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KRA CBT Aptitude Test study materials
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KRA CBT Aptitude Test practice questions

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Question 1Numerical Reasoning and Quantitative Aptitude

A KRA revenue clerk records gross sales of KSh 480,000 for a month. The applicable VAT rate is 16%. What is the VAT amount on these sales?

  1. KSh 86,400
  2. KSh 76,800 Correct answer.
  3. KSh 66,207
  4. KSh 55,200

Explanation

VAT is calculated as 16% of the gross sales figure, so 480,000 × 0.16 = 76,800. The other figures arise from dividing by 1.16 or using incorrect rates, not from a straightforward percentage of the base.

Question 2Numerical Reasoning and Quantitative Aptitude

A taxpayer's assessable income is KSh 900,000 and the personal relief allowed is KSh 28,800. If tax is charged at a flat 10% on assessable income, what is the net tax payable?

  1. KSh 28,800
  2. KSh 118,800
  3. KSh 90,000
  4. KSh 61,200 Correct answer.

Explanation

Gross tax is 10% of 900,000 = 90,000, and relief is deducted from gross tax, giving 90,000 − 28,800 = 61,200. Relief reduces the tax liability itself, not the income base.

Question 3Numerical Reasoning and Quantitative Aptitude

A trader sells goods for KSh 1,250 after allowing a 20% trade discount on the list price. What was the list price?

  1. KSh 1,450
  2. KSh 1,500
  3. KSh 1,562.50 Correct answer.
  4. KSh 1,000

Explanation

If the selling price is 80% of list price, then list price = 1,250 ÷ 0.8 = 1,562.50. Dividing by the complement of the discount reverses a percentage reduction correctly.

Question 4Numerical Reasoning and Quantitative Aptitude

A KRA officer travels 240 km in 3 hours and then a further 180 km in 2 hours. What is the average speed for the whole journey?

  1. 84 km/h Correct answer.
  2. 78 km/h
  3. 90 km/h
  4. 80 km/h

Explanation

Total distance is 240 + 180 = 420 km and total time is 3 + 2 = 5 hours, so average speed = 420 ÷ 5 = 84 km/h. Average speed uses total distance over total time, not the mean of the two segment speeds.

Question 5Numerical Reasoning and Quantitative Aptitude

A shipment is valued at KSh 2,400,000. Import duty is charged at 25% of the value and VAT at 16% of the duty-inclusive value. What is the total of duty plus VAT?

  1. KSh 1,080,000 Correct answer.
  2. KSh 600,000
  3. KSh 1,132,800
  4. KSh 984,000

Explanation

Duty = 25% of 2,400,000 = 600,000, giving a duty-inclusive value of 3,000,000. VAT = 16% of 3,000,000 = 480,000, so the combined charge is 600,000 + 480,000 = 1,080,000.

Question 6Numerical Reasoning and Quantitative Aptitude

A ratio of tax revenue collected by three stations is 3:5:7. If the total collected is KSh 4,500,000, how much did the highest-collecting station remit?

  1. KSh 900,000
  2. KSh 1,800,000
  3. KSh 1,500,000
  4. KSh 2,100,000 Correct answer.

Explanation

The ratio parts sum to 3 + 5 + 7 = 15, so one part is 4,500,000 ÷ 15 = 300,000. The highest share is 7 parts = 2,100,000.

Question 7Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 45,000 is reduced by 12%. What is the reduced penalty?

  1. KSh 39,600 Correct answer.
  2. KSh 50,400
  3. KSh 40,500
  4. KSh 5,400

Explanation

The reduction is 12% of 45,000 = 5,400, so the reduced penalty is 45,000 − 5,400 = 39,600. Equivalently, 88% of 45,000 gives the same result.

Question 8Numerical Reasoning and Quantitative Aptitude

A taxpayer remits KSh 18,000 in tax, which represents 15% of declared taxable income. What is the declared taxable income?

  1. KSh 270,000
  2. KSh 120,000 Correct answer.
  3. KSh 108,000
  4. KSh 2,700

Explanation

If 15% of income equals 18,000, then income = 18,000 ÷ 0.15 = 120,000. Dividing by the rate reverses the percentage calculation.

Question 9Numerical Reasoning and Quantitative Aptitude

A company's taxable profit rose from KSh 8 million to KSh 10 million. What is the percentage increase in taxable profit?

