Simple and Compound Interest Questions and Answers - Set 05 - ObjectiveBooks
Simple and Compound Interest Questions and Answers - Set 05

Simple and Compound Interest Questions and Answers - Set 05

Practice Test: Question Set - 05

1. Find the sum of money which increases 1/10 of itself every year and amounts to Rs. 450 in 5 years at S.I.
    (A) Rs. 300
    (B) Rs. 800
    (C) Rs. 1200
    (D) Rs. 700
2. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
    (A) 2
    (B) 2½
    (C) 3
    (D) 4
3. The difference in simple interest on a certain sum of money for 3 years and 5 years at 18% per annum is Rs. 2,160. Then the sum is:
    (A) Rs. 6,500
    (B) Rs. 4,500
    (C) Rs. 6,000
    (D) Rs. 7,500
4. What annual payment will discharge a debt of Rs. 7620 due in 3 years at 6 2/3 % per annum compound interest?
    (A) Rs. 2540
    (B) Rs. 3430
    (C) Rs. 3260
    (D) Rs. 3380
5. A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
    (A) Rs. 120
    (B) Rs. 121
    (C) Rs. 122
    (D) Rs. 123
6. The simple interest on a sum of money is 1/11th of the principal and the number of years is equal to the rate percent per annum. The rate of interest per annum is?
    (A) 2 %
    (B) 5 %
    (C) 4 %
    (D) 3 1/3 %
7. A sum was put at simple interest at a certain rate for 2 years. Had it been put at 1% higher rate, it would have fetched Rs. 24 more. Find the sum.
    (A) Rs. 1,200
    (B) Rs. 1,400
    (C) Rs. 1,600
    (D) Rs. 1,800
8. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:
    (A) 6.06%
    (B) 6.07%
    (C) 6.08%
    (D) 6.09%
9. ‘A’ lent Rs. 5000 to ‘B’ for 2 years and Rs. 3000 to ‘C’ for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:
    (A) 5%
    (B) 7%
    (C) 9%
    (D) 10%
10. At what rate percent per annum simple interest will a sum of money triple itself in 25 years?
    (A) 8 %
    (B) 8 1/3 %
    (C) 9 1/11 %
    (D) 10 %
11. A sum of money doubles itself at compound interest in 15 years. It will become 8 times in
    (A) 40 years
    (B) 30 years
    (C) 60 years
    (D) 45 years
12. What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12% p.a.?
    (A) Rs. 9000.30
    (B) Rs. 9720
    (C) Rs. 10123.20
    (D) Rs. 10483.20
13. The difference in the interests received from two different banks on Rs. 1000 for 2 years is Rs. 20. Thus, the difference in their rates is:
    (A) 2 %
    (B) 1 %
    (C) 1.5 %
    (D) 0.5 %
14. A loan was repaid in two annual installments of Rs. 1210 each. If the rate of interest be 10% per annum, compounded annually, the sum borrowed was:
    (A) Rs. 2000
    (B) Rs. 2100
    (C) Rs. 2300
    (D) Rs. 1900
15. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?
    (A) 3 %
    (B) 4 %
    (C) 5 %
    (D) 6 %
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