Khairul's Bank Math MCQ 425 Compound Interest

Compound Interest

lmportant voeabulary:

Annually Capital /Sum /

Semi -annually Compound interest | 4
Quarterly a (6 ) Fetched

fs C7(6DC 6 f:Compound Interest By Khairul Alam fc

A

)(
Compound Interest:

Simple interest ( VS Compound interest (54)

S C7
o0too Roo41 Soo+So wSoD4 (aO Ayo fOR)
_
o0 4 Soob

Important formulas of compound interest:

()When
(i) When
Let principal-P,

interest

interest
is

is
interest

compounded

compounded
Rate=

Annually

Half
r% per annum

,Amoumt ()
yearly (4)
and

Px |
Time =n

1+
years

100
n
 Khairul's Bank Math MCQ 426 Compound Interest
2n
Amount
(r + 2)
:(
100

(i)When interest is compounded Quarterly (fo )

4n
Amount- Px
100
(0 8 dr > C <8 17C )

(iv)When rates are %,

respectively (R
different for different

fefe
years
efe
I

)
r;%, r;% for Ist ,2nd , 3rd yrs

Amount= Px 1+ 1+
100 100 100

1. A man deposits Tk. 600 in a Bank at 10% interest rate compounded annually. At the
end of the second ,
year what will be the total amount including interest ?A4 G
o% b C 4D G ?) (BB Cash

,
boo 2

Oficer-11) (emba - 2002)

a. 660 b..720 c. 726 d. 626 Ans: c
Solution: S : (A r fH)
Amount () Px
Here Principal P =600, interest rate r=10% & time n =2year
2
10
So,the Amount () 600 x
100
-600x1.1x1.1 =726tk

boo 4o% 4>0 % ( d 6 7 73 7)

Goox

( Joo Soo

So%
=(4X}x=423 D)
fc So% A, D f4

Year Principal Interest Note

1 year 600tk 60 10% Interest on 600 tk only

year 600+60 60+6 6=10% interest on 60tk (extra principal)

Total Amount:600+ 60 + 60 + 6=Tk.726 Ans: ( interest is =726-600=126tk if wanted)

 Khairul's Bank Math MCQ 427 Compound Interest

2. Find compound interest on Tk. 7500 at 4% per annumn for 2 years, compounded
annualy.(G4 44854 qtoo D4)
a. 600 b. 612 c. 708 d.806 Ans: b
eSolution:ea T 45 R
Amount =7500 x = 7500× 26 26
=Tk. 8112.
100 25 25
Therefore, C.I. = Tk.(8112 - 7500) = Tk.612.

104% of 104%

=7500 X

Now
104

100

Interest
of
104

100
7500

Tk. 8112

=8112-7500 Tk.612 =
(4T
Ans:
6 ] CGR C I)

Year Principal Interest Note

1 year 7500tk 300 4% Interest
on 7500 only
2hd year 7500+300 300+12 on 300tk=12 (extra principal)1
12[4%interest
Total Amount:7500+300+300+12=8112,
..Only interest is =8112-7500=Tk.612

[Link] compound
voo
interest on
?
Tk. 2800 for
)-/BD House
18 months at 10%
Building FC
p.a.

(OF)-2017
is (4 64 o
a. Tk. 441.35 b. Tk. 434 c. Tk. 436.75 d. Tk. 420 Ans: b

Solution:
Interest of first 12 months =Tk. 2800 x 10% =Tk. 280
Compound amountafter 12 months =Tk. 2800+280=Tk. 3080
Interest on Tk. 3080 for 6 months =Tk. 3080 x 10% x
1

2
=Tk.154
Total interest =Tk. 280+154 =Tk.434
4. Albert invested an amount of Tk 8,000 in a fixed deposit scheme for 2 years at
compound interest rate 5% per annum. How much amount will Albert get on maturity
|
of the fixed deposit ?[4

a.
fRB
8600 b. 8620
4a I C.
7~
/[Link]- 127
8820
f

d.9000
brooo b4 R
Ans: c
[Help: 8000 4g 105% 4a 105% =88201

| 8oo5 (
brooo

C GRI
4t%
C
8oo D | T4
R 8oo id 3
G4 booo D% D% oDf
7Cd
-8oo
80o4 dA
CG -8o0+8o0to b2o d byoootbo vbeo
 Khairul's Bank Math MCQ 428 Compound Interest

5. A man deposited 1000 tk in a bank at 10% compounded annually. If the rate increase to

15% in the second year what will be the amount after second vear? (c o%
?) (DBBL- (MTO) - 2009]
a. 1200 b. 1250 c. 1265
[
d.

