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Time Value of Money - DPP - Chanakya
Time Value of Money - DPP - Chanakya
Chanakya
Time value of Money DPP
1. The rate of simple: interest on a sum of money is 6. In how much time would the simple interest on a
6% p.a. for first 3 years, 8% p.a. for the next five certain sum be 0.125 times the principal at 10% per
years and 10% p.a. for the period beyond 8 years. If annum?
the simple interest accrued by the sum for a period [1 Marks, June 2008]
for 10 years is ₹1,560. The sum is : 1 3
(1) 1 years (2) 1 years
[l Mark, Feb. 2007] 4 4
(1) ₹ 1,500 (2) ₹ 2,000 1 3
(3) 2 years (4) 2 years
(3) ₹ 3,000 (4) ₹ 5,000 4 4
2. A sum of money doubles itself in 10 years. The 7. Find the numbers of years in which a sum doubles
number of years it would treble itself is: itself at the rate of 8% per annum.
[1 Marks, Feb. 2007] [1 Marks, Dec. 2008]
(1) 25 years (2) 15 years 1 1
(3) 20 years (4) None (1) 11 (2) 12
2 2
1 1
3. A certain sum of money amounts to ₹ 6, 300 in two (3) 9 (4) 13
2 2
years and ₹ 7,875 in three years nine months at
simple interest. Find the rate of interest per annum:
8. The time by which a sum of money is 8 times of
[1 Marks, May 2007]
itself if it double itself in 15 years.
(1) 20% (2) 18%
[1 Marks, June 2009]
(3) 15% (4) 10%
(1) 42 years (2) 43 years
(3) 45 years (4) 46 years
4. A person borrows ₹ 5, 000 for 2 years at 4% p.a.
simple interest. He immediately lends to another
9. What is the rate of simple interest if a sum of money
1
person at 6 % p.a. for 2 years. Find his grain in the amount ₹ 2,784 in 4 years and ₹ 2,688 in 3 years?
4 [1 Marks, June 2009]
transaction per year: (1) 1% p.a. (2) 4% p.a.
[1 Marks, Nov. 2007] (3) 5% p.a. (4) 8% p.a.
(1) ₹ 112.50 (2) ₹ 125
(3) ₹ 225 (4) ₹ 167.50 10. If a simple interest on a sum of money at 6% p.a. for
7 years is equal to twice of simple interest on
5. Two equal sums of money were lent at simple another sum for 9 years at 5% p.a. The ratio will be:
1 1 [1 Marks, June 2011]
interest at 11% p.a. for 3 years and 4 years
2 2 (1) 2 : 15 (2) 7 : 15
respectively. If the difference in interests for two (3) 15 : 7 (4) 1 : 7
periods was ₹ 412.50, then each sum is :
[1 Marks, Feb. 2008] 11. By mistake a clerk, calculated the simple interest on
(1) ₹ 3,250 (2) ₹ 3,500 principal for 5 months at 6.5% p.a. instead of 6
(3) ₹ 3,750 (4) ₹ 4,350 months at 5.5% p.a. If the error in calculation was ₹
25.40. The original sum of principal was _______.
(1) ₹ 60,690 (2) ₹ 60,960
(3) ₹ 90,660 (4) ₹ 90,690
2
12. It the Simple Interest on ₹ 1,400 for 3 years is less 18. The difference between CI and SI on a certain sum
than the simple interest on ₹ 1,800 for the same of money for 2 years at 4% per annum is ₹ 1. The
period by ₹ 80, then the rate of interest is: sum is
[1 Marks, Dec. 2011] [1 Mark, June 2013]
(1) 5.67% (2) 6.67% (1) 625 (2) 630
(3) 7.20% (4) 5.00% (3) 640 (4) 635
16. If the difference of S.I and C.I is ₹ 72 at 12% for 2 22. A certain sum of money double itself in 4 years at
years. Calculate the amount. C.I. In how many years it will become 32 times to
[1 Mark, June 2011] itself
(1) 8,000 (2) 6,000 [1 Mark, Dec. 2014]
(3) 5,000 (4) 7,750 (1) 15 years (2) 24 years
(3) 20 years (4) None
17. Nominal rate of interest is 9.9% p.a. If interest is
Compounded monthly, What will be the effective 23. On a certain sum rate of interest @ 10% p.a., S.I = ₹
rate of interest 90 Term = 2 years, Find Compound interest for the
12
same:
4033
Given 1.1036 approx ? [1 Mark, Dec. 2015]
4000 (1) ₹ 544.5 (2) ₹ 94.5
[1 Mark, Dec. 2011, June 2012] (3) ₹ 450 (4) ₹ 18
(1) 10.36% (2) 9.36%
(3) 11.36% (4) 9.9%
3
24. If an amount is kept at simple interest, it earns ₹600 30. Find effective rate of interest corresponding to the
in first 2 years but when kept at Compound interest nominal rate of interest 7% compounded monthly is
it earns at interest of ₹ 660 for the same period; then ________ :
the rate of interest and principle amount respectively [1 Mark, Dec. 2017]
are (1) 7.26% (2) 7.22%
[1 Mark, June 2016] (3) 7.02% (4) 7.20%
(1) 20%; ₹ 1200 (2) 10%; ₹ 1200
(3) 20%; ₹ 1500 (4) 10%; ₹ 1500 31. In compound interest, if the amount is 9 times to its
principle in two years then the rate of interest is?
