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Q:

# Calculate the future value of \$3,000 invested at 7% for 5 years

 A) 4207.66 B) 5207 C) 4376 D) 5687

Answer:   A) 4207.66

Explanation:

F=P(1+i)^n

Q:

A certain sum is invested for 2 years in scheme M at 20% p.a. compound interest (compounded annually), Same sum is also invested for the same period in scheme N at k% p.a. simple interest. The interest earned from scheme M is twice of that earned from scheme N. What is the value of k?

 A) 7 B) 11 C) 9 D) 13

Answer & Explanation Answer: B) 11

Explanation:

Interest earned in scheme M =

Interest earned in scheme N =

Now, from the given data,

k = 11

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0 42
Q:

A sum is equally invested in two different schemes on CI at the rate of 15% and 20% for two years. If interest gained from the sum invested at 20% is Rs. 528.75 more than the sum invested at 15%, find the total sum?

 A) Rs. 7000 B) Rs. 4500 C) Rs. 9000 D) Rs. 8200

Answer & Explanation Answer: C) Rs. 9000

Explanation:

Let Rs. K invested in each scheme

Two years C.I on 20% = 20 + 20 + 20x20/100 = 44%

Two years C.I on 15% = 15 + 15 + 15x15/100 = 32.25%

Now,

(P x 44/100) - (P x 32.25/100) = 528.75

=> 11.75 P = 52875

=> P = Rs. 4500

Hence, total invested money = P + P = 4500 + 4500 = Rs. 9000.

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7 1091
Q:

What is the interest rate per annum, if a sum of money invested at compound interest amount to Rs. 2400 in 3 years and in 4 years to Rs. 2,520?

 A) 3.5% B) 4% C) 5% D) 6.5%

Answer & Explanation Answer: C) 5%

Explanation:

Let 'R%' be the rate of interest

From the given data,

Hence, the rate of interest R = 5% per annum.

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4 809
Q:

A sum of Rs. 8,000 is deposited for 3 years at 5% per annum compound interest (compounded annually). The difference of interest for 3 years and 2 years will be

 A) Rs. 387 B) Rs. 441 C) Rs. 469 D) Rs. 503

Answer & Explanation Answer: B) Rs. 441

Explanation:

Given principal amount = Rs. 8000

Time = 3yrs

Rate = 5%

C.I for 3 yrs =

Now, C.I for 2 yrs =

Hence, the required difference in C.I is 1261 - 820 = Rs. 441

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4 783
Q:

Simple interest on a certain sum at 7% per annum for 4 years is Rs. 2415. What will be the compound interest on the same principal at 4% per annum in two years?

 A) Rs. 704 B) Rs. 854 C) Rs. 893 D) Rs. 914

Answer & Explanation Answer: A) Rs. 704

Explanation:

We know that,

From given data, P = Rs. 8625

Now, C.I  =

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3 1113
Q:

Find the compound interest on Rs. 6,500 for 4 years if the rate of interest is 10% p.a. for the first 2 years and 20% per annum for the next 2 years?

 A) Rs. 3845 B) Rs. 4826 C) Rs. 5142 D) Rs. 4415

Answer & Explanation Answer: B) Rs. 4826

Explanation:

We know the formula for calculating

The compound interest  where P = amount, r = rate of interest, n = time

Here P = 5000, r1 = 10, r2 = 20

Then

C = Rs. 4826.

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10 1042
Q:

What is the difference between the compound interests on Rs. 5000 for 11⁄2 years at 4% per annum compounded yearly and half-yearly?

 A) Rs. 1.80 B) Rs. 2.04 C) Rs. 3.18 D) Rs. 4.15

Answer & Explanation Answer: B) Rs. 2.04

Explanation:

Compound Interest for 1 12 years when interest is compounded yearly = Rs.(5304 - 5000)

Amount after 112 years when interest is compounded half-yearly

Compound Interest for 1 12 years when interest is compounded half-yearly = Rs.(5306.04 - 5000)

Difference in the compound interests = (5306.04 - 5000) - (5304 - 5000)= 5306.04 - 5304 = Rs. 2.04

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6 1113
Q:

The difference between simple interest and compound interest of a certain sum of money at 20% per annum for 2 years is Rs. 56. Then the sum is :

 A) Rs. 3680 B) Rs. 2650 C) Rs. 1400 D) Rs. 1170

Answer & Explanation Answer: C) Rs. 1400

Explanation:

We know thatThe Difference between Compound Interest and Simple Interest for n years at R rate of interest is given by

Here n = 2 years, R = 20%, C.I - S.I = 56

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13 1134