A sum of money invested at simple interest triples itself in 8 years. How many times will it become in 20 years time?
Correct
Incorrect
Question 2 of 50
2. Question
1 points
Rs 8000 becomes Rs 10000 in 2 years at simple interest.The amount that will become Rs 6875 in 3 years at the same rate of interest is
Correct
A=P[1+rt/100]
10000=8000[1+r*2/100]
10000/8000=100+2r/100
2r=125-100
r=25/2=12.5% p.a.
let the amount which will become Rs 6875 be P.then,
6875=p[1+12.5*3/100]
6875=p[100+37.5/100]
p=6875*100/1375
p=Rs 5000
Incorrect
A=P[1+rt/100]
10000=8000[1+r*2/100]
10000/8000=100+2r/100
2r=125-100
r=25/2=12.5% p.a.
let the amount which will become Rs 6875 be P.then,
6875=p[1+12.5*3/100]
6875=p[100+37.5/100]
p=6875*100/1375
p=Rs 5000
Question 3 of 50
3. Question
1 points
The differences between the simple and compound interest on a certain sum for 3 yr at 5% p.a. is Rs 228.75.The compound interest on the sum for 2 yr at 5% p.a. is
Mr X invests Rs 10000 every year starting from today for next 10 yr.suppose interest rate is 8% p.a. compounded annually.calculate future value of annuity?
The rate of simple interest on a sum of money is 6% p.a. for first 3 yr , 8%p.a. for next 5 yr and 10%p.a. for more than 8 yr.if the simple interest accured by the sum for a period for 10 yr is Rs 1560.the sum is
Correct
let the sum invested be RsP.then,
S.I=Rs1560
P*6*3/100+P*8*5/100+P*10*2/100=1560
P[18/100+40/100+20/100]=1560
78P/100=1560
P=Rs 2000
Incorrect
let the sum invested be RsP.then,
S.I=Rs1560
P*6*3/100+P*8*5/100+P*10*2/100=1560
P[18/100+40/100+20/100]=1560
78P/100=1560
P=Rs 2000
Question 7 of 50
7. Question
1 points
A sum of money doubles it self in 10yr.the number of year it would treble it self is
Correct
A=P[1+rt/100]
2P=P[1+rx10/100]
2=100+10r/100
r=10%p.a
new amount = 3P
3P=P[1+10xt/100]
3=100+10t/100
t=20yr
Incorrect
A=P[1+rt/100]
2P=P[1+rx10/100]
2=100+10r/100
r=10%p.a
new amount = 3P
3P=P[1+10xt/100]
3=100+10t/100
t=20yr
Question 8 of 50
8. Question
1 points
In what time will Rs 390625 amount to Rs 456976 at 8% p.a,when the interest is compounded semi-annually?
A machine can be purchased for Rs 50000.machine will contribute Rs 12000 per year for next 5 yr.assume borrowing cost is 10% p.a.determine whether machine should be purchased or not
A company is considering proposal a machine either by making full payment of Rs 4000 or by leasing it for 4 yr at an annual rate of Rs 1250. which course of action is preferable , if the company can borrow money at 14% compounded annually?
purchase price of machine= Rs 4000 since,purchase price of machine is more than the P.V of outflows of annuity ,so, leasing is preferable
Question 14 of 50
14. Question
1 points
Vipul purchases a car for Rs 550000.he gets a loan of Rs 500000 at 15% p.a. from a bank and balance of rs 50000 he pays at the time of purchase .he has to pay the whole amount of loan in 12 equal monthly installments with interest starting from the end of the first month.the money he has to pay at the end of every month is
$[given(1.0125{)}^{12}=1.16075452]$
Correct
Incorrect
Question 15 of 50
15. Question
1 points
If Rs 1000 be invested at interest rate of 5% and the interest rate added to the principal every 10 years,then the number of years in which it will amount to Rs 2000 is
Correct
Incorrect
Question 16 of 50
16. Question
1 points
The annual birth and death rates per 1000 are 39.4 and 19.4.The number of years in which the population will be doubled assuming there is no immigration or emigration is
Correct
Annual growth rate=annual birth rate- annual death rate=39.4-19.4=20 per 1000
`A company establishes a sinking fund to provide for the payment of Rs 200000 debt maturing in 20 yr.contributions to the fund are to be made at the end of every yr.find the amount of each annual deposit if the rate of interest is 5% p.a
A person borrows Rs 5000 for 2 yr at 4% p.a. simple interest.he immediately lends to another person at 25/4% p.a for 2 yr.find his gain in the transaction per year
Correct
S.I paid on money borrowed
=Prt/100=5000x2x4/100=Rs 400
S.I received on money lended
=Prt/100=5000x25x2/100=Rs 625
total gain in transaction for 2 yr=S.I received-S.I paid=625-400=Rs225
gain per yr=225/2=Rs112.50
Incorrect
S.I paid on money borrowed
=Prt/100=5000x2x4/100=Rs 400
S.I received on money lended
=Prt/100=5000x25x2/100=Rs 625
total gain in transaction for 2 yr=S.I received-S.I paid=625-400=Rs225
gain per yr=225/2=Rs112.50
Question 20 of 50
20. Question
1 points
A person deposited Rs 5000 in a bank.the deposit was left to accumulate at 6% compounded quarterly for the first 5 yr and at 8% compounded semi-annually for the next 8 yr.the compound amount at the end of 13 yr is
Correct
Incorrect
Question 21 of 50
21. Question
1 points
Raja aged 40 wishes his wife rani to have Rs 40 lakhs at his death.if his expectation of life is another 30 yr and he starts making equal annual investments commencing now at 3% compound interest p.a how much should he invest annually?
