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Compound Interest Questions & Answers

Practice essential Compound Interest questions so that you can answer them correctly in the exams. Compound Interest questions and answers are given a medium weightage in the exam and therefore must be revised.

Q11

Q11 The simple interest on certain sum for 2 years is Rs.160 and compound interest at same rate of interest is Rs.168. What is the sum & Rate of interest?

A

1000,11%

B

800,10%

C

1600,8%

D

1200,12.5%

Q12

Q12 A person lent out a certain sum on simple interest and the same sum on compound interest at a certain rate of interest per annum. He noticed that the ratio between the difference of compound interest and simple interest of 3 years and that of 2 years is 25 : 8. The rate of interest per annum is

A

11.50%

B

10%

C

8%

D

12.50%

Q13

Q13 My cousin lends me Rs.10 lakhs for studying in United States at 8% compound interest per annum, during the course period of 2 years and at 12% per annum after completion of my studies. If I return 50% of the amount which is to be returned on completion of studies, and the remaining after one year, how much interest must I pay him during the whole period in Lakhs?

A

2 lakhs

B

2.56 lakhs

C

2.36 lakhs

D

3 lakhs

Q14

Q14 A bank pays interest @ 8 percent p.a. on a deposit for half a quarter as well as on a deposit for one quarter. A makes a deposit of Rs.25 lakhs for a quarter. B makes a deposit of Rs.25 lakhs for half a quarter, and after maturity reinvests the entire amount for half a quarter. What is B’s gain over A?

A

200

B

240

C

250

D

175

Q15

Q15 The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

A

3

B

4

C

5

D

6

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