Compound Interest Quiz Set 003

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Question 1

What is the amount receivable on Rs. 3000000 after 9 months, invested at a rate of 24% compounded quarterly?

 A

Rs. 3573048.

 B

Rs. 3573148.

 C

Rs. 3572948.

 D

Rs. 3573248.

Soln.
Ans: a

In this case r = $24/4$% and n = 3 because compounding is quarterly, and in 9 months there are three quarters. So A = 3000000 × $(1 + 6/100)^3$, which equals 3 × 106 × 106 × 106, i.e., Rs. 3573048.


Question 2

The interest earned by an amount of Rs. 40000 @5% compounded annually is Rs. 4100. What is the period in years?

 A

2 years.

 B

3 years.

 C

1 year.

 D

1/2 year.

Soln.
Ans: a

The amount is 40000 + 4100. So 44100 = 40000 × $(105/100)^n$. So $44100/40000$ = $(105/100)^n$, which can be put in the form $(105/100)^2$ = $(105/100)^n$, so n = 2 years.


Question 3

The compound amount after 3 years on a principal of Rs. x is same as that on a principal of Rs. (621 - x) after 4 years, then what is x if the rate of interest is 7% p.a. compounded yearly?

 A

Rs. 321.

 B

Rs. 421.

 C

Rs. 221.

 D

Rs. 521.

Soln.
Ans: a

We have x × $(1 + 7/100)^3$ = (621 - x) × $(1 + 7/100)^4$. Cancelling, we get x = (621 - x) × (1 + 7/100). Simplifying, x = ${621 × (100 + 7)}/(200 + 7)$, which gives x = Rs. 321.


Question 4

What is the amount receivable on Rs. 2000000 after 9 months, invested at a rate of 28% compounded quarterly?

 A

Rs. 2450086.

 B

Rs. 2450186.

 C

Rs. 2449986.

 D

Rs. 2450286.

Soln.
Ans: a

In this case r = $28/4$% and n = 3 because compounding is quarterly, and in 9 months there are three quarters. So A = 2000000 × $(1 + 7/100)^3$, which equals 2 × 107 × 107 × 107, i.e., Rs. 2450086.


Question 5

The amount of Rs. 3000000 earns an interest of Rs. 278181 @3% compounded annually. What is the investment period in years?

 A

3 years.

 B

2 years.

 C

1 year.

 D

1/2 year.

Soln.
Ans: a

The amount is 3000000 + 278181. So 3278181 = 3000000 × $(103/100)^n$. So $3278181/3000000$ = $(103/100)^n$, which can be put in the form $(103/100)^3$ = $(103/100)^3$, so n = 3 years.


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This Blog Post/Article "Compound Interest Quiz Set 003" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Updated on 2017-04-07.

Posted by Parveen(Hoven),
Aptitude Trainer


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