# Compound Interest Questions and Answers updated daily – Aptitude

Compound Interest Questions: Solved 161 Compound Interest Questions and answers section with explanation for various online exam preparation, various interviews, Aptitude Category online test. Category Questions section with detailed description, explanation will help you to master the topic.

## Compound Interest Questions

41. Sum invested in scheme A, which offers compound interest (compounded annually) at 10% pa, is 50% of that in scheme B, which offers compound interest (compounded annually) at 20% pa. The duration of investment in each of the schemes is 2 years. If the difference between the amounts received from schemes A and B is Rs. 3507, what is the sum invested in scheme B? (in rupees)

Correct Ans:Rs. 4200
Explanation:
Let the investment in scheme B be Rs. x.
Investment in scheme A = Rs. x/2
According to the question,
A = P(1 + (R/100))T
x(1 + (20/100))2 - x/2(1 + (10/100))2 = 3507
x(6/5)2 - x/2(11/10)2 = 3507
36x/25 - 121x/200 = 3507
(288x - 121x)/200 = 3507
167x = 3507*200
x = (3507*200)/167
= Rs. 4200
Workspace

42. Raman invested Rs. P for 2 years in scheme A which offered 20% per annum compound interest (compound annually). He lent the interest earned from scheme A to Shubh, at the rate of 7.5% per annum simple interest. If at the end of 2 years, Subh gave Rs. 3036 to Raman and thereby repaid the whole amount (actual loan + interest), what is the value of P ?

Correct Ans:Rs. 6000
Explanation:
CI = P[(1 + R/100)T - 1]
= P[(1 + 20/100)2 - 1]
= P[(6/5)2 - 1]
= P[(36/25) - 1] = Rs. 11P/25
SI = PTR / 100
= (11P/25) * (2*7.5/100)
= Rs. 33P/500
According to the question,
33P/500 + 11P/25 = 3036
(33P + 220P)/500 = 3036
253P = 3036*500
P = (3036*500)/253 = Rs. 6000
Workspace

43. The compound interest (Compounded annually) on Rs. 9300 for 2 years at the rate of R% p.a. is Rs. 4092. Had the rate of interest been (R-10)%, what would have been the interest on the same sum of money for the same time ? (2 years)

Correct Ans:Rs. 1953
Explanation:
Amount = Rs. (9300 + 4092) = Rs. 13392
A = P(1 + R/100)T
13392 = 9300(1 + R/100)2
13392/9300 = (1 + R/100)2
144/100 = (1 + R/100)2
(12/10)2 = (1 + R/100)2
12/10 = (1 + R/100)
R/100 = 12/10 - 1 = 2/10
R = (2/10)*100 = 20% p.a.
New rate = (R - 10)% = 10%
CI = P[(1 + R/100)T - 1]
= 9300[(1 + 10/100)2 - 1]
= 9300[(11/10)2 - 1]
= 9300(121/100 - 1)
= (9300*21)/100
CI = Rs. 1953
Workspace

44. The simple interest on a sum is Rs.1600 when the rate of interest is taken as 6% per year and the time is 4 years. Find the compound interest on the same amount of money.

Correct Ans:Rs.1,750
Explanation:
Simple Interest (S.I.) = Rs.1600
Time(T) = 4 Years
Rate of Interest (R) = 6% per year
To find Principal,
Formula to calculate Simple Interest:
SI = PRT/100
SI= Simple Interest; P=Principal
S.I. = (PRT)/100
1600 = (P*6*4)/100
1600*100 = P*24
(1600*100)/24 = P
P = Rs.6,667
Therefore, the sum of money is Rs.6,667.
To find compound interest (C.I.) for the same sum,
Formula for Compound Interest (C.I)
C.I. = [P*(1+R/100)N] â€“ P
C.I. = [6667*(1+6/100)4] â€“ 6667
C.I. = Rs. 1,750
Workspace

45. A certain sum of money amounts to Rs. 2,420 in 2 years and Rs. 2,662 in 3 years at same rate of compound interest, compounded annually. The rate of interest per annum is:

Correct Ans:10%
Explanation:
Given:
Sum of money amounts in 2 yrs = Rs. 2420
Sum of money amounts in 3 yrs = Rs. 2662
So, interest on Rs.2420 for 1 yr = 2662 - 2420
= Rs. 242
SI = PNR/100
242 = (2420 x 1 x R)/100
R = (242 x 100)/2420
R = 10%.
Workspace

46. A sum of money is accumulating at compound interest at a certain rate of interest. If simple interest instead of compound were reckoned, the interest for the first two years would be diminished by Rs. 20 and that for the first three years by Rs. 61. Find the sum.

