1. A man saves Rs 200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years.

1. Rs 662

2. Rs 662.01

3. Rs 662.02

4. Rs 662.03

5. None of these

Answer & Explanation

Answer:- 3

Explanation :-

Money to be lent (For 1st year)= Rs. 200

Therefore, Interest (for 1st year) = 5% of 200 = Rs.10

Money to be lent (for 2nd year) = 200 + 210 = Rs. 410

Therefore, Interest (for 2nd year) = 5% of 410 = Rs. 20.5

Money to be lent (for 3rd year) = 410 + 200 + 20.5 = Rs. 630.5

Therefore , Interest (for 3rd year) = 5% of 630.5 = Rs. 31.525

Therefore, Total Amount = 630.5 + 31.525 =Rs. 662.025

2. Find the compound interest on Rs.16,000 at 20% per annum for 9 months, compounded quarterly

1. Rs 2520

2. Rs 2521

3. Rs 2522

4. Rs 2523

5. None of these

Answer & Explanation

Answer:- 3

Explanation :-

P = Rs. 16000, T = 9 months = 3 quarters;

Rate = 20% p.a. = (20/4) per quarter = 5% per quarter.

Amount = Rs. [16000 x (1 + (5/100)) ^3] = Rs. 18522.

3. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years

1. 3%

2. 4%

3. 5%

4. 6%

5. None of these

Answer & Explanation

Answer:- 4

Explanation :-

Let the rate of interest be R%

P = 1200, T = 2 years

Amount = 1348.32

1200 (1+R/100) ^ 2 = 1348.32

(1+R/100) ^2 = 1348.32/1200

(1+R/100)^2 = 134832/120000

(1+R/100)^2 = 2809/2500

(1+R/100) = 53/50

R/100 = (53/50) – 1 = 3/50

R = 6%

4. 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

1. Rs 1650

2. Rs 1750

3. Rs 1850

4. Rs 1950

5. None of these

Answer & Explanation

Answer:- 2

Explanation :-

C.I.=[4000×(1+10/100)^2 ] − 4000 = [4000∗(11/10)∗(11/10)] − 4000 =Rs. 840

So S.I. = 840/2 = Rs. 420

So Sum = (S.I.∗100)/(R∗T) = (420∗100)/(3∗8) = Rs.1750

5. What will be the difference between simple and compound interest @ 10% per annum on the sum of Rs 1000 after 4 years

1. Rs 62.10

2. Rs 63.10

3. Rs 64.10

4. Rs 65.10

5. None of these

Answer:- 3

Explanation :-

S.I.= (1000∗10∗4)/100 = Rs. 400

C.I.= [1000(1+10/100)^4−1000] = Rs. 464.10

So, difference between SI & CI = 464.10 – 400 = Rs. 64.10