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DI on simple interest and compound interest

Quantitative Aptitude ( CCS) Compound Interest

DI on Simple and Compound Interest

A chunk of Questions is asked from Data Interpretation in the Quantitative Aptitude Section of banking exams. In todays exam scenario most of the DI 's are asked from a perticular topic like time and work,time and distance,boat and stream, partnership etc.

In this study note we will discuss DI (Data Interpretation) based on Simple and compound Interest .

Directions : Study the following table chart carefully and answer the questions given beside.

The table below shows details about invested by different persons:

Note: Calculate simple interest unless specified

All questions are independent from others.

Question 1: If the rate of interest received by Arun and Amit is in the ratio of 2 : 3 then find in how many years the money invested by Amit will be doubled with same rate of interest?

A)14.80 B)13.45 C)11.11 D)15.50 E)12.54

Solution:

Rate of interest for Amit =6 × 3/2 = 9%

Let the principal invested by Amit be Rs. x

So,

= x + x × 9 ×5/100 = 29000

= 100x + 45x/100 = 29000

= 145x = 29000 × 100/145

= x = 20000

Amount invested by Amit = Rs 20000

To double the invested the time required

Let the time be x

= 20000 × 100/(9 × 20000)

= 11.11 years.

Hence, option C is correct.

Question 2: If the difference between the interest received by Ankit and Sourav is Rs 4200 and Ankit invested his money for double the time period for which Sourav invested his money then find the amount received by Ankit ?

A)Rs. 30000 B)Rs. 28600 C)Rs. 29600 D)Rs. 35400 E)Rs. 35540

Solution:

Let the time for which Sourav invested be x years
So the time for which Ankit invested = 2x years
So,
Interest received by Ankit= 8 × 2x ×20000/100 = Rs. 3200x
Interest received by Sourav = 6 × x × 30000/100 = Rs. 1800x

So,
3200x – 1800x = 4200
1400x = 4200
x = 3 years
So,
Interest received by Ankit= 8 × 6 × 20000/100 = Rs. 9600
Total amount received by Ankit = Rs. (20000 + 9600) = Rs 29600

Hence, option C is correct.

Question 3: If the amount received by Amit is twice the money invested by him then find amount he will receive after 2 years if he invests the same amount of money in compound interest for 2 years compounded half yearly?

A)Rs. 22199.45 B)Rs. 21992.45 C)Rs. 21292.45 D)Rs. 21929.45 E)Rs. 21229.45

Solution:

Amount invested by Amit = 29000/2 = Rs. 14500

Interest received by Amit = 29000 – 14500 = Rs 14500

Let the rate of interest for Amit be x

According to question,

= x = (14500 ×100)/(14500 × 5)

= x = 20%

Amount he will if compounded half yearly for 2 years

= 14500 (1 + 10/100)⁴

= 14500 × 11/10 × 11/10 × 11/10 × 11/10 = Rs. 21229.45

Question 4: If the interest received by Anita is 20% of the sum invested by her then find how much more money as interest she would have earned if she had invested the money in compound interest ?

A)Rs. 600 B)Rs. 130 C)Rs. 200 D)Rs. 1500 E)Rs. 700

Solution:

Interest received by Anita = 20 × 60000/100 = Rs. 12000

Rate = 12000 × 100/2 × 60000

Rate = 10%

Interest for 1st year= 60000 × 10 ×1/100 = Rs. 6000

Principal for 2nd year= 60000 + 6000 = Rs 66000

Interest for second year= 66000 × 10 × 1/100 = Rs. 6600

Total interest received by Anita = 6600 + 6000 = Rs 12600

So,

Anita will receive (12600 – 12000) = Rs 600 more interest.

Hence, option A is correct.

Question 5: If the interest received by Anita is Rs 7575 more than interest received by Piku and the rate of interest received by Anita 2% more than the rate of interest received by Arun then find the interest rate received by Piku ?

A)8% B)1.3% C)2.5% D)1.5% E)1.4%

Solution:

Let the rate of interest received by Piku be x

According to question,

60000 × 8 ×2/100 – x × 3 ×45000/100 = 7575

= 9600 – 1350x = 7575

= 9600 – 7575 = 1350x

= x = 2025/1350

= x = 1.5%

Hecne, option D is correct.

Direction: Study the data carefully and answer the questions given beside:

Question 6: Sajal invested double money of scheme A in scheme F at C. I. and at the end of 3 years he received Rs 14564 as interest. Find the rate of interest of scheme F.

A.8% B.10% C.12% D.15% E.None of these

Solution:

Question 7: For how much time did the money invest in scheme D?

A.4.5 years B.5 years C.2.5 years D.3 years E.4 years

Solution:

Principal = Rs 22500, rate = 12%, Amount = Rs 29250, S.I. = 29250 – 22500 = Rs 6750

S.I. = P × r × t/100
6750 = 22500 × 12% × t
t = 2.5 years

Hence, option C is correct.

Question 8:

If the ratio of the interest rate of scheme G to that scheme C is 5 : 4 and at the end of 2 years the interest received by a person in scheme G at simple interest is Rs 9750, find the principal.

A.Rs 22500 B.Rs 25200 C.Rs 15500 D.Rs 19500 E.None of these

Solution:

Interest rate of G : interest rate of C = 5 : 4

Interest rate of G = 20/4 × 5 = 25%
S.I. = Rs 9750, time = 2 years
S.I. = P × r% × t
9750 = P × 25% × 2
9750 ÷ 25% ÷ 2 = P
P = 19500
Principal = Rs 19500
Hence, option D is correct.

Question 9: What is the difference between the Compound interest and Simple interest of Scheme B at the end of 2 years?

A.Rs 300 B.Rs 250 C.Rs 350 D.Rs 400 E.Rs 500

Solution:

Question 10:

What is the total interest earned by a person by investing amount in all the schemes for the time given?

A.Rs 45200 B.Rs 53620 C.Rs 48965 D.Rs 40230 E.None of these

Solution:

Interest of scheme A = 35200 – 22000 = Rs 13200
Interest of scheme B,

P = 25000

Interest of scheme B = Rs 5250

Interest of scheme C = 17280 – 10000 =Rs 7280

Interest of scheme D = 29250 – 22500 = Rs 6750

Interest of scheme E,