BMA-Session No: 26 In-class Activity-Answer Key

Calculating Interest
Exercise 1
Mr Jana deposits ₹ 50,000 for 5 years at CI of 12% pa. What is the maturity
value if compounding is done annually?

Exercise 2
A professor deposits ₹ 1,25,000 in term deposit for 5 years at CI of 11% pa.
What is the maturity value if compounding is done annually?

Exercise 3
Ketan deposits ₹ 17,000 in reinvestment plan for 4 years at CI of 8% pa. Find
the maturity value if compounding is done half-yearly.

Exercise 4
Find the CI for ₹ 15,000 for 3 years at CI of 4.5% pa when compounding is
done annually.

Exercise 5
If ₹ 1,10,000 is deposited for 4 years at CI of 10.5% pa, find the maturity
value when compounding is done quarterly.

Exercise 6
At what rate of simple interest does ₹ 15,000 amount to ₹ 18,000 in 3 years?
Exercise 7
At what rate of simple interest does ₹ 5,000 amount to ₹ 10,000 in 6
months?

Exercise 8
Find the period of deposit for ₹ 1,00,000, in which it amounts to ₹ 1,50,000
at 10% SI pa.

Exercise 9
What would be the period of deposit for ₹ 6,000 in which it amounts to ₹
7,500 at SI of 4% pa?

Exercise 10
What sum of money amounts to ₹ 10,000 at SI of 5% pa for 3 years?

Exercise 11
What sum of money amounts to ₹ 20,000 for 7 years at SI of 9.5% pa?

Exercise 12
What sum of money yields simple interest of ₹ 100 at 2% SI for 2 years?

Exercise 13
What sum of money amounts to ₹ 13,000 at CI of 5.5% pa for 3 years?
Exercise 14
What sum of money yields CI of ₹ 1,300 for 3 years at CI of 4% pa?

Exercise 15
What is the CI earned for ₹ 42,000 for 6 years at CI of 12% pa?

Exercise 16
Find the effective rate of return for 7% and 9% when compounding is done
half-yearly, quarterly, and monthly.

Exercise 17
Find the effective rate of return for 12%, 14%, and 15% when compounding
is done half-yearly, quarterly, and monthly.

Answers:
1. 88117.08
2. 210632.27
3. 23265.67
4. Interest Amount- 2117/-
5. 166511.18
6. 6.67%
7. 200%
8. 5 Years
9. 6.25 Years
10. 8695.65
11. 12012.01
12.2500.00
13. 11070.99
14. 10411.66
 15. Interest Earned – 40900.55
16. a) For 7%- Half-Yearly- 7.12%; Quarterly- 7.18%; Monthly- 7.23%
b) For 9%- Half-Yearly- 9.20%; Quarterly- 9.31%; Monthly- 9.38%
17. a) For 12%- Half-Yearly- 12.36%; Quarterly- 12.55%; Monthly- 12.68%
b) For 14%- Half-Yearly- 14.49%; Quarterly- 14.75%; Monthly- 14.94%
c) For 15%- Half-Yearly- 15.56%; Quarterly- 15.86%; Monthly- 16.08%

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