Compound Interest (Railway Maths) (Part – I)

Total Questions: 50

11. Ram and Dipti each invested a sum of ₹8000 for a period of two years at 30% compound interest per annum. However, while for Ram the interest was compounded annually, for Dipti it was compounded every eight months. How much more will Dipti receive as interest compared to Ram at the end of the two year period? [NTPC CBT II Level 4 (10/05/2022) Shift 1]

Correct Answer: (c) ₹304
Solution:

12. Khan lends an amount of Rs 10000 to Irfan at 10% per annum compound interest for 5 years, compounded annually. What is the compound interest accrued for the 4th year? [NTPC CBT II Level 3 (14/06/2022) Shift 1]

Correct Answer: (b) 1331
Solution:

Effective interest rate in 4 year = 46.41%
Effective interest rate in 3 year = 33.1%
4th year interest = 46.41 - 33.1 = 13.31%
Compound interest for the 4th year = 13.31% of 10,000 = 1331

13. A sum of Rs 22,100 was divided between Timir and Monali in such a way that if both invested their shares at 10% compound interest per annum, the amount payable on maturity to Monali after 18 years would be the same as the amount payable on maturity to Timir after 20 years. What was the share of Monali in the initial sum? [NTPC CBT II Level 5 (15/06/2022) Shift 1]

Correct Answer: (d) 12,100
Solution:

14. A certain sum at compound interest amounts to ₹3,025 in 2 years and to ₹3,327.5 in 3 years, interest compounded annually. The sum and the rate of interest p.a. are respectively: [NTPC CBT II Level 3 (17/06/2022) Shift 1]

Correct Answer: (d) ₹2,500 and 10%
Solution:

15. The difference between the simple interest and the compound interest on Rs 5000/- at 10% per annum for 3 years is: [NTPC CBT - I 04/01/2021 (Morning)]

Correct Answer: (a) Rs. 155
Solution:

16. A and B borrowed the same amount for the same period. A borrowed at Simple interest at the rate of 8% yearly. B borrowed on compound interest of 5% half yearly. At the end of one year, the ratio of B’s interest to that of A’s interest is: [NTPC CBT - I 10/01/2021 (Evening)]

Correct Answer: (a) 41 : 32
Solution:

17. A sum is invested at compound interest payable annually. The interest in two successive years was Rs 225 and Rs 236.25. Find the rate of interest ? [NTPC CBT - I 28/01/2021(Morning) ]

Correct Answer: (c) 5%
Solution:

18. What will be the amount (in Rs) of annual payment that will discharge a debt of Rs 1,025 due in 2 years at the rate of 5% compound interest per annum? [NTPC CBT - I 09/02/2021 (Morning)]

Correct Answer: (b) 551.25
Solution:

19. Rafique and Pritam invested identical parts of money for two years at interest rates that compound annually at 15% per annum and 10% per annum respectively. If Rafique earns Rs. 2,250 more as interest than Pritam during these two years. Then how much did of them invest annually? [NTPC CBT - I 12/03/2021 (Evening)]

Correct Answer: (b) Rs. 20,000
Solution:

20. What will be the interest on the amount of Rs. 25,000 compounded annually at the rate of 4%, 5% and 6% per annum for the first, second and third year respectively? [NTPC CBT - I 13/03/2021 (Morning)]

Correct Answer: (a) Rs. 3938
Solution: