Home Quantitative Aptitude Simple and Compound Interest-Test 2

Simple and Compound Interest-Test 2

Subject :- QT

Chapter :- Simple and Compound Interest-Test 2

Questions :- 25

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Question 1 of 25

1. Question
1 points
Simple interest on Rs 2000 for 5 months at 16%p.a. is ____
- Rs 133.22
- Rs 133.26
- Rs 134.06
- Rs 133.09
Correct

Given,P=Rs 2000

T=5/12 yrs

R=16%p.a.

SI=PRT/100=2000x5x16/100=Rs 133.22

Incorrect

Given,P=Rs 2000

T=5/12 yrs

R=16%p.a.

SI=PRT/100=2000x5x16/100=Rs 133.22
Question 2 of 25

2. Question
1 points
How much investment is required to yield an annual income of Rs 420 at 7%p.a. simple interest is
- Rs 6000
- Rs 6420
- Rs 5580
- Rs 5000
Correct

Given,SI=420 , T=1 yr , R=7%p.a.

let investment be P=Rs X

P=SI x 100/R x T=420×100/7×1=Rs 6000

Incorrect

Given,SI=420 , T=1 yr , R=7%p.a.

let investment be P=Rs X

P=SI x 100/R x T=420×100/7×1=Rs 6000
Question 3 of 25

3. Question
1 points
Mr.X invests Rs 90500 in post office at 7.5% p.a. simple interest.while calculating the rate was wrongly taken as 5.7%p.a. the difference in amount at maturity is Rs 9774.find the period for which the sum was invested
- 7 yr
- 5 yr
- 6 yr
- 8 yr
Correct

P=Rs 90500

wrong rate(WR)=5.7%p.a.

correct rate(CR)7.5%p.a.

diff in amount=9774

diff in amount=[P(1+CRxT/100)-P(1+WRxT/100)]

9774=P[1+CRxT/100-1-WRxT/100]

9774=90500[7.5T/100-5.7T/100]

9774=90500 x 1.8T/100

T=9774 x 1000/90500 x 18=6 yr

Incorrect

P=Rs 90500

wrong rate(WR)=5.7%p.a.

correct rate(CR)7.5%p.a.

diff in amount=9774

diff in amount=[P(1+CRxT/100)-P(1+WRxT/100)]

9774=P[1+CRxT/100-1-WRxT/100]

9774=90500[7.5T/100-5.7T/100]

9774=90500 x 1.8T/100

T=9774 x 1000/90500 x 18=6 yr
Question 4 of 25

4. Question
1 points
The difference between compound and simple interest on a certain sum of money for 2 yr at 4%p.a. is Rs 1.The sum is (in Rs )
- Rs 625
- Rs 630
- Rs 640
- Rs 635
Correct

let P=100 , R=4% , T= 2 yr

SI=PRt/100=100x4x2/100=Rs 8
$C I = P [1 + R / 100)^{T} - 1] = 100 [(1 + 4 / 100)^{2} - 1] = 100 [(1.04)^{2} - 1] = 100 x (1.04 + 1) x (1.04 - 1) = 100 x 2.04 x 0.0 = 8.16 d i f f b / w C I a n d S I = 8.16 - 8 = 0.16 i f t h e d i f f e r e n c e i s 0.16 t h e n P = 100 R s 1 = 100 / 0.16 = R s 625$

Incorrect

let P=100 , R=4% , T= 2 yr

SI=PRt/100=100x4x2/100=Rs 8
$C I = P [1 + R / 100)^{T} - 1] = 100 [(1 + 4 / 100)^{2} - 1] = 100 [(1.04)^{2} - 1] = 100 x (1.04 + 1) x (1.04 - 1) = 100 x 2.04 x 0.0 = 8.16 d i f f b / w C I a n d S I = 8.16 - 8 = 0.16 i f t h e d i f f e r e n c e i s 0.16 t h e n P = 100 R s 1 = 100 / 0.16 = R s 625$
Question 5 of 25

