1.  A sum of money is lent at simple interest and compound interest. The ratio between the difference of compound interest and simple interest of 3 years and 2 years is 35 : 11. What is the rate of interest per annum?


20 3/4%
17 2/5%
18 2/11%
22 1/5%


Answer

 Option

Difference in 3 yrs = Pr2(300+r)/1003 Difference in 2 yrs = Pr2/1002 So Pr2(300+r)/1003 / Pr2/1002 = 35/11 (300+r)/100 = 35/11

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2.  In what time will Rs. 64,000 amount to Rs.68921 at 5% per annum interest being compounded half yearly?


3 years
2 years
1 (1/2) years
1 years


Answer

 Option

R = 2.5%, A = 68921 , P = 64000 and t= 2n A/P = [1+(R/100)]^2n 68921/64000 = [1+(2.5/100)]^2n (41/40)^3 = (41/40)^2n 2n = 3 n=3/2 =1(1/2) years

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3.  In how many years will a sum of Rs.15625 at 8% pa compounded semi annually become Rs.17,576?


3 years
5 years
1(1/2) years
2 years


Answer

 Option

15625*(1+(4/100))2n = 17576 15625*(104/100) 2n = 17576 (26/25) 2n = 17576/15625 = (26/27)3 2n = 3 N =3/2 = 1(1/2) yrs

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4.  A sum of Rs.3,50,500 is to be paid back in 2 equal annual instalments. How much is each instalment, if the rate of interest charged 4% per annum compound annually ?


1,85,834
1,50,000
1,00,000
75,000


Answer

 Option

Total value of all the 3 instalments [X*100/104] + [X*100*100/104] = 3,50,500 X*25/26 + x*625/676 = 3,50,500 X*25/26[1+25/26] = 3,50,500 X*25/26[51/26] = 3,50,500 X = 3,50,500*676/25*51 = 1,85,833.72 = 1,85,834

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5.  Manoj borrowed a certain sum from Anuj at a certain rate of simple interest for 2 years. He lent this sum to Rakesh at the same rate of interest compounded annually for the same period. At the end of two years, he received Rs. 4200 as compound interest but paid Rs. 4000 only as simple interest. Find the rate of interest?


12%
15%
10%
16%


Answer

 Option

Suppose the sum borrowed = Rs X Rate of interest = R% Time = 2 years 4000=[X x R x 2 ]/100 [simple interesr formula] RX=200,000………….(1) compound interest= P(1+r/n)^nt X[1+ (R/100)]^2= X+4200 after solving and using value of RX we get R=10%

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