Help :
1350

1000 4110%
Ans: c
115%]

|yoo 4 d S8(% S C7 | GD So0+>eo+e eI Sooo+>st ~ce D

6. 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? (G Eo%
4 ooo o 4AR ?) Ljanata Bank-(Oficer-cash)-2020]+
[Combined 5Banks (Rejected-(Officer Cash)-2021]
a) 6240 b) 3972 c) 3420 d) 4972 Ans: b

Solution:

Let, the principal =100, After 6year amount will be =160

60×100
So, Total Interest =(160-100) 60, = .:Rate of Interest =10%
6x100
10
Compound Interest = 100
12000

-12000 ×
11 11 11)
12000 =Tk. 3972

Alternative Solution

12000
( A
10 10

co % C7 Go%+ so%)

1200
1200
1200
120
120
CS
132
)0o s0%
3600 +240 +132 3972 !

7. The compound interest on a certain sum of money for 2 years at 10% per annum is Tk.
420. The simple interest on the same sum at the same rate and for the same time will be?

D 82o 4 S, A1 f?) /RAKUB Lid. (Oficer) -

.
2014- (Written)]+ [SonaliBank-(Officer-Cash)-2018]+[PKB-(EO)-2019)
a. Tk. 350 b. Tk. 375 c. Tk. 380 d. Tk. 400 Ans: d
sSolution:

Let, the principal X ,We know in the case of compound interest c -p(1+
100
 Khairul's Bank Math

ATQ, x+ 420 x(1+

100
MCQ
)(
C4 C

C: 80
429

8o
>00+o0+o
D 2R(
Compound

CA )
Interest

x+ 420=x (1+ 00 oo R oo 4Cr

420 =x X f oootaoo 8o0 |
121x
x+ 420 121x= 100x+42000 21x= 42000 .. x -2000
100
2000 Easiest way
10
So, simple interest =I= npr =2x 2000 x .=Tk. 400 So %
100
200
SAlternativesolution: Let, initially investment =x Q 200+ 20
ATO, 110% 110% of xX-x =420 .x=2000
of
400 420
Then, 10% of 2000 ×2 200×2 Tk.400 = =
(4 a)|
8. A Sum of money amounts to Tk. 6690 after 3 years and to Tk. 10035 after 6 years on
compound interest. Find the sum. (4a A D C AM bcwo A 5 c
ooc ) [Rupali Bank-(SO)-2019
[Link]. 4360 b. Tk. 4560 c. Tk. 4660 d. Tk. 4460 Ans: d

aSolution: ( 4d CRT C, 4M SG 4 C bf )
We know,P(1 +r" =Compound amount
Here, P(1 +n'=6690---i) and P(1 + r)°= 10035------<. i)

Px(1+r)° 10035
By (ii)+(i) We get,
Px(l+r) 6690

Putting this value in (i) we get,

2
3
P(1 +r'=6690 Px 2 =6690 P= 6690x =Tk. 4460
.:.
3
9. A man saves Tk. 200at the end of each year and lends the money at 5% compound
interest. How much will it become at the end of 3 years ? (44G Moo
e% G
b. Tk. 635
C| A
662.02
?) /Uttara Bank (PO)-2017]
d. 666.50 Ans: c
a. Tk. 565.25 c.

Solution:

+ 4c%)>oDI|
8
H
>00
>Oo
4%
4R C
0
>oo+ (>oo
8o
[Link]. 4
D 8o G%
6).c>e
[Link] |a 80+0.t 8:00.

b8: C. 662.02

10. The compound interest on Tk. 10,000 for 4 years at 5% per annum will be
approximately-
a. 2000
%
b. 2025
o,ooo
c. 2050
4(3 D8 (R] [BB.A.D.-06
d.2155 Ans: d
 Khairul's Bank Math MCQ 430 Compound Interest

Solution: 4 , P 10,000 , , n 443 44Cr , r5%

,

4 4
5
(Amount) = Px = 10000× 1+ 100 - 1000×(1+ 20)
=10000 >x (1.05)* DII =12155 bII
.. fC (12155-10000) 2155

11. If the compound interest of a certain sum of money for two successive years be Tk. 225
and Tk. 238.50. What is the rate of interest per annum? ( AT
b4 8- D >[Link] Di ?) /PKB-{( EO-Cash
2019)
5% b. 7% 10% 6% Ans: d

rC
a. c. d.

Solution: Let, the principal for the first year is P,

Then the principal for the later year is (P+225)[ee 4 P
Again, let, the rate of interest is x% then,

ATQ,(P+225)x% -Pxx%238.50-225 [2 - ]a]

Px
100
225x
100 100
Px
=13.5 =x= 13.5 x
100
225
.".x=6 Ans: 6%

Simple & Compound interest comparison:

12. A sum fetches a simple interest of Tk.6000 at the rate of 5%pa. in 6 years. What would
be the compound interest earned at the same rate of interest and the same principal in 2

54f
2050
?) [Comzbined 4 Banks-foff-Cash)-20187
b. Tk. 2500 d. Tk. 2245 Ans: a
a. Tk. c. Tk. 2125

6000 x 100
Solution:Principal amount= Tk. Tk. 20,000
6x5
105 105
Compound Interest =20000 x 100 100
20,000 =Tk.2050
 Khairul's

the

a. tk.

