Practice Difference in ci and si - quantitative aptitude Online Quiz (set-1) For All Competitive Exams

Q-1)   The difference between compound interest and simple interest on 2500 for 2 years at 4% per annum is

(a)

(b)

(c)

(d)

Explanation:

S.I. = Rs.${2500 × 2 × 4}/100$ = Rs.200

C.I. = Rs.2500$[(1 + 4/100)^2 - 1]$

= Rs.2500$[(26/25)^2 - 1]$

= Rs.${(676 - 625)}/625$ × 2500

= Rs.$51/625 × 2500$ = Rs.204

The required difference

= C.I. - S.I. = Rs.(204 - 200) = Rs.4

Using Rule 6,

Here, C.I. - S.I.= ?, P = Rs.2500, R = 4%, T = 2

C.I. - S.I.= P$(R/100)^2$

= 2500$(4/100)^2$

= 2500 × $1/25 × 1/25$

C.I.–S.I. = Rs.4


Q-2)   The difference between the compound interest and simple interest for the amount 5,000 in 2 years is 32. The rate of interest is

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

Difference of 2 years

= ${p × r^2}/10000$

32 = ${5000 × r^2}/10000$

$r^2 = {32 × 10000}/5000$ = 64

r = $√{64}$ = 8%


Q-3)   The difference between the compound interest and simple interest on 10,000 for 2 years is 25. The rate of interest per annum is

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

Difference = ${PR}^2/10000$

25 = ${10000 × R^2}/10000$ ⇒ R = 5%


Q-4)   The difference between the compound interest (compounded annually) and the simple interest on a sum of 1000 at a certain rate of interest for 2 years is 10. The rate of interest per annum is :

(a)

(b)

(c)

(d)

Explanation:

When difference between the compound interest and simple interest on a certain sum of money for 2 years at r% rate is x, then

x = Sum$(r/100)^2$

10 = 1000$(r/100)^2$

$(r/100)^2 = 10/1000$

$r/100 = √{1/100} = 1/10$

r = $100/10$ = 10%

Using Rule 6,

Here, C.I. - S.I. = Rs.10, R = ?, T= 2 years, P = Rs.1000

C.I. - S.I. = P$(R/100)^2$

10 = 1000$(R/100)^2$

10 = 1000$ × R/100 × R/100$

$R^2$ = 100

R = $√{100}$ = 10%


Q-5)   The difference between the compound interest and the simple interest on a certain sum at 5% per annum for 2 years is 1.50. The sum is

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

Difference = ${PR}^2/(100)^2$

1.50 = ${P × 5 × 5}/(100)^2$

P = 400 × 1.5 = Rs.600


Q-6)   The difference between simple and compound interest compounded annually, on a certain sum of money for 2 years at 4% per annum is 1. The sum (in ) is :

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

The difference between compound interest and simple interest for two years

= ${\text"Principal" × (Rate)^2}/{100 × 100}$

1 = ${\text"Principal" × (4)^2}/10000$

Principal = $10000/16$ = Rs.625


Q-7)   The difference between simple and compound interest on a certain sum of money for 2 years at 4 per cent per annum is 1. The sum of money is :

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

When difference between the CI and SI on a certain sum of money for 2 years at r % rate is x, then

Sum = x × $(100/r)^2$

= 1 × $(100/4)^2$ = Rs.625


Q-8)   On what sum of money will the difference between S.I and C.I for 2 years at 5% per annum be equal to 25 ?

(a)

(b)

(c)

(d)

Explanation:

Using Rule 6,

Difference = ${PR^2}/10000$

25 = ${P × 5 × 5}/10000$

P = Rs.10000


Q-9)   On what sum does the difference between the compound interest and the simple interest for 3 years at 10% is 31 ?

(a)

(b)

(c)

(d)

Explanation:

Let the sum be x

r = 10%, n = 3 years

S.I. = ${x × r × n}/100$

S.I.= ${x × 10 × 3}/100 = 3/10x$

C.I.= $[(1 + r/100)^n - 1]x$

= $[(1 + 10/100)^3 - 1]x$

= $[(11/10)^3 - 1]x$

$(1331/1000 - 1)x = 331/1000x$

$331/1000x - 3/10x$ = 31

or $({331 - 300})/1000x = 31$

or $31/1000x$ = 31

or x = 1000

Sum = Rs.1000

Using Rule 6,

Here, C.I. - S.I. = Rs.31, R = 10%, T = 3 years, P = ?

C.I. - S.I. = P × $(R/100)^2 × (3 + R/100)$

31 = P × $(10/100)^2(3 + 10/100)$

31 = P × $1/100 × 31/10$ ⇒ P = Rs.1000


Q-10)   What is the difference between compound interest on 5,000 for 1 1 2 years at 4% per annum according as the interest is compounded yearly or halfyearly?

(a)

(b)

(c)

(d)

Explanation:

Compound Interest (when compounded yearly)

= $5000(1 + 4/100)^(1.5) - 5000$

= $5000(26/25)^(1.5) - 5000$

= 5302.9805 - 5000 = Rs.302.9805

C.I. (When compounded halfyearly).

= $5000(1 + 2/100)^3 - 50000$

= 5306.04 - 5000 = Rs.306.04

Required difference

= Rs.(306.04 - 302.9805)

= Rs.3.059 = Rs.3.06