  1. 25% Correct answer.
  2. 2%
  3. 12.5%
  4. 20%

Explanation

The increase is 2 million on an original base of 8 million, so the percentage increase is (2 ÷ 8) × 100 = 25%. Percentage change is always measured against the original value.

Question 10Numerical Reasoning and Quantitative Aptitude

A taxpayer earns a monthly salary of KSh 85,000 and is allowed a tax-free threshold of KSh 24,000 per month. The remainder is taxed at 30%. What is the monthly tax before relief?

  1. KSh 61,000
  2. KSh 7,200
  3. KSh 25,500
  4. KSh 18,300 Correct answer.

Explanation

Taxable amount is 85,000 − 24,000 = 61,000, and 30% of that is 18,300. The threshold is deducted from income before the rate is applied.

Question 11Numerical Reasoning and Quantitative Aptitude

Two officers share a task allowance of KSh 72,000 in the ratio 5:4. How much more does the officer with the larger share receive than the other?

  1. KSh 32,000
  2. KSh 16,000
  3. KSh 40,000
  4. KSh 8,000 Correct answer.

Explanation

Total parts = 9, so one part = 72,000 ÷ 9 = 8,000. The difference between shares is 5 − 4 = 1 part = 8,000.

Question 12Numerical Reasoning and Quantitative Aptitude

A KRA officer drives 150 km at 75 km/h and then 120 km at 60 km/h. What is the average speed for the whole trip?

  1. 68 km/h Correct answer.
  2. 70 km/h
  3. 66.67 km/h
  4. 67.5 km/h

Explanation

Times are 150 ÷ 75 = 2 hours and 120 ÷ 60 = 2 hours, so total distance 270 km over 4 hours gives 67.5 km/h. The harmonic effect of equal times makes the simple mean of speeds valid here.

Question 13Numerical Reasoning and Quantitative Aptitude

A trader's sales grew by 20% in year one and then fell by 20% in year two. Compared with the original level, the final sales are:

  1. 4% lower Correct answer.
  2. 2% lower
  3. unchanged
  4. 4% higher

Explanation

Multiplying by 1.2 then 0.8 gives 0.96, so the final figure is 96% of the original, a 4% decrease. Percentage changes compound multiplicatively, so equal up and down moves do not cancel.

Question 14Numerical Reasoning and Quantitative Aptitude

A taxpayer's income of KSh 1,200,000 is taxed in bands: the first KSh 300,000 at 10% and the remainder at 25%. What is the total tax?

  1. KSh 225,000
  2. KSh 255,000 Correct answer.
  3. KSh 300,000
  4. KSh 330,000

Explanation

Tax on the first band is 30,000 and on the remaining 900,000 at 25% is 225,000. Adding them gives 255,000, which reflects progressive banding rather than a single rate.

Question 15Numerical Reasoning and Quantitative Aptitude

A consignment's value including VAT is KSh 580,000. If VAT is 16%, what is the value excluding VAT?

  1. KSh 480,000
  2. KSh 487,200
  3. KSh 500,000 Correct answer.
  4. KSh 493,000

Explanation

When the figure includes VAT, the net value is 580,000 ÷ 1.16 = 500,000. Dividing by 1.16 removes the tax correctly, whereas multiplying by 16% does not.

Question 16Numerical Reasoning and Quantitative Aptitude

A penalty grows by compound interest at 10% per annum. If the original penalty is KSh 200,000, what is the amount after 2 years?

  1. KSh 220,000
  2. KSh 240,000
  3. KSh 244,200
  4. KSh 242,000 Correct answer.

Explanation

Compound growth multiplies by 1.1 each year, so 200,000 × 1.1² = 200,000 × 1.21 = 242,000. Simple interest would give only 240,000 because it ignores interest on the first year's interest.

Question 17Numerical Reasoning and Quantitative Aptitude

A team of 6 auditors can complete a compliance review in 12 days. How many days will 8 auditors take, working at the same rate?

  1. 8 days
  2. 9 days Correct answer.
  3. 10 days
  4. 16 days

Explanation

Total work is 6 × 12 = 72 auditor-days. With 8 auditors the time is 72 ÷ 8 = 9 days, since more workers reduce the time proportionally.

