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### Question 1

The difference in compound interest(annual compounding) and simple interest for a period of 2 years is Rs. 343. What is the principal amount if the rate is 7% p.a.?

**A**

Rs. 70000.

**B**

Rs. 80000.

**C**

Rs. 60000.

**D**

Rs. 90000.

**Soln.**

**Ans: a**

The shortcut formula for the difference between compound and simple interest over a period of 2 years is $Difference = Principal × (\text"rate"/100)^2$. So Principal = $(Difference × 10000)/(rate × rate)$ = $(343 × 10000)/(7 × 7)$ = Rs. 70000.

### Question 2

The compound amount after 3 years on a principal of Rs. x is same as that on a principal of Rs. (1030 - x) after 4 years, then what is x if the rate of interest is 6% p.a. compounded yearly?

### Question 3

What is compound interest on Rs. 70000 after 2 years, invested at a rate of 3% compounded annually?

### Question 4

What is the amount receivable on Rs. 80000 after 6 months, invested at a rate of 8% compounded quarterly?

### Question 5

What is compound interest on Rs. 90000 after 2 years, invested at a rate of 3% compounded annually?

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This Blog Post/Article "Compound Interest Quiz Set 020" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Updated on 2017-04-07.