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%

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Answer: Option  C Explanation: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

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Answer: Option  C Explanation: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

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Answer: Option  C Explanation: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

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Answer: Option  B Explanation: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 ```

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%

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Answer: Option  C Explanation: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% ```