Compound Interest - MCQ 2 - GMAT MCQ

# Compound Interest - MCQ 2 - GMAT MCQ

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## 20 Questions MCQ Test Quantitative for GMAT - Compound Interest - MCQ 2

Compound Interest - MCQ 2 for GMAT 2024 is part of Quantitative for GMAT preparation. The Compound Interest - MCQ 2 questions and answers have been prepared according to the GMAT exam syllabus.The Compound Interest - MCQ 2 MCQs are made for GMAT 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Compound Interest - MCQ 2 below.
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Compound Interest - MCQ 2 - Question 1

### A sum of rupees 3903 is divided between P and Q such that the share of P at the end of 8 years is equal to the share of Q after 10 years. Find the share of P if rate of interest is 4% compounded annually.

Detailed Solution for Compound Interest - MCQ 2 - Question 1

P*(1 + 4/100)8 = (3903 – P)*(1 + 4/100)10

Compound Interest - MCQ 2 - Question 2

### A man borrows 2000 rupees at 10% compound interest. At the end every year he pays rupees 1000 back. How much amount should he pay at the end of the third Year to clear all his debt?

Detailed Solution for Compound Interest - MCQ 2 - Question 2

After one year amount = 2000*110/100 = 2200
He pays 1000 back, so remaining = 2200 – 1000 = 1200
After second year = 1200*110/100 = 1320
He pays 1000 back, so remaining = 1320 – 1000 = 320
After third year = 320*110/100 = 352

Compound Interest - MCQ 2 - Question 3

### A sum of rupees 3200 is compounded annually at the rate of 10 paisa per rupee per annum. Find the compound interest payable after 2 years.

Detailed Solution for Compound Interest - MCQ 2 - Question 3

Rate of interest is 10 paisa per rupee per annum. So for 100 rupees it is 1000 paise i.e. 10 percent
Now, CI = 3200(1+10/100)2 – 3200 = 672

Compound Interest - MCQ 2 - Question 4

What sum of money will amount to rupees 1124.76 in 3 years, if the rate of interest is 5% for the first year, 4% for the second year and 3% for the third year?

Detailed Solution for Compound Interest - MCQ 2 - Question 4

1124.76 = p*(105/100)*(104/100)*(103/100)

Compound Interest - MCQ 2 - Question 5

Riya saves an amount of 500 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.

Detailed Solution for Compound Interest - MCQ 2 - Question 5

Total amount = 500*(1+10/100)3 + 500*(1+10/100)2 + 500*(1+10/100) = 1820.5

Compound Interest - MCQ 2 - Question 6

A sum of 3000 becomes 3600 in 3 years at 15 percent per annum. What will be the sum at the same rate after 9 years?

Detailed Solution for Compound Interest - MCQ 2 - Question 6

3600 = 3000*(1+15/100)3 (1+15/100)3 = 6/5
Amount = 3000*[(1+15/100)3]3 Amount = 3000*(6/5)3 = 5184

Compound Interest - MCQ 2 - Question 7

On a certain sum of money, after 2 years the simple interest and compound interest obtained are Rs 400 and Rs 600 respectively. What is the sum of money invested?

Detailed Solution for Compound Interest - MCQ 2 - Question 7

400 = P*(R/100)*2
600 = P*(1+R/100)2 – P
Solve both equations to get P

Compound Interest - MCQ 2 - Question 8

A sum of money becomes Rs 35,280 after 2 years and Rs 37,044 after 3 years when lent on compound interest. Find the principal amount.

Detailed Solution for Compound Interest - MCQ 2 - Question 8

37044 = p*(1 +r/100)3
35280 = p*(1 + r/100)2
Divide both equations to get the value of r and then substitute in any equation to get P

Compound Interest - MCQ 2 - Question 9

A sum of money is lent for 2 years at 10% p.a. compound interest. It yields Rs 8.81 more when compounded semi-annually than compounded annually. What is the sum lent?