ESolution:
51.25
Bank Math
13. If the simple interest on a
compound
MCQ

interest on the

b. tk.
sum

52
of money for 2 years
431

same at the same rate and for the same time?

c. tk. 54.25
Compound Interest
at 5% per annum is Tk. 50, what

d. tk. 60
( Ans:a
is

Let the sum is = 100

100 tk gives 5tk in year and5×2 =10tk in 2 year.
SO, 10tk interest when principal is = 100tk
So, 50tk 500tk (4 4A )
Now C.I on 500 tk at 5% rate for 2 years is

105% of 105% 500 = 500x 105

.=551.25, So C.I is 551.25 -500 =51.25Tk
of
100 100

14. If [Link] a certain sum for 2 years at 12% per annum is Tk.1590. What would be S.I?

a. 1200 b. 1500 c. 1450 d.1365 Ans:b

(b)Help: IfP=x then (112% of 112% of x-x) =1590 then x =6250( principal)

Now S.I (12% of 6250)×2=Tk. 1500 ]

is

15. The difference between simple and compound interests compounded annually on a

)
certain sum of money for 2 years at 4% per annum is 1 tk The sum (in Tk)is: (PI

a. 625 b. 630 c. 640d. 650 Ans: a

Solution:

If the principal is 100tk then simple interest at 4% for 2 years is 4+4= 8tk
And compound interest is 4+4= (4%of 4) 8+.16= 8.16 =
So the difference of C.I & S.I is 8.16-8.00 =0.16
Ifthediffercne is 0.16 tk then principal is 100 =
1 tk
100 C C 8% o0% >t
0.16
=Tk.625
16. The difference between the compound interest and the simple interest on a certain sum
at 5% per annum for 2 years is Tk. 1.50. The sum is?( % TR (
D
3 n .co I ?) LJanata Bank (AE0-Teller)-20197
Tk. 500
a. b. Tk. 400 c. Tk. 300 d. Tk. 600 Ans: d
aSolution:
Here, r =5%,n= 2, P=? and We know, compound interest = P(1l+r)" -P
5 21x 21 441P 41P
-P -P= Px P= -P
-
100 20 ×20 400 400
5 P
and Simple interest, I= Pnr = Px2 x
100 10
 Khairul's Bank Math MCQ 432 Compound Interest

41P P
=1.50 41P –40P
ATQ, =1.50 P=1.50 x 400 P=600 Tk.

.:.
400 10 400
Shorteut: Let, the principal =x
ATO, 5% of 5% [a% ).c4

:
of x 1.5 n CS %
100 100
So, x =1.5x X =600 So, the sum is Tk.600

|x c% 0.2c% 4 S.c bi R Joo% yoo B

17. An amount of money is invested in a saving account for two years. It increases by Tk.
52.50 in two years, after annual compounding at the rate of 10o per year. What is the
amount invested initially?( ~ ( CA RCAIT 4 |a o% Bd
4A
e>.to Di | A G fRG C?) /BB-(4D)-20221
[Link]. 400 b. Tk. 300 c. Tk. 250 d. Tk. 200 Ans: c

=52.50
ESolution:

ATQ,
Let, the

10
initial

-X
amount=X

52.5 (-

121x
) Shorteut:

(bo% 2
121x -100x
=
So, 100%
21%
52.50 x 100
21
-Tk.250

2%)

-X =52.5 X =52.5 =52.5 .:.21x =5250..x =250

100 100

18. The simple interest received on a sum of money at the end of 10 years is two times of the
principal. At the same rate of interestwhat would be the ratio of principal and
cOmpound interest received at the end of two years? ( D ,

(Oficer)-2019)
a.25:11 b. 20:11 C. 20:9 d. None Ans: a
ESolution:
Let, the principal 100 So ,the interest after 10 years 2x100200 (RR f )
Interest rate =200+10 =20%
Compound interest on Tk. 100 at 20% 2 years

3
for
= (120% of 120% of 100) - =
100 144-100 =44
So, ratio of principal to compound interest 100:44 25:11 [x ]

19. Compound interest on a certain sum at the rate of 12% per annum after 2 years is Tk.
142464. Find the simple interest on that sum at the rate of 15% per annum for 7 years.

?) [SonaliBank (SO-FF-quota)-20197
a. Tk. 568000 b. Tk. 586000 c. Tk. 588000 d. Tk. 566000 Ans: c
ESolution: Let, the principal=P
2
12 12)2
We know that compound interest = Px 1+,
100) 100
-P= Px
100
-P
 Khairul's Bank Math MCQ 433 Compound Interest
2
112
ATQ, Px -P= 142464
100
112 112 28 28 784P
Px -P= 142464 Px. --P=142464 -P= 142464
100 100 25 25 625
-
784P 625P
= 142464 159P =142464x625 .:P=
142464 x 625
=560000
625 159

Now simple interest, I= Pnr = 560000100x15x7 .=Tk. 588000

Difference of C.I. & S.I.