5. Question
1 points
A sum of money compounded annually becomes Rs 1140 in 2 yr and Rs 1710 in 3 yr.find the rate of interest per annum.
- 30%
- 40%
- 50%
- 60%
Correct

let the principal be P and rate be R%p.a.
$C A S E 1 A = P (1 + R / 100)^{T} 1140 = P (1 + R / 100)^{2} . . . . . . . . (1) C A S E 2 A = P (1 + R / 100)^{T} 1710 = P (1 + R / 100)^{3} . . . . . . . . (2) b y s o l v i n g 1 & 2 w e g e t R = 50 %$

Incorrect

let the principal be P and rate be R%p.a.
$C A S E 1 A = P (1 + R / 100)^{T} 1140 = P (1 + R / 100)^{2} . . . . . . . . (1) C A S E 2 A = P (1 + R / 100)^{T} 1710 = P (1 + R / 100)^{3} . . . . . . . . (2) b y s o l v i n g 1 & 2 w e g e t R = 50 %$
Question 6 of 25

6. Question
1 points
On what sum difference between compound interest and simple interest for 2 yr at 7%p.a interest is Rs 29.4
- Rs 5000
- Rs 5500
- Rs 6000
- Rs 6500
Correct

let the sum P=Rs X , R=7% , T=2 yr

SI=PRT/100=X x 7 x 2/100=14X/100=0.14X
$C I = P [(1 + R / 100)^{T} - 1] = X [(1 + 7 / 100)^{2} - 1] = X [(1.07)^{2} - 1] = X [1.1449 - 1] = X x 0.1449 = 0.1449 X d i f f b / w C I & S I = R s 29.4 0.1449 X - 0.14 X = 29.4 X = 29.4 / 0.0049 = R s 6000$

Incorrect

let the sum P=Rs X , R=7% , T=2 yr

SI=PRT/100=X x 7 x 2/100=14X/100=0.14X
$C I = P [(1 + R / 100)^{T} - 1] = X [(1 + 7 / 100)^{2} - 1] = X [(1.07)^{2} - 1] = X [1.1449 - 1] = X x 0.1449 = 0.1449 X d i f f b / w C I & S I = R s 29.4 0.1449 X - 0.14 X = 29.4 X = 29.4 / 0.0049 = R s 6000$
Question 7 of 25

7. Question
1 points
In what time will a sum of money double its Y at 6.25%p.a. simple interest?
- 5 yr
- 8 yr
- 12 yr
- 16 yr
Correct

let P=100 , R=6.25%p.a. , A=200

SI=A-P=200-100=100

T=SI x 100/P x R=100×10000/100×625=16 yrs

Incorrect

let P=100 , R=6.25%p.a. , A=200

SI=A-P=200-100=100

T=SI x 100/P x R=100×10000/100×625=16 yrs
Question 8 of 25

8. Question
1 points
What principal will amount to Rs 370 in 6 yr at 8%p.a. at simple interest?
- Rs 210
- Rs 250
- Rs 310
- Rs 350
Correct

given A=Rs 370 , T=6 yr , R=8%p.a

let P be Rs X

SI=PRT/100=X x 8 x 6/100=48X/100

A=P+SI =X+48X/100

370=148X/100

X=370×100/148=Rs 250

Incorrect

given A=Rs 370 , T=6 yr , R=8%p.a

let P be Rs X

SI=PRT/100=X x 8 x 6/100=48X/100

A=P+SI =X+48X/100

370=148X/100

X=370×100/148=Rs 250
Question 9 of 25

9. Question
1 points
The partners A and B together lent Rs 3903 at 4% p.a interest compounded annually.after a span of 3 yr ,A gets the same amount as B gets after 9 yrs.The share of A in the sum of Rs 3903 would have been:
- Rs 2875
- Rs 2280
- Rs 2028
- Rs 2820
Correct

Incorrect
Question 10 of 25

10. Question
1 points
If the sum triples in 15 yr at simple rate of interest ,the rate of interest per annum will be:
- 13.0%
- 13.3%
- 13.5%
- 18.0%
Correct

let principal=P

A=3P

T=15 yr

SI=A-P=3P-P=2P

R=SI x 100/P x T=2P x 10/P x 15=200/15=40/3=13.3%

Incorrect

let principal=P

A=3P

T=15 yr

SI=A-P=3P-P=2P

R=SI x 100/P x T=2P x 10/P x 15=200/15=40/3=13.3%
Question 11 of 25

11. Question
1 points
How much amount is required to be invested every year as to accumulate Rs 600000 at the end of 10 yr ,if interest is compounded annually at 10% rate of interest
$[g i v e n (1.1)^{10} = 2.59374]$
- Rs 37467
- Rs 37476
- Rs 37647
- Rs 37674
Correct

given A(n,i) = Rs 600000

annual installment(A)=?

