Q1.

Rs. 8000 becomes Rs. 10,000 in two years at simple interest. The amount that will become Rs.6,875 in 3 years at the same rate of interest is :

  • Rs. 3,000

  • Rs. 5,000

  • Rs. 5,275

  • Rs. 7,000

Solution:

NA

Q2.

The difference between the simple and compound interest on a certain sum for 3 year at 5% p.a. is Rs. 228.75. The compound interest on the sum for 2  years at 5% p.a. is : 

  • Rs. 2,000

  • Rs. 3,075

  • Rs. 2,875

  • Rs, 3,500

Solution:

NA

Q3.

The rate of simple interest on a sum of money is 6% p.a. for first 3 years , 8% p.a. for the next five years and 10% p.a. for the period beyond 8 years . If the simple interest accrued by the sum for a period for 10 years is Rs. 1,560 . The sum is : 

  • Rs, 1,000

  • RS. 2,850

  • Rs. 2,000

  • Rs. 3,500

Solution:

NA

Q4.

A machine can be purchased for Rs, 50,000 . Machine will contribute Rs. 12,000 per year for the next five years. Assume borrowing cost is 10% p.a. . Determine whether machine should be purchased or not :

  • Should be purchased 

  • Should not be purchased 

  • Can't say about purchase  

  • None of the above 

Solution:

NA

Q5.

A certain sum of money amounts to Rs 6,300 in two years and Rs 7,875 in three years nine months at simple interest. Find the rate of interest per annum :

  • 20%

  • 18%

  • 25%

  • 50%

Solution:

NA

Q6.

A person borrows Rs. 5,000 for 2 years at 4% p.a. simple interest he immediately lends to another person at 6(1/4)%  p.a. for 2 years find his gain in the transaction per year:

  • Rs. 112.50 

  • Rs. 125

  • Rs. 124

  • Rs. 167.87

Solution:

NA

Q7.

Two equal sums of money were lent at simple interest at 11% p.a. for 3(1/2) years and 4(1/2)years respectively . If the difference in interests for two periods was Rs. 412.50, then each sum is :  

  • Rs. 3,250 

  • Rs.3,500

  • Rs. 3,750

  • Rs. 4,876

Solution:

NA

Q8.

In how much time would the simple interest of the certain sum be 0.125 times the principal at 10% p.a. ? 

  • 1(1/4)

  • 1(3/4)

  • 2(3/4)

  • 2(1/2)

Solution:

NA

Q9.

The time by which a sum of money is 8 times of itself if it doubles itself in 15 years . 

  • 42 years 

  • 35 years 

  • 40 years 

  • 45 years 

Solution:

NA

Q10.

What is the rate of simple interest if a sum of money amounts to Rs. 2,784 in 4 years and Rs. 2,688 in 3 years ? 

  • 1% p.a. 

  • 4% p.a. 

  • 5% p.a. 

  • 8% p.a. 

Solution:

NA

Q11.

At what % rate of compound interest (C.I) will a sum of money become 16 times in four years , If interest is being calculated compounding annually :  

  • r = 100% 

  • r = 10%

  • r = 200%

  • r = 20%

Solution:

NA

Q12.

The effective annual rate of interest corresponding to nomial rate 6% p.a. payable half yearly is : 

  • 6.06%

  • 6.07%

  • 6.08%

  • 6.09%

Solution:

NA

Q13.

Mr. X invests 'P' amount at Simple interest rate 10% and Mr. Y invests 'Q' amount at Compound Interest rate 5% compounded annually . At the end of two years both get the same amount of interest , then the relation between two amounts P and Q is given by : 

  • P = (41Q/80)

  • P = (41Q/100)

  • P = (41Q/40)

  • P = (41Q/200)

Solution:

NA

Q14.

By mistake a clerk, calculated the simple interest on principal for 5 months at 6.5% p.a. instead of 6 months at 5.5% p.a. If the error in calculation was Rs. 25.40. The original sum of principal was ___________. 

  • Rs. 60,690

  • Rs. 60,960

  • Rs. 90,660

  • Rs. 90,690

Solution:

NA

Q15.

The S.I. on a sum of money is (4/9) of the principal and the no. of years is equal to the rate of interest per annum. Find the rate of interest per annum ?  

  • 5%

  • 20/3%

  • 22/7%

  • 6%

Solution:

NA

Q16.

