Interest
Practice Questions - Simple Interest and Compound Interest
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Q13) The simple interest on a certain sum of money for 2 years is Rs 30 and the compound interest on the same sum and same rate of interest is Rs 31. Find the rate of interest? 1) 6.66% 2) 6.25% 3) 5% 4) 5.5% Solution: S.I. for year 1 = Rs 15 ∴ C.I. for year 1 = Rs 15 C.I. for year 2 = Rs 16 Rate of interest = (1/15)×100 = 6.66% Hence, option 1. Q14) Find the amount principle P grows to in t years getting interest at the rate of 6% per annum compounded quarterly? 1) P(1.06)t 2) P(1.015)4t 3) P(1.02)3t 4) P(1.24)t Solution: A = P(1.015)4t Hence, option 2. Q15) Difference between S.I. and C.I. for 3 years at 10% per annum is Rs 186. Find the principle? 1) Rs 6000 2) Rs 8000 3) Rs 7500 4) Rs 5750 Solution: Say Principle = Rs 100. S.I. on Rs 100 for 3 years at 10% per annum = Rs 30. C.I. on Rs 100 for 3 years at 10% per annum = Rs 33.1 Difference between C.I. and S.I. is Rs 3.1 on a principle of Rs 100. ∴ Required principle  Hence, option 1. Q16) A sum of Rs 6300 is borrowed for 2 years at 10% per annum compound interest is to be repaid back in equal annual installments. Find the size of the installment. 1) Rs 3150 2) Rs 3500 3) Rs 3630 4) Rs 3450 Let the annual installment be y. Solution: Let y be the annual installment A.T.Q.  Hence, option 3. Q17) A sum of Rs 6100 is borrowed for 2 years at 5% per annum compound interest is to be repaid back in unequal installments such that second installment is twice the first installment. Find the size of the second installment. 1) Rs 4200 2) Rs 4620 3) Rs 4350 4) Rs 4410 Solution: Let y be the first installment and 2y be the second installment A.T.Q.  ∴ Second installment is of Rs 4410. Hence, option 4. Q18) Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest? 1) 3.6 2) 6 3) 18 4) Can't be Determined Solution:  Hence, option 2. |
