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Quantitative Aptitude QA-6
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Compound Interest

CLASS EXERCISE

1. Find the compound interest on Rs.25,000 at 12% p.a. for 4 years

compounded annually.
a) Rs.11470 b) Rs.12420
c) Rs.13545 d) Rs.14338

2. Rs.50,000 is invested at 16% compound interest compounded quarterly.

Calculate the amount (approximately) due at the end of 9 months.
a) Rs.57,200 b) Rs.56,243
c) Rs.58,112 d) Rs.55,130

3. A certain sum of money is invested at a compound interest of 8.33%.If the

total interest due at the end of 2 years is Rs.5000, find the amount initially
invested.
a) Rs.27,200 b) Rs.27,750
c) Rs.28,800 d) Rs.30,000

4. A father wants to gift his daughter an amount of Rs.100,000 at the end of 3

years. How much should he invest now at a compound interest of 11.11%, to
get the required amount at the end of 3 years?
a) Rs.75,000 b) Rs.74,500
c) Rs.73,500 d) Rs.72,900

5. A certain sum of money is invested at a compound interest of 5%. The

interest received in the third year is Rs.2205. What was the total interest
received in three years?
a) Rs.6305 b) Rs.6612
c) Rs.6932 d) Rs.7213

6. A certain sum of money was invested at 9% compound interest. If the

difference in the interests received at the end of first & second year was
Rs.162, find the sum invested?
a) Rs.18,000 b) Rs.19,000
c) Rs.19,500 d) Rs.20,000

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7. Rs.50,000 was invested at compound interest. If the difference in the

interest received in first year and second year is Rs.320, find the rate of
interest per annum.
a) 6% b) 8%
c) 10% d) 12%

8. An equal amount of Rs.50000 is invested in each of two banks, Bank A and

Bank B. Bank A offers a simple interest of 8%p.a. Bank B offers a compound
interest of 8%p.a. What is the difference in the interest received from two
banks in three years?
a) Rs.985.6 b) Rs.950
c) Rs.1021 d) Rs.1127.5

9. Mungeri Lal has two investment plans –A and B to choose from. Plan A
offers an interest of 10% compounded annually while plan B offers a simple
interest of 12% per annum. Till how many years (maximum possible) is plan
B a better investment?
a) 3 years b) 4 years
c) 5 years d) 6 years

10. An amount was invested at compound interest and the interest received in
first year was Rs.1200 and the total interest received in 2 years was Rs.2472.
What was the rate of interest and the initial amount invested?
a) 6%, Rs.20000 b) 6%, Rs.30000
c) 8%, Rs.20000 d) None of the above

11. The compound interest on a certain sum of money for 2years is Rs.832 and
the simple interest on the same amount at same rate of interest is Rs.800. Find
the rate of interest and the initial amount invested?
a) 6%, Rs.10000 b) 8%, Rs.5000
c) 8%, Rs.8000 d) 10%, Rs.4000

12. Rs.1105 is to be divide between A and B, so that the amount of A after 5

years is equal to amount of B after 7 years, the interest being compounded at
10% per annum What is the difference between amount received by A and B?
a) Rs.60 b) Rs.221
c) Rs.105 d) Rs.325

13. Find the least number of complete years in which the sum of money puts
out at 10% CI will be more than double.
a) 6 years b) 7 years
c) 8 years d) 5 years
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14. An amount invested at CI becomes 3 times in 15 years. In how many years

will it become 81 times?
a) 60yrs b) 45yrs
c) 75yrs d) 90yrs

15. If Rs.10,000 becomes Rs.14,000 in 4 years then what will be the amount
due at the end of 8 years?
a) Rs.19,600 b) Rs.17,000
c) Rs.18,500 d) Rs.18,000

16. A sum of money amounts to Rs.1200 after 3 years and to Rs.1800 after 6
years, the interest being compounded annually. Find the sum.
a) Rs.600 b) Rs.700
c) Rs.800 d) Rs.900

17. Rs.20,000 was invested at compound interest and the amount due at the
end of three years is Rs.25,900. Find the rate of interest per annum?
a) 8% b) 9%
c) 10% d) 11%

18. In what time will Rs.12000 will become Rs.13997 at 8% p.a. compounded
annually?
a) 1 year b) 2 years
c) 3 years d) 4 years

19. Rs.40000 was invested at compound interest of 12% compounded semi-

annually. At the end of how many years the amount due will be Rs.53530?
a) 2 years b) 2 years 6 months
c) 3 years d) 3 years 6 months

