# 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

61. A man gave 50% of his savings of Rs. 84,100 to his wife and divided the remaining sum among his two sons A and B of 15 and 13 years of age respectively. He divided it in such a way that each of his sons, when they attain the age of 18 years, would receive the same amount at 5% compound interest per annum. The share of B was

Correct Ans:Rs. 20,000
Explanation:
Given, wife gets 50% of total savings of Rs. 84,100.
So, wifeâ€™s share = (50/100)*84100 = Rs. 42,050
Remaining sum = 84100 - 42050 = Rs. 42,050
Amount = P[1 + (R/100)]â¿

According to the question, Aâ€™s share = Bâ€™s share
Aâ€™s share[(1 + (5/100)]Â³ = Bâ€™s share[(1 + (5/100)]âµ
Aâ€™s share/Bâ€™s share = [(1 + (5/100)]âµ/[(1 + (5/100)]Â³
Aâ€™s share/Bâ€™s share = [(1 + (5/100)]âµâ»Â³
Aâ€™s share/Bâ€™s share = (105/100)Â²
Aâ€™s share/Bâ€™s share = (21/20)Â²
Ratio of shares of A and B,
Aâ€™s share/Bâ€™s share = 441/400
Bâ€™s share = (Remaining sum/total ratio)*Bâ€™s ratio
= (42050/842)*400 = Rs.20,000
Workspace

62. A man borrows Rs. 12,500 at 20% compound interest. At the end of every year he pays Rs. 2000 as part of repayment. How much does he still owe after three such instalments?

Correct Ans:Rs. 14,320
Explanation:
Principal = Rs. 12,500
Rate = 20% compounded per annum.
WKT, Amount = P[1+ (r/100)]n
Amount after first year = 12500*(120/100) = Rs. 15,000
Principal for second year = 15000 - 2000 = Rs. 13,000
Amount after second year = 13000*(120/100) = Rs. 15,600
Principal for third year = 15600 - 2000 = Rs. 13,600
Amount after third year = 13600*(120/100) = Rs. 16,320
Remaining amount = 16320 - 2000 = Rs. 14,320.
Workspace

63. Simple interest on a certain sum of money for 3 years at 5% per annum is half the compound interest on Rs 5000 for 2 years at 10% per annum. Find the principal amount on simple interest.

Correct Ans:Rs. 3500
Explanation:
Let A be the amount obtained when Rs.5000 is compound annually.
WKT, CI = P(1 + (R/100))n - P
= 5000*(1 + (10/100))2 - 5000
= 5000*(110/100)2 - 5000
= 5000 * [(110*110)/(100*100)] - 5000
= 6050 - 5000
= Rs. 1050
Given, simple interest is half the compound interest = 1050/2 = Rs. 525
Let P be the sum of money invested on SI.
WKT, SI = PNR/100
525 = (P*5*3)/100
P = (525*100)/15
P = Rs. 3500
Workspace

64. Three persons Amar, Akbar and Anthony invested different amounts in a fixed deposit scheme for one year at the rate of 12% per annum and earned a total interest of Rs. 3,240 at the end of the year. If the amount invested by Akbar is Rs. 5000 more than the amount invested by Amar and the invested by Anthony is Rs. 2000 more than the amount invested by Akbar, what is the amount invested by Akbar ?

Correct Ans:10,000
Explanation:
Workspace

65. Subash purchased a refrigerator on the terms that he is required to pay Rs.1,500 as cash down payment followed by Rs.1,020 at the end of first year, Rs.1,003 at the end of second year and Rs.990 at the end of third year. Interest is charged at the rate of 10% per annum. Calculate the cost price.

Correct Ans:4000
Explanation:
Given
Cash Down Payment = Rs 1500
let X becomes 1020 at the end of 1st year

1020 = x ( 1 + (10 / 100) )
x = 1020 * 10 / 11
=> 927.27

It becomes 1003 at the end of 2nd year
y = 1003 * 20 * 20 * / 22 * 22
=> 828.92
It becomes 990 at the end of 3rd year
z= 990 * 10 * 10 * 10 / 11 * 11 * 11
=> 743.80
Cost Price =>1500 + 927.27 + 828.92 + 743.80
=> 3999.99 or 4000.
Workspace

66. Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received Rs.550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received Rs.605 as interest. What was the value of his total savings before investing in these two bonds?