Correct Ans:Rs. 8000
Explanation:
Given:
Difference between CI and SI for 2 yrs = 20
PR²/100² = 20 ...(1)
Also given,
Difference between CI and SI for 3 yrs = 61
PR²/100²[(300 + R)/100] = 61
20[(300 + R)/100] = 61
300 + R = (61/20)*100
300 + R = 305
R = 5%

From (1),
P = 20*(100²/5²)
P = Rs. 8000
Therefore, sum is Rs.8000.
Workspace

47. The compound interest on a sum of money for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound interest and the simple interest for 3 years at the same rate will be:

Correct Ans:Rs. 98.56
Explanation:
Given: N = 2 yrs; CI = Rs.832; SI = Rs.800
Difference between CI and SI for 2 yrs = 832 - 800
PR²/100² = 832 - 800
PR²/100² = 32 .......(1)

SI for 2 yrs = Rs.800
PNR/100 = 800
2PR/100 = 800 ....(2)
Divide (1) by (2),
R/200 = 32/800
R = 8%

Therefore, Principal = SI x(100/NR)
Principal = (800 x 100)/(2 x 8)
Principal = Rs. 5000
Difference between CI and SI for 3 yrs = PR²(300 + R)/100³
= (5000 x 8² x (300 + 8))/100³
= Rs. 98.56
Workspace

48. Shilpa took a loan of Rs. 15,00,000 to purchase a car. The company charges compound interest at 20% per annum. She promised to make the payment after three years. But for the last year of loan tenure, the company increased the rate of interest by 25% from the previous one. Then the extra amount which she had to pay is what per cent of the amount of loan taken by her?

Correct Ans:7.20%
Explanation:
Given: P = Rs. 15,00,000
Rate of interest for 2 yrs = 20%
Rate of interest for last one yr = 125% of 20
= (125/100)*20 = 25%
WKT, A = P[1 + (r/100)]n
According to the question,
= 15,00,000{[1 + (20/100)]2[1 + (25/100)1]} - 15,00,000[1 + (20/100)]3
= 15,00,000{[1.2]2[1.25]} - 15,00,000[1.2]3
= 15,00,000(1.8 - 1.728)
= 15,00,000 x 0.072
= Rs.1,08,000

Required percentage = (108000/1500000)*100 = 7.20%.
Workspace

49. Rs. 2,60,200 is divided between Ram and Shyam so that the amount that Ram receives in 4 years is the same as that Shyam receives in 6 years. If the interest is compounded annually at the rate of 4% per annum then Ram’s share is

Correct Ans:Rs. 1,35,200
Explanation:
Let Ram's share be 'Rs. x'.
Therefore, Shyam share = Rs. (260200 - x)
WKT, A = P[1 + (R/100)]n

According to the question,amount recieved by Ram is same as that of Shyam,
x[1 + (4/100)]4 = (260200 - x)[1 + (4/100)]6
x = (260200 - x)[1 + (4/100)]2
x = (260200 - x)[1 + (1/25)]2
x = (260200 - x)[26/25]2
x = (260200 - x) (676/625)
(625x/676) = 260200 - x
(625x/676) + x = 260200
(625x + 676x)/676 = 260200
1301x = 260200*676
x = (260200*676)/1301
x = Rs. 1,35,200

Therefore, Ram's share is Rs. 1,35,200.
Workspace

50. Lata had Rs. 40,000. 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 rupees did she invest in scheme B?

Correct Ans:Rs. 24,000
Explanation:
Let the amount invested in the scheme A be 'Rs. X'.
Therefore, the amount invested in the scheme B = (40000 - X).