R=10%p.a. , i=R/100=10/100=0.1 , n=10
$f u t u r e v a l u e A (n . i) = A / i [(1 + i)^{n} - 1] 600000 = A / 0.1 [(1 + 0.1)^{10} - 1] 600000 x 0.1 = A [(1.1)^{10} - 1] 60000 = A [2.59374 - 1] 60000 = A x 1.59374 A = 60000 / 1.59374 = 37647$

Incorrect

given A(n,i) = Rs 600000

annual installment(A)=?

R=10%p.a. , i=R/100=10/100=0.1 , n=10
$f u t u r e v a l u e A (n . i) = A / i [(1 + i)^{n} - 1] 600000 = A / 0.1 [(1 + 0.1)^{10} - 1] 600000 x 0.1 = A [(1.1)^{10} - 1] 60000 = A [2.59374 - 1] 60000 = A x 1.59374 A = 60000 / 1.59374 = 37647$
Question 12 of 25

12. Question
1 points
The future value of an annuity of Rs 1000 made annually for 5 yr at the interest of 14% compounded annually is
$[g i v e n (1.14)^{5} = 1.92541]$
- Rs 5610
- Rs 6610
- Rs 6160
- Rs 5160
Correct

Annuity(A)=Rs 1000 , n=5 , R=14%

i=R/100=14/100=0.14
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] = 1000 / 0.14 [(1 + 0.14)^{5} - 1] = 1000 / 0.14 [(1.14)^{5} - 1] = 1000 / 0.14 [1.92541 - 1] = 1000 / 0.14 x 0.92541 = R s 6610$

Incorrect

Annuity(A)=Rs 1000 , n=5 , R=14%

i=R/100=14/100=0.14
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] = 1000 / 0.14 [(1 + 0.14)^{5} - 1] = 1000 / 0.14 [(1.14)^{5} - 1] = 1000 / 0.14 [1.92541 - 1] = 1000 / 0.14 x 0.92541 = R s 6610$
Question 13 of 25

13. Question
1 points
the simple interest for a certain sum for 2 yr at 10%p.a. is Rs 90.The corresponding compound interest is (in Rs )
- 99
- 95.60
- 94.50
- 108
Correct

let the principal P be Rs X , T=2 yr , R=10% p.a.

SI-Rs 90

P=SI x 100/R x T=90 x 100/10×2=Rs 450
$n o w, C I = P [(1 + R / 100)^{T} - 1] = 450 [(1 + 10 / 100)^{2} - 1] = 450 [(1.1)^{2} - 1] = 450 x (1.21 - 1) = 450 x 0.21 = 94.50$

Incorrect

let the principal P be Rs X , T=2 yr , R=10% p.a.

SI-Rs 90

P=SI x 100/R x T=90 x 100/10×2=Rs 450
$n o w, C I = P [(1 + R / 100)^{T} - 1] = 450 [(1 + 10 / 100)^{2} - 1] = 450 [(1.1)^{2} - 1] = 450 x (1.21 - 1) = 450 x 0.21 = 94.50$
Question 14 of 25

14. Question
1 points
In how many years will a sum of money become 4 times at 12%p.a. simple interest?
- 18 yr
- 21 yr
- 25 yr
- 28 yr
Correct

let P=100 , A=400

SI=A-P=400-100=300

R=12% , T=?

SI=PRT/100

T=Si x 100/R x P=300×100/100×12=25 yr

Incorrect

let P=100 , A=400

SI=A-P=400-100=300

R=12% , T=?