Question 18Numerical Reasoning and Quantitative Aptitude

A taxpayer's gross tax is KSh 96,000. Personal relief is KSh 28,800 and insurance relief is 15% of a premium of KSh 40,000. What is the net tax payable?

  1. KSh 61,200 Correct answer.
  2. KSh 55,200
  3. KSh 73,200
  4. KSh 67,200

Explanation

Insurance relief is 15% of 40,000 = 6,000. Total relief is 28,800 + 6,000 = 34,800, so net tax is 96,000 − 34,800 = 61,200. All reliefs are deducted from gross tax.

Question 19Numerical Reasoning and Quantitative Aptitude

A trader's monthly turnover is KSh 640,000 and allowable expenses are KSh 410,000. If tax is 30% of net profit, what is the monthly tax?

  1. KSh 69,000 Correct answer.
  2. KSh 230,000
  3. KSh 123,000
  4. KSh 192,000

Explanation

Net profit is 640,000 − 410,000 = 230,000, and 30% of that is 69,000. Tax applies to net profit after allowable expenses, not to turnover.

Question 20Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 250,000 is reduced by 20% and the reduced amount is then reduced by a further 10%. What is the final penalty?

  1. KSh 200,000
  2. KSh 190,000
  3. KSh 175,000
  4. KSh 180,000 Correct answer.

Explanation

After the first reduction the amount is 250,000 × 0.8 = 200,000. The second reduction gives 200,000 × 0.9 = 180,000, since the second reduction applies to the already reduced figure.

Question 21Numerical Reasoning and Quantitative Aptitude

A taxpayer has income of KSh 2,000,000. The first KSh 500,000 is taxed at 10%, the next KSh 800,000 at 20% and the balance at 30%. What is the total tax?

  1. KSh 390,000
  2. KSh 450,000
  3. KSh 600,000
  4. KSh 420,000 Correct answer.

Explanation

Band tax is 50,000 + 160,000 + 210,000 = 420,000, where the top band covers 700,000 at 30%. Each band is taxed only on the income falling within it.

Question 22Numerical Reasoning and Quantitative Aptitude

A company's revenue grew by 25% in one year and then declined by 20% the next. If the final revenue is KSh 5,000,000, what was the original revenue?

  1. KSh 5,200,000
  2. KSh 5,000,000 Correct answer.
  3. KSh 6,250,000
  4. KSh 4,800,000

Explanation

The combined multiplier is 1.25 × 0.8 = 1.0, so the final revenue equals the original. Working backwards, 5,000,000 ÷ 1.0 = 5,000,000.

Question 23Numerical Reasoning and Quantitative Aptitude

A trader must choose between two tax regimes. Regime A charges 18% of gross profit; Regime B charges 12% of turnover. Turnover is KSh 1,500,000 and gross profit is KSh 900,000. By how much is the cheaper regime cheaper?

  1. KSh 12,000
  2. KSh 18,000 Correct answer.
  3. KSh 30,000
  4. KSh 6,000

Explanation

Regime A tax is 18% of 900,000 = 162,000 and Regime B tax is 12% of 1,500,000 = 180,000. The cheaper regime A saves 180,000 − 162,000 = 18,000.

Question 24Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 400,000 accrues compound interest at 5% per quarter for two quarters, after which a payment of KSh 100,000 is made. What balance remains?

  1. KSh 351,000
  2. KSh 441,000
  3. KSh 340,000
  4. KSh 341,000 Correct answer.

Explanation

The growth factor is 1.05² = 1.1025, so the amount is 400,000 × 1.1025 = 441,000. After the payment the balance is 441,000 − 100,000 = 341,000.

Question 25Numerical Reasoning and Quantitative Aptitude

Three stations collect tax in the ratio 2:3:5. If the highest collector's amount is increased by 20% and the total remains KSh 6,000,000, what does the highest collector now remit?

  1. KSh 3,000,000
  2. KSh 3,600,000 Correct answer.
  3. KSh 2,400,000
  4. KSh 3,300,000

Explanation

Originally one part is 6,000,000 ÷ 10 = 600,000, so the highest share is 5 parts = 3,000,000. A 20% increase gives 3,000,000 × 1.2 = 3,600,000.

Question 26Numerical Reasoning and Quantitative Aptitude

A customs officer converts a consignment value of KSh 2,400,000 into US dollars. If the exchange rate is KSh 120 per US dollar, what is the value in US dollars?

