Compound Interest - Wikitechy https://www.wikitechy.com/interview-questions/category/compound-interest/ Interview Questions Fri, 17 Sep 2021 11:17:03 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.wikitechy.com/interview-questions/wp-content/uploads/2025/10/cropped-wikitechy-icon-32x32.png Compound Interest - Wikitechy https://www.wikitechy.com/interview-questions/category/compound-interest/ 32 32 Vijay invested Rs.50,000 partly at 10% and partly at 15%. His total income after a year was Rs.7000. How much did he invest at the rate of 10% ? https://www.wikitechy.com/interview-questions/compound-interest/vijay-invested-rs-50000-partly-at-10-and-partly-at-15-his-total-income-after-a-year-was-rs-7000-how-much-did-he-invest-at-the-rate-of-10/ https://www.wikitechy.com/interview-questions/compound-interest/vijay-invested-rs-50000-partly-at-10-and-partly-at-15-his-total-income-after-a-year-was-rs-7000-how-much-did-he-invest-at-the-rate-of-10/#respond Tue, 17 Aug 2021 14:59:21 +0000 https://www.wikitechy.com/interview-questions/?p=1788

Vijay invested Rs.50,000 partly at 10% and partly at 15%. His total income after a year was Rs.7000. How much did he invest at the rate of 10% ?

A. 40,000

B. 41,000

C. 12,000

D. 20,000

Answer : A. 40,000…

Explanation :

Let the amount Vijay invested at the rate of 10% = Rs x
The amount invested at 15% = Rs (50,000 – x)
Time = 1yr
Income from 10% rate = 10% of x = x/10
Income from 15% rate = 15% of (50,000 – x) = (150,000 – 3x)/20

According to question,
[x/10] + [(150,000 – 3x)/20] = 7000
150000 – x = 140000
x = 10,000.
Therefore, he has invested Rs 10,000 at 10% and Rs 40,000 at 15%.

]]> https://www.wikitechy.com/interview-questions/compound-interest/vijay-invested-rs-50000-partly-at-10-and-partly-at-15-his-total-income-after-a-year-was-rs-7000-how-much-did-he-invest-at-the-rate-of-10/feed/ 0 Rs.5887 is divided between Shyam and Ram, such that Shyam’s share at the end of 9 years is equal to Ram’s share at the end of 11 years, compounded annually at the rate of 5%. Find the share of Shyam ? https://www.wikitechy.com/interview-questions/compound-interest/rs-5887-is-divided-between-shyam-and-ram-such-that-shyams-share-at-the-end-of-9-years-is-equal-to-rams-share-at-the-end-of-11-years-compounded-annually-at-the-rate-of-5-find-the-s/ https://www.wikitechy.com/interview-questions/compound-interest/rs-5887-is-divided-between-shyam-and-ram-such-that-shyams-share-at-the-end-of-9-years-is-equal-to-rams-share-at-the-end-of-11-years-compounded-annually-at-the-rate-of-5-find-the-s/#respond Tue, 17 Aug 2021 14:57:11 +0000 https://www.wikitechy.com/interview-questions/?p=1787

Rs.5887 is divided between Shyam and Ram, such that Shyam’s share at the end of 9 years is equal to Ram’s share at the end of 11 years, compounded annually at the rate of 5%. Find the share of Shyam ?

A. 2088

B. 2000

C. 3087

D. None of these

Answer : C. 3087…

Explanation :

Shyam’s share * (1 + 0.05)9 = Ram’s share * (1 + 0.05)11
Shyam’s share / Ram’s share = (1 + 0.05)11 / (1 + 0.05)9
= (1 + 0.05)2
= 441/400
Therefore Shyam’s share = (441/841) * 5887
= 3087 .

]]> https://www.wikitechy.com/interview-questions/compound-interest/rs-5887-is-divided-between-shyam-and-ram-such-that-shyams-share-at-the-end-of-9-years-is-equal-to-rams-share-at-the-end-of-11-years-compounded-annually-at-the-rate-of-5-find-the-s/feed/ 0 A certain sum amounts to Rs. 7000 in 2 years and to Rs. 8000 in 3 years. Find the sum ? https://www.wikitechy.com/interview-questions/compound-interest/a-certain-sum-amounts-to-rs-7000-in-2-years-and-to-rs-8000-in-3-years-find-the-sum/ https://www.wikitechy.com/interview-questions/compound-interest/a-certain-sum-amounts-to-rs-7000-in-2-years-and-to-rs-8000-in-3-years-find-the-sum/#respond Tue, 17 Aug 2021 14:54:50 +0000 https://www.wikitechy.com/interview-questions/?p=1786

A certain sum amounts to Rs. 7000 in 2 years and to Rs. 8000 in 3 years. Find the sum ?

