MM8: Math of Investment 13. A sum of 500/- was lent for two years at 2% compound interest.

QUIZ 2 The interest for two years will be:

(a) 20.00
(b) 25.00
Directions: Analyze each problem carefully and shade (c) 50.20
the letter of your BEST answer on the ANSWER (d) 20.20
SHEET provided. Strictly No Erasures Allowed. 14. A man invested 1/3rd of the sum at 7%, 1/4th at 8% and the
remaining at 10% for one year. If the annual interest is 408, then
1. A man borrows P4000 at 8% per annum on compound interest. the investment is
At the end of every year, he pays P1500 as part payment of the (a) 8,400 (c) 5,000
loan and interest. How much does he still owe to the bank after 3 (b) 4,800 (d) 7,200
such annual payments? 15. The difference in the interest received from two different banks
(a) 1,799 on $1000 for 2 years is 20. Thus, the difference in their rates is
(b) 169.25 (a) 2%
(c) 2,000 (b) 1%
(d) 234.13 (c) 1.5%
2. If the amounts for a fixed principal after 3 and 2 years at a (d) 0.5%
certain rate of compound interest are in the ratio 21 : 20. The rate 16. The difference between the compound interest and the simple
of interest is interest on a certain sum at 10% per annum for two years is P60.
(a) 7% Find the sum.
(b) 6% (a) P6,200
(c) 5% (b) P6,000
(d) 4% (c) P6,400
3. A man invested 1/3rd of the sum at 7%, 1/4th at 8% and the (d) P7,000
remaining at 10% for one year. If the annual interest is 408, then 17. Find the simple interest and the amount of P2400 for 3 years 5
the investment is months and 15 days at the rate of 9%.
(a) 8,400 (a) 3451
(b) 4,800 (b) 3284
(c) 5,000 (c) 3147
(d) 7,200 (d) 3985
4. Calculate the amount at 4480 at 8% per annum for 3 years. 18. The difference in simple interest at 13% and 12% p.a. of a sum
(a) 5842.90 in one year is 110. Then the sum is
(b) 6000 (a) 13,000
(c) 5555.20 (b) 15,000
(d) 5600 (c) 10,000
4. Find the compound interest on 12000 for 3 years at 10% per (d) 11,000
annum compounded annually. 19. At what rate per annum will a sum of P3,600 become P4,500 in
(a) 3972 10 years at simple interest?
(b) 3872 (a) 5% (c) 10%
(c) 3772 (b) 2.5% (d) 6.75%
(d) 3672 20. What sum of money lent out at compound interest will amount
5. The cost of a machine is estimated to be decreasing at the rate to $968 in 2 years at 10% per annum, interest being charged
of 15% every year. If it costs 6,000 now, what will be the estimated annually?
value of the machine after 2 years? (a) 900 (c) 780
(a) 3,750 (b) 825 (d) 800
(b) 4,335 21. The difference in simple interest on a certain sum of money for
(c) 3,225 3 years and 5 years at 18% per annum is P2160. Then the sum is
(d) 5,000 (a) 6,500
6. Mr. Yogendra gave some money at simple interest and, at the (b) 4,500
end of 10 years, got back twice the sum. The rate percent per (c) 6,000
annum is: (d) 7,500
(a) 2% 22. A merchant borrowed P2500 from the money lenders. For one
(b) 4% loan, he paid 12% per annum and for the other 14% per annum.
(c) 5% The total interest paid for one year was P326. How much did he
(d) 10% borrow at each rate?
7. The compound interest on 2500 at the rate of 6% p.a. after 2 (a) 1200 and 1300
years will be (b) 1130 and 1175
(a) 309 (c) 320 (c) 225 and 350
(b) 318 (d) 322 (d) 325 and 370
8. What annual installment will discharge a depth of 2710 due in 4 23. The difference between compound interest and simple interest
years at 7% simple interest? on a certain sum of money in 2 years at 4% per annum is 50. Find
(a) 1000 (c) 500 the sum
(b) 225 (d) 150 (a) 30,550 (c) 25,670
9. Simple Interest on 1500 at 7% per annum for a certain time is (b) 31,250 (d) 35,400
210. Find the time. 24. Find the amount of 12000 after 2 years compounded annually,
(a) 2 years (c) 2.8 years the rate of interest being 5% p.a. during the first year and 6% p.a.
(b) 1.5 years (d) 3 years during the second year. Also find the compound interest.
11. Sarvesh borrowed 5,000 from Arun with simple interest. After 2 (a) 1653 (c) 1356
years, Arun got 1,000 more than what he had given to Sarvesh. (b) 1536 (d) 1386
What was the percentage of interest per annum? 25. In what time will 1000 amount to 1331 at 10% per annum,
(a) 10 (c) 15 compounded annually?
(b) 20 (d) 5 (a) ½ years
12. If the compound interest on a certain sum for 3 years at 20% (b) 1 ½ years
per annum is $728, find the simple interest. (c) 2/3 years
(a) 575 (c) 620 (d) 3 years
(b) 600 (d) 675