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# Compound Interest Questions

Home > Quantitative Aptitude > Compound Interest > General Questions
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Anil invests an amount for 2 years at the rate of 15% per annum at simple interest.Had he invested in a scheme in which interest was compounded yearly he would have got Rs.450 more. Find the principal:

ARs.8,000

BRs.15,000

CRs.20,000

DRs.10,000

Explanation:

Lets assume D amount difference between compound and simple interest for 2 years, D=P*(R/100)^2
where P is the principal
R is rate of interest

so here,
450 = P*(15/100)^2 => P= Rs. 20000

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If the compound interest (compounded Yearly) on a certain sum for 2 years at 3% is Rs.101.50 then what will be the corresponding simple interest?

ARs.98.25

BRs.100.00

CRs.90.00

DRs.95.50

Explanation:

Given, years = 2
3% of 50= (50*(3/100))=Rs.1.5
Simple Interest =50+50=100
Compound Interest=50+50+1.5=101.5

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A sum of money triples itself at compound interest in 3 years. In 9 years it will be

A6 times the principal

B12 times the principal

C18 times the prinipal

D27 times the principal

Explanation:

p(1+ r/100) ^n=ci
p(1+r/100) ^ 3=3p
(1+r/100) ^3=3 , p(1+r/100) ^9=p(3)^3 = 27 times

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