20. What is the difference between the amount of interest earned on a principal of Tk. 100
for 2 years 10% simple interest rate and 10% compounding interest rate? (5 o
B IC oo 3 4 ?)
/Combined 7 Banks (SO)- 2023 (2021
Based)]
a. Tk. 121 b. Tk. 120 c. Tk. 2 d. Tk. 1 Ans: d
SSolution:
Given that, principal =100, time n= 2 years and interest rate r= 10%
10
Simple interest =Pnr =100x2x 100 -20
10 11x11
Compound interest = Px(1+r%)-P=100x(1+
100
'-100=100%
10 ×10 - -100 =121-100 =21
So, difference of compound interest and simple interest =Tk. (21-20) =Tk. 1

Principal 100

1 year 10 10 Drs 10%

2nd year 10

21. The difference between simple and compound interest at 5% annually on a sum of the
10000 at the end of 2 years is-(Soooo 4
54 25 4d?) (PKB)-(Oficer(General-2021
a. Tk. b. Tk. 50 c. Tk. 100 d. Tk. 250 Ans:a
5
aSolution: Simple interest =10000 x 2 x 100
1000

21x 21
-10000
-000 20x 20
10000 =(11025-10000) = Tk. 1025

So, Difference =Tk.(1025 – 1000) =25

 Khairul's Bank Math MCQ 435 Compound Interest

1000 Easiest way

ooo4 o% >oo DI
(Soo0+oo) Soo 4 So% S3o 41 ST 100

100 10
84 (>b0+ps) >06 B4 o%

:
500.)
IG=Soo+SSo+S+).S =848.3 100 10 11
88.-800 v8.) D_
84 100 10 11 12.1

30 + 22 +12.1 =64.1

Soo
tbD
D b 0
Sooo 4 6
d 8
0+yo+o
A
o
8oo
| 2
AC
GT
|
Soo+o
4
So 4
1ST
d

gfORS 4 6o+v+>h> [Link] (54 800+b8. 8u8.)

Half yearly Interest

25. How much interest will Tk.1,000 earn in one year at an annual interest rate of 8% if

interest rate is compounded every 6 months? (O (fc )

Sooo D> R ?
(BB AD-2001)
a. Tk. 80 b. Tk. 88 c. Tk. 81.6 [Link].816 Ans:c
SSolution:
Interest

So interest
rate for
for
l year
6 month
is

is
8%
4%
C : Sooo a 8oD

Now, C.I for year with sum is

104% of
1

104% of 1000 D 8o+80+ (8o4 8%)[Link]|

104 104

100 100
-x1000 = 1081.6 So, only interest is =(1081.6-1000) =81.6
26. How much interest will Tk. 1000 earn in one year at an annual interest rate of 20% if
interest rate compounded every 6 months?(<MR w0% Sooo B AR? C
)
/BB (AD)-20107 & [PKB -(E0Cash)- 2018]
a. 200 b. 205 c. 208 d. 210 Ans: d

ESolution:
Shortcut: 110% of 10% 1 of 1000 =1210
So interest =210 Ans :210
is 1210- 1000
| Soo0 4 0% 00, C
Details:
Interest of first six months |0%S>o R CAD >+>o o)
 Khairul's Bank Math MCQ 434 Compound Interest

C: Yoooo e% aoo 4 Coo 42%2eD 4 ede

22. Aman borrowedTk. 800 at 10 % per annum S.I and immediately lent the whole sum at
10% per annunm CI What does he gain at the end of 2 years? (4do fs boo So%

a. 10 b. 80 c. 8 d.6 Ans: c
Solution:
Simple interest
Compound
First

2nd year
year
is

interest

= 10%
(10%

of

=10% of 880 =Tk.88

1otalC.I for 2vears is 80+88
T 168
So the difference is 168-160 =Tk.8
of 800) x2

800 =Tk.80
=Tk.160
(S
+
+
)
)
bo+bo
boyo -)bo
+ C
bu

23. What will be the difference between simple and compound interest at 10% on a sum of
Tk.5000 after 5 years? (Gooo D4 6 DS 1 < 4?)
PKB-(Officer-Cash)-2021]
a. 45 b. 152 C. 252 d. 552 Ans:d

