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Quantitative Aptitude - Arithmetic Ability/
Compound Interest

Compound Interest Questions

Popular Latest Rated Important Formulae

FACTS AND FORMULAE FOR COMPOUND INTEREST QUESTIONS

Let Principal = P, Rate = R% per annum, Time = n years.

1. When interest is compound Annually:

Amount = $P {(1 + \frac{R}{100})}^{n}$

2. When interest is compounded Half-yearly:

Amount = $P {[1 + \frac{(\frac{R}{2})}{100}]}^{2 n}$

3. When interest is compounded Quarterly:

Amount = $P {[1 + \frac{(\frac{R}{4})}{100}]}^{4 n}$

II.

1. When interest is compounded Annually but time is in fraction, say $3 \frac{2}{5}$ years.

Amount = $P {(1 + \frac{R}{100})}^{3} \times (1 + \frac{\frac{2}{5} R}{100})$

2. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year respectively.

Then, Amount = $P (1 + \frac{R_{1}}{100}) (1 + \frac{R_{2}}{100}) (1 + \frac{R_{3}}{100})$

III. Present worth of Rs. x due n years hence is given by:

Present Worth = $\frac{x}{{(1 + \frac{R}{100})}^{n}}$

A bank offers 15% compound interest per half year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is

A) Rs 6803	B) Rs 850
C) Rs 3402	D) Rs 1701

A) Rs 6803

B) Rs 850

C) Rs 3402

D) Rs 1701

Answer & Explanation Answer: C) Rs 3402

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Exam Prep: Bank Exams

1 1234

The difference between simple and compound interest (compounded annually) on a sum of money for 3 years at 10% per annum is Rs. 93. The sum (in Rs.) is:

A) 30000	B) 30300
C) 3000	D) 3030

A) 30000

B) 30300

C) 3000

D) 3030

Answer & Explanation Answer: C) 3000

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1 1200

A sum becomes 1.69 times of itself in 2 years when invested at compound interest. What is the per annum rate of interest (in percentage)?

A) 38	B) 34.5
C) 13	D) 30

A) 38

B) 34.5

C) 13

D) 30

Answer & Explanation Answer: D) 30

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Exam Prep: AIEEE , Bank Exams

2 1194

A sum of Rs 8000 is borrowed at compound interest at the rate of 7% per annum. What will be the amount (in Rs) after 2 years?

A) 1154.4	B) 13600
C) 9159.2	D) 9428.6

A) 1154.4

B) 13600

C) 9159.2

D) 9428.6

Answer & Explanation Answer: C) 9159.2

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2 1171

Rs. 10000 is being compounded at 20% per annum. Calculate the amount after 2 years if rate of interest is charged half yearly.

A) Rs. 10041	B) Rs. 14641
C) Rs. 12000	D) Rs. 13660

A) Rs. 10041

B) Rs. 14641

C) Rs. 12000

D) Rs. 13660

Answer & Explanation Answer: B) Rs. 14641

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3 1167

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 32448 and Rs 33745.92 respectively, what is the rate of interest?

A) 2 percent	B) 8 percent
C) 6 percent	D) 4 percent

A) 2 percent

B) 8 percent

C) 6 percent

D) 4 percent

Answer & Explanation Answer: D) 4 percent

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1 1132

What would be the compound interest of Rs. 25000 for 2 yrs. at 5% per annum?

A) 2500	B) 2562.5
C) 2425.25	D) 5512.5

A) 2500

B) 2562.5

C) 2425.25

D) 5512.5

Answer & Explanation Answer: B) 2562.5

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2 1125

What is the difference (in Rs) between compound interest (compounded annually) and simple interest for 3 years on a principal of Rs 4000 at the rate of 30% per annum?