A. Rs 6959.37

B. Rs 6459.37

C. Rs 5359.37

D. Rs 5759.37

Answer : C. Rs 5359.37…

Explanation :

Amount = Rs. 7000, Time = 2 years
Amount = Rs. 8000, Time = 3 years
To calculate sum, we must first calculate rate of interest.
Simple interest = PRN / 100

S.I. on Rs. 7000 for 1 year = Rs. (8000 – 7000) = Rs. 1000
1000 = 7000 × R × 1 / 100
R = 11 23/7%
Let sum be Rs. X
7000 = P [ 1 + ( 100 / 7 × 100 ) ]2
8 / 7 × 8 / 7 × P = 7000
P = 5359.37

]]> https://www.wikitechy.com/interview-questions/compound-interest/a-certain-sum-amounts-to-rs-7000-in-2-years-and-to-rs-8000-in-3-years-find-the-sum/feed/ 0 Find the compound interest on Rs. 20,000 in 2 years at 4 % per annum, the interest being compounded half-yearly ? https://www.wikitechy.com/interview-questions/compound-interest/find-the-compound-interest-on-rs-20000-in-2-years-at-4-per-annum-the-interest-being-compounded-half-yearly/ https://www.wikitechy.com/interview-questions/compound-interest/find-the-compound-interest-on-rs-20000-in-2-years-at-4-per-annum-the-interest-being-compounded-half-yearly/#respond Tue, 17 Aug 2021 14:52:16 +0000 https://www.wikitechy.com/interview-questions/?p=1785

Find the compound interest on Rs.20,000 in 2years at 4% per annum, the interest being compounded half-yearly ?

A. Rs 1648.64

B. Rs 1596.32

C. Rs 14826.56

D. Rs 11563.99

Answer : A. Rs 1648.64…

Explanation :

Interest is compounded half-yearly, therefore,
Amount = P ( 1 + (R/2) /100 )2n – – – – – – – – – [Interest compounded Half-yearly]

Given :
Principal = Rs. 20000,
Rate = 2 % per half-year,
Time = 2 years = 4 half- years
Amount = 20000 [ 1 + 2 / 100 ]4
Amount = Rs.21648.64
Compound Interest = Total amount – Principal
= 21648.64 – 20000
= Rs. 1648.64

]]> https://www.wikitechy.com/interview-questions/compound-interest/find-the-compound-interest-on-rs-20000-in-2-years-at-4-per-annum-the-interest-being-compounded-half-yearly/feed/ 0 The ratio of the amount for two years under compound interest annually and for one year under simple interest is 6:5. When the rate of interest is same, then the value of rate of interest is ? https://www.wikitechy.com/interview-questions/compound-interest/the-ratio-of-the-amount-for-two-years-under-compound-interest-annually-and-for-one-year-under-simple-interest-is-65-when-the-rate-of-interest-is-same-then-the-value-of-rate-of-interest-is/ https://www.wikitechy.com/interview-questions/compound-interest/the-ratio-of-the-amount-for-two-years-under-compound-interest-annually-and-for-one-year-under-simple-interest-is-65-when-the-rate-of-interest-is-same-then-the-value-of-rate-of-interest-is/#respond Tue, 17 Aug 2021 14:50:09 +0000 https://www.wikitechy.com/interview-questions/?p=1784

The ratio of the amount for two years under compound interest annually and for one year under simple interest is 6:5. When the rate of interest is same, then the value of rate of interest is ?

A. 20 %

B. 15 %

C. 18 %

D. 22 %

Answer : A. 20 %…

Explanation :

Let Principal = P, Rate = R% per annum
P ( 1 + R/100 )2 / P (1 + R *1 / 100) = 6 / 5
( 1 + R / 100 ) = 6 / 5
R / 100 = 1 / 5
R = 20
Rate of interest = 20%

