compound interest

1. The difference between the simple interest and the compound interest on Rs 5000 at 10% p.a. for 3 years is______

(a) Rs 165

(b) Rs 150

(c) Rs 165

(d) Rs 180

(e) Rs None of these

Answer is (e) Rs None of these

2. The difference between compound interest and simple interest on Rs 8000 at 5% p.a. for 3 years is ____

(a) Rs 50

(b) Rs 60

(c) Rs 61

(d) Rs 600

Answer is (c) Rs 61

3. A deposited Rs 6000 in a bank at 5% per4 annum simple interest. B deposited Rs 5000 at 8% p.a. compound interest. After 2 years, the difference between their interests will be

(a) Rs 230

(b) RS 232

(c) Rs 600

(d) Rs 832

Answer is (b) RS 232

4. What will be the compound interest on Rs 25000 after 3 years at 12% per annum?

(a) Rs 9000.30

(b) Rs 9720

(c) Rs 10123.20

(d) Rs 10483.20

(e)None of these

Answer is (c) Rs 10123.20

5. Roshan invested Rs 10000 at compound d interest at 10% p.a. for a period of 3 years. What amount will be get after 3 years?

(a) Rs 12310

(b) Rs 13120

(c) Rs 13210

(d) Rs 13320

(e) None of these

Answer is (e) none of these

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

(a) Rs 51.25

(b)Rs 52

(c) Rs 54.25

(d) Rs 60

Answer is (a) Rs 51.25

7. How much would a sum of Rs 16000 approximately amount to in 2 years at 10% p.a. compounded half yearly?

(a) Rs 17423

(b) Rs 18973

(c) Rs 19448

(d) Rs 19880

Answer is (c) Rs 19448

8. The compound interest on Rs 16000 for 9 months at 20% p.a. compounded quarterly is:

(a) Rs 2518

(b) Rs 2520

(c) Rs 2522

(d) Rs 2524

Answer is (c) Rs 2522

9. The compound interest on Rs 2800 for 1 years at 10% p.a. is:

(a) Rs 441.35

(b) Rs 436.75

(c) Rs 434

(d) Rs 420

Answer is (c) Rs 434

10. The compound interest on Rs 20480 at 6%v per annum for 2 years 73 days is:

(a) Rs 3000

(b) Rs 3131

(c) Rs 2929

(d)Rs 3636

Answer is (c) Rs 2929

11. If the compound interest on certain sum for 2 years at 12.5% per annum is Rs 170, the simple interest is:

(a) Rs 150

(b) Rs 152.50

(c) Rs 160

(d) Rs 162.50

Answer is (c) Rs 160

12. A sum becomes Rs 2916 in 2 years at 8% p.a. compound interest. The sum is

(a) Rs 2750

(b) Rs 2500

(c) Rs 2625

(d) Rs 2560

Answer is (b) Rs 2500

13. If the interest is payable annually, then the principle on which the compound interest for 3 years at 10% p.a. is Rs 331, is given by:

(a) Rs 900

(b)Rs 1000

(c) Rs 1050

(d) Rs 1100

Answer is (b) Rs 1000

14. The difference between compound interest and simple interest on a sum for 2 years at 8% p.a. is Rs 768. The sum is

(a) Rs 100000

(b) Rs 110000

(c) Rs 120000

(d) Rs 170000

Answer is (c) Rs 120000

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

(a) Rs 350

(b) Rs 375

(c) Rs 380

(d) Rs 400

Answer is (d) Rs 400

16. A sum is invested at compound interest payable annually. The interest in two successive years was Rs 500 and Rs 540. The sum is:

(a) Rs 3750

(b) Rs 5000

(c)Rs 5600

(d) Rs 6250

Answer is (d) Rs 6250

17. A sum of money amounts to Rs 9680 in 2 years and Rs 10648 in 3 years. The rate of interest per annum, is

(a) 5%

(b) 10%

(c) 15%

(d) 20%

Answer is (b) 10%

18. A sum of amounts to Rs 2916 in  2 years and Rs 3149.28 in 3 years at compound interest. The sum is

(a) Rs 1500

(b)Rs 2000

(c) Rs 2500

(d) Rs 3000

Answer is (c) Rs 2500

19. A sum of money placed at compound interest doubles itself in 5 years. In how many years, it would amount to 8 times of itself at the same rate of interest