20. A sum of money was invested at compound interest. The amount due at
the end of first year was Rs.44,400 and the amount due at the end of second
year was Rs.49,284. What was the rate of interest?
a) 8% b) 9%
c) 10% d) 11%

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HOME EXERCISE

1. Rs.100,000 has been invested in each of two banks, with first bank offering
a compound interest of 12% compounded annually and the second bank
offering a compound interest of 12% compounded semi-annually. What will
be the difference in the interest received at the end of first year from two
banks?
a) Rs.0 b) Rs.360
c) Rs. 640 d) Rs.1440

2. The difference between the compound interest and simple interest on a

certain sum of money at 12.5% p.a. for 3 years is Rs.500. Find the sum.
a) Rs.95000 b) Rs.10240
c) Rs.10600 d) Rs. 11250

3. Rs. 100,000 was invested by Mohan in affixed deposit @ 10% p.a. at CI.
However, every year he has to pay 20% tax on the interest earned. How much
money does Mohan has after 3 years?
a) 127414 b) 124020
c) 125971 d) 122765

4. Rs. 20,000 was invested at compound interest and the difference in the
interest received in first year and second year was Rs. 50. What was the rate of
interest?
a) 10% b) 5%
c) 4% d) None of the above

5.At what rate of compound interest, would Rs.80,000 amounts to Rs.88,200

in 2 years, interest being compounded annually.
a) 4% b) 5%
c) 6% d) 8%

6. If I lend Rs.5000 for 3 years in 2 schemes,

(1) offering 11% simple interest
(2) offering 10% compound interest.
Which scheme is more profitable and by what amount?
a) Scheme (1); Rs.150 b) Scheme (1); Rs.50
c) Scheme (2); Rs.5 d) Scheme (2); Rs.50

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7. An amount of money becomes Rs.4840 in 2 years and Rs.5324 in 3 years if

invested at compound interest. Find the rate of interest.
a) 10% b) 15%
c) 12% d) 8%

8. The difference between 2 years and 3 years interest on certain sum at

5%rate of interest is Rs.110.25. Find the amount initial invested.
a) Rs.1000 b) Rs.2250
c) Rs.2500 d) Rs.2000

9. Find the compound interest on Rs. 10,000 for 3 years if the rates of interest
for 3 years are 4%, 5% and 10% respectively.
a) Rs.2,002 b) Rs.2,012
c) Rs.2,022 d) Rs.2,032

10. A certain amount of money compounded annually at r% becomes Rs.1440

and Rs.1728 after 2 and 3 years respectively. What is the sum initially
invested?
a) Rs.950 b) Rs.1050
c) Rs.1100 d) Rs.1000

11. What are the least number of complete years for which an amount should
be invested at CI of 9% such that it will become more than 3 times?
a) 10 years b) 12 years
c) 13 years d) 14 years

12. The value of machine depreciates by 10% annually. If its value today is
Rs.75,000, find its value after 3 years.
a) Rs.54,675 b) Rs.56,475
c) Rs.55,465 d) Rs.57,645

13. Rs.20,000 becomes Rs.60000 at the end of 10 years, when invested at a

certain rate of compound interest. What will be the amount due at the end of
30 years if Rs.50,000 is invested at the same rate of compound interest?
a) Rs.1050,000 b) Rs.1350,000
c) Rs.450,000 d) None of the above

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14. A bank offers a compound interest of 16.67% compounded annually. A

certain sum of money was invested in the bank and the interest received in the
third year was Rs.9800. What was the amount initially invested?
a) Rs.43,200 b) Rs.46,475
c) Rs.45,465 d) Rs.47,600

15. Rs. 100 doubled in 5 years when compounded annually. How many more
years will it take to get another Rs. 200 compound interest.
a) 2 years b) 5 years
c) 3 years d) 4 years

16. In how many years Rs.20,000 invested at a compound interest at 12% will
become Rs.26,593?
a) 2 years b) 2.5 years
c) 3 years d) 3.5 years

17. If a certain sum amounts to Rs.900 in 1 year and Rs.1350 in 2 years, find
the sum.
a) Rs.450 b) Rs.500
c) Rs.600 d) Rs.620

18. The difference between simple interest and compound interest on

Rs.15000 for 2years is Rs.96. Find the rate of interest?
a) 12% b) 20%
c) 8% d) 16%

19.Two brothers invested equal amount. First invested all his amount at 10%
compounded annually for 3 years and the other invested ¼ of his amount at
10% compound annually and rest at r% p.a. at simple interest for the same 3
years. The amount received by both at the end is same. What is the value of
r?
a) 9.65% b) 9.09%
c) 10.25% d) 11.03%