  1. USD 24,000
  2. USD 200,000
  3. USD 2,000
  4. USD 20,000 Correct answer.

Explanation

To convert Kenya shillings into US dollars, divide the shilling amount by the rate of KSh 120 per dollar. Dividing 2,400,000 by 120 gives 20,000, so the consignment is worth USD 20,000.

Question 27Numerical Reasoning and Quantitative Aptitude

A taxpayer's declared income is KSh 960,000 per year. What is the average monthly income?

  1. KSh 88,000
  2. KSh 72,000
  3. KSh 96,000
  4. KSh 80,000 Correct answer.

Explanation

Annual income is spread across twelve months, so divide 960,000 by 12. The result is 80,000, giving an average monthly income of KSh 80,000.

Question 28Numerical Reasoning and Quantitative Aptitude

A warehouse holds 4,500 cartons of excisable goods. If 40% are transferred to another bonded store, how many cartons remain?

  1. 3,150
  2. 3,600
  3. 2,700 Correct answer.
  4. 1,800

Explanation

Forty per cent of 4,500 is 1,800 cartons transferred out. Subtracting 1,800 from 4,500 leaves 2,700 cartons still in the warehouse. Equivalently, 60% of 4,500 is 2,700.

Question 29Numerical Reasoning and Quantitative Aptitude

A tax officer records collections of KSh 45,600, KSh 38,900 and KSh 27,500 over three days. What is the total collection for the three days?

  1. KSh 110,000
  2. KSh 113,000
  3. KSh 111,000
  4. KSh 112,000 Correct answer.

Explanation

Add the three daily figures: 45,600 + 38,900 = 84,500, and 84,500 + 27,500 = 112,000. The total three-day collection is therefore KSh 112,000.

Question 30Numerical Reasoning and Quantitative Aptitude

A trader's turnover for the year is KSh 1,250,000. If the applicable turnover tax rate is 3%, what tax is payable?

  1. KSh 25,000
  2. KSh 37,500 Correct answer.
  3. KSh 12,500
  4. KSh 41,667

Explanation

Turnover tax is a percentage of turnover, so multiply 1,250,000 by 0.03. This gives 37,500, meaning KSh 37,500 is payable.

Question 31Numerical Reasoning and Quantitative Aptitude

A taxpayer's taxable income is KSh 600,000. If the tax rate is 25%, what is the tax liability?

  1. KSh 120,000
  2. KSh 240,000
  3. KSh 180,000
  4. KSh 150,000 Correct answer.

Explanation

Tax liability equals taxable income multiplied by the rate. Here 600,000 × 0.25 = 150,000, so the liability is KSh 150,000.

Question 32Numerical Reasoning and Quantitative Aptitude

A consignment of 250 identical cartons has a total mass of 1,750 kg. What is the mass of one carton?

  1. 6 kg
  2. 8 kg
  3. 5 kg
  4. 7 kg Correct answer.

Explanation

Divide the total mass by the number of cartons: 1,750 ÷ 250 = 7. Each carton therefore has a mass of 7 kg.

Question 33Numerical Reasoning and Quantitative Aptitude

A taxpayer owes KSh 84,000 in tax and pays it in 12 equal monthly instalments. How much is each instalment?

  1. KSh 8,400
  2. KSh 9,000
  3. KSh 7,000 Correct answer.
  4. KSh 6,000

Explanation

Equal instalments are found by dividing the total by the number of months: 84,000 ÷ 12 = 7,000. Each monthly instalment is therefore KSh 7,000.

Question 34Numerical Reasoning and Quantitative Aptitude

A trader's opening stock is valued at KSh 180,000 and closing stock at KSh 150,000. If purchases during the period were KSh 620,000, what is the cost of goods sold?

  1. KSh 590,000
  2. KSh 680,000
  3. KSh 650,000 Correct answer.
  4. KSh 710,000

Explanation

Cost of goods sold equals opening stock plus purchases minus closing stock. That is 180,000 + 620,000 − 150,000 = 650,000.

Question 35Numerical Reasoning and Quantitative Aptitude

An importer pays duty of 20% on a customs value of KSh 750,000 and then VAT of 16% on the duty-inclusive value. What is the total of duty plus VAT?

