Q 7. Sudharshan invested Rs 15000 at interest at 10% p.a. for one year.

If the interest is compounded

every six months, what amount will Sudharshan get at the end of the year?

(a)Rs 16537.50 (b) Rs 16500 (c) Rs 16525.50 (d) Rs 18150

Sol. (a) Rate of interest = 10% ÷ 2 = 5% per half yearly. Time = 1 year = 2 half-year
5 2 21 21
∴ Amount = 15000 x (1 + ) = 15000 x x = Rs 16537.50
100 20 20

Q 8. Find compound interest on Rs 8000 at 20% p.a. for 9 months, interest being compounded
quarterly.

(a)Rs 1000 (b) Rs 1200 (c) Rs 1250 (d) Rs 1261

Sol. (d) Principal = Rs 8000. Time = 9 months = 3 quarters. Rate = 20% p.a. = 5% per quarter
21 21 21
Amount = 8000 x 20 x 20 x 20 = 9261

∴ Compound interest = 9261 – 8000 = Rs 1261

Q 12. A sum of Rs 5000 amounts to Rs 6050 after 2 years at compound interest, interest compounded
annually. What is the rate of interest p.a.?

(a)5% (b) 9% (c) 10% (d) 11%

6050 121 11 11 1
Sol. (c) (1 + r%)2 = 5000 = 100 = (10)2 ⟹ r = 10 - 1 = 10 = 10%

Q 18. A sum of money invested at compound interest amounts to Rs 650 at the end of first year and
Rs 676 at the end of second year. The sum of money is:

(a)Rs 600 (b) Rs 540 (c) Rs 625 (d) Rs 560

676 26
Sol. (c) (1 + r%) = 650 = 25

26 25
∴ Principal = 650 ÷ 25 = 650 x 26 = Rs 625

Q 23. A sum of money becomes eight times of itself in 3 years at compound interest. The rate of
interest per annum is :

(a)100% (b) 80% (c) 20% (d) 10%

Sol. (a) Let principal be Rs 1 and rate of interest be r% p.a.

P x (1 + r%)3 = A ⟹ 1 x (1 + r%)3 = 8 = 23 ⟹ 1 + r% = 2 ⟹ r% = 2 – 1 = 1

∴ Rate of interest = 100%

Q 27. A man borrowed Rs 5000 at 10% per annum compound interest. At the end of each year he has
repaid Rs 1500. The amount of money, he still owes after the third year, is:

(a)Rs 1600 (b) Rs 1690 (c) Rs 1700 (d) Rs 1790

Sol. (b) Amount due after 1 year = Rs 5000 + 10% of Rs 5000 – 1500 = 5500 – 1500 = Rs 4000

Amount due after 2 years = Rs 4000 + 10% of Rs 4000 – 1500 = 4400 – 1500 = Rs 2900