model 1 basic compound interest using formula Section-Wise Topic Notes With Detailed Explanation And Example Questions
MOST IMPORTANT quantitative aptitude - 6 EXERCISES
-
500+ Basic Compound Interest MCQs Aptitude Practice Test »
-
Top 499+ Compound Interest MCQs For BANK SSC UPSC Railway »
-
New 455+ Compound Interest Problems Solution for BANK SSC »
-
Top 399+ Compound Interest Questions for UPSC TNPSC Exams »
-
Top 599+ Compound Interest Practice MCQs For SBI IBPS RBI »
-
Top 489+ Compound Interest Practice Sums For All SSC Exam »
The following question based on compound interest topic of quantitative aptitude
(a) 3 years
(b) 1$1/2$ years
(c) 2$1/2$ years
(d) 2 years
The correct answers to the above question in:
Answer: (b)
Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
Using Rule 2,Compound interest is calculated on four basis:
Rate | Time(n) | ||
Annually | r% | t years | |
Half–yearly(Semi-annually | $r/2$% | t × 2 years | |
Quarterly | $r/4$% | t × 4 years | |
Monthly | $r/12$% | t × 12 years |
The rate of interest is compounded half yearly,
r = 10% per half year
Let time = $T/2$ years = half years
According to the question,
Amount = P$(1 + R/100)^t$
13310 = 10000$(1 + 10/100)^T$
$13310/10000 = (11/10)^T$
$(11/10)^T = 1331/1000 = (11/10)^3$
T = 3 half years =1$1/2$ years
Discuss Form
Read more basic problems using formula Based Quantitative Aptitude Questions and Answers
Question : 1
A man saves Rs.2000 at the end of each year and invests the money at 5% compound interest. At the end of 3 years he will have :
a) Rs.2205
b) Rs.4305
c) Rs.4205
d) Rs.6305
Answer »Answer: (d)
Using Rule 1,
Amount = $2000(1 + 5/100)^2 + 2000(1 + 5/100)$
= 2000 × $(21/20)^2 + 2000(21/20)$
= 2000 × $21/20 × 41/20$ = Rs.4305
Required amount
= 4305 + 2000 = Rs.6305
Question : 2
The principal, which will amount to Rs.270.40 in 2 years at the rate of 4% per annum compound interest, is
a) Rs.220
b) Rs.200
c) Rs.250
d) Rs.225
Answer »Answer: (c)
Using Rule 1,
Let the principal be Rs.P.
270.40 = P $(1 + 4/100)^2$
270.40 = P $(1 + 0.04)^2$
P = ${270.40}/{1.04 × 1.04}$ = Rs.250
Question : 3
A certain sum of money yields Rs.1261 as compound interest for 3 years at 5% per annum. The sum is
a) Rs.8000
b) Rs.9000
c) Rs.7500
d) Rs.8400
Answer »Answer: (a)
Let the principal be Rs.x. Now,
C.I. = P$[(1 + R/100)^T - 1]$
1261 = $x[(1 + 5/100)^3 - 1]$
1261 = $x(9261/8000 - 1)$
1261 = $x({9261 - 8000}/8000)$
= ${1261x}/8000$
$x = {1261 × 8000}/1261$ = Rs.8000
Question : 4
At what percent per annum will Rs.3000/- amounts to Rs.3993/- in 3 years if the interest is compounded annually?
a) 13%
b) 9%
c) 11%
d) 10%
Answer »Answer: (d)
Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
P = Rs.3000, A = Rs.3993, n = 3 years
A = P$(1 + r/100)^n$
$(1 + r/100)^n = A/P$
$(1 + r/100)^3 = 3993/3000 = 1331/1000$
$(1 + r/100)^3 = (11/10)^3$
1 + $r/100 = 11/10$
$r/100 = 11/10$ - 1
$r/100 = 1/10 ⇒ r = 100/10$ = 10%
compound interest Shortcuts and Techniques with Examples
-
model 1 basic compound interest using formula
Defination & Shortcuts … -
model 2 at ci sum becomes ‘n’ times after ‘t’ years
Defination & Shortcuts … -
model 3 combination of si & ci
Defination & Shortcuts … -
model 4 difference in ci & si
Defination & Shortcuts … -
model 5 ci with instalments
Defination & Shortcuts … -
model 6 comparing sum in different years
Defination & Shortcuts …
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
New 100+ Compound Interest MCQ with Answers PDF for IBPS
Compound Interest verbal ability questions and answers solutions with PDF for IBPS RRB PO. Aptitude Objective MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Mixture and Alligation MCQ Questions PDF for IBPS
Most importantly Mixture and Alligation multiple choice questions and answers with PDF for IBPS RRB PO. Aptitude MCQ Practice Exercises all Bank Exams
Continue Reading »
IBPS Profit and Loss Questions Solved Problems with PDF
Most important Profit and Loss multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »
100+ Average Aptitude Questions Answers solutions MCQ PDF
New Average multiple choice questions and answers with PDF for IBPS RRB PO. 100+ Quantitative Aptitude MCQ Practice Exercises all competitive exams
Continue Reading »