Interest
Practice Questions - Simple Interest and Compound Interest
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Q7) Find the principle that grows to Rs 47190 at 10% per annum compound interest in 2 years? 1) Rs 38000 2) Rs 37500 3) Rs 40000 4) Rs 39000 Solution: Let P be the principle 47190 = P×(1.1)2 P = Rs 39000 Hence, option 4. Q8) A person borrows Rs. 8600 for 2 years at 3% p.a. and immediately lends the money to another person at 4.5% p.a for 2 years. Find his gain in the transaction per year. 1) Rs. 258 2) Rs. 193.5 3) Rs. 129 4) None of these Solution: Gain in transaction per year = 8600×(4.5 - 3)×(1/100) = Rs 129 Hence, option 3. Q9) What annual installment will dscharge a loan of Rs 742 due in 4 years rate of interest being 4% per annum? 1) Rs 200 2) Rs 215 3) Rs 190 4) Rs 175 Solution: Let the annual installment be Y  Hence, option 4. Q10) Find the rate of interest per annum at which a sum of money becomes 3 times in 25 years? 1) 12% 2) 8% 3) 10% 4) Cannot be Determined Solution: S.I. = 2P  Hence, option 2. Q11) A sum of money becomes 3 times in T years. So in how many years will the sum of money become 6 times. 1) 2T 2) 3T 3) 5T/2 4) T Solution: As sum of money becomes 3 times, so SI = 2P i.e. Interest in T years = 2P ∴ Interest in T/2 years = P For the sum of money to become 6 times, SI = 5P ∴ Using Unitary Method, Interest will be 5P in 5T/2 years Hence, option 3. Q12) Difference between S.I. and C.I. for 2 years at 10% per annum is Rs 8. Find the principle? 1) Rs 600 2) Rs 800 3) Rs 700 4) Rs 750 Solution:  Hence, option 2. |