]]> https://www.wikitechy.com/interview-questions/compound-interest/the-ratio-of-the-amount-for-two-years-under-compound-interest-annually-and-for-one-year-under-simple-interest-is-65-when-the-rate-of-interest-is-same-then-the-value-of-rate-of-interest-is/feed/ 0 A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year ? https://www.wikitechy.com/interview-questions/compound-interest/a-property-decreases-in-value-every-year-at-the-rate-of-6-1-4-of-its-value-at-the-beginning-of-the-year-its-value-at-the-end-of-3-years-was-rs-21093-find-its-value-at-the-beginning-of-the-first-year/ https://www.wikitechy.com/interview-questions/compound-interest/a-property-decreases-in-value-every-year-at-the-rate-of-6-1-4-of-its-value-at-the-beginning-of-the-year-its-value-at-the-end-of-3-years-was-rs-21093-find-its-value-at-the-beginning-of-the-first-year/#respond Tue, 17 Aug 2021 14:39:05 +0000 https://www.wikitechy.com/interview-questions/?p=1783

A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year ?

A. Rs 25600.24

B. Rs 32000.50

C. Rs 18060.26

D. Rs 18600

Answer : A. Rs 25600.24…

Explanation :

6 1/4% = 1/16
x * (15/16) * (15/16) * (15/16) = 21093
x = 25600.24

]]> https://www.wikitechy.com/interview-questions/compound-interest/a-property-decreases-in-value-every-year-at-the-rate-of-6-1-4-of-its-value-at-the-beginning-of-the-year-its-value-at-the-end-of-3-years-was-rs-21093-find-its-value-at-the-beginning-of-the-first-year/feed/ 0 A sum of money place at compound interest doubles itself in 4 years. In how many years will it amount to eight times itself ? https://www.wikitechy.com/interview-questions/compound-interest/a-sum-of-money-place-at-compound-interest-doubles-itself-in-4-years-in-how-many-years-will-it-amount-to-eight-times-itself/ https://www.wikitechy.com/interview-questions/compound-interest/a-sum-of-money-place-at-compound-interest-doubles-itself-in-4-years-in-how-many-years-will-it-amount-to-eight-times-itself/#respond Tue, 17 Aug 2021 14:36:54 +0000 https://www.wikitechy.com/interview-questions/?p=1782

A sum of money place at compound interest doubles itself in 4 years. In how many years will it amount to eight times itself ?

A. 16

B. 8

C. 12

D. 20

Answer : C. 12…

Explanation :

Let, Principal = Rs. 100.
Amount = Rs. 200.
Rate = r%
Time = 4 years.

Now,
A = P * [ 1 + (r/100) ]n
200 = 100 * [ 1 + (r/100) ]4
2 = [1 + (r/100)]4 ……….. (i)
If sum become 8 times in the time n years, then,
8 = ( 1 + (r/100) )n
23 = ( 1 + (r/100) )n …….. (ii)

Using eqn (i) in (ii), we get
( [1 + (r/100) ]4)3 = ( 1 + (r/100) )n
[1 + (r/100)]12 = (1 + (r/100))n
n = 12 years.

]]> https://www.wikitechy.com/interview-questions/compound-interest/a-sum-of-money-place-at-compound-interest-doubles-itself-in-4-years-in-how-many-years-will-it-amount-to-eight-times-itself/feed/ 0 Rs.8000 become Rs.9261 in a certain interval of time at the rate of 5% per annum of C.I. Find the time ? https://www.wikitechy.com/interview-questions/compound-interest/rs-8000-become-rs-9261-in-a-certain-interval-of-time-at-the-rate-of-5-per-annum-of-c-i-find-the-time/ https://www.wikitechy.com/interview-questions/compound-interest/rs-8000-become-rs-9261-in-a-certain-interval-of-time-at-the-rate-of-5-per-annum-of-c-i-find-the-time/#respond Tue, 17 Aug 2021 14:34:24 +0000 https://www.wikitechy.com/interview-questions/?p=1781

Rs.8000 become Rs.9261 in a certain interval of time at the rate of 5% per annum of C.I. Find the time ?

A. 4 years

B. 6 years

C. 2 years

D. 3 years

Answer : D. 3 years…

Explanation :

Amount = 9261 p = 8000
rate = 5%
A = p [ 1 + r / 100]n
9261 = 8000[1 + 5/100]n
=> 9261 / 8000 = [21 / 20]n
=> [21 / 20]3=[21 / 20]n
on comparing n = 3 so it will take 3years

]]> https://www.wikitechy.com/interview-questions/compound-interest/rs-8000-become-rs-9261-in-a-certain-interval-of-time-at-the-rate-of-5-per-annum-of-c-i-find-the-time/feed/ 0