Given that the simple and compound interest for 1st year is same.
According to the question,
15% of X = 10% of (40000 - X)
15X/100 = (400000 - 10X)/100
15X = 400000 - 10X
15X + 10X = 400000
25X = 400000
X = Rs. 16,000

Amount invested in scheme B = 40000 - X
= 40000 - 16000
= Rs. 24,000
Therefore, Rs. 24,000 invested in scheme B.
Workspace

51. Rs. 2500 was borrowed for 3 years. What will be the compound interest if the rate of interest for first year is 3% per annum, second year is 4% per annum and for third year is 5% per annum respectively?

Correct Ans:311.9
Explanation:
Given: Pricipal = Rs. 2500
râ‚ = 3%; râ‚‚ = 4%; râ‚ƒ = 5%
WKT, Amount = P[1 + (R/100)]n
A = P{(1 + (râ‚/100)) * (1 + (râ‚‚/100)) * (1 + (râ‚ƒ/100))}
= 2500{(1 + (3/100)) * (1 + (4/100)) * (1 + (5/100))}
= 2500(103/100) * (104/100) * (105/100)
A = Rs. 2811.90
CI = Amount - Principal
CI = 2811.90 - 2500
CI = Rs. 311.90
Workspace

52. Calculate the amount for Rs. 37,500 at the of 8% per annum compound interest compounded half yearly for 1(1/2) years.

Correct Ans:Rs. 42,812.4
Explanation:
Rate = r = 8% p.a = 4% per half-year
Time = n = 3/2 years = 3 half years
Formula for amount, A = P(1+(r/100))â¿
= 37500 (1+(4/100))Â³
= 37500 (1+(1/25))Â³
= 37500 (26/25)Â³
= Rs. 42812.4
Therefore, amount A = Rs. 42812.4
Workspace

53. Manju saves Rs. 200 at the end of each year and lends the money at 5% compound interest. How much it will become at the end of 3 years?

Correct Ans:Rs. 662.02
Explanation:
Given: P = 220, R = 5%
WKT, Amount = P[1 + (R/100)]n
Amount = [200(1 + (5/100))3] + [200(1 + (5/100))2] + [200(1 + (5/100)]
= [200(1 + (1/20))3] + [200(1 + (1/20))2] + [200(1 + (1/20)]
= [200(21/20)3] + [200(21/20)2] + [200(21/20)]
= [(200*9261)/8000] + [(200* 441)/400] + [210]
= 231.525 + 220.5 + 210
= Rs. 662.025
Therefore amount at the end of 3 years be Rs. 662.025.
Workspace

54. A sum of money amounts to Rs. 4840 in 2 yr and to Rs. 5324 in 3 yr at compound interest compounded annually. The rate of interest per annum is

Correct Ans:10%
Explanation:
Let the rate of interest be r% per annum.
WKT, Amount = P[1 + (R/100)]n
Sum of money amounts to Rs. 4840 in 2 yr,
4840 = P[1 + (r/100)]2 ....(i)
Sum of money amounts to Rs. 5324 in 3 yr,
5324 = P[1 + (r/100)]3 .....(ii)
Dividing equation (ii) by (i), we get
5324/4840 = 1 + (r/100)
(5324/4840) - 1 = (r/100)
(5324 - 4840)/4840 = (r/100)
484/4840 = r/100
r = (484/4840)*100
r = 10%
Therefore, rate of interest per annum is 10%.
Workspace

Study the following information carefully and answer the given questions:
A man invested Rs. 30000 in a scheme at 20% compound interest for 2 years. After 2 years he withdraws all his money. From that money, he purchased a Bike worth Rs. 32000. And with remaining amount, 10% in mutual funds and with the remaining money, he purchased 2 watches W1 and W2 for an equal amount. He sells watch W1 at 10% profit and watches W2 at 20% profit.

Refer the above for the Questions 55 to 54
55. Find the Selling price of watch 2?