(a) 7 Years

(b) 10 years

(c) 15 years

(d) 20 years

Answer is (c) 15 years

20. A sum of money amounts to Rs 6690 after 3 years and to Rs 10035 after 6 years on compound interest. The sum is

(a) Rs 4400

(b) Rs 4445

(c) Rs 4460

(d) Rs 4520

Answer is (c) Rs 4460

21. If the rate of interest be 4% per annum for first year 5% per annum for second year and 6% per annum for third year, then the compound interest of Rs 10000 for 3 years will be:

(a) Rs 1575.20

(b) Rs 1600

(c) Rs 1625.80

(d) Rs 2000

Answer is (a) Rs 1575.20

22.  A money-lender borrows money at 4% p.a. and pays interest at the end of the year. He lends it at 6% p.a. compound interest compounded half-yearly and receives the interest at the end of the year. Thus, he gains Rs 104.50 a year. The amount of money he borrows, is

(a) Rs 4500

(b) Rs 5000

(c) Rs 5500

(d) Rs 6000

Answer is (b) Rs 5000

23. A man deposited Rs 6000 in at 5% p.a. simple interest. Another man deposited Rs 5000 at 8% p.a. compound interest. After 2 years, the difference of their interest will be

(a) Rs 230

(b) Rs 232

(c) Rs 600

(d) Rs 832

Answer is (b) Rs 232

24. The difference between simple and compound interest (compounded annually) on a sum of money for 2 years at 10% per annum is Rs 65. The sum is

(a) Rs 6500

(b) Rs 6565

(c) Rs 65065

(d) Rs 65650

Answer is (a) Rs 6500

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

(a) 6.06%

(b) 6.07%

(c) 6.08%

(d) 6.09%

Answer is (d) 6.09%

26. In how many years will a sum of Rs 800 at 10% p.a. compounded semi annually become Rs 926.10?

(a) 1 Years 

(b) 1 Years

(c) 2 Years

(d) 2 Years

Answer is (b) 1 Years

27. At what rate of interest will Rs 20000 become Rs 24200 after 2 years when interest is compounded annually?

(a) 5%

(b) 6%

(c) 10%

(d) 15%

Answer is (c) 10%

28. On a sum of money the difference between simple interest and compound interest for 2 years is Rs 160 and the simple interest for 2 years is Rs 2880. The rate per cent per annum is:

(a) 5%

(b) 11%

(c) 12%

(d) 9%

Answer is (b) 11%

29. The value of machine depreciates every year at the rate of 10% on its value at the beginning of that year valued of the machine is Rs 7290, its worth 3 years ago was:

(a) Rs 9471

(b) Rs 8000

(c) Rs 10000

(d) Rs 7508.70

Answer is (c) Rs 10000

30. A tree increase annually by  of its height. By how much will it increase after 2 years, if it stands today 64 cm high?

(a) 72 cm

(b) 74 cm

(c) 75 cm

(d) 81 cm

Answer is (d) 81 cm

31. The difference between compound interest and simple interest at the same rate on Rs 5000 for 2 years is Rs 72. The rate of interest per annum is:

(a) 6%

(b) 8%

(c) 10%

(d) 12%

Answer is (d) 12%

32. A man borrows Rs 4000 from a bank at 7.5% per annum compound interest. At the end of every year he pays Rs 1500 as a part payment of loaned and interest. How much does he still owe to the bank after 3 such instalments?

(a)Rs 123.25

(b) Rs 125

(c) Rs 400

(d) Rs 469.18

Answer is (a) Rs 123.25

33. A loan was repaid in two annual installments of Rs 1120 each. If the rate of interest be 10% per annum compounded annually, the sum borrowed was:

(a) Rs 2000

(b) Rs 2100

(c) Rs 2178

(d) Rs 2800

Answer is (b) Rs 2100

34. A sum of Rs 5300 was taken as a loan. This is to be repaid in two equal installments, If the rate of interest be 12% compounded annually, the value of each installment is:

(a) Rs 3150

(b)Rs 3248

(c) Rs 3136

(d) Rs 3345

Answer is (c) Rs 3136

35. The compound interest on a sum at 12% p.a. for 2 years is 1590. What will be the simple interest on this sum?

(a) Rs 1500

(b) Rs 1540

(c) Rs 1470

(d) Rs 1530

Answer is (a) Rs 1500

36. The sum on which the compound interest for second year at 10% p.a. is Rs 132. Is given by:

(a) Rs 1000

(b) Rs 1200

(c) Rs 1320

(d) None of these

Answer is (b) Rs 1200

37. The present worth of Rs 1690 due 2 years hence at 4% p.a. is

(a) Rs 1505

(b) Rs 1547.50

(c) Rs 1580

(d) Rs 1580

Answer is (c) Rs 1580

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