25. Mr. X bought an electronic item for ₹ 1000 . What [1 Mark, June 2018]
would be the future value of the same item after two (1) 300% (2) 200%
years, if the value is compounded semi-annually at (3) 150% (4) 100%
the rate of 22% per annum ?
[1 Mark, June 2016] 32. If difference between Compound Interest and Simple
(1) ₹ 1488.40 (2) ₹ 1518.07 Interest for 3 years is ₹ 912 at the rate 4% p.a., the
(3) ₹ 2008.07 (4) ₹ 2200.00 principal is
[1 Mark, May 2018]
26. The difference between the simple interest and (1) ₹ 1,87,500 (2) ₹ 1,87,000
compound interest on a certain sum of money (3) ₹ 1,87,550 (4) ₹ 1,85,700
invested for 2 years at 5% p.a. is ₹ 30. Then the
sum = 33. If Rs. 1,000 be invested at interest at interest rate of
[1 Mark, Dec. 2016] 5% and the interest be added to the principal every
(1) 10,000 (2) 12,000 10 years, than the number of years in which it will
(3) 13,000 (4) None amount to Rs. 2,000 is :
[1 Mark, May 2018]
27. A sum of money amounts to ₹ 7803 for one year at 2 1
(1) 16 years (2) 6
the rate of 4% compounded semi-annually then the 3 4
sum invested is 2
(3) 16 years (4) 6
[1 Mark, Dec. 2016] 3
(1) 7,000 (2) 7,500
(3) 7,750 (4) 8,000 34. If an amount is kept at S.I. it earns an interest of Rs.
600 in first two years but when kept at compound
28. The difference between simple and compound interest it earns an interest of Rs. 660 for the same
interest on a sum of ₹ 10000 for 45 years at the rate period, then the rate of interest and principal amount
of interest 10% per annum is ________ respectively are :
[1 Mark, June 2017] [1 Mark, Nov. 2018]
(1) 650 (2) 640 (1) 20%., Rs. 1,200 (2) 20%, Rs. 1,500
(3) 641 (4) 600 (3) 10%, Rs. 1,200 (4) 10%., Rs. 1,500
29. If the compound interest on a sum for two year at the 35. If ₹ 10,000 is invested at 8% per year compound
rate 5% p.a. is ₹ 512.50 , then the principal is quarterly, then the value of the investment after 2
______: years is [Given (1+0.2)8 = 1.171659]
[1 Mark, Dec. 2017] [1 Mark, Nov. 2018]
(1) 4,000 (2) 3,000 (1) ₹ 10,716.59 (2) ₹ 11,716.59
(3) 5,000 (4) None of these (3) ₹ 117.1659 (4) None of these
4
36. Future value of an ordinary annuity : 41. The future value of an annuity of ₹1, 000 made
[1 Mark, Dec. 2008] annually for 5 years at the rate of interest 14%
1+ i n – 1 compound annually is
(1) A n,i = A [1 Mark, Dec. 2014]
i
(1) ₹5610 (2) ₹6610
1+ i n + 1 (3) ₹6160 (4) ₹5160
(2) A n,i = A
i
42. Suppose your mom decides to gift you ₹10,000
1 – 1+ i n every year starting from today for the next sixteen
(3) A n,i = A
i years. You deposit this amount in a bank as and
when you receive and get 8.5% per annum interest
1+ i n – 1 rate compounded annually. What is the present
(4) A n,i = A
i 1+ i
n
value of this money: [Given that P (15,0.085) =
8.304236]
[1 Mark, Dec. 2015]
37. Paul borrowers ₹20,000 on condition to repay it
(1) 83,042 (2) 90,100
with compound interest at 5% p.a. in annual
(3) 93,042 (4) 10,100
instalment of ₹2,000 each. Find the number of years
in which the debt would be paid off.