Compound
=8052.55
Interest,

– 5000 =3052.55
.
=P1+0 - 5000

10
= 5000 x 1+
10
100
5000

Now, Simple Interest, I= npr =5 x 5000 × =2500

100
So, Difference ofCI & SI =3052.55 - 2500 =552.55 552

24. What will be the difference between simple and compound interest at 10% on a sum of
Tk. 1000 after 4 years? (4 oB Sooo 8R 4
J PS Drel?) (BKB-(CASH)-2017] && (BB-(AD)-2018]
a. Tk.31.90 b. Tk. 32.10 C. 44.90 d. Tk. 64.10 Ans: d
1000 × 10x4
ESolution: Simple interest = =400tk
100
Compound interest =(110% of 10% of 110% of 110% of 1000 ) -1000
l
110 110
X X
110
X -1000 = 1464.1-1000 =464.1
Or, (1000x.
100 100 100 100
So difference =464.1- 400=64.1
 Khairul's Bank Math MCQ 436 Compound Interest
10% of 1000 =100
New principal after six months 1000+100 =1100
Interest of last sixX months =10% of 1 100 =110
So, total interest of 1 year = 100+110 =Tk.210

a.

SSolution:
,C
27. If the rate of Interest

Tk. 4000 in

0
Shortcut: (Cs
A
Tk. 4630.00
3
2

8ooo
years

C5C
B.
is

will
10%
amount

b. Tk. 4630.50
per

COC
to-(

46
4c
annum and is compounded

?)

c.

)
half yearly, the principal of

/Combined 7 bank-(So)-2019]

Tk. 4631.50
fR

d. Tk. 4632.00
nA

Ans: b

Time Principal Note

Interest
1 6 months 4000 200 =
200 5% Interest on Tk. 4000 only
2nd 6 months 4000+200 200+10 =
210 5% interest on Tk. 4200
3rd 6 months 4200+210 210+10.5|220.5 =5% interest on Tk. 4410
Total Amount:Tk. (4000-+200+210+220.5) =Tk.4630.5 Ans: Tk. 4630.5

28. How much interest will taka 2,000 earn at an annual interest rate of 8% in one year if

the interest is compounded every six month? [T Rooo

(7TBL.O:l27
a. 160.00 b. 163.20 c. 249.73 d. 332.80 Ans: b
[Help: 2000 104% 104% 2163.20 2163.20 - 2000 163.201

C :
bo
>00o
D
4 dN
bro4 8%-0.2D4
ooo
R
48%
CA
bob fa
T
MSS
bo+bot0.-
boD
o.24
4

|
_

29. How much interest will Tk. 2,000 earn at an annual rate of 10% in one year if the
interest is compounded every 6 months? (ko00 B o% IG R
t A)(BB Ass: Director-2001)
a. 200
Solution:

[ Help: 2000
b. 210

4 105% 105%
c. 220

2205-2000 205 1
[Link] Ans: d

oo C%cD|R o0+soo+t oDl

30. A bank offers 5% interest compounded half yearly. A customer deposits Tk.1600 each
on 1"Januaryand 1". July of a year. At the end of the year the amount he would have
gained by the way of interest is (4 R ( C R4 rd %| 4G4
I?) [Sonali Bank-(Oficer-Cash)-20187
a. Tk. 121 b. Tk. 122 c. Tk. 123 d. Tk. 124 Ans: a
 Khairul's Bank Math MCQ 437 Compound Interest

-
2n
(r+2)
ESolution: We know that, Compound amount of half yearly interest Px 1
100

Here, Total interest =(interest of Tk.1600 for I year + interest of next Tk. 1600 for 6 month)
2.5 2.5
{ 1600 x(1+ 100 -1600} + { 1600 x (1+ 100 1600} [ -
={1600

1
x (1+
40
-1600} +{ 1600 x (1+0-1600;
41 41 41
={1600 40
x

40 - 1600} +{ 1600 x
40
1600}

={1681-1600} +{1640 - 1600} =81 +40 = Tk. 121

SAlternative Solution:
Interest rate S%+22.5% (o0 D 4p.a%)
Interest of first 6months 2.5% of 1600 40()boo 4o )bo 2% bo 4 .c%80)
Interest of last 6 months 2.5% of 3200 ( LST Joo h 4C oo 0Roo )
80 (5 Sboo 4.% 80 36uoo .C% vo)

Interest of interest Tk.40 2.5% of 40 (G 80 R4 d )

1 (80 o% 8, e% RR .e% sIFa< fRC

So, Total interest =40+80+1 =Tk. 121

4 A A, Soo+Jboo+)oo 8boo 4 2.c% +8o 42.%SRo+) D
31. TK. 500 is deposited in a savings account which pays 7% annual interest compounded
semi-annually. To the nearest Taka, how much is in the account at the end of the year?

$S DrI KGA?) [RupaliBank Off- (Cash)-2018

a. 542 b. 536 c. 512 d. 524 Ans: b
ESolution:

C
4
9%
Coo o6.%
C O.% So6.c%
_ (
Co ()
4% )
500
17.5 ((
( )
>) interest

AT 3.5%
of interest Total interest Amount

17.5 (4() 0.6125 17.5+17.5+.6125=35.61 or 36 536

32. Tk. 5000 is deposited in a savings account which pays 7% annual interest compounded
semi-annually. To the nearest Taka, how much is in the account at the end of the year?