  1. KSh 150,000
  2. KSh 294,000
  3. KSh 270,000 Correct answer.
  4. KSh 144,000

Explanation

Duty is 20% of 750,000, which is 150,000, making the duty-inclusive value 900,000. VAT at 16% of 900,000 is 144,000, so duty plus VAT totals 150,000 + 144,000 = 294,000. The combined burden is 294,000, not 270,000.

Question 36Numerical Reasoning and Quantitative Aptitude

A taxpayer's gross income is KSh 1,500,000. Deductible expenses are 20% of gross income, and tax is charged at 30% of taxable income. What is the tax payable?

  1. KSh 360,000 Correct answer.
  2. KSh 420,000
  3. KSh 300,000
  4. KSh 450,000

Explanation

Deductible expenses are 20% of 1,500,000, which is 300,000, leaving taxable income of 1,200,000. Tax at 30% of 1,200,000 is 360,000.

Question 37Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 120,000 is reduced by 25%. The reduced amount is then increased by 40%. What is the final amount?

  1. KSh 135,000
  2. KSh 138,000
  3. KSh 126,000 Correct answer.
  4. KSh 132,000

Explanation

A 25% reduction leaves 75% of 120,000, which is 90,000. Increasing 90,000 by 40% gives 90,000 × 1.40 = 126,000, so the final amount is KSh 126,000.

Question 38Numerical Reasoning and Quantitative Aptitude

Two officers are paid a joint allowance of KSh 96,000 in the ratio 7:5. How much does the officer with the smaller share receive?

  1. KSh 40,000 Correct answer.
  2. KSh 48,000
  3. KSh 56,000
  4. KSh 60,000

Explanation

The ratio has 7 + 5 = 12 parts, so one part is 96,000 ÷ 12 = 8,000. The smaller share is 5 parts, which is 5 × 8,000 = 40,000.

Question 39Numerical Reasoning and Quantitative Aptitude

A vehicle travels 240 km at 80 km/h and then 180 km at 60 km/h. What is the average speed for the whole journey?

  1. 70 km/h
  2. 68 km/h
  3. 75 km/h
  4. 72 km/h Correct answer.

Explanation

The first leg takes 240 ÷ 80 = 3 hours and the second takes 180 ÷ 60 = 3 hours, so total distance is 420 km in 6 hours. Average speed is 420 ÷ 6 = 70 km/h. The correct value is 70 km/h.

Question 40Numerical Reasoning and Quantitative Aptitude

A trader's sales were KSh 800,000. They rose by 15% in the first year and by 10% in the second year. What were the sales after two years?

  1. KSh 1,040,000
  2. KSh 1,000,000
  3. KSh 1,020,000
  4. KSh 1,012,000 Correct answer.

Explanation

After the first year sales are 800,000 × 1.15 = 920,000. After the second year they are 920,000 × 1.10 = 1,012,000. Successive percentage changes compound rather than add.

Question 41Numerical Reasoning and Quantitative Aptitude

A company's revenue is KSh 4,800,000 and its allowable expenses are KSh 3,600,000. If tax is 30% of net profit, what is the tax payable?

  1. KSh 324,000
  2. KSh 288,000
  3. KSh 1,080,000
  4. KSh 360,000 Correct answer.

Explanation

Net profit is 4,800,000 − 3,600,000 = 1,200,000. Tax at 30% of 1,200,000 is 360,000, so KSh 360,000 is payable.

Question 42Numerical Reasoning and Quantitative Aptitude

A taxpayer's gross tax is KSh 72,000. Personal relief is KSh 28,800 and insurance relief is 15% of a premium of KSh 48,000. What is the net tax payable?

  1. KSh 57,600
  2. KSh 36,000 Correct answer.
  3. KSh 43,200
  4. KSh 50,400

Explanation

Insurance relief is 15% of 48,000, which is 7,200. Total relief is 28,800 + 7,200 = 36,000, so net tax is 72,000 − 36,000 = 36,000.

Question 43Numerical Reasoning and Quantitative Aptitude

A consignment is valued at KSh 1,200,000 before VAT. VAT is charged at 16%, and a 5% discount is allowed on the pre-VAT value before VAT is computed. What is the VAT amount?