43. The future value of an annuity of ₹1500 made
[1 Mark, June 2009]
annually for 5 years at an interest rate of 10%
compounded annually is _________
(1) 10 years (2) 12years
[Given that (1.1)5 = 1.61051]
(3) 14years (4) 15years
[1 Mark, June 2017]
(1) 9517.56 (2) 9157.65
38. Find the present value of an annuity of ₹1,000
(3) 9715.56 (4) 9175.65
payable at the end of each year for 10 years. If rate
of interest is 6% compounding per annum.
44. What sum should be invested at the end of every
(given(1.06)–10 = 0.5584):
year so as to accumulate an amount of ₹796870 at
[1 Mark, June 2010]
the end of 10 years at the rate of interest 10%
(1) ₹7,360 (2) ₹8,360
compounded annually,
(3) ₹12,000 (4) None of these
[given that A(10; 0.1) = 15.9374 ]
[1 Mark, June 2017]
39. The future value of an annuity of ₹5,000 is made
(1) 40,000 (2) 4,50,000
annually for 8 years at interest rate of 9%
(3) 4,80,000 (4) 50,000
compounded annually
[Given that (1.09)8 = 1.99256_____
45. A person invests ₹2,000 at the end of each month @
[1 Mark, Dec. 2010]
of interest 6% compounding monthly, find the
(1) ₹55,142.22 (2) ₹65,142.22
amount of annuity after the 10th payment is:
(3) ₹65,532.22 (4) ₹57,425.22
[1 Mark, June 2018]
(1) ₹20,456 (2) ₹20,156
40. How much amount is required to be invested every
(3) ₹20,256 (4) ₹20,356
year as to accumulty ₹6,00,000 at the end of 10th
year, if interest is compounded annually at 10% rate
interest?
[1 Mark, June 2010]
(1) ₹37,467 (2) ₹37,476
(3) ₹37,647 (4) ₹37,674
5
Answer Key
1. (2) 24. (3)
2. (3) 25. (2)
3. (1) 26. (2)
4. (1) 27. (2)
5. (3) 28. (3)
6. (1) 29. (3)
7. (2) 30. (2)
8. (3) 31. (2)
9. (2) 32. (1)
10. (3) 33. (1)
11. (2) 34. (2)
12. (2) 35. (2)
13. (2) 36. (1)
14. (1) 37. (4)
15. (1) 38. (1)
16. (3) 39. (1)
17. (1) 40. (3)
18. (1) 41. (2)
19. (3) 42. (3)
20. (3) 43. (2)
21. (3) 44. (4)
22. (3) 45. (1)
23. (2)
6
2. (3) 7. (2)
(3) is correct (2) is correct
Tricks Tricks:
t2 x2 – 1
t
x – 1 100
t1 x 1 – 1 r
t 3 –1
2 – 1 100 12.5yrs
Or 2 or; t 2 20yrs
10 2 – 1 8
(3) is correct
8. (3)
3. (1) (3) is correct
(1) is correct It is Compound Interest Qts.
Tricks Tricks : 2 t 2 815
Amount for 3.75 yrs – Amount for 2yrs Or 2 t 2 23 : t 2 45yrs
15
S.I. Per year
3.75 – 2 yrs
= ₹ 900 9. (2)
P = 6300 – 2 × 900 = ₹ 4500 (2) is correct
900 100 Difference in S.I
r 20% S.I. pa
4500 1 Difference in time
4. (1) SI – SI1 2784 – 2688
2 ₹ 96
1 t 2 – t1 4–3
% Gain = 6 % – 4 2.25%
4 Principal = ₹ (2688 – 3×96) = ₹ 2400
S.I for 2 yrs. = 5000×2.25%×2 = ₹ 225 I 100 96 100
r 4%
S.I per yr. = 5000×2.25% = ₹ 112.50 pt 2400 1
(1) is correct
10. (3)
5. (3) (3) is correct
Tricks 6.7 P .9.5
Difference in interest is due to time P1 . 2 2
100 100
rate of interest for the whole
P 9 5 15 P 15
Duration = (11×4.5–11×3.5) = 11% or 1 2 1
. 412.50 P2 67 7 P2 7
P= = = ₹ 3750 Tricks GBC
₹ 0.11
39.(1) 44.(4)
(1) is correct. Calculator Tricks:
(1.09)8 1 796870
R
FV 5000 ₹ 55,142.22 10
10
0.09 1 1
40.(3) 100 100
10
(3) is correct
Let amount invested annually R
6, 00,000 ₹ 50,000
R 100
1
10 Option (4) is correct
1 1
100
45. (1)
10
6
10
1 1
1200
₹ 37,647 (approx.) FV 2000 1200
6
41.(2)
14
5 ₹ 20,456
1 1
100
FV 1000 100
14
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