Detailed Solution for Compound Interest - MCQ 2 - Question 9

8.81 = p*(1+5/100)4 – p*(1+10/100)2

Compound Interest - MCQ 2 - Question 10

A sum of rupees 4420 is to be divided between raj and parth in such a way that after 5 years and 7 years respectively the amount they get is equal. The rate of interest is 10 percent. Find the share of raj and parth

Detailed Solution for Compound Interest - MCQ 2 - Question 10

Let the share of raj and parth be R and P
R*(1+10/100)5 = (4420 – R)*(1+10/100)7
We get R = 2420, so P = 2000

Compound Interest - MCQ 2 - Question 11

The difference between compound interest compounded every 6 months and simple interest after 2 years is 248.10. The rate of interest is 10 percent. Find the sum

Detailed Solution for Compound Interest - MCQ 2 - Question 11

Explanation : P*(1+5/100)4 – P – P*(10/100)*2 = 248.10
P = 16000

Compound Interest - MCQ 2 - Question 12

A person earns an interest of 240 on investing certain amount at Simple interest for 2 years at 5 percent amount. If the rate of interest is compounded annually then how much more interest will be gain by the person at same rate of interest and on the same sum.

Detailed Solution for Compound Interest - MCQ 2 - Question 12

240 = P*(5/100)*2, P = 2400
CI = 2400(1+5/100)2 – 2400 = 246
So, 246 – 240 = 6

Compound Interest - MCQ 2 - Question 13

Find the least number of years in which the sum put at 25% rate of interest will be more than doubled.

Detailed Solution for Compound Interest - MCQ 2 - Question 13

Amount > = P*(1+25/100)n
Amount = p*(5/4)n
For n = 4, (625/256) which is greater than 2.

Compound Interest - MCQ 2 - Question 14

A sum of rupees 4420 is to be divided between rakesh and prakash in such a way that after 5 years and 7 years respectively the amount they get is equal. The rate of interest is 10 percent. Find the share of rakesh and prakash

Detailed Solution for Compound Interest - MCQ 2 - Question 14

Let the share of rakesh and prakash be R and P
R*(1+10/100)5 = (4420 – R)*(1+10/100)7 We get R = 2420, so P = 2000

Compound Interest - MCQ 2 - Question 15

The simple interest on a certain sum of money for 4 years at 15 percent per annum is 600. Find the compound interest in the same sum at 10 percent interest for 2 years

Detailed Solution for Compound Interest - MCQ 2 - Question 15

600 = p*4*(15/100), P = 1000
CI = 1000(1+10/100)2 – 1000 = 210

Compound Interest - MCQ 2 - Question 16

Find the effective annual rate of 10 percent per annum compounded halfyearly

Detailed Solution for Compound Interest - MCQ 2 - Question 16

Take principal as 100 and then calculate,
A = 100*(1+5/100)2
A = 110.25
So effective rate is 10.25

Compound Interest - MCQ 2 - Question 17

A sum of rupees 3200 is compounded annually at the rate of 25 paise per rupee per annum. Find the compound interest payable after 2 years.

Detailed Solution for Compound Interest - MCQ 2 - Question 17

Rate of interest is 25 paise per rupee per annum.
So for 100 rupees it is 2500 paise i.e. 25 percent
Now, CI = 3200(1+25/100)2 – 3200 = 1800

Compound Interest - MCQ 2 - Question 18

A sum of 3000 becomes 3600 in 3 years at 15 percent per annum. What will be the sum at the same rate after 9 years.

Detailed Solution for Compound Interest - MCQ 2 - Question 18

3600 = 3000*(1+15/100)3
(1+15/100)3 = 6/5
Amount = 3000*[(1+15/100)3]3
Amount = 3000*(6/5)3 = 5184

Compound Interest - MCQ 2 - Question 19

Priya saves an amount of 500 every year and then lent that amount at an interest of 10 percent compounded annually. Find the amount after 3 years.

Detailed Solution for Compound Interest - MCQ 2 - Question 19

Total amount = 500*(1+10/100)3 + 500*(1+10/100)2 + 500*(1+10/100)
= 1820.5

Compound Interest - MCQ 2 - Question 20

A man borrows 10000 rupees at 20 % compound interest for 3 years. If every year he pays 2000 rupees as repayment. How much amount is still left to be paid by the man?

Detailed Solution for Compound Interest - MCQ 2 - Question 20

Amount to be paid at the end of three years = 10000*(1+20/100)3 = 17280
Amount paid as instalment by the man = 2000*(1+20/100)2 + 2000*(1+20/100) + 2000 = 7280
So remaining amount = 10000

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## Quantitative for GMAT

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