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 !!

Questions Penned by Yogit

**A sum of rupees 3903 is divided between P and Q such that the share of P at the end of 8 years is equal to the share of Q after 10 years. Find the share of P if rate of interest is 4% compounded annually.**

a) 2012

b) 2029

c) 2028

d) 2081

e) None of these

Answer –**c) 2028**

**Explanation :**

P*(1 + 4/100)^8 = (3903 – P)*(1 + 4/100)^10

**A man borrows 2000 rupees at 10% compound interest. At the end every year he pays rupees 1000 back. How much amount should he pay at the end of the third Year to clear all his debt?**

a) 252

b) 352

c) 452

d) 552

e) None of these

Answer –**b) 352**

**Explanation :**

After one year amount = 2000*110/100 = 2200

He pays 1000 back, so remaining = 2200 – 1000 = 1200

After second year = 1200*110/100 = 1320

He pays 1000 back, so remaining = 1320 – 1000 = 320

After third year = 320*110/100 = 352

**A sum of rupees 3200 is compounded annually at the rate of 10 paisa per rupee per annum. Find the compound interest payable after 2 years.**

a) 200

b) 842

c) 672

d) 832

e) None of these

Answer –**c) 672**

**Explanation :**

Rate of interest is 10 paisa per rupee per annum. So for 100 rupees it is 1000 paise i.e. 10 percent

Now, CI = 3200(1+10/100)^ 2 – 3200 = 672

**What sum of money will amount to rupees 1124.76 in 3 years, if the rate of interest is 5% for the first year, 4% for the second year and 3% for the third year?**

a) 1500

b) 1200

c) 1000

d) 1900

e) None of these

Answer –**c) 1000**

**Explanation :**

1124.76 = p*(105/100)*(104/100)*(103/100)

**Riya saves an amount of 500 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.**

a) 1820.5

b) 1840.5

c) 1920.5

d) 1940.5

e) None of these

Answer –**a) 1820.5**

**Explanation :**

Total amount = 500*(1+10/100)^ 3 + 500*(1+10/100)^ 2 + 500*(1+10/100) = 1820.5

**A sum of 3000 becomes 3600 in 3 years at 15 percent per annum. What will be the sum at the same rate after 9 years?**

a) 5124

b) 5184

c) 5186

d) 5192

e) None of these

Answer –**b) 5184**

**Explanation :**

3600 = 3000*(1+15/100)^ 3

(1+15/100)^ 3 = 6/5

Amount = 3000*[(1+15/100)^ 3]^ 3

Amount = 3000*(6/5)^3 = 5184

**On a certain sum of money, after 2 years the simple interest and compound interest obtained are Rs 400 and Rs 600 respectively. What is the sum of money invested?**

a) 100

b) 200

c) 300

d) 400

e) None of these

Answer –**b) 200**

**Explanation :**

400 = P*(R/100)*2

600 = P*(1+R/100)^2 – P

Solve both equations to get P

**A sum of money becomes Rs 35,280 after 2 years and Rs 37,044 after 3 years when lent on compound interest. Find the principal amount.**

a) 2800

b) 3000

c) 3200

d) 4000

e) None of these

Answer –**c) 3200**

**Explanation :**

37044 = p*(1 +r/100)^3

35280 = p*(1 + r/100)^2

Divide both equations to get the value of r and then substitute in any equation to get P

**A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?**

a) 1000

b) 1200

c) 1400

d) 1600

e) None of these

Answer –**d) 1600**

**Explanation :**

8.81 = p*(1+5/100)^4 – p*(1+10/100)^2

**A sum of rupees 4420 is to be divided between raj and parth in such a way that after 5 years and 7 years respectively the amount they get is equal. The rate of interest is 10 percent. Find the share of raj and parth**

a) 2000, 2420

b) 2420, 2000

c) 2480, 2420

d) 2210, 2210

e) None of these

Answer –**b) 2420, 2000**

**Explanation :**

Let the share of raj and parth be R and P

R*(1+10/100)^ 5 = (4420 – R)*(1+10/100)^ 7

We get R = 2420, so P = 2000

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