COGNIZANT Simple and Compound Interest Questions And Answers

  1. 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
Ans:D
Explanation:
Rs 8,000 became Rs 9,261 in a certain interval of time at the rate of 5% per annum, Compound.Interest.. Find the time. 9,261 = 8,000(1.05)^t t = 3 The time is 3 years.

  1. 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
Ans:C
Explanation: 100 —- 200 —- 4 400 —- 4 800 —- 4

  1. 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. 25600.24
B. 32000.50
C. 18060.36
D. 18600
Ans:A
Explanation: 6 1/4% = 1/16 x *15/16 * 15/16 * 15/16 = 21093 x = 25600.24

  1. A certain sum of money amounts to Rs.1300 in 2 years and to Rs. 1525 in 3.5 years. Find the sum and the rate of interest.

A. Rs850, 10%
B. Rs900, 12%
C. Rs800, 13%
D. Rs1000,15%
Ans:D
Explanation: 1525-1300= 225 for 1.5 yrs (3.5-2) so for one yr 225/1.5= 150 then for 2 yrs interest is 150+150=300 Then principal 1300-300=1000. Now 150/1000*100= 15%

  1. If the simple interest on a certain sum of money is 4/25 of the sum and the rate percent equals the number years, then the rate of interest per annum is:

A. 4%
B. 5%
C. 8%
D. 10%
Ans:A
Explanation: Let the principal be Rs x. Then the SI =4/25x Rate of interest = Time r= (100*4/25x)/ x*r r2 =400/25 r=20/5=4%

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

A. Rs 1648.64
B. 1596.32
C. 14826.56
D. 11563.99
Ans:c

  1. 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
Ans:C
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

  1. 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. 40,000
C. 12,000
D. 20,000
Ans:B

  1. There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

A. 2160
B. 3120
C. 3972
D. 6240
Ans:3972
Explanation: Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.

 R =

 

100 x 60

 

= 10% p.a.

100 x 6

Now, P = Rs. 12000. T = 3 years and R = 10% p.a.

 C.I.

= Rs.

 

12000 x

  

1 +

10

 

3

– 1

  

100

 

= Rs.

 

12000 x

331

 

1000

 

= 3972.

 

  1. Akash invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5 p.c.p.a. How much amount will Akash get on maturity of the fixed deposit?

A. 8600
B. 8620
C. 8820
D. None of these
Ans:C
Explanation: Amount

= Rs.

 

8000 x

 

1 +

5

 

2

 

100

 

= Rs.

 

8000 x

21

x

21

 

20

20

= Rs. 8820.