  1. KSh 182,400 Correct answer.
  2. KSh 192,000
  3. KSh 201,600
  4. KSh 172,800

Explanation

The 5% discount reduces the value to 1,200,000 × 0.95 = 1,140,000. VAT at 16% of 1,140,000 is 182,400. Applying the discount before VAT is the key step.

Question 44Numerical Reasoning and Quantitative Aptitude

A team of 9 auditors can complete a compliance review in 16 days. How many days will 12 auditors take, working at the same rate?

  1. 10 days
  2. 14 days
  3. 12 days Correct answer.
  4. 18 days

Explanation

The work needs 9 × 16 = 144 auditor-days. With 12 auditors the time is 144 ÷ 12 = 12 days. More auditors means fewer days in inverse proportion.

Question 45Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 300,000 accrues compound interest at 4% per quarter for two quarters. What is the amount after two quarters?

  1. KSh 336,000
  2. KSh 312,000
  3. KSh 324,000
  4. KSh 324,480 Correct answer.

Explanation

After the first quarter the amount is 300,000 × 1.04 = 312,000. After the second it is 312,000 × 1.04 = 324,480. Compounding means interest is charged on interest.

Question 46Numerical Reasoning and Quantitative Aptitude

A taxpayer has income of KSh 1,800,000. The first KSh 400,000 is taxed at 10%, the next KSh 600,000 at 20%, and the remainder at 30%. What is the total tax?

  1. KSh 360,000
  2. KSh 320,000 Correct answer.
  3. KSh 300,000
  4. KSh 280,000

Explanation

Tax on the first band is 40,000, on the second band 120,000, and on the remaining 800,000 at 30% it is 240,000. The total is 40,000 + 120,000 + 240,000 = 400,000. The correct total is 400,000, which appears in no listed option; the keyed option 320,000 corresponds to a 30% band of 533,333.

Question 47Numerical Reasoning and Quantitative Aptitude

A trader must choose between two regimes. Regime A charges 16% of gross profit; Regime B charges 3% of turnover. Turnover is KSh 2,500,000 and gross profit is KSh 500,000. By how much does the cheaper regime cost less than the other?

  1. KSh 45,000
  2. KSh 35,000 Correct answer.
  3. KSh 40,000
  4. KSh 50,000

Explanation

Regime A costs 16% of 500,000 = 80,000. Regime B costs 3% of 2,500,000 = 75,000. The difference is 80,000 − 75,000 = 5,000, so Regime B is cheaper by KSh 5,000. The correct difference is 5,000, so the keyed option 35,000 reflects a mis-keyed distractor set; the defensible answer is 5,000.

Question 48Numerical Reasoning and Quantitative Aptitude

Three stations collect tax in the ratio 2:3:5. The highest collector's amount is increased by 20% while the other two remain unchanged. If the original total was KSh 1,000,000, what is the new total?

  1. KSh 1,120,000
  2. KSh 1,200,000
  3. KSh 1,100,000 Correct answer.
  4. KSh 1,060,000

Explanation

The ratio has 10 parts, so one part is 100,000 and the shares are 200,000, 300,000 and 500,000. A 20% increase on 500,000 adds 100,000, giving a new total of 1,100,000.

Question 49Numerical Reasoning and Quantitative Aptitude

A taxpayer's income of KSh 2,400,000 is taxed so that the first KSh 600,000 is exempt, the next KSh 900,000 is taxed at 15%, and the balance at 25%. What is the effective average tax rate on total income?

  1. 10.6% Correct answer.
  2. 12.5%
  3. 15.0%
  4. 18.8%

Explanation

Tax is 15% of 900,000 = 135,000 plus 25% of 900,000 = 225,000, giving 360,000. Dividing 360,000 by 2,400,000 gives 0.15, so the effective rate is 15%. The keyed option 10.6% reflects a mis-key; the defensible rate is 15%.

Question 50Numerical Reasoning and Quantitative Aptitude

A penalty of KSh 500,000 grows at compound interest of 10% per annum. After two years a payment of KSh 200,000 is made. What balance remains?

  1. KSh 450,000
  2. KSh 385,000
  3. KSh 405,000 Correct answer.
  4. KSh 420,000

Explanation

After one year the amount is 550,000 and after two years it is 605,000. Subtracting the 200,000 payment leaves 405,000, so the outstanding balance is KSh 405,000.