Two equal sum of money were lent at simple interest at 11% p.a for 7/2 yr and 9/2 yr.if the difference in the interest for two periods was Rs 412.50,then each sum is
Correct
let the sum invested be Rs P
S.I=PRt/100
[Px11x9/100×2]-[Px11x7/100×2]=412.50
22P/200=412.50
P=412.50×200/22
P=Rs 3750
Incorrect
let the sum invested be Rs P
S.I=PRt/100
[Px11x9/100×2]-[Px11x7/100×2]=412.50
22P/200=412.50
P=412.50×200/22
P=Rs 3750
Question 23 of 50
23. Question
1 points
Anshul’s father wishes to have Rs 75000 in a bank account when his first college expenses begin.how much amount his father should deposit now at 6.5% compounded annually if anshul is to start college in 8 yr hence from now?
A company may obtain a machine either by leasing it for 5 yr at an annual rent of Rs 2000 or by purchasing the machine for Rs 8100.if the company can borrow money at 18% p.a,which alternative is preferable?
A sinking fund is created for redeeming debentures worth rs 5 lakhs at the end of 25 yr.hoe much provision needs to be made out of profits each year provided sinking fund investments can earn interest at 4%p.a.?
Paul borrows Rs20000 on condition to repay it with compound interest at 5%p.a in annual installments of Rs2000 each.find the number of years in which the debt would be paid off.
The cost of machinery is Rs 125000.if its useful life is estimated to be 20 yr and the rate of depreciation of its cost is 10%p.a.,then the scrap value of the machine is
Mr.X invests P amount at simple interest rate 10% and Mr.Y invests Q amount at compound interest ate 5% compounded annually.at the end of 2 yr both get the same amount of interest , then the relationship between 2 amounts P and Q is given by
If a SI on a sum of money @ 6% p.a, for 7 Yrs. is equal to twice of SI on another sum for 9 Yrs. @5% p.a, the ratio will be
Correct
Let the principals be X and Y
case I SI = X x 6 x 7/100
case II SI = Y x 5 x 9/100
case I = 2 x case II
X x 6 x 7/100 = 2 x Y x 5 x 9/100
X/Y = 15/7 = 15:7
Incorrect
Let the principals be X and Y
case I SI = X x 6 x 7/100
case II SI = Y x 5 x 9/100
case I = 2 x case II
X x 6 x 7/100 = 2 x Y x 5 x 9/100
X/Y = 15/7 = 15:7
Question 47 of 50
47. Question
1 points
By mistake a clerk, calculated the simple interest on principal for 5 months @ 6.5% p.a, instead of 6 months @ 5.5% p.a, if the error in calculation was Rs 25.40. the original sum of principal was
Correct
Let the principal be Rs X
incorrect SI = X x 6.5 x 5/100 x 12 = 32.5X / 1200
Correct SI = X x 5.5 x 6/100 x 12 = 33X/1200
error in calculation = Rs 25.40
Correct SI – incorrect SI = Rs 25.40
33X/1200-32.5X/1200 = 25.40
X = Rs 60960
Incorrect
Let the principal be Rs X
incorrect SI = X x 6.5 x 5/100 x 12 = 32.5X / 1200
Correct SI = X x 5.5 x 6/100 x 12 = 33X/1200
error in calculation = Rs 25.40
Correct SI – incorrect SI = Rs 25.40
33X/1200-32.5X/1200 = 25.40
X = Rs 60960
Question 48 of 50
48. Question
1 points
If the simple interest on Rs 1400 for 3 Yrs, is less than the simple interest on Rs 1800 for the same period by Rs 80, then the rate of interest is
Correct
CASE I P=Rs 1400, T=3Yrs, R = X%
SI = PRT/100 = 1400 x X x 3/100 = 42X
CASE II P = Rs 1800, T = 3Yrs, R = X%
SI = PRT/100 = 1800 x X x 3/100 = 54X
Given, case I – case II = 80
54X – 42X = 80
X = 80/12 = 6.67% = R
Incorrect
CASE I P=Rs 1400, T=3Yrs, R = X%
SI = PRT/100 = 1400 x X x 3/100 = 42X
CASE II P = Rs 1800, T = 3Yrs, R = X%
SI = PRT/100 = 1800 x X x 3/100 = 54X
Given, case I – case II = 80
54X – 42X = 80
X = 80/12 = 6.67% = R
Question 49 of 50
49. Question
1 points
Nominal rate of interest is 9.9% p.a, if interest is compounded monthly, what will be the effective rate of interest