1. In how many years a sum will be doubled at 12% per annum at simple interest ?

1 1
8 8
(a) 6 years (b) 7 years (c) 3 years (d) 2 years

2. The compound interest on Rs.10,000 at 20% per annum at the end of 1 year 6 months if the
interest is calculated half yearly will –
(a) Rs.3,000 (b) Rs.3,300 (c) Rs.3,310 (d) Rs.3,330.

3. The principal for which the difference of simple interest and compound interest at 10% per
annum is Rs.100 in 2 years, is –
(a) Rs.8,000 (b) Rs.10,000 (c) Rs.12,000 (d) Rs.14,000.

4. A sum of money invested at compound interest becomes Rs.1,020 after 3 years and
Rs.1,088 after 4 years. The rate of interest is –
(a) 5.60% (b) 6.66% (c) 7.66% (d) 8.66%.

5. The difference between S.I. and C.I. on a sum for 2 years at 8% per annum is Rs.160. If the
interest were compounded half yearly, the difference in interest in two years will be nearly –
(a) Rs.246.50 (b) Rs.240 (c) Rs.168 (d) Rs.160.

6. A certain sum invested at compound interest becomes Rs.6,500 after a period of 6 years
and Rs.7,800 after a further period of 2 more years. The amount due after a further period of
2 more years is –
(a) Rs.9,360 (b) 6,500 (c) Rs.9,100 (d) Rs.9,390.

7. In how many years at compound interest, will a sum of money become 27 times when it
trebles itself in 2 years at compound interest ?
1
13
(a) 9 years (b) 6 years (c) 12 years (d) 2 years
8. To find out the total compound interest accrued on a sum of money after 5 years, which of
the following informations given in statements A and B is/are sufficient ?
A. The rate of interest is 6 percent per annum
B. The total simple interest on the same amount after 5 years at the same rate will be
Rs.600
(a) Only A is sufficient (b) Either A or B is sufficient
(c) Both A and B together are needed (d) Only B is sufficient.

9. X, Y and Z are the three sums of money such that Y is the simple interest on X and Z is the
simple interest on Y for the same time and rate. The relation between X, Y and Z is –
(a) x2 = Y Z (b) Y2 = Z X (c) Z2 = X Y (d) XYZ = 1

10. If the compound interest on a certain sum of money for 2 years is Rs.2,700 and the simple
interest on the same sum for the same period is Rs.2,500, the rate of interest will be –
(a) 16 percent (b) 10 percent (c) 18 percent (d) 24 percent
1 1
11. 4 th of a sum is invested at 3% simple interest, 3 rd at 4% and the remainder at 5%. If the
total yearly interest is Rs.150, the sum is –
(a) Rs.4,000 (b) Rs.3,600 (c) Rs.3,000 (d) Rs.5,000
12. Harish purchased a cycle and he was to pay total of Rs.1,575 in three years. If the rate of
interest is 5%, he should pay annual instalment of Rs. ……….. to complete his payment.
(a) 500 (b) 525 (c) 550 (d) None of these
13. Find the least number of years for which an annuity of Rs.1,000 must run in order that its amount
exceed Rs.16,000 at 5% p.a. compounded monthly.
[Given : Log 18 = 1.2553, log 105 = 2.0212]
(a) 12 years (b) 11 years (c) 13 years (d) None.

14. Find the amount of an annuity of Rs.400 per quarter payable for 6 years at 8% p.a.
[Given : (1.02)24 = 1.608-
(a) Rs.11,260 (b) Rs.12,160 (c) Rs.13,200 d) None

15. Find the amount of annuity of Rs.4,000 per annum for 10 years reckoning interest at 10% p.a.
[Given : (1 . 1)10 = 2.594]
(a) Rs.63,760 (b) Rs.63,670 (c) Rs.63,205 (d) None.

16. A person invests Rs.100 at the end of each year at 5% p.a. How much would he get back at the end of
10 years ?
[Given : (1.05)10 = 1.6289]
(a) Rs.1,275.80 (b) Rs.1257.20 (c) Rs.1,255.60 (d) None.

17. Calculate the present value of an annuity of Rs.5,000 p.a. for 12 years, the interest being 4% p.a.
compounded annually.
[Given : (1.04) − 12 = 0.6252]
(a) Rs.46,850 (b) Rs.46,580 (c) Rs.46,875 (d) None.
18.A machine can be purchased for Rs.50,000. Machine will contribute Rs.12,000 per year for the
next five years. Assume borrowing cost is 10% per annum compounded annually. Determine whether
machine should be purchased or not.
(a) Should be purchased (b) should not be purchased
(c) Can’t say about purchase(d) none of the above.
19.,A company is considering proposal of purchasing a machine either by making full payment of
Rs.4,000 or by leasing it for 4 years at an annual rent for Rs.1,250. Which course of action is
preferable, if the company can borrow money at 14% per annum ?
[Given : (1.14)10 = 3.70722]
(a) Leasing is preferable (b) Leasing is not preferable
(c) Can’t say

20 .At the beginning of each period consisting of six months, Rs.500 is deposited into saving account
that pays 5% compounded half yearly. Find the balance in the account at the end of 5 years.
[Given : (1.025)11 = 1.3121]
(a) Rs.5724 (b) Rs.5742 (c) Rs.5472 (d) Rs.5427