A?)-[BDBL-(SO)-2017]
a. 5423 b. 5356 c. 5122 d. 5247 Ans: b
 Khairul's Bank Math MCQ 438 Compound Interest
Solution:
4% tooo > tooo 4 9% cto Di_
9% Cooo bI 6a0 44 1 9e Di4
4 IC ooo b4 Sae DI4T

R D e+9e +c.>>e sab.>>e D|4g tooo+cv.>> toc D |

(29946.4% fR D 9% 1RP G4 M )

33. An amount of Tk. 10,000 becomes Tk. 20,736

compounded half yearly, what is the annual
in 2 years. If

rate of interest? (90,0oo DII 2

the rate of interest
20,999
is

(off: Cash))-2019-(FF-quota)]
a. 25% b. 20% C. 40% d. 30% Ans: c

Solution:

Compound interest = P(1+"oy

2
4

-20736
10000 + 2x 100
1

200 + r 20736

200 10000

200 + r 200 + r_ 12
2000+10r =2400 >10r =400 ..r=40
200 200 10

So, the interest rate is =40%

34. The difference between simple interest and compound on Tk. 1200 for one year at 10%
per annum reckOned half-yearly is: (S0% 4 oo D4

|
Tk.2.50 b. Tk.3 c. Tk.3.75 d. Tk.4 Ans: b

Written Solution:
10
Total interest with simple interest is 10% of 1200 x1200=120
100

C.I. when interest compoundedyearly

105% of 105% of 1200:
105 105
x1200 = 1323
100 100
Only interest is (1323- 1200) =123tk

So the difference of interest is (123-120) =Tk. 3

bo+bo4 e% 0( 4
35. If the difference between C.I compounded half yearly and S.I on a sum at 10% per
annum for one year is Tk.25 the sum is (So% 4 a, ASP
4A ~^ D4 46? )
a. 400 b. 5000 c. 10,000 d.1000 Ans: c
 Khairul's Bank Math MCQ 439 Compound Interest

)
EWritten solution: Let the principal is =x
So,Simple interest of l year= 10% ofx =Tk. X 10

Again half yearly compound interest of Tk.x at 10% is

441x 4lx
(105% of 105% of x)-x = 400
-X=
400
(C CR 7C7

41x X
ATQ,
400 10
25Tk ( - Re
4lx –40x
Or, =25 ..X=Tk.10000
400

o,0oo D R o% ooo DI4

36. FindC.I on Tk.16000 at 20% per annum for 9 months compounded quarterly (ko%
Syooo Ba ?
a. 2400 b. 2500 c. 2552 d.2522 Ans: d

Solution:
Interest rate20%, 12 months20%..3months 5% (Ouarterly 3months 1/4 l year)
For 9 mnonths there are Ihree 3months (0 6 A )

: 105% of 105% of 105% of 16000

After First =
3 months 16000+800 (5% of 16000)

After 2h three months = 16000+800+40

After 3 three months = 16000+800+40+10+2 ..Total amounts =Tk.2522

Some difficultquestions

37. Arman wanted to have Tk. 39,200 as interest after 5year .He has invested an amount in

an account for year at 8% interest rate. From the 2" year, he invested the principal
1

amount in another account offering 10% interest for 3 year. At the beginning of the
fifth year he invested the principal amount in another account at the rate of 11%.What

was the principal amount? (assumesimple interest rate)

 Khairul's Bank Math MCQ 440 Compound Interest

47) (PremierBank Lid. MTO- 2013)

a. 50,000 b. 80,000 c. 90,000 d.70,000 Ans: b

ESolution: Let the principal is x =

ATQ, (8% of x) +(10% ofx x 3) + (11% of x) =39200 (3+0+) =¢ EIA (AD T7 =05Qo0)
8x 30x 1lx 8x + 30x +1lx
+ + =39200 =39200 49x=3920000 ..x=Tk. 80,000
100 100 100 100

38. Simnple interest on a certain sum of money for 3years at per annum is half the 8%
compound interest on Tk. 4000 for 2 years at 10% per annum. The sum placed on
simple interest is: (8ooo 4 C> % b C MR f %
a. Tk. 1550 b. Tk. 1650 c. Tk. 1750 [Link]. 2000 Ans: c
Solution:
C.I.= 110% of 110% of 4000 =Tk. 840
=
So S.I is 840+2 420 =
Now Sum
420 x 100
is Tk.1750( 28 D Joo 820 D + )9
=.
8x3
2
39. A person invested rd of his capital at 3%, 6 th at 6% and the remainder at 12%. If
3
his annual income is TK.25, then the capital is (4 R s% 3,

r?)(NationalBank Lid. PO 2013)

a. 490 b. 510 c. 500 d.510 Ans: c
ESolution: Let the capital is =X
So, first invest is = 2x3 and 2hd invest is
X
6
2x 5x
So 3rd invest is= X- + X
-t tk
3 6 6 6

