ = ÷ æ 10 ö ç 2
è 100 ø 400 è 100 ø = ` ê5600 ç 1 + ÷ ´ ç1 + ÷ú
ê è 100 ø ç 100 ÷ ú
ç ÷
æ 21 ö
2
æ R ö
2
R 21 ëê è ø ûú
Þ ç ÷ = ç1 + ÷ Þ 1 + 100 = 20
è 20 ø è 100 ø
æ 11 21 ö
= ` ç 5600 ´ ´ ÷ = ` 6468
1 è 10 20 ø
Þ R= × 100 = 5% annum.
20 \ Compound interest = ` (6468 – 5600) = ` 868

é T ù 21. (3) Let the sum be ` x. Then,

17. (4) C.I. = P êæç1 +
R ö
÷ - 1ú 3
êëè 100 ø úû
x æç 1 +
R ö
÷ = 13380 ...(i)
è 100 ø
éæ 15 ö
2 ù
= 45400 êç1 + ÷ - 1ú æ R ö
6
êëè 100 ø úû and, x ç 1 + ÷ = 20070 ...(ii)
è 100 ø
é 2 ù
= 45400 ê(1.15 ) - 1ú Dividing equation (ii) by (i),
ë û
= 45400 × 0.3235 = ` 14641.5 3
æ R ö 20070 3
ç 1 + ÷ = 13380 =
éæ T ù è 100 ø 2
R ö
ê
18. (4) C.I. = P ç 1 + ÷ - 1ú
êëè 100 ø úû From equation (i),
3
x× = 13380
éæ 135 ö 2ù 2
= 7400 êç1 + ÷ - 1ú
êëè 100 ø úû 2
Þ x = 13380 × = 8920
3
é 2 ù
= 7400 ê(1.135 ) - 1ú Hence, the sum is ` 8920.
ë û
= 7400 × 0.288225 = ` 2132.87

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SI ´ 100 5596.8 æ R ö
2
22. (1) Principal =
Time ´ Rate Þ = ç1 + ÷ -1
22000 è 100 ø
6500 ´ 100
= = ` 6250 2
8 ´ 13 æ R ö 5596.8
Þ ç1 + ÷ = 1 + 22000
T è 100 ø
é R ö ù
æ
\ CI = P ê ç 1 + - 1ú
êè 1 0 0 ÷ø ú æ R ö
2
22000 + 5596.8 27596.8
ë û Þ ç1 + ÷ = =
è 100 ø 22000 22000
éæ 8 ö
2 ù
2
= 6250 êç1 + ÷ - 1ú æ R ö 275968 12544
êëè 100 ø úû Þ ç1 + ÷ = 220000 = 10000
è 100 ø

éæ 27 ö2 ù é 729 ù R 12544 112

= 6250 êç ÷ - 1ú = 6250 ê 625 - 1ú Þ 1+ = =
êëè 25 ø úû ë û 100 10000 100

R 112 112 - 110 12

é 729 - 625 ù 6250 ´ 104 Þ = –1= =
= 6250 ê ú= = `1040 100 100 100 100
ë 625 û 625
Þ R = 12
SI ´100 12000 ´100 Pr incipal ´ Time ´ Rate
23. (4) Rate = = = 10% \ SI =
Principal ´ Time 40000 ´ 3 100

éæ Rate ö Time ù 22000 ´ 2 ´ 12

= = ` 5280
\ CI = Principal êç1 + ÷ - 1ú 100
êëè 100 ø úû
Time
æ Rate ö
25. (2) Amount = Principal = ç1+
é 3 ù è 100 ÷ø
= 40000 êæç1 +
10 ö 3
÷ - 1ú = 40000 [(1.1) – 1]
êëè 100 ø úû
2
æ 10 ö æ 20 ö
= 20000 ç 1 + ÷ ç1 + ÷
= 40000 (1.331 – 1) = 40000 × 0.331 = ` 13240 è 100 ø è 100 ø
24. (3) Let the rate of interest be R% per annum.
(Rate of interest for the first years
éæ R ö ù T = 10%, Time = 2 half years)
\ CI = P êç1 + ÷ - 1ú
êëè 100 ø úû æ 11 11 6 ö
= ` ç 20000× ´ ´ ÷ = ` 29040
è 10 10 5 ø
éæ R ö
2 ù
\ C.I. = ` (29040 – 20000) = ` 9040
Þ 5596.8 = 22000 êç1 + ÷ - 1ú
êëè 100 ø úû

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