Correct Ans:Rs. 6048
Explanation:
The principle amount = Rs.30000
Compound interest:
30000 * (20/100)= 6000
36000 * (20/100)= 72000
Compound Interest = 6000 + 7200
C.I = Rs.13200
The amount received after 2 years of his investment = 30000 + 13200 = Rs. 43200
It is given that, he purchased a Bike worth Rs.32000
Remaining amount = 43200 â€“ 32000 = Rs.11200
Total amount invested in Mutual funds = 11200*(10/100) = Rs. 1120
Remaining amount = 11200 â€“ 1120 = Rs. 10080
With this remaining amount, he purchased 2 watches W1 and W2 for an equal amount.
Cost price of W1 = Cost price of W2 = 10080/2 = Rs.5040
Selling price of W1 = 5040*(110/100) = Rs.5544
Selling price of W2 = 5040*(120/100) = Rs. 6048
Workspace

Study the following information carefully and answer the given questions:
A man invested Rs. 30000 in a scheme at 20% compound interest for 2 years. After 2 years he withdraws all his money. From that money, he purchased a Bike worth Rs. 32000. And with remaining amount, 10% in mutual funds and with the remaining money, he purchased 2 watches W1 and W2 for an equal amount. He sells watch W1 at 10% profit and watches W2 at 20% profit.

Refer the above for the Questions 56 to 55
56. Find the Selling price of watch 1?

Correct Ans:Rs. 5544
Explanation:
The principle amount = Rs.30000
Compound interest:
30000 * (20/100)= 6000
36000 * (20/100)= 72000
Compound Interest = 6000 + 7200
C.I = Rs.13200
The amount received after 2 years of his investment = 30000 + 13200 = Rs. 43200
It is given that, he purchased a Bike worth Rs.32000
Remaining amount = 43200 â€“ 32000 = Rs.11200
Total amount invested in Mutual funds = 11200*(10/100) = Rs. 1120
Remaining amount = 11200 â€“ 1120 = Rs. 10080
With this remaining amount, he purchased 2 watches W1 and W2 for an equal amount.
Cost price of W1 = Cost price of W2 = 10080/2 = Rs.5040
Selling price of W1 = 5040*(110/100) = Rs.5544
Workspace

Study the following information carefully and answer the given questions:
A man invested Rs. 30000 in a scheme at 20% compound interest for 2 years. After 2 years he withdraws all his money. From that money, he purchased a Bike worth Rs. 32000. And with remaining amount, 10% in mutual funds and with the remaining money, he purchased 2 watches W1 and W2 for an equal amount. He sells watch W1 at 10% profit and watches W2 at 20% profit.

Refer the above for the Questions 57 to 56
57. Find the amount he invested in mutual funds?

Correct Ans:Rs. 1120
Explanation:
The principle amount = Rs.30000
Compound interest:
30000 * (20/100)= 6000
36000 * (20/100)= 72000
Compound Interest = 6000 + 7200
C.I = Rs.13200
The amount received after 2 years of his investment = 30000 + 13200 = Rs. 43200
It is given that, he purchased a Bike worth Rs.32000
Remaining amount = 43200 â€“ 32000 = Rs.11200
Total amount invested in Mutual funds = 11200*(10/100) = Rs. 1120
Remaining amount = 11200 â€“ 1120 = Rs. 10080
Workspace

Study the following information carefully and answer the given questions:
A man invested Rs. 30000 in a scheme at 20% compound interest for 2 years. After 2 years he withdraws all his money. From that money, he purchased a Bike worth Rs. 32000. And with remaining amount, 10% in mutual funds and with the remaining money, he purchased 2 watches W1 and W2 for an equal amount. He sells watch W1 at 10% profit and watches W2 at 20% profit.

Refer the above for the Questions 58 to 57
58. Find the amount left after buying a bike?

Correct Ans:Rs. 11200
Explanation:
The principle amount = Rs.30000
Compound interest:
30000 * (20/100)= 6000
36000 * (20/100)= 72000
Compound Interest = 6000 + 7200
C.I = Rs.13200
The amount received after 2 years of his investment = 30000 + 13200 = Rs. 43200
It is given that, he purchased a Bike worth Rs.32000
Remaining amount = 43200 â€“ 32000 = Rs.11200
Workspace

Study the following information carefully and answer the given questions:
A man invested Rs. 30000 in a scheme at 20% compound interest for 2 years. After 2 years he withdraws all his money. From that money, he purchased a Bike worth Rs. 32000. And with remaining amount, 10% in mutual funds and with the remaining money, he purchased 2 watches W1 and W2 for an equal amount. He sells watch W1 at 10% profit and watches W2 at 20% profit.