ATO, 3% of )+(6% of )+ (12%6 of )- 25

3 6
100 100

2x + x + 2x =25
+ -=25 5x= 2500 So, x =500
50 100 50 100

40. The compound interest on a certain sum for 2 years at 10% per annum is tk. 525. The
simple interest on the
is:(6

a,
TfA
400
A AS MC
04

b. 500
?
samesum for double the time at half the rate percent per annum
o
)(PKB Execu
c. 600
MS 5
Ofice (Cash) 2014)
e4_ g
d.800
kC

Ans: b
 Khairul's Bank Math MCQ 441
Compound Interest

Solution: e , Let the capital be Tk P -P= 525

2
10 10
Px1+ -P= 525 -P=525
100 »Px1+ 100

Px (1.1) -P= 525 1.21P-P=525 or 0.21P = 521 So P= 2500

4 2oo % 8 43 sxex8 eooD

l
A C: Let the capital be Tk P 2500 x 5 x4
ATQ, (110% of 110% of P) -P=525 Then P= 2500 then S.I= =Tk.500
100

41. A sum of money invested at compound interest amounts to Tk. 4624 in 2 years and to

Tk. 4913 in 3 years. The sum of mnoney is: (3 8V>8 b AR

4 M C 8b)0 D4 G?) Pubali Bank Lid (SO)-2017]
a. Tk.4096 b. Tk.4260 c. Tk. 4335 d. Tk. 4360 Ans: a

ESolution:

|
3year -2 year = year 1 =4913- interest 4624 =289 Tk.
289x 100
Interest =
rate =6.25%
4624
Now, Let the sum =X is

ATQ, 106.25% of 106.25%ofx =4624

106.25 106.25 100 100
or,
100 100
XX=4624 or, x =4624x 106.25 106.25
=Tk.4096 Ans: 4096

42. A sum of money is borrowed and paid back in two annual installments of TK.882 each
5% compound [Link] sum borrowed was :(e%
allowingg

(Morning)]
b b ad sc« Cf?)
3
/JanataBanh (BO0-2017

a. Tk.1620 b. TK.1680 c. TK.1640 d. TK.1700 Ans: c

ESolution:
bbr CR brb+bba Sav8 DTI

,
Soo
x 4A So¢% =bbx= bbX .=b80 DiI
.".
Sot

..X o% Soa% bb X bbrox

Joo

Jot
Soo
=bbx broo

RcaG k b8o+boo 8ob4_ Ans:

 Khairul's Bank Math MCQ 442 Compound Interest
2
43. An investor earns 3% return on
1

of his capital, 5% on and 11% on the remainder.

What is the average rate of return he earns on his total capital? (4GRRCT d 8

d6% R

4 ?) /JanataBank (RC)-2023(2020Based]
(a) 5% (b) 5.5% (c) 10% (d) 10.5% Ans: a
Solution:

Let, the investor's total capital be Then,

x.
10x 1lx X
2x +
Total return 3% of +
4
5% of
3 lha*-. 300 1200 20

Average rate ofreturn % 20 xx100 |-5% [firx3 rE]

.:.
X

A man 8% and the remainder at 10%

1
44. invested of his capital at 7%o, at If his annual
3 4
income is Tk.561. The capital is: (A4 4-R 9% R, g4'~%

a. 3600 b. 6500 C. 6600 d. 6640 Ans: c

ESolution: Let the capital be Tk =x
Then,
3
7
100
-X 1)+ (x
4 100
x 1)+ (x
12
10

100
-x 1) =561

300 50 24
-=561 51x =561 x 600 .".X=6600

45. Find the compound interest at the rate of 10% per annum for four years on the
principalwhich in four years at the rate of 4% per annum gives Tk. 1600 as simple
interest. (64 8% 8 3boo B 64
S0% 8 ?) (Sonali Bank (OfFP)-2019]
Tk. 432
a. Tk. 4641 b. Tk. 4732 c. 1
d. Tk.4899 Ans: a

4
SSolution:
8% 8 >coob[
S
I
, oo D, GA98% 8 8x8

4,0 oooo

=Px(1+r)"-P =10000×(1+y'-10000=
D 54
oo yR boo 4

14641
Soooo

-10000=Tk.4641
D_

100
SAlternativeSolution:

=Jo,0oo DIT
I
8x 8
 Khairul's Bank Math MCQ 443 Compound Interest

Soo00
(So %) Jooo
=$oo C7s
) () D

(3A)
(o%)Jooo (Jo%) Soo X

(Jo%)So00 (So %)So0 (So%) Sso

8 (So%)Soo0 (So%)Soo (Jo%) So 0%

8000 + 900 898)
8o00 84
+0+-84 4 8 898)

