₹A man invests ₹20,000 at 15% simple interest per annum for 2 years.

What is the total

amount he receives at the end? a) ₹20,000 b) ₹23,000 c) ₹26,000 ** (Correct Answer)** d)
₹29,000

₹If the compound interest on a principal of ₹8,000 for 1 year at 10% compounded annually is
₹800, what is the amount received at the end of the year? a) ₹8,000 b) ₹8,800 ** (Correct
Answer)** c) ₹9,600 d) ₹10,400

₹A woman deposits ₹x in a bank account at 5% annual interest compounded quarterly. After

1 year (4 quarters), the amount in the account becomes ₹10,506. What is the closest value of
x? a) ₹9,500 b) ₹10,000 c) ₹10,250 d) ₹10,750 ** (Correct Answer)**

 In which of the following cases will the difference between compound interest (CI) and
simple interest (SI) be the highest? a) Low principal, high interest rate, short time period b)
High principal, low interest rate, short time period c) High principal, high interest rate, long
time period ** (Correct Answer)** d) Low principal, low interest rate, long time period

₹A loan of ₹50,000 is taken at an annual interest rate of 8% compounded quarterly. What is

the amount payable after 2 years? (Round to the nearest rupee) a) ₹58,982 b) ₹62,116 c)
₹65,467 ** (Correct Answer)** d) ₹69,035

₹A company invests ₹P in a scheme offering 12% simple interest per year. If the same
company invests ₹(P + ₹2000) in a different scheme offering 10% compound interest
annually for 1 year, the simple interest earned from the first scheme will be equal to the
compound interest earned from the second scheme. What is the closest value of P? a) ₹5,000
b) ₹10,000 c) ₹15,000 ** (Correct Answer)** d) ₹20,000

 A sum of money doubles in 10 years at a certain rate of simple interest. What is the rate of
interest per annum (approximately)? a) 5% b) 7% c) 10% ** (Correct Answer)** d) 15%

 Two friends, A and B, invest the same amount of money in separate fixed deposits for the
same time period. Deposit A offers simple interest, while Deposit B offers compound
interest. If both deposits have the same interest rate, who will earn more interest? a) Friend A
(Simple Interest) b) Friend B (Compound Interest) ** (Correct Answer)** c) Both will earn
the same amount. d) Cannot be determined without knowing the time period.

₹A certain amount matures to ₹25,000 after 5 years at 6% simple interest. What was the
principal amount invested? a) ₹18,750 b) ₹20,000 c) ₹21,250 d) ₹22,500 ** (Correct
Interest)**

 If the interest on a deposit for 2 years compounded annually is half of the principal, what
is the rate of interest (approximately)? a) 10% b) 20% c) 30% ** (Correct Answer)** d) 40%