Correct Ans:Rs.2,750
Explanation:
Shawn received an extra amount of (Rs.605 – Rs.550) Rs.55 on his compound interest paying bond as the interest that he received in the first year also earned interest in the second year.

The extra interest earned on the compound interest bond = Rs.55
The interest for the first year =550/2 = Rs.275

Therefore, the rate of interest =55/275 * 100 = 20% p.a.

20% interest means that Shawn received 20% of the amount he invested in the bonds as interest.

If 20% of his investment in one of the bonds = Rs.275, then his total investment in each of the bonds = 275/20 * 100 = 1375.

As he invested equal sums in both the bonds, his total savings before investing = 2*1375 = Rs.2750
Workspace

67. Arun borrowed a certain sum from Manish at a certain rate of simple interest for 2 years. He lent this sum to Sunil at the same rate of interest compounded annually for the same period. At the end of two years, he received Rs. 2400 as compound interest but paid Rs. 2000 only as simple interest. Find the rate of interest.

Correct Ans:40%
Explanation:
Let the sum be x

Simple interest on x for 2 years = Rs.2000
Formula
Simple Interest = (P *R*T) / 100
2000 = x * R * 2 / 100
=> x R =100000 ---- (1)

Compound Interest on x for 2 years = 2400
P( 1 + R / 100 ) ^ T - P = 2400
=> x ( 1+ R / 100 ) ^ 2 - x = 2400
=> x ( 1 + 2R / 100 + R ^ 2 / 10000)- x = 2400
=> x ( 2R / 100 + R ^ 2 /10000 ) = 2400
=> 2 x R / 100 +x R ^ 2 /10000 ) = 2400 -----(2)

Substituting the value of xR from (1) in (2) ,we get
=> 2 * (100000 / 100) +100000 * (R /10000) = 2400
=>2000 + 10 R = 2400
=> 10 R = 2400 - 2000
=> 10 R = 400
=> R = 400 / 10
=> R = 40 %.
Workspace

68. Hari lended a sum of Rs.8000 for 20% per annum at compound interest then the sum of the amount will be Rs.13824 is obtained. After how many years he will get that amount?

Correct Ans:3 years
Explanation:
Let Principal = P, Rate = R% per annum, Time = n years

When interest is compounded annually, total amount can be calculated by using the formula
Compound Amount = P ( 1 + R / 100) ^ n

Given that, P = Rs.8000, R = 20% per annum
Compound Amount = Rs. 13824
We have to find the time period during which the amount will be Rs.13824

=> Rs.13824 = 8000 x (1 + 20/100) ^ n
=> (13824 /8000) = (120 / 100) ^ n
=> (24 / 20) ^ 3 = (12 / 10) ^ n
=> (12 /10)^3 = (12 /10 ) ^ n

Therefore, n = 3.
Hence the required time period is 3 years.
Workspace

69. Akarsh left a will of Rs. 16,400 for his two sons whose age are 17 and 18 years.They must get equal amounts when they are 20 years at 5% compound interest. Find the present share of the younger son.

Correct Ans:Rs. 8,000
Explanation:
Given, total amount (to be shared by two sons at the age of 20 on Compound interest) = Rs. 16,400

Let the Present share (Principal amount) for 17 year old son = "X"

Then the Present share (Principal amount) for 18 year old son = (16,400 - X)

To attain 20 years of age,
=> 17 year old son takes 3 years (N = 3 years on Compound interest)
=> 18 year old son takes 2 years (N = 2 years on Compound interest)