46. The difference between simple and compound interest on a sum of money at 20% per
annum for 3 years Tk. 48. What the sum?(4i
is is o% D1
8 A ?) /Conbined 5banks (Cash)-2019]
a. Tk.550 b. Tk.500 c. Tk.375 d. Tk.400 Ans:c

Solution: Let, the sum is =x

Xx 20 x3 3x
So, simple interest of x tk at 20% for 3 years
100 5
20
So,Compound interest of xtk at 20% for 3 years 1+
100

-x = 216x = 216x–125x
-X
91x

125 125 125

ATQ,
91x

125
3x
5 48 [R Tk.48]

–75x
91x
48
16x
=48 >l6x=48x125 .X=48x 125 =Tk. 375
125 125 16

Alternative Solution: [4 4 dS_d A

x (100) (a) 4
a (20) a 4s 20% b+b+b+te =12.8
a(20) b (4) a 44 20% |b(4) 20% ( c 12.8

a(20) b (4) b (4) 0.8

A atata =47
, atatatb+btbte b
beC : (atatatb+b+b+c)-
(atata) b+b+b-tc 4+4+4+0.8 12.8

TA, >.v% k 84
o0
8b x SO0
04¢ GA: 375 % = DI
 Khairul's Bank Math MCQ 444
Compound Interest

Others

47. If a principalP becomes Q in 2 years when the interest R% is compounded half-yearly.

And if the same principle P becomes Q in 2 years when interest S% is compounded
annually, than which of thefollowing is true? (R% ~ PD 4
Q B , 44 P S% 4 Q fA ?)
[Combined 7Banks(So-General)-2021]
a. R> S b. R=S C. R<S [Link] Ans: c
Solution: (4 64 f )

4A
4 , 4
>o 4%
S4
>
C
>o++
oo 4So% >o
>S1

OR
To66
DT: R<S
T 4 G n R% 1 S% TR4 I

48. A sum of mnoney placed at compound interest doubles itself in 4 years. In how many
years will it amount to 8 times itself? (4 BT bd C8 1as
f T R
b. 8 years
?) [Combined 7Banks(So-General)-2021] –
a.12 years c. 16 years d. 64 years Ans:a
SSolution:
Let, The Principal be Tk. P After 4 years Amount will be Tk. 2P
ATQ, Px(1+r%)* =2P (1+r%)=2.....i) [2 4(1+1%) CA G
Again, Let, after n'years Amount will be 8 times
ATQ, Px(1+r%)"= 8P
(ltr%) =8 (1tr% =2 (1+r%) = (l+r% [Since, 2-(1+r%)']
(1tr%" =(1+r%)":.n=12 Ans: 12 years.
 Khairul's Bank Math MCQ 445 Compound Interest

Practice Part
Marks: 10 Time: 1Omin
1. A certain sum of money amounts Tk 1680 in 3yrs & it becomesTk 1920 in 7 [Link]
is the sum.
a. 1500 b. 16500 c. 1200 d. 1900

2. If the difference between compound interest and simple interest on a sum of money for
3 years at 5% per annum is Tk.305/- what is the sum?
a. 50000 b. 7000040000 d. 70000
c.

3. If the difference between compound interest and simple interest on sum of money for 2
years at 10% per annum is Tk.250/ find the sunm?
a. 100000 b. 500000 c. 600099 d. 788000

4. If the difference between compound interest and simple interest on asum of money for 3
years at 10% per annum is Tk.930/- fnd the sum ?
a. 40000 b. 30000 c. 60000 d. 80000
5. The CIon a sum at 5% per annum for 2 years is Tk.1025 what will be the SI on the
samesum for the same period and at the same rate?
a. 1000 b.2000 c. 4000 d. 6000
6. If the SI on a sum of money at 10% p.a. for 3 years
find the CI on the same
is Tk.6000.
sum same period and at the same rate ?
for the
a. 5530 b. 6620 c. 8830 d. 4401

7. If the difference between compound interest and simple interest on a sum of money for
2 years at 10% per annum is TK.300-find the sum?
a. 30500 b. 30000 C. 45200 d. 30200
8. The CIon asum of at 10% p.a. for 2 years is TK.840. What will be the SI on the same
sum for the same period and at the same rate?
a. 750 b. 680 c. 800 d. 820
9. The SI on a money at 15% for 2 years is Tk.3000- what will be the CI on the same sum
for the sam period and at the same rate?
a. 3250 b. 4500 c. 3225 d. 3450

10. [Link]. borrowed Tk.12000/- at 11% per annum on SI and immediately he lent the
whole sum to Mr Raj at 11% p.a. on [Link] will be the gain of [Link] 2 years
a. 125 b. 350 C. 200.5 d. 145.2

Answers

1. 2. 3. 4. b 5.

6. 7. 8 C 9 b 10. d