SBI Clerk Prelims – Practice Aptitude Questions (Compound Interest)

Dear Readers, Important Practice Aptitude Questions with solution for Upcoming SBI Clerk Exam, candidates those who are preparing for those exams can use this practice questions.
1).Find the amount that Kimi will get if she had deposited Rs. 8000 in a bank at 10% p.a. compounded annually for 4 years
a)  28
b)  27
c)  36
d)  42
e)  None of these
2).Find the amount due to Anupam after 3 years, if he has deposited Rs. 15000 at rate of 10% p.a., compounded half yearly
a)  Rs. 20.10
b)  Rs. 21.01
c)  Rs. 22
d)  Rs. 25
e)  Rs. 19
 
3).Find the rate of simple interest for the first year, equivalent to rate of interest of 12% p.a. compounded half yearly on Rs. 10, 000.
a)  12.36%
b)  11.035%
c)  11.99%
d)  Cannot be determined
e)  None of these
 4).Find the interest for the 5th year if Rs. 5000 is compounded annually at 20% per annum
a)  Rs. 2075
b)  Rs. 2073
c)  Rs. 2050
d)  Cannot be determined
e)  None of these
5).Find the compound interest on Rs. 10000 for 3(1 / 2) years at 5% per annum
a)  Rs. 18165.65
b)  Rs. 11867
c)  Rs. 11865.65
d)  Rs. 11870
e)  None of these
6).Given that a sum of Rs. 5000 is compounded annually at rate of 5% for 2 years. What is the interest for the 2nd year?
a)  Rs. 265.5
b)  Rs. 260
c)  Rs. 261
d)  Rs. 262.5
e)  None of these
7).If a certain sum of money is compounded annually at 15% per annum, then find the ratio of amount due in 7th year to the 8th year.
a)  21:13
b)  20:23
c)  19:20
d)  25:22
e)  None of these
8).A certain sum of money amounts to Rs. 31250 in 5 years at the rate of 25% p.a compounded annually. Find the Principal.
a)  Rs. 10240
b)  Rs. 10024
c)  Rs. 10204
d)  Cannot be determined
e)  None of these
Answers:                    
1). b) 2). a) 3). a) 4). b) 5). c) 6). d) 7). b) 8). a) 
 
Solution:
 
1).In case of compounded interest,
Amount = P [1 + (r / 100) ]t = 8000 [ 1 + (10 / 100) ]4
= 8000(1.1)4 = Rs. 11, 712.8
Amount in 12 years = P [1 + (12 / 100)]12 = xP
So, x = P [1 + (12 / 100) ]12 / P = [1 + (12 /100)]12
From(i), [1 + (12 /100)]4 = 3
So, [1 + (12 /100)]12= 33 = 27
Hence x = 27
Answer: b)
 
2).Amount = P[ 1 + (r / 2) / 100 ]2t
=15000 [ 1 + (5 / 100) ]6 = 15000(1.05)6
= 15000 × 1.34 = Rs. 20.101(approx)
Answer: a)
 
3).Amount when C.I is charged
 = 10000 [ 1 + (6 / 100) ]2 × 1
= 10000 × (1.06)2 = Rs. 11236
Interest = 11236 – 10000 = Rs. 1236
So, 1236 = (10000 × r × 2(1)) / (2 × 100)
r = 12.36%
Answer: a)
 
4).Amount after 4 years
=5000[1 + (20 / 100)]4 = 5000(1.2)4 = Rs. 10368
Interest for the 5th year = 10368 × (20 / 100) × 1 = Rs. 2073.6
Method 2 : [ C.I for the 5th year = Amount after 5 years – Amount after 4 years. However, this would involve difficult calculations]
Amount after 5 years = 5000(1.2)2 = Rs. 12441.6
Amount after 4 years = 10368
Interest for 5th year = 12441.6 – 10368 = Rs. 2073.6
Answer: b)
 
5).Amount after 3 years
= 10, 000 [ 1 + (5 / 100)]3 = Rs. 11576.25
Interest for 1 / 2 years = 11576.25 × (5 / 100) × (1 / 2) = Rs. 289.4
Amount after 3(1 / 2) years = 11576.25 + 289.4 = Rs. 11865.656
Answer: c)
 
6).Amount after 2 years
= 5000 [ 1 + (5 / 100)]2 = 5000(1.05)2 = 5512.5
Amount after 1 year =
5000 [ 1 + (5 / 100)]1 = 5000(1.05)1 = 5250
Interest for second year = 5512.5 – 5250 = Rs. 262.5
Method 2 ;
For sake of simple calculation. Amount after 1 year
= 5000 [ 1 + (5 / 100)]1 = 5250
Interest for 2nd year = 5250 × (5 / 100) × 1 = Rs. 262.5
(In method 2, calculating (1.05) (1.05) (5000) is avoided)
Answer: d)
7).Required ratio = P [ 1 + (15 / 100) ]7 / P [ 1 + (15 / 100)]8
= 1 / [1 + (15 / 100)
= 100 / 115
=20 / 23 = 20 : 23
Answer: b)
 
8).We are given,
31250 = P [ 1 + (25 / 100) ]5
31250 = P (125 / 100)5
31250 (4 / 5)5 = P
P = (31250 × 16 × 16 × 4) / (25 × 25 × 5) = RS. 10240
Answer: a)
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