Instructions: This Monk test contains JK Bank Compound Interest Problems with answer. This will help you in JK bank exam preparation.

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#1. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

Answer: Option B Explanation:
Amount
= Rs. 1600 x 1 5 2 1600 x 1 5
2 x 100 2 x 100
= Rs. 1600 x 41 x 41 1600 x 41
40 40 40
= Rs. 1600 x 41 41 1
40 40
= Rs. 1600 x 41 x 81
40 x 40
= Rs. 3321.
 C.I. = Rs. (3321 – 3200) = Rs. 121

#2. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:

Answer: Option A

Explanation:

Let the sum be Rs. x. Then,

C.I. = x 1 4 2 – x = 676 x – x = 51 x.
100 625 625
S.I. = x x 4 x 2 = 2x .
100 25
51x 2x = 1
625 25

 x = 625.

#3. 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?

Answer: Option C

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.

#4. What is the difference between the compound interests on Rs. 5000 for 1.5 years at 4% per annum compounded yearly and half-yearly?

Answer: Option A

Explanation:

C.I. when interest
compounded yearly
= Rs. 5000 x 1 4 x 1  x 4
100 100
= Rs. 5000 x 26 x 51
25 50
= Rs. 5304.
C.I. when interest is
compounded half-yearly
= Rs. 5000 x 1 2 3
100
= Rs. 5000 x 51 x 51 x 51
50 50 50
= Rs. 5306.04

 Difference = Rs. (5306.04 – 5304) = Rs. 2.04

#5. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

Answer: Option A

Explanation:

Amount = Rs. (30000 4347) = Rs. 34347.

Let the time be n years.

Then, 30000 1 7 n = 34347
100
107 n = 34347 = 11449 = 107 2
100 30000 10000 100

 n = 2 years.

#6. What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?

Answer: Option C

Explanation:

Amount
= Rs. 25000 x 1 12 3
100
= Rs. 25000 x 28 x 28 x 28
25 25 25
= Rs. 35123.20

 C.I. = Rs. (35123.20 – 25000) = Rs. 10123.20

#7. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

Answer: Option A

Explanation:

Let the rate be R% p.a.

Then, 1200 x 1 R 2 = 1348.32
100
1 R 2 = 134832 = 11236
100 120000 10000
1 R 2 = 106 2
100 100
 1 R = 106
100 100

 R = 6%

#8. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

Answer: Option B

Explanation:

P 1 20 ^n > 2P      6 ^n > 2.
100 5
Now, 6 x 6 x 6 x 6 > 2.
5 5 5 5

So, n = 4 years.

#9. Albert 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 Albert get on maturity of the fixed deposit?

Answer: Option C

Explanation:

Amount
= Rs. 8000 x 1 5 ^2
100
= Rs. 8000 x 21 x 21
20 20

= Rs. 8820.

#10. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

Answer: Option D

Explanation:

Amount of Rs. 100 for 1 year
when compounded half-yearly
= Rs. 100 x 1 3 ^2 = Rs. 106.09
100

 Effective rate = (106.09 – 100)% = 6.09%

#11. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

 

Answer: Option C

Explanation:

C.I.
= Rs. 4000 x 1 10 2 – 4000
100
= Rs. 4000 x 11 x 11 – 4000
10 10
= Rs. 840.
 Sum = Rs. 420 x 100 = Rs. 1750.
3 x 8

#12. If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

Answer: Option A

Explanation:

Sum = Rs. 50 x 100 = Rs. 500.
2 x 5
Amount
= Rs. 500 x 1 5 ^2
100
= Rs. 500 x 21 x 21
20 20
= Rs. 551.25

 C.I. = Rs. (551.25 – 500) = Rs. 51.25

#13. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

Answer: Option B

Explanation:

S.I. = Rs 1200 x 10 x 1 = Rs. 120.
100
C.I. = Rs. 1200 x 1 5 ^2 – 1200 = Rs. 123.
100

 Difference = Rs. (123 – 120) = Rs. 3.

#14. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

Answer: Option A

Explanation:

15000 x 1 R ^2 – 15000 15000 x R x 2 = 96
100 100
 15000 1 R ^2 – 1 – 2R = 96
100 100
 15000 (100 R)2 – 10000 – (200 x R) = 96
10000
 R2 = 96 x 2 = 64
3

 R = 8.

 Rate = 8%.

#15. The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

Answer: Option B

Explanation:

Let the sum be Rs. P.

Then, P 1 10 ^2 – P = 525
100
P 11 ^2 – 1 = 525
10
 P = 525 x 100 = 2500.
21

 Sum = Rs . 2500.

So, S.I. = Rs. 2500 x 5 x 4 = Rs. 500
100
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