Given, Rate of interest (R) = 5%

Given that, at the age of 20, two sons get equal amount
=> Compound Amount of 17 year old son = Compound Amount of 18 year old son
W.K.T, Formula for Compound Amount = P [1 + (R/100)]^N
=> X (1 + 5/100)^3 = (16,400 - X) (1 + 5/100)^2
=> X (1 + 5/100) = (16,400 - X)
=> (105/100) X = (16,400 - X)
=> [(105/100) X] + X = 16,400
=> 205 X = 16,400 * 100
=> X = 16,40,000 / 205
=> X = 8,000

Therefore, Present share for 17 year old son = Rs. 8,000
Workspace

70. What will be the amount if sum of Rs.10,00,000 is invested at compound interest for 3 years with rate of interest 11%, 12% and 13% respectively?

Correct Ans:Rs.14,04,816
Explanation:
Given
Here, P = Rs.10,00,000, R1 = 11 , R2 = 12, R3 = 13.
Each rate of interest is calculated for one year.
Hence, N = 1 year.

Amount after 3 years,
= P(1 + R1/100) (1 + R2/100) (1 + R3/100)
= 10,00,000 * (1 + 11/100) * (1 + 12/100) * (1 + 13/100)
= 10,00,000 * (111/100) * (112/100) * (113/100)
= 111 x 112 x 113
= 14,04,816
Hence the total amount after 3 years is Rs.14,04,816
Workspace

71. A sum of money is invested at 10% per annum compounding annually for 2 years. If the interest received is Rs. 210, find the principal.

Correct Ans:1000
Explanation:
Given, r = 10%
n = 2 years
Compound interest, C.I = Rs. 210

Compound Interest = Amount – Principal
=> C.I = P {[1 + (r/100)]^n - 1}
=> 210 = P {[1 + (10/100)]^2 - 1}
=> 210 = P {[1 + (1/10)]^2 - 1}
=> 210 = P {[(10 + 1)/10]^2 - 1}
=> 210 = P {[11/10]^2 - 1}
=> 210 = P {[121 / 100] – 1}
=> 210 = P {(121 – 100) / 100}
=> 210 = P {21 / 100}
=> P = (210 * 100) / 21
=> P = 1000 Rs.
Thus, Principal = Rs. 1000
Workspace

72. What would be the compound interest accrued on an amount of 12500 Rs. at the end of 3 years at the rate of 10 % per annum?

Correct Ans:4137.5
Explanation:
Given principal = 12500
No. of years = 3
Rate of interest = 10

Amount = P x (1+r/100)^n,
= 12500 x (1+10/100)^3
= 12500 x (11/10)^3
= 12500 x (11/10)x (11/10)x (11/10)
= 16637.5

Compound Interest, C. I = Amount - Principal = 16637.5 - 12500 = 4137.5
Workspace

73. John invested an amount of Rs. 20000 for 2 years at compound interest at the rate of 6 % per annum. Find the amount he receives at the end of 2 years.

Correct Ans:22472
Explanation:
Given
Principal : P = 20000 Rs.
Rate of Interest : r = 6 %
Number of years : n = 2

Amount = P x (1 + r/100)^n
=> Amount = 20000 x (1+6/100)^2
= 20000 x (1+3/50)^2
= 20000 x (53/50) x (53/50)
= 22472

Therefore, Amount received by John at the end of two years = Rs. 22472
Workspace

74. Rs. 10000 is borrowed at compound interest at the rate of 4 % per annum. What will be the amount to be paid after 2 years ?

Correct Ans:10816
Explanation:
Principal : P = 10000 Rs. Rate of Interest : r = 4 % Number of years : n = 2 Amount = P x (1 + r/100)^n Amount = 10000 x (1+4/100)^2 =10000 x (1+1/25)^2 =10000 x (26/25) x (26/25) =10816
Workspace

75. Find the simple interest on Rs. 2000 at 7 % per annum for 4 years

Correct Ans:560 Rs.
Explanation:
Solution is :
Given

Principal : 2000
Rate of interest : 7
Number of years : 4
Simple Interest = pnr / 100
= ( 2000 x 4 x 7 ) / 100
=560 Rs
Workspace

76. What would be the compound interest accrued on an amount of 10000 Rs. at the end of 2 years at the rate of 4 % per annum?

