0
Q:

An amount of 5,000 is invested at a fixed rate of 8 per cent per annum. What amount will be the value of the investment in five years time, if the interest is compounded every six months?

A) 7401.22 B) 3456
C) 4567 D) 7890

Answer:   A) 7401.22



Explanation:

With slight modifications, the basic formula can be made to deal with compounding at intervals other than annually.

 

Since the compounding is done at six-monthly intervals, 4 per cent (half of 8 per cent) will be added to the value on each occasion.

 

Hence we use r = 0.04. Further, there will be ten additions of interest during the five years, and so n = 10. The formula now gives:

 

V = P(1 + r)10 = 5,000 x (1.04)10 = 7,401.22

 

Thus the value in this instance will be £7,401.22.

 

In a case such as this, the 8 per cent is called a nominal annual

 

rate, and we are actually referring to 4 per cent per six months.

Q:

Gopal borrowed some money at 12% simple interest. If he had to pay back Rs. 1280 after 5 years, in order to clear off the loan. How much did he borrow?

A) Rs. 800 B) Rs. 620
C) Rs. 560 D) Rs. 480
 
Answer & Explanation Answer: A) Rs. 800

Explanation:

Let the principle amount be Rs. P

Interest rate = 12%

Total amount he paid after 5 years = Rs. 1280

ATQ,

 

 

P + I = PTR100 + P1280 = PTR100 + 11280 = P5 x 12100 + 116P10 = 1280P = 80 x 10 = 800

 

Hence, the amount he borrowed = P = Rs. 800.

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1 152
Q:

The simple interest on ₹ 10 for 4 months at the rate of 3 paise per month is

A) 0.3 Paise B) 1.2 Paise
C) 30 Paise D) 3 Paise
 
Answer & Explanation Answer: B) 1.2 Paise

Explanation:

Given Principal amount P = Rs. 10

Time T = 4 months

Rate of interest R = 3 ps

 

Interest I = PTR/100 = 10 x 4 x 3/100 = 12/10 = 1.2 paise.

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1 1460
Q:

Avinash gave a sum of 5400 at the simple rate of interest of 8% to Rajeev for 4 years and Rajeev gave this amount to Chanukya at the rate of 6% for 4 years. Find how much extra amount has to be paid by Rajeev to Avinash after 4 years?

A) Rs. 364 B) Rs. 432
C) Rs. 498 D) Rs. 554
 
Answer & Explanation Answer: B) Rs. 432

Explanation:

Here Avinash gave to Rajeev and Rajeev gave the same to Chanukya

Principal amount and Time is same but the only difference is Rate of interest.

Rajeev took @ 8% and gave it to Chanukya @ 6%

Here the difference in interest rate = 2%

2% of 5400 should be the extra amount paid by Rajeev to Avinash

Required amount = 2 x 5400 x 4100 = 432

 

Hence, Rs. 432 is the extra amount has to be paid by Rajeev to Avinash after 4 years.

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1 1239
Q:

On retirement, a woman gets Rs. 1,45,440 of her provident fund which she invests in a scheme at 20% per annum. Her monthly income from this scheme will be

A) Rs. 2550 B) Rs. 2424
C) Rs. 2224 D) Rs. 2380
 
Answer & Explanation Answer: B) Rs. 2424

Explanation:

Now, the principal amount P = Rs. 1,45,440

Rate of interest R = 20%/annum

Now monthly income I = PTR/100 = 1,45,440 x 20 x 1/100 x 12

= 2908800/1200

= Rs. 2424.

 

Hence, her monthly income = Rs. 2424.

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3 1334
Q:

In what time will Rs. 1860 amount to Rs. 2641.20 at simple interest 12% per annum?

A) 2.9 years B) 3.5 years
C) 4.2 years D) 4.7 years
 
Answer & Explanation Answer: B) 3.5 years

Explanation:

Given that Rs. 1860 will become Rs. 2641.20 at 12%

=> Simple Interest = 2641.20 - 1860 = Rs. 781.20

We know I = PTR/100

=> 781.20 x 100 = 1860 x T x 12

=> T = 78120/1860x12

=> T = 78120/22320

=> T = 3.5 years.

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17 2568
Q:

A sum of money triples itself in 8 years simple interest. Find the rate of percent per annum?

A) 30% B) 25%
C) 22% D) 18%
 
Answer & Explanation Answer: B) 25%

Explanation:

The rate of percent R is given by,

exp.

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30 7340
Q:

A certain amount earns simple interest of Rs. 2260 after 3 years. Had the interest been 1 % more how much more interest would it have earned ?

A) Rs. 175 B) Rs. 220.75
C) Rs. 126 D) Can't be determined
 
Answer & Explanation Answer: D) Can't be determined

Explanation:

Here given Interest earned = Rs. 2260

Time = 3 years

Rate of interest = ?

Principal Amount = ?

So, it can't be determined.

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16 1867
Q:

A person lends Rs. 1540 for five years and Rs. 1800 for four years. If he gets Rs. 1788 as interest on both amounts, what is the rate of interest ?

A) 14.5% B) 11%
C) 12% D) 10.5%
 
Answer & Explanation Answer: C) 12%

Explanation:

Let the interest rate be r%

We know that,

S.I = PTR/100

=> (1540 x 5 x r)/100  +  (1800 x 4 x r)/100 = 1788

=> r = 178800/14900 = 12%

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17 2731