Aptitude

What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?

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What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?

A. Rs. 31
B. Rs. 32.10
C. Rs. 40.40
D. Rs. 64.10
Explanation:
S.I. = (1000 * 10 * 4)/100 = Rs. 400
C.I. = [1000 * (1 + 10/100)4 – 1000] = Rs. 464.10 Difference = (464.10 – 400) = Rs. 64.10

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

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If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

A. Rs. 51.25
B. Rs. 52
C. Rs. 54.25
D. Rs. 60
Explanation:
Sum = (50 * 100) / (2 * 5) = Rs. 500
Amount = [500 * (1 + 5/100)2] = Rs. 551.25
C.I. = (551.25 – 500) = Rs. 51.25.

Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

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Find the Compound Interest on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

A. Rs. 1851
B. Rs. 1941
C. Rs. 1951
D. Rs. 1961
Explanation:
P = Rs. 15625, n = 9 months = 3 quarters, R = 16% p.a. per quarter.
Amount = [15625 * (1 + 4/100)3]
= (15625 * 26/25 * 26/25 * 26/25) = Rs. 17576 C.I. = 17576 – 15625 = Rs. 1951.

What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

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What is the difference between the C.I. on Rs. 5000 for 1 1/2 years at 4% per annum compounded yearly and half-yearly?

A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
Explanation:
C.I. when interest is compounded yearly
= [5000 * (1 + 4/100) * (1 + (1/2 * 4)/100]
= 5000 * 26/25 * 51/50 = Rs. 5304
C.I. when interest is compounded half-yearly
= [5000 * (1 + 2/100)2]
= (5000 * 51/50 * 51/50 * 51/50) = Rs. 5306.04 Difference = (5306.04 – 5304) = Rs. 2.04.