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 !!

**Click here to view: ****Compound Interest Set 1**

**What annual payment will discharge a debt of 1025 due in 2 years at the rate of 5% compound interest?**

A)550

B)551.25

C)560

D)560.35

E)None of these

**Answer – B) 551.25**

Explanation :

**In what time will Rs. 64,000 amount to Rs.68921 at 5% per annum interest being compounded half yearly?**

A)3 years

B)2 years

C)2(1/2) years

D)1(1/2) years

E)None of these

**Answer – D) 1(1/2) years**

Explanation :

R = 2.5%, A = 68921 , P = 64000 and t= 2n

A/P = [1+(R/100)]^2n

68921/64000 = [1+(2.5/100)]^2n

(41/40)^3 = (41/40)^2n

2n = 3

n=3/2 =1(1/2) years

**If the difference between the CI and SI on a sum of money at 5% per annum for 2years is Rs.16.Find the Simple Interest ?**

A)180

B)460

C)520

D)640

E)None of these

**Answer -D) 640**

Explanation :

16 =P*( 5/100)^2

P = 6400

SI =(6400*5*2)/100 =640

**The difference between the SI and CI on Rs.5000 at 10%per annum for 2 year is**

A)24

B)35

C)50

D)56

E)None of these

**Answer -C) 50**

Explanation :

d = p (r/100)^2

= 5000 (10/100)^2

d = 50

**The difference SI and CI on Rs.1000 for 1 year at 10%per annum reckoned****Half yearly is**

A)2

B)2.5

C)3

D)2.4

E)None of these

**Answer -B) 2.5**

Explanation :

SI = (1000/100 =100

CI = [1000(1+(5/100))^2] – 1000 = 102.5

D = 102.5 – 100 = 2.5

**Compound interest on a certain sum of money at 20% per annum for 2 years is Rs.5984.What is the SI on the same money at 9% per annum for 6 years ?**

A)7320

B)7233

C)7433

D)7344

E)None of these

**Answer -D) 7344**

Explanation :

5984 = p [(1+(20/100)^2) -1]

P = (5984*25)/11 = 13600

SI = (13600*9*6)/100 = 7344

**The difference between CI and SI on an amount Rs. 15000 for 2 year is Rs.96.What is the rate of interest per annum ?**

A)12

B)10

C)8

D)7

E)None of these

**Answer – C) 8**

Explanation :

**The effective annual rate of interest corresponding to the nominal rate of 4% per annum payable half yearly is**

A)4

B)4.4%

C)4.04%

D)4.2%

E)None of these

**Answer – C) 4.04%**

Explanation :

Let p = 100

CI = [100+(1+[2/100]^2)]

= 100 × (102/100)× (102/100)

= 104.04

Effective rate = 104.04 – 100 = 4.04%

**Rohit borrowed Rs. 1200 at 12% PA .He repaid Rs. 500 at the end of 1 year. What is the amount required to pay at the end of 2**^{nd}year to discharge his loan which was calculated in CI

A)945.28

B)1106.00

C)1107.55

D)1100.65

E)None of these

**Answer -A) 945.28**

Explanation :

CI at the end of 1^{st}year = 1200 *( 1+(12 /100)) = 1344

CI= 1344-1200 = 144

500 paid then remaining amount = 1344 – 500 = 844

At the end of 2nd year

844*[(1+(12/100)] =945.28

**A sum of money invested at CI to Rs.800 in 3 years and to Rs.840 in 4 years.Find rate of interest PA ?**

A)6%

B)5%

C)4%

D)2%

E)None of these

**Answer -B) 5%**

Explanation :

CI for 3 yr = 800

CI for 4 yr = 840

CI for 1 yr = 40

R = (100 × 40)/(800×1) = 10/2 = 5%

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