SI=PRT/100

T=Si x 100/R x P=300×100/100×12=25 yr
Question 15 of 25

15. Question
1 points
Suppose your parent decided to open a Public Provident Fund account in a bank towards your name with Rs 10000 every year starting from today for next 15 yrs.when you receive and get 8.5%p.a interest rate compounded annually.what is the present value of this annuity?(give answer in Rs without any fraction)

(given P(15,0.085)=8.304236576)
- 83042
- 166084
- 93042
- 830423
Correct

Annual installment A=Rs 10000

n=15 yr , R=8.5%p.a , i=8.5/100=0.085

present value = A(n,i)+A

=10000 x P(15,0.085)+10000

=10000 x 8.304236576 + 10000

=83042.36576+10000

=93042

Incorrect

Annual installment A=Rs 10000

n=15 yr , R=8.5%p.a , i=8.5/100=0.085

present value = A(n,i)+A

=10000 x P(15,0.085)+10000

=10000 x 8.304236576 + 10000

=83042.36576+10000

=93042
Question 16 of 25

16. Question
1 points
How much amount is required to be invested every year as to accumulate Rs 796870 at the end of 10 yr, if interest compounded annually at 10% given that A(10,0.1)=15.9347?
- Rs 40000
- Rs 450000
- Rs 48000
- Rs 50000
Correct

future value A(n,i)=796870

n=10 , R=10% , i=R/100=10/100=0.1
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] 796870 = A / 0.1 [(1 + 0.1)^{10} - 1] 796870 = A / 0.1 [(1.1)^{10} - 1] 796870 = A / 0.1 [2.59374 - 1] 796870 = A / 0.1 [1.59374] A = 0.1 x 796870 / 1.59374 A = 50000$

Incorrect

future value A(n,i)=796870

n=10 , R=10% , i=R/100=10/100=0.1
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] 796870 = A / 0.1 [(1 + 0.1)^{10} - 1] 796870 = A / 0.1 [(1.1)^{10} - 1] 796870 = A / 0.1 [2.59374 - 1] 796870 = A / 0.1 [1.59374] A = 0.1 x 796870 / 1.59374 A = 50000$
Question 17 of 25

17. Question
1 points
The difference between the compound interest and simple interest at 10%p.a. for 4 yr on Rs 10000 is Rs _____
- 650
- 640
- 641
- 600
Correct

P=10000 , R=10% p.a , T=4 yr

SI=PRT/100=10000x10x4/100=4000
$C I = P [(1 + R / 100)^{T} - 1] = 10000 [(1 + 10 / 100)^{4} - 1] = 10000 [(1.1)^{4} - 1] = 10000 (1.4641 - 1) = 10000 x 0.4641 = 4641 C I - S I = 4641 - 4000 = 641$

Incorrect

P=10000 , R=10% p.a , T=4 yr

SI=PRT/100=10000x10x4/100=4000
$C I = P [(1 + R / 100)^{T} - 1] = 10000 [(1 + 10 / 100)^{4} - 1] = 10000 [(1.1)^{4} - 1] = 10000 (1.4641 - 1) = 10000 x 0.4641 = 4641 C I - S I = 4641 - 4000 = 641$
Question 18 of 25

18. Question
1 points
The future value of an annuity of Rs 1500 made annually for 5 yr at interest rate 10% compounded annually is
$[g i v e n (1.1)^{5} = 1.61051]$
- Rs 9517.56
- Rs 9157.65
- Rs 9715.56
- Rs 9175.65
Correct

Annual installment A=Rs 1500

n=5 , R=10% , i=R/100=10/100=0.10
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] = 1500 / 0.10 [(1 + 0.10)^{5} - 1] = 150000 / 10 [(1.10)^{5} - 1] = 15000 [1.61051 - 1] = 15000 x 0.61051 = 9157.65$

Incorrect

Annual installment A=Rs 1500

n=5 , R=10% , i=R/100=10/100=0.10
$f u t u r e v a l u e A (n, i) = A / i [(1 + i)^{n} - 1] = 1500 / 0.10 [(1 + 0.10)^{5} - 1] = 150000 / 10 [(1.10)^{5} - 1] = 15000 [1.61051 - 1] = 15000 x 0.61051 = 9157.65$
Question 19 of 25

19. Question
1 points
A person lends Rs 6000 for 4 yr and Rs 8000 for 3 yr at simple interest.if he gets Rs 2400 as total interest,the rate of interest is
- 5%
- 4%
- 6%
- 7%
Correct