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20. Mr. Sunil wanted to give his two children a sum of money such that if
their respective shares are invested at a compound interest of 14.28% p.a.,
they will receive equal amount at the age of 20 years. His sons are of the age
of 10 years and 13 years. If Mr. Sunil has Rs.171,000. What will be the share
of elder son?
a) Rs.97,900 b) Rs. 98,756
c) Rs.99,865 d) Rs.102,400

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Quantitative Aptitude-6
Compound Interest
Answers and Explanations

CLASS EXERCISE

1 d 2 b 3 c 4 d 5 a 6 d 7 b 8 a 9 b 10 a
11 b 12 c 13 c 14 a 15 a 16 c 17 b 18 b 19 b 20 d

HOME EXERCISE

1 b 2 b 3 c 4 b 5 b 6 c 7 a 8 d 9 b 10 d
11 c 12 a 13 b 14 a 15 b 16 b 17 c 18 c 19 d 20 d

CLASS EXERCISE

1. d Given that, 2. b Given that,

T= 4 Years P=50000
P= 20000 R=16%
R=12% T= 9 month
C.I=? rate for per quarter is 4%
We use successive formula total quarter is 3
for calculate the overall so first two quarter is
interest. overall rate % =
For first two years, 4∗4
=4+4+100 = 8.16%
Overall rate % =
12∗12
=12+12+ 100 so overall rate % in 3 quarter
= 25.44% is
=25%(Approx.) 8.16∗4
= 8.16+4+ 100 = 12.5%
For 4 years,
25∗25
= 25.44+25.44+ 100 C.I= 12.5% of 50000=
= 57%+ (Approx.) 62500.
C.I= 57% of 25000 A=P+I =
= 14250 50000+6500=56500.
Approx.= 14338 Approx. = 56250.

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3. c let P=144x
Interest for first year = 12x 7. b Given that,
Interest for second year = 13x R=?
Diff. of interest in First and
Total interest => 25x = 5000 Second year = 320
Hence P = 144 × 200 = 28000 So, try to solve these types of
problem by given options.
1 option => 8%
4. d R= 11.11% = 9
2 years =
8∗8
Let P = 9 × 9 × 9 = 729x 8+8+ = 16.64%
100
So amount = 10 × 10 × 10 = 1000x On second year = 8.64%
8.64% of P – 8% of P = 320
Hence 1000x = 100,000 .64% of P = 320
729x = 72,900 P = 50,000
Hence proved.
5. a Let P = (20)3 = 8000x
Interest for first year = 400x 8. a Given that,
Interest for second year = 420x P = Rs.50000
Interest for third year = 441x R = 8%
Total interest = 1261x T= 3 year
25.97% of P – 24% of P
441x = 2205 1.97% of 50,000
Hence, 1261x = 6305 = 985 (app)

9. b compound interest for 5

6. d Given that, years is (app) 61%
P=? Simple interest for 5 years is 60%
R=9% Hence 5 years onwards, Plan A
Diff. = 162 becomes a better option
on first years = 9%
for first two years = 10. a Given that,
9∗9 C.I for first year is 1200 and
9+9+100 = 18.81%
C.I for two year is 2472
so in second year is 1272
so on second year is =
18.81%-9%=9.81% 1272−1200
therefore, R% = 1200 ∗ 100 = 6%
9.81% of P - 9% of P = and Principle is
.81% of P P∗6∗1
1200 = 100
.81% of P = 162
so Principle is 20000.
P = 20000.
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15. a Given that,

11. b Given that, P = 10000
S.I for first year is 400 and A = 14000
for two year is 800. I = 4000
C.I for first year is 400 and Rate % = 40%
in two year is 832. so in 8 years amount is
so in second year its 432. 19,600.
we know on first year both
compound and simple 16. c Given that,
interest are same. amount after two is Rs.1200
32 and after 4 years is Rs. 1800
R% = 400 ∗ 100 = 8%.
So, total Rate % for two
also,
P∗8∗1 years = 50%
400= 100 P + 50% of P = 1200
Hence P = 800
P = 5000.
17. b Given that,
12. c A(1.1)5 = B(1.1)7 P=20000
Hence A : B = (1.1)2: 1 R=8%
A : B = 121 : 100 A=25900
I=5900
21 overall rate % (for 3 years) = 29.5%
So Difference = 221×1105 = 105
so rate percent per annum is
9%
13. c Given that,
R = 10%
18.b P=12000
use this formula directly,
72 72 A=13997
N = = = 7.2 =14000(Approx.)
R 10
complete year = 8 years R = 8%
I=2000
14. a Given that, Overall rate % = 16.67%
three time in 15 years So rate percent per annum is
total time for 81 times is 8%.
15*4 = 60 years. Time = 2 years.

