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Arun invested an amount of Rs. 20000 in a fixed deposit scheme for 2 years at compound interest rate 4 p.c.p.a. How much amount will Arun get on maturity of the fixed deposit?20342

A.

20342

B.

21632

C.

22324

D.

24120

Answer with explanation

Answer: Option BExplanation

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The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum is:

A.

Rs.600

B.

Rs.645

C.

Rs.525

D.

Rs.625

Answer with explanation

Answer: Option DExplanation

Let the sum be Rs.x

Amount after 2 years on Rs.x at 4% per annum when interest is compounded annually

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Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

A.

Rs. 1550

B.

Rs. 1650

C.

Rs. 1750

D.

Rs. 2000

Answer with explanation

Answer: Option CExplanation

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The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:

A.

Rs 6.06%

B.

Rs 6.07%

C.

Rs 6.08%

D.

Rs 6.09%

Answer with explanation

Answer: Option DExplanation

Let the sum be Rs 100.

Then P = Rs 100, R = 3 %

per half – year, t = 2 half – years

Amount = Rs [100 × (1 + 3/100)2]

= Rs (100 × 103/100 × 103/100)

= Rs 10609/100 = Rs 106.09

Effective Annual Rate = 6.09%

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A sum of money placed at compound interest doubles itself in 5 years in how many years it would to 8 times of itself at the same rate of interest?

A.

7 years

B.

10 years

C.

15 years

D.

20 years

Answer with explanation

Answer: Option CExplanation

Let principal be Rs x and the rate is R % p.a.

Then X × (1 + R/100)^{5} = 2x

=> (1 + R/100) ^{5} = 2

Let x × (1 + R/100) ^{t} = 8x

=> (1 + R/100) ^{t} = 8 = 2^{3}

={(1 + R/100) ^{5} }^{3}

=> (1 + R/100) ^{t} = (1 + R/100) ^{15}

=> T = 15 Years

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The difference between compound interest and simple interest on Rs 8000 at 5% P.a for 3 years is

A.

Rs 50

B.

Rs 60

C.

Rs 61

D.

Rs 600

Answer with explanation

Answer: Option CExplanation

S.I = Rs(8000 × 5/100 ×3) = Rs 1200

C.I = Rs [8000 × (1+5/100)^{3}– 8000

= Rs [(8000 × 21/20×21/20×21/20)-8000]

=Rs (9261-8000)=Rs 1261

(c.I)-(S.I) = Rs (1261 – 1200) = Rs61.

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A sum amounts to Rs. 2916 in 2 years and to Rs.3149.28 in 3 years at compound Interest. The sum is?

A.

Rs.1500

B.

Rs.2000

C.

Rs.2500

D.

Rs.3000

Answer with explanation

Answer: Option CExplanation

P be the principle and R % per annum be rate

P(1 + R/100) ^{3} = 3149.28 – (i)

P(1 + R/100) ^{2} = 2916 – (ii)

By dividing (i) and (ii)

(1 + R/100) = 3149.28/2916 R/100 = 233.28/2916

or R =233.28/2916 x 100 = 8 %

P(1 +8/100) ^{2} = 2916 or

P × 27/25 × 27/25 = 2916

Or = 1822500/729= Rs.2500

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Rs. 800 at 5 % Per annum compound interest will amount to Rs. 882 in?

A.

1 Year

B.

2 years

C.

3 Years

D.

4 Years

Answer with explanation

Answer: Option BExplanation

Time be t years 882 = 800 (1 +5/100) ^{t}

=> 882/800 =(21/20) ^{t}

(21/20) ^{2} = (21/20) ^{t}

=> t = 2 Therefore,

Time = 2 years

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A sum of money is borrowed and paid back in two annual installments of Rs. 882 each allowing 5% C.I. The sum borrowed was?

A.

Rs. 1620

B.

Rs. 1640

C.

Rs. 1680

D.

Rs. 1700

Answer with explanation

Answer: Option BExplanation

Principal = (P.W. of Rs. 882 due 1 year hence) + (P.W. of Rs. 882 due 2 years hence)

= [882/(1 + 5/100) + 882/(1 + 5/100)^{2}]

= (882 * 20)/21 + (882 * 400)/441 = Rs. 1640.

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On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is?

A.

10%

B.

10.5%

C.

12%

D.

None of these

Answer with explanation

Answer: Option DExplanation

Difference in C.I. and S.I for 2 years = (696.30 – 660) = Rs. 36.30.

S.I for one year = Rs. 330.

S.I. on Rs. 330 for 1 year = Rs. 36.30

Rate = (100 * 36.30)/(330 * 1) = 11%

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The principal that amounts to Rs. 4913 in 3 years at 6 1/4 % per annum C.I. compounded annually, is?

A.

Rs. 3096

B.

Rs. 4076

C.

Rs. 4085

D.

Rs. 4096

Answer with explanation

Answer: Option DExplanation

Principal = [4913 / (1 + 25/(4 * 100))^{3}]

= 4913 * 16/17 * 16/17 * 16/17 = Rs. 4096.

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If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same sum at the rate and for the same time?

A.

Rs. 51.25

B.

Rs. 52

C.

Rs. 54.25

D.

Rs. 60

Answer with explanation

Answer: Option AExplanation

Sum = (50 * 100) / (2 * 5) = Rs. 500

Amount = [500 * (1 + 5/100)^{2}] = Rs. 551.25

C.I. = (551.25 – 500) = Rs. 51.25.

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