CASE 1 P=6000 , R=R% , T=4 yr

CASE 2 P=8000 , R=R% , T=3 yr

total interest = 2400

case1 +case2=2400

6000xRx4/100+8000xRx3/100=2400

240R+240R=2400

480R=2400

R=5%

Incorrect

CASE 1 P=6000 , R=R% , T=4 yr

CASE 2 P=8000 , R=R% , T=3 yr

total interest = 2400

case1 +case2=2400

6000xRx4/100+8000xRx3/100=2400

240R+240R=2400

480R=2400

R=5%
Question 20 of 25

20. Question
1 points
A compound interest on a sum for 2 yr is Rs 30 more than the simple interest at the rate of 5% p.a. then the sum is
- Rs 11000
- Rs 13000
- Rs 12000
- Rs 15000
Correct

given, CI-SI=30 , T=2 yr , R=5%
$C I - S I = P (R / 100)^{2} 30 = P (5 / 100)^{2} 30 = P (0.05)^{2} 30 = P (0.0025) P = 30 / 0.0025 = R s 12000$

Incorrect

given, CI-SI=30 , T=2 yr , R=5%
$C I - S I = P (R / 100)^{2} 30 = P (5 / 100)^{2} 30 = P (0.05)^{2} 30 = P (0.0025) P = 30 / 0.0025 = R s 12000$
Question 21 of 25

21. Question
1 points
The sum invested at 4%p.a. compounded semi-annually amounts to Rs 7803 at the end of one yr,is
- Rs 7000
- Rs 7500
- Rs 7225
- Rs 8000
Correct

let P=Rs X , R=4%p.a , T=1 yr , A=Rs 7803

interest is compounded half yearly then R=4/2%=2%

T=1×2=2 half yearly
$a m o u n t a f t e r T y e a r s A = P (1 + R / 100)^{T} 7803 = X (1 + 2 / 100)^{2} 7803 = X (1.02)^{2} 7803 = X x 1.0404 X = 7803 / 1.0404 = 7500 = s u m$

Incorrect

let P=Rs X , R=4%p.a , T=1 yr , A=Rs 7803

interest is compounded half yearly then R=4/2%=2%

T=1×2=2 half yearly
$a m o u n t a f t e r T y e a r s A = P (1 + R / 100)^{T} 7803 = X (1 + 2 / 100)^{2} 7803 = X (1.02)^{2} 7803 = X x 1.0404 X = 7803 / 1.0404 = 7500 = s u m$
Question 22 of 25

22. Question
1 points
If an amount is kept at simple interest ,it earns an interest of Rs 600 in first 2 yr but when kept at compound interest it earns an interest of Rs 660 for the same period then the rate of interest and principal amount are
- 20%,Rs 1200
- 10%,Rs 1200
- 20%,Rs 1500
- 10%,Rs 1500
Correct

Incorrect
Question 23 of 25

23. Question
1 points
Mr.X bought an electronic item for Rs 1000.what would be the future value of the same item after 2 yr,if the value is compounded semi-annually at 22%p.a?
- Rs 1488.40
- Rs 1518.07
- Rs 2008.07
- Rs 2200.00
Correct

P=1000 , R=22/2%=11% , T=2×2=4 half yearly
$f u t u r e v a l u e A = P (1 + R / 100)^{T} = 1000 (1 + 11 / 100)^{4} = 1000 (1.11)^{4} = 1518.07$

Incorrect

P=1000 , R=22/2%=11% , T=2×2=4 half yearly
$f u t u r e v a l u e A = P (1 + R / 100)^{T} = 1000 (1 + 11 / 100)^{4} = 1000 (1.11)^{4} = 1518.07$
Question 24 of 25

24. Question
1 points
A sum of money invested doubles itself in 8 yr at simple interest the number of years it would triple itself is_____
- 20 yr
- 12 yr
- 16 yr
- none of these
Correct

Incorrect
Question 25 of 25

25. Question
1 points
A sum of Rs 44000 is divided into 3 parts such that the corresponding interest earned after 2 yr,3 yr and 6 yr may be equal.if the rates of simple interest are 6%,8% and 6% p.a.then the smallest part of the sum will be
- Rs 4000
- Rs 8000
- Rs 10000
- Rs 12000
Correct

Incorrect

Simple and Compound Interest-Test 2

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