Refer the above for the Questions 59 to 58
59. Find the amount received after 2 years of his investment?

Correct Ans:Rs. 43200
Explanation:
The principle amount = Rs.30000
Compound interest:
30000 * (20/100)= 6000
36000 * (20/100)= 72000
Compound Interest = 6000 + 7200
C.I = Rs.13200
The amount received after 2 years of his investment = 30000 + 13200 = Rs. 43200
Workspace

60. Reet invested an amount of Rs A for 2 years at 12% compound interest and received some amount of interest. Sonali invested Rs (A + 1500) for 3 years at 8% simple interest and received same amount of interest as Reet received. Find the amount that is invested by Reet.

Correct Ans:Rs. 25,000
Explanation:

Reet invested an amount = Rs.A
Sonali invested an amount = Rs. (A + 1500)
According to the question, same amount of interest is received by both.
Therefore, CI = SI
P[1 + (R/100)]â¿ - P = PNR/100
A(1 + (12/100))² - A = [(A + 1500)*3*8%]
A*(112/100)*(112/100) - A = (A + 1500)*(24/100)
A*(12544/10000) - A = A*(24/100) + (1500*(24/100))
A*(12544/10000) - A - A*(24/100) = 360
(12544A - 10000A - 2400A)/10000 = 360
144A = 3600000
A = Rs. 25,000
Amount invested by Reet = Rs. 25,000.

Workspace

Are you seeking for good platform for practicing Compound Interest questions in online. This is the right place. The time you spent in Fresherslive will be the most beneficial one for you.

## Online Test on Compound Interest @ Fresherslive

This page provides important questions on Compound Interest along with correct answers and clear explanation, which will be very useful for various Interviews, Competitive examinations and Entrance tests. Here, Most of the Compound Interest questions are framed with Latest concepts, so that you may get updated through these Compound Interest Online tests. Compound Interest Online Test questions are granted from basic level to complex level.

## Why To Practice Compound Interest Test questions Online @ Fresherslive?

Compound Interest questions are delivered with accurate answer. For solving each and every question, very lucid explanations are provided with diagrams wherever necessary.
Practice in advance of similar questions on Compound Interest may improve your performance in the real Exams and Interview.
Time Management for answering the Compound Interest questions quickly is foremost important for success in Competitive Exams and Placement Interviews.
Through Fresherslive Compound Interest questions and answers, you can acquire all the essential idea to solve any difficult questions on Compound Interest in short time and also in short cut method.
Winners are those who can use the simplest method for solving a question. So that they have enough time for solving all the questions in examination, correctly without any tense. Fresherslive provides most simplest methods to answer any tough questions. Practise through Fresherslive test series to ensure success in all competitive exams, entrance exams and placement tests.

## Why Fresherslive For Compound Interest Online Test Preparation?

Most of the job seekers finding it hard to clear Compound Interest test or get stuck on any particular question, our Compound Interest test sections will help you to success in Exams as well as Interviews. To acquire clear understanding of Compound Interest, exercise these advanced Compound Interest questions with answers.
You're Welcome to use the Fresherslive Online Test at any time you want. Start your beginning, of anything you want by using our sample Compound Interest Online Test and create yourself a successful one. Fresherslive provides you a new opportunity to improve yourself. Take it and make use of it to the fullest. GOODLUCK for Your Bright Future.

## Online Test

Online Test for Aptitude
Online Test for Logical Reasoning
Online Test for Computer Knowledge
Online Test for General Knowledge
Online Test for Data Interpretation
Online Test for Verbal Ability
Online Test for C++
Online Test for Networking
Online Test for Java
Online Test for C Language

FreshersLive - No.1 Job site in India. Here you can find latest 2023 government as well as private job recruitment notifications for different posts vacancies in India. Get top company jobs for both fresher and experienced. Job Seekers can get useful interview tips, resume services & interview Question and answer. Practice online test free which is helpful for interview preparation. Register with us to get latest employment news/rojgar samachar notifications. Also get latest free govt and other sarkari naukri job alerts daily through E-mail...