Quantitative Aptitude • Simple & Compound InterestHard
A sum of money amounts to ₹1,600 in 2 years and to ₹2,000 in 3 years at compound interest. What is the rate of interest per year?
A. 50%
B. 20%
C. 12.5%
D. 25%✓ Correct Answer
💡 Solution & Explanation
Between year 2 and year 3, the only change is one year's interest on ₹1,600: ₹2,000 − ₹1,600 = ₹400. So the rate = 400 ÷ 1,600 × 100 = 25%. Dividing by the larger amount instead gives 20%, which is wrong because interest is on the amount at the start of the year.
More Quantitative Aptitude Simple & Compound Interest questions
- What is the compound interest on ₹23,000 for 3 years at 10% per year, compounded annually?
- What is the simple interest on ₹16,000 at 4% per year for 5 years?
- At what rate of simple interest per year will a sum of money double itself in 16 years?
- In how many years will ₹34,000 earn a simple interest of ₹20,400 at 15% per year?
- At what rate of simple interest per year will a sum of money double itself in 5 years?