A sum of money compounded annually becomes Rs. 1,140 in two years and Rs. 1,710in three years. Find the rate of interest per annum .  

  • 30%

  • 40%

  • 50%

  • 60%

Solution:

NA

Q17.

A sum of money invested of compound interest doubles itself in four years . It becomes 32 times of itself at the same rate of compound interest in . 

  • 12 years

  • 16 years 

  • 20 years 

  • 24 years 

Solution:

NA

Q18.

A sum of Rs. 44,000 is divided into three parts such that the corresponding interest earned after 2 years, 3 years and 6 years may be equal. If the rates of the simple interest are 6% p.a., 8% p.a., and 6% p.a. respectively , then the smallest part of the sum will be  

  • Rs. 4,000

  • Rs. 8,000

  • Rs. 12,000

  • Rs. 10,000

Solution:

NA

Q19.

The simple interest for a certain sum for 2 years at 10% p.a. is Rs. 90 . The corresponding compound interest is  (In Rs): 

  • 99

  • 95.60

  • 94.50

  • 108

Solution:

NA

Q20.

In what time will Rs. 3,90,625 amount to Rs. 4,56,976 at 8% p.a. , when the interest is compounded semi- annually ? 

[Given:(1.04)4 = 1.16986]

  • 2 years 

  • 4 years 

  • 5 years 

  • 7 years 

Solution:

NA

Q21.

How much amount is required to be invested every year so as two accumulate Rs. 3,00,000 at the end of 10 years, if interest is compounded annually at 10% ? 

[Give(1.1)10 = 2.5937]

  • Rs . 18,823.65

  • Rs . 18,280.65

  • Rs . 18,600.65

  • Rs . 18,623.65

Solution:

NA

Q22.

A company is considering proposal of purchasing a machine either by making full payment of Rs 4,000 or by leasing it for four years at an annual rate of Rs 1,250. Which course of action is preferable, if the company can borrow money at 14% compounded annually?

[Given : (1.14)4=1.68896]

  

  • Leasing is preferable 

  • Should be purchased 

  • No difference 

  • None of these 

Solution:

NA

Q23.

Vipul purchases a car for Rs. 5,50,000. He gets a loan of Rs. 5,00,000 at 15% p.a.  from a Bank and balance Rs. 50,000 he pays at the time of purchase . He has to pay the whole amount of loan in 12 equal monthly instalments with interest starting for 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]

  • Rs . 45,130.43

  • Rs . 45,220.43

  • Rs . 45,110.43

  • None of these 

Solution:

NA

Q24.

Find the present value of an annuity of Rs. 1,000 payable at the end of each year for 10 years . If rate of interest is 6% compounding per annum . 

[Given (1.06)-10 = 0.5584] :

  • Rs. 7,360

  • Rs. 8,360

  • Rs. 12,360

  • None of these 

Solution:

NA

Q25.

The cost of Machinery is Rs. 1,25,000/- if its useful life is estimated to be 20 years and the rate of depreciation of its cost is 10% p.a. , then the scrap value of the Machinery is 

[given (0.9)20 = 0.1215]

  • 15,187

  • 15,000

  • 15,116

  • 15,200

Solution:

NA

Q26.

A sum of money becomes Rs. 13,380 after 3 years and Rs. 20,070 after 6 years on compund interest. The sum is

  • Rs. 8800

  • Rs. 8890

  • Rs. 8920

  • Rs.8660

Solution:

NA

Q27.

A sum of Rs. 12,000 deposited at compound interest becomes double after five years. After 20 years it will becomes

  • Rs. 1,92,000

  • Rs. 2,10,000

  • Rs. 1,84,000

  • Rs. 1,24,000

Solution:

NA

Q28.

A sum of money placed at compound interest double itself in 5 years. It will amount to eight times itself at the same rate of interest in ______________ years

  • 5

  • 15

  • 10

  • 25

Solution:

NA

Q29.

On a sum of money, the simple interest for two years is Rs. 660, while the compound inerest is Rs. 696.30, the rate of interest is same in both the cases, find the rate of interest

  • 10%

  • 10.5%

  • 12%

  • none of these

Solution:

NA

Q30.

What is the difference between the compound interests on Rs 5,000 for 3/2 years at 4% per annum compounded yearly and half-yearly.

  • Rs. 2.04

  • Rs. 3.06

  • Rs. 4.80

  • Rs. 7.80

Solution:

NA