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19. b Given that,

P=50000 Difference in their interest is
R=12% compounded semi annually =12.36% of P – 12% of P
So, every 6 months R = 6% =0.36% of 100000 = 360.
A=53530
I=13530 2. b
Overall rate%= 33.8% 1
R = 12.5% = 8
So, @ 6%, required time
So , Let P = 512x
period has to be 5
SI = 64 × 3 = 192x
Hence T = 2 years 6months.
CI = 217x
Difference = 25x
20. d Given that,
Since 25x = 500
Amount due at the end of
So, P = 512 × 200 = 10240
first year is 44400.
Amount due at the end of
3. c As he has to pay 20% as tax
second year is 49284.
A2−A1 on interest earned, he will earn a net
R% = ( ) ∗ 100 of 8% every year.
A1
Use this formula only when So in three years, he will earn a
time gap between amount is interest of app.25.9% (By successive
1 year. percentage change)
Hence interest = 25.9% of 100000
49284−44400 = 25900(app)
R% = ( ) ∗ 100
44400 Final amount = 125900.
R% = 11% 4. b
Given that,
HOME EXERCISE P = 20000
Second year – First year = 50
1. b Bank1, solve these question with the
P = 100000 help of options only.
R = 12% p.a We pick option b) 5%
T = 1 year
First year = 5%
overall 2 years = 10.25%
Bank 2,
second year = 5.25%
P = 100000 =5.25% of P – 5% of P
R = 12 % compounded half =.25% of P
yearly
=.25% of 20000
=6% per half year =50
total rate % =
6∗6
6+6+100 = 12.36%

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5. b Given that, 9.b Given that,

P = 80,000 P= 10000
A = 88200 T= 3 year
T = 2 years R = 4%, 5% and 10%
I = 8200 2 year = 4+5+.20= 9.20%
overall rate % = 10.25% 9.20∗10
3 year = 9.20+10+ 100
so per annum is 5%
Overall rate% = 20.12%
6. c Given that,
P = 5000
C.I = 20.12% of 10000
Case 1 (Simple)
R = 11%
= 2012.
overall rate % = 33%

Case 2 (Compound)
10. d Given that,
R = 10 %
A1 = 1440, A2 = 1728
overall rate % = 33.1%
1728−1440
so, R% = 1440
*100= 20%
33.1% of P – 33% of P
.1% of 5000= 5 S1.2 ×1.2 P = 1440
P = 1000
Scheme (2) ; Rs.5
11.c Given that,
7. a Given that, R = 9%
A2 – A3 = 5324 – 4840 Using the formula directly,
5324−4840 112 112
R% = *100= 10% N = R = 9 = 12.4
4840
complete year = 13 years
8.d Given that,
R=5% 12.a Given that,
2 year = 5+5+.25=10.25% Initial value is 75000
10.25∗5 R% = 10%
3 year = 10.25+5+ 100
Use successive rate formula,
= 15.7625%
2 years = -19%
15.7625%P – 10.25% of P =
for 3 years,
110.25 19∗10
5.5125% of P = 110.25 -19-10+ = 27.1% dec
100
P = 2000 so,
Final value =
75000-27.1% of 75000
= 54675
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13. b The amount becomes 3 times 18.c Given that,

in 10 years. P=15000
So final amount due is T = 2 year
50,000 × (3)3 C.I – S.I = 96
= 50,000 × 27 = 1350,000 Try to solve with the help of
options only.
14. a Let P = 216x Option C) 8%
Interest received in third year will be 16.64% of 15000-16% of
(36 + 6 + 7) = 49x 15000
49x = 9800 .64% of 15000= 96
So, 216x = 43200 hence proved

15.b Given that, 19.d Let the initial amount

P = 100 invested be each be 4x
T = 5 years Interest received by first brother
A= 200 = 33.1% of 4x
So according to given data value Interest received by second brother
double itself in 5 year. = 33.1% of x + 3r% of 3x
It became 400 after 5 years. Equating both, r = 11.03%

16. b Given that, 20.d Let the amount with elder

P = 20000 son be A
R% = 12% The amount with younger son be B
A = 26593 8 8
A ( )7 = B ( )10
7 7
I= 6593
Overall rate of interest is
6593 A:B = 83 : 73
= ∗ 100 = 32.9% A:B = 512 : 343
20000
= 33% approx.
answer of this question is 2.5 512
So, A’s share = × 171,000
855
year.
= 102,400
17.c Given that,
Amount after 1 year is 900
and 2 year is 1350.
rate of interest is 50%
so Principle is 600.

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