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Compound Interest - Aptitude MCQ Questions and Solutions with Explanations

Compound Interest MCQ Questions and answers with easy and logical explanations.Arithmetic Ability provides you all type of quantitative and competitive aptitude mcq questions on Compound Interest with easy and logical explanations. Compound Interest MCQ is important for exams like Banking exams,IBPS,SCC,CAT,XAT,MAT etc. Page-6 section-2

Each section contains 100 MCQs on Compound Interest .
51
A sum of Rs. x was borrowed and paid back in two equal yearly instalments, each of Rs. 35,280. If the rate of interest was 5%, compounded annually, then the value of x is:
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
52
Rahul invested equal sums of money at compound interest under two schemes A and B. Under scheme A, the interest rate was 10% per annum and under scheme B, the interest rate was 12% per annum. The compound interest after two years on the sum invested in scheme A was Rs. 1,050. How much is the interest earned under scheme B after two years, if the interest is compounded annually in both schemes?
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{CI of A in two years}} \cr & = 10 + 10 + \frac{{10 \times 10}}{{100}} \cr & = 21\% \cr & 21\% \to 1050 \cr & 1\% \to 50 \cr & 100\% \to {\text{Rs}}{\text{. 5000}} \cr & {\text{P}} = {\text{Rs}}{\text{. 5000}} \cr & {\text{CI of B in two years}} \cr & = 12 + 12 + \frac{{12 \times 12}}{{100}} \cr & = 24 + 1.44 \cr & = 25.44\% \cr & {\text{CI}} = \frac{{5000 \times 25.44}}{{100}} = {\text{Rs}}{\text{. 1272}} \cr} $$
53
Surekha borrowed a sum of money and returned it in two equal instalments of Rs. 5,547 each. If the rate of interest was $$7\frac{1}{2}\% $$  p.a. compounded yearly, then the total interest paid by her was:
Discuss
Answer & Solution
Answer: Option D
Solution:
$$7\frac{1}{2}\% \to \frac{3}{{10}}$$
\[\begin{array}{*{20}{c}} {}&{{\text{Principal}}}&{}&{{\text{Amout}}} \\ {{\text{One year}} \to }&{40 \times 43}&:&{43 \times 43} \\ {{\text{Two year}} \to }&{{{40}^2}}&:&{{{43}^2}} \end{array}\]
43 × 43 units → 5547
1 unit → 3
Interest in first year = 43 × 3 = 129 units
Second year = 1849 - 1600 = 249 units
Total interest = 129 + 249 = 378 units
378 units → 378 × 3 = Rs. 1134
54
Ramesh borrowed Rs. 1,20,000 interest free from Aman. If he pays back at 6.25% of this amount quarterly and has already paid Rs. 30,000, then for how many months does he need to pay back his loan for the rest of the amount?
Discuss
Answer & Solution
Answer: Option A
Solution:
Borrowed amount = 120000
First return amount = 30000
Remaining amount = 90000
Return in 3 month = 120000 × 6.25%
= 120000 × $$\frac{1}{{16}}$$
= 12 × 25 × 25
Compound Interest mcq question image
55
What is the compound interest on Rs. 5,000 for 2 years at 10%, per annum, compounded half-yearly?
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
56
Richa took a loan of Rs. 1,20,000 for 1 year at 20% per annum, compounded quarterly. The amount that Richa has to pay after 1 year is:
Discuss
Answer & Solution
Answer: Option B
Solution:
Rate = 20% p.a
= 5% Quarterly = $$\frac{1}{{20}}$$
Time = 1 year = 4 quarter
Compound Interest mcq question image
57
A certain sum amount to Rs. 15,500 in 2 years at 12% p.a. simple interest. The same sum will amount to what in $$1\frac{1}{2}$$ years at 10% p.a., if the interest is compounded half yearly (nearest to Rs. 1)?
Discuss
Answer & Solution
Answer: Option A
Solution:
$$\eqalign{ & 15500 - {\text{P}} = \frac{{{\text{P}} \times 12 \times 2}}{{100}} \cr & 1550000 - 100{\text{P}} = 24{\text{P}} \cr & 124{\text{P}} = 1550000 \cr & {\text{P}} = \frac{{1550000}}{{124}} \cr & {\text{P}} = {\text{Rs}}{\text{. }}12500 \cr & {\text{Half yearly, Rate}} = 5\% \cr} $$
Compound Interest mcq question image
58
What will be the simple to compound interest (compounded annually) ratio on two identical funds put in a bank at an interest rate of 8% (per annum) for three years?
Discuss
Answer & Solution
Answer: Option B
Solution:
$$8\% = \frac{2}{{25}}$$
Compound Interest mcq question image
$${\text{Simple Interest}} = \frac{{15625 \times 8 \times 3}}{{100}} = 3750$$
\[\begin{array}{*{20}{c}} \Rightarrow &{{\text{Simple Interest}}}&:&{{\text{Compound Interest}}} \\ {}&{3750}&:&{4058} \\ {}&{1875}&:&{2029} \end{array}\]
59
The compound interest on a certain sum in $$2\frac{1}{2}$$ years at 10% p.a., interest compounded yearly, is Rs. 1,623. The sum is:
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & 2{\text{ year}} \to {\text{CI}} \cr & = 10 + 10 + \frac{{10 \times 10}}{{100}} = 21\% \cr & {\text{In 2}}\frac{1}{2}{\text{ year CI}} \cr & = 21 + 5 + \frac{{21 \times 5}}{{100}} = 27.05\% \cr & P \times \frac{{27.05}}{{100}} = 1623 \cr & P = {\text{Rs}}{\text{. 6000}} \cr} $$
60
A certain loan was returned in two equal half yearly installments each of Rs. 6760. If the rate of interest was 8% p.a. compounded yearly, how much was the interest paid on the loan?
Discuss
Answer & Solution
Answer: Option B
Solution:
8% → yearly
4% → half yearly
4 → $$\frac{1}{{25}}$$
Compound Interest mcq question image