Hello Aspirants. Welcome to Online Maths in AffairsCloud.com. Here we are creating question sample in **Compound Interest**, which is common for all the IBPS,SBI exam and other competitive exams. We have included Some questions that are repeatedly asked in exams !!

**The difference between the total simple interest and the total compound interest compounded annually at the same rate of interest on a sum of money at the end of two years is Rs. 350. What is definitely the rate of interest per cent per annum?**

A.9,300

B.7600

C.12000

D.Data inadequate

E.None of these

Answer –**D.Data inadequate**

**Explanation :**

Difference = Pr^{2}/(100)^{2}

= (350×100×100)/(P×r^{2})

P is not given

**Aswin invested an amount of Rs.9000 in a fixed deposit scheme for 2 years at CI rate 6% pa. How much amount will Aswin get on maturity of the fixed amount ?**

A.Rs.11,230

B.Rs.10,250

C.Rs.10,112

D.Data inadequate

E.None of these

Answer –**C.Rs.10,112**

**Explanation :**

Amount = 9000*106/100*106/100

= 9000*53/50*53/50

= 10,112

**A sum of money invested for 7years in Scheme 1 which offers SI at a rate of 8% pa. The amount received from Scheme 1 after 7 years invested for 2 years in Scheme 2 which offers CI rate of 10% pa. If the interest received from Scheme B was Rs.1638. What was the sum invested in Scheme 1 ?**

A.Rs.7500

B.Rs.5000

C.Rs.8200

D.Rs.9000

E.None of these

Answer –**B.Rs.5000**

**Explanation :**

SI =>Amount = x*8*7/100 + x = 56x+100x/100 = 156x/100 = 39x/25

CI=> 39x/25[(1+10/100)^{2}– 1]

1638 = 39x/25[121/100 – 1] = 39x/100[21/100]

X = 1638*100*25/21*39 = 5000

**Rs.5200 was partly invested in Scheme A at 10% pa CI for 2 years and Partly invested in Scheme B at 10% pa SI for 4 years. Both the schemes earn equal interests. How much was invested in Scheme A ?**

A.Rs.1790

B.Rs.2200

C.Rs.3410

D.Rs.2670

E.None of these

Answer –**C.Rs.3410**

**Explanation :**

Amount invested in Scheme B = X

Amount invested in Scheme A = 5200 – x

X*10*4/100 = (5200-x)*21/100……………………[(1-10/100)^{2}-1] = 21/100

40x/100 = (5200-x)*21/100

2x/5 = (5200-x)*21/100

200x = 5200*21*5 – x*5*21

200x = 546000 – 105x

305x = 546000

X = 1790

Scheme A = 5200 – 1790 = 3410

**The CI on Rs.7000 for 3 years at 5% for first year, 7% for second year, 10% for the third year will be**

A.Rs.1800

B.Rs.1530

C.Rs.1651

D.Rs.2050

E.None of these

Answer –**C.Rs.1651**

**Explanation :**

A = 7000*105/100*107/100*110/100

= 7000*1.05*1.07*1.1

= 8650.95 = 8651

CI = 8651-7000 = 1651

**Poorni and Priyanka have to clear their respective loans by paying 2 equal annual instalments of Rs.20000 each. Poorni pays at 10% pa of SI and Priyanka pays at 10% CI pa. What is the difference in their payments ?**

A.200

B.300

C.400

D.500

E.None of these

Answer –**A.200**

**Explanation :**

D =[(20,000 *110/100*110/100) – 20,000] – 20,000 *10*2/100

=[ 24200-20000]-4000

=4200 – 4000

D = 200

**A sum of Rs.3,50,500 is to be paid back in 2 equal annual instalments. How much is each instalment, if the rate of interest charged 4% per annum compound annually ?**

A.Rs.1,90,450

B.Rs.1,65,876

C.Rs.1,76,545

D.Rs.1,85,834

E.None of these

Answer –**D.Rs.1,85,834**

**Explanation :**

Total value of all the 3 instalments

[X*100/104] + [X*100*100/104] = 3,50,500

X*25/26 + x*625/676 = 3,50,500

X*25/26[1+25/26] = 3,50,500

X*25/26[51/26] = 3,50,500

X = 3,50,500*676/25*51 = 1,85,833.72 = 1,85,834

**At CI, if a certain sum of money is doubled in 4 years, then the amount will be four fold in how many years ?**

A.7years

B.4years

C.10years

D.8years

E.None of these

Answer –**D.8years**

**Explanation :**2n = 2*4 = 8 years

**X has lent some money to A at 5% pa and B at 8% pa. At the end of the year he has gain the overall interest at 7% pa.In what ratio has he lent the money to A and B ?**

A.2:1

B.1:2

C.3:1

D.1:4

E.None of these

Answer –**B.1:2**

**Explanation :**

5………………………….8

……………7…………….

1………………………….2

Ratio A : B = 1:2

**The difference between interest received by X and Y is Rs.315 on Rs.3500 for 3 years. What is the difference in rate of interest ?**

A.1.5%

B.2%

C.3%

D.2.7%

E.None of these

Answer –**C.3%**

**Explanation :**

3500*3/100(R1-R2) = 315

R1-R2 = 315*100/10500 = 3%

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