Correct Ans:816
Explanation:
Given: Principal = Rs.10,000
n = 2
r = 4%
Amount = P [ 1 + ( r / 100 )]n
= 10000 x [ 1 +( 4 / 100 )2]
= 10000 x ( 104 / 100 )2
= 10000 x ( 104 / 100 ) x ( 104 / 100 )
= 104 x 104
= Rs.10,816
Compound Interest = Amount - Principal

= 10816 - 10000
= Rs. 816
Workspace

77. A person receives a sum of Rs. 2100 as interest for investing some amount at 10% p.a compounding annually for 2 years. Find the amount invested at the beginning

Correct Ans:10000
Explanation:

Solution is :
Given Compound Interest = Rs.2100
Rate of Interest ( r ) = 10 % p.a
No.of years ( n ) = 2
To find , amount received at the beginning => principal
Compound Interest = P [ 1 + ( r / 100 )n- 1 ]
=> 2100 = P[ 1 + ( 10 / 100 )2- 1 ]
=> 2100 = P[ 1 + ( 1 / 10 )2- 1 ]
=> 2100 = P[ ( 11 / 10 )2- 1 ]
=> 2100 = P[ ( 121 / 100 ) - 1 ]
=> 2100 = P[ 21 / 100 ]
=> 2100 x ( 100 / 21 ) = P
Principal = Rs. 10000
Amount invested at the beginning = Rs. 10000

Workspace

78. What would be the compound interest accrued on an amount of 6500 Rs. at the end of 2 years at the rate of 15 % per annum ?

Correct Ans:2096.25
Explanation:
Solution is :
Given principal = 6500
No. of years = 2
Rate of interest = 15
Amount = P [ 1 + ( r / 100 )n]
= 6500 x [ 1 + ( 15 /100 )2]
= 6500 x [ 1 + ( 3 / 20 )2]
= 6500 x [ 23 / 20 ]2
= 6500 x [ 529 / 400 ]
Amount =8596.25
Compound Interest = Amount - Principal

= 8596.25 - 6500
= 2096.25
Workspace

79. What would be the compound interest accrued on an amount of 4500 Rs. at the end of 2 years at the rate of 10 % per annum ?

Correct Ans:945
Explanation:
Solution is :
Given principal = 4500
No. of years = 2
Rate of interest = 10
Amount = P [ 1 + ( r / 100 ) ]n
= 4500 x [ 1 + ( 10 / 100 ) ]2
= 4500 x [ 1 + ( 1 / 10 ) ]2
= 4500 x [ 11 / 10 ]2
= 4500 x [ 121 / 100 ]
Amount = 5445
Compound interest = Amount - principal
= 5445 - 4500
= 945 Rs
Workspace

80. Mr. Joshua invested Rs 15,000 divided into two different schemes A and B at S.I of 5% and 10%. If the total amount of the simple interest earned in 2 years is 2500, What was the amount invested in scheme B.

Correct Ans:10,000
Explanation:
Given Total Principal = Rs. 15,000
Number of years = 2 years
Total S.I at the end of 2 years = Rs. 2500

For scheme A, Amount invested = x Rs.
Rate of interest, r = 5%

For scheme B, Amount invested= (15,000 - x) Rs.
Rate of interest, r = 10%

W.K.T: S.I = p * n * r / 100
=> S.I for scheme A + S.I for scheme B = Rs. 2500
=> {(x * 2 * 5)/ 100} + {(15,000 - x) * 2 * 10/ 100} = 2500
=> (x / 10) + 2(15,000 - x)/ 10 = 2500
=> (x/ 10) + (30,000 - 2x) /10 = 2500
=> x + 30,000 - 2x = 2500 * 10
=> 30,000 - x = 25000
=> x = 30,000 - 25,000
=> x= 5,000

For scheme B, Amount invested = (15,000 - x) Rs.
= 15,000 - 5,000
= 10,000 Rs.
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...