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# Compound Interest Questions

Home > Quantitative Aptitude > Compound Interest > General Questions
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Choose the correct option.

The amount of principal Rs.4000 at compound interest at the ratio of 10% p.a. for 3 years is:

ARs. 4325

BRs. 5324

CRs. 3425

DRs. 5342

Answer: Option B

Explanation:

P= Rs. 4000, R= 10, Y= 3 years.
so, 1st intrest (4000 + 400) = Rs. 4400
2nd (4400 + 440) = Rs. 4840
3rd year (4840 + 484) = Rs. 5324

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The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

A400

B500

C600

D800

Answer: Option B

Explanation:

Lets assume the sum = Rs. P.
Then, P(1 + 10/100)*(1 + 10/100) - P = 525
P [ (11/10)*(11/10) - 1] = 525
P = (525 x 100)/21 = 2500.
Sum = Rs . 2500.
So, S.I. = Rs. (2500 x 5 x 4)/100 = Rs. 500

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