1.There is 60% increase in an amount in 6 years at S.I. What will be the C.I. of Rs.

12,000
after 3 years at the same rate?
1)Rs.2160 2)Rs.3120 3)Rs.3972 4)Rs.6240
Answer: 3
Explanation:Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years. 
R = (100 * 60)/(100 * 6) = 10% p.a. 
Now, P = Rs. 12000, T = 3 years and R = 10% p.a. 
C.I. = [12000 * {(1 + 10/100)3 - 1}] 
= 12000 * 331/1000 = Rs. 3972

2. The difference between simple and compound interests compounded annually on a

certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs. ) is?
1)625 2)630 3)640 4)650
Answer: 1
Explanation:Let the sum be Rs. x. Then, 
[x (1 + 4/100)2 - x] = (676/625 x - x) = 51/625 x
S.I. = (x * 4 * 2)/100 = 2x/25
51x/625 - 2x/25 = 1 or x = 625.

3. On a sum of money, the S.I. for 2 years is Rs. 660, while the C.I. is Rs. 696.30, the rate
of interest being the same in both the cases. The rate of interest is?
1)10% 2)10.5% 3)12% 4)11%
Answer: 4
Explanation: Difference in C.I. and S.I for 2 years = (696.30 - 660) = Rs. 36.30. 
S.I for one year = Rs. 330. 
S.I. on Rs. 330 for 1 year = Rs. 36.30 
Rate = (100 * 36.30)/(330 * 1) = 11%

4. The effective annual rate of interest corresponding to a nominal rate of 6% per annum
payable half-yearly is?
1)6.06% 2)6.07% 3)6.08% 4)6.09%
Answer: 4
Explanation: Amount of Rs. 100 for 1 year when compounded half-yearly = [100 * (1 + 3/100)2] = Rs.
106.09 Effective rate = (106.09 - 100) = 6.09%

5. A sum of money invested at C.I. amounts to Rs. 800 in 3 years to Rs. 840 in 4 years. The
rate of interest per annum is?
1)2 ½% 2)4% 3)5% 4)6 2/3%
Answer: 3
Explanation: S.I. on Rs. 800 for 1 year = (840 - 800) = Rs. 40 Rate = (100 * 40)/(800 * 1) = 5%
6. A sum of money placed at C.I. interest doubles itself in 5 years. It will amount to eight
times itself at the same rate of interest in?
1)7 years 2)10years 3)15years 4)20years
Answer: 3
Explanation: P(1 + R/100)5 = 2P => (1 + R/100)5 = 2 
Let P(1 + R/100)n = 8P 
=> (1 + R/100)n = 8 = 23 = {(1 + R/100)5}3 
=> (1 + R/100)n = (1 + R/100)15 => n = 15 Required time = 15 years.

7. The least number of complete years in which a sum of money put out at 20% C.I. will be
more than doubled is?
1)3 2)4 3)5 4)6
Answer: 2
Explanation: P(1 + 20/100)n > 2P or (6/5)n > 2 
Now, (6/5 * 6/5 * 6/5 * 6/5) > 2. So, n = 4 years.

8. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5%
compound interest?
1)Rs.550 2)Rs.551.25 3)Rs.560 4)Rs.560.75
Answer: 2
Explanation:Let each installment be Rs. x. Then, 
x/(1 + 5/100) + x/(1 + 5/100)2 = 1025
820x + 1025 * 441 =>x = 551.25
So, value of each installment = Rs. 551.25

9. A sum of money is borrowed and paid back in two annual installments of Rs. 882 each
allowing 5% C.I. The sum borrowed was?
1)Rs.1620 2)Rs.1640 3)Rs.1680 4)Rs.1700
Answer: 2
Explanation: Principal = (P.W. of Rs. 882 due 1 year hence) + (P.W. of Rs. 882 due 2 years hence) 
= [882/(1 + 5/100) + 882/(1 + 5/100)2] 
= (882 * 20)/21 + (882 * 400)/441 = Rs. 1640.
10. The difference between C.I. and S.I. on an amount of Rs. 15,000 for 2 years is Rs. 96.
What is the rate of interest per annum?
1)8 2)10 3)12 4)cannot be determined
Answer: 1
Explanation:[15000 * (1 + R/100)2 - 15000] - (15000 * R * 2)/100 = 96 
15000[(1 + R/100)2 - 1 - 2R/100] = 96 
15000[(100 + R)2 - 10000 - 200R]/10000 = 96 
R2 = (96 * 2)/3 = 64 => Rate = 8%

11. If Rs. 7500 are borrowed at C. I at the rate of 4 % per annum then after 2 years, the
amount to be paid is?
1)Rs.8082 2)Rs.7800 3)Rs.8100 4)Rs.8112
Answer: 4
Explanation: Amount = Rs. [7500 (1 +4/100)2]  = Rs. [7500 × 26/25 × 26/25] = Rs.8112

12. Simple Interest on a sum at 4% per annum for 2 years is 80. The compound interest on
the same sum for the same period is?
1)Rs.81.60 2)Rs.160 3)Rs.1081.60 4)Rs.200
Answer: 1
Explanation: Principle = Rs.(8000/8) = Rs. 1000 
Therefore, C. I = Rs. [{ 1000 × (1 +4/100)2 – 1000}] = Rs. 81.60

13. Rs. 800 at 5 % Per annum compound interest will amount to Rs. 882 in?
1)1year 2)2years 3)3years 4)4years
Answer: 2
Explanation: Time be t years 882 = 800 (1 +5/100) t  => 882/800 =(21/20) t 
=> (21/20) 2 = (21/20) t 
=> t = 2 Therefore, Time = 2 years

14.What is the principle amount which earns Rs.132 as compound interest for the second
year at 10 % per annum?
1)Rs.1000 2)Rs.1200 3)Rs.1320 4)None of these
Answer: 2
Explanation:X be the principle at the end of the first year

=> x =1320
Y be the original Principle

=> Y =1200
15. The difference between the compound interest and the simple interest on a certain sum
at 5 % per annum for 2 years is Rs. 1.50. The sum is?
1)Rs.600 2)Rs.500 3)Rs.400 4)Rs.300
Answer: 1
Explanation: Sum be Rs.100

S.I = Rs.(1000/100) =Rs.10

C.I = Rs.[{100 × (1 +5/100) 2} - 100] =Rs.41/4 

Difference C.I amd S. I = Rs.(41/4 - 10) =Rs.25 

25 : 1.50 : : 100 : x 

Therefore x = ((1.50 ×100)/25) = Rs.600

16. The compound interest on a certain sum of money for 2 years at 10 % per annum is
Rs.420. The simple interest on the same sum at the same rate and for the same time will
be?
1)Rs.350 2)Rs.375 3)Rs.380 4)Rs.400
Answer: 4
Explanation:The principle is P. 
P(1 +10/100) 2 – P = 420  => P = Rs.2000 
S.I = Rs.(4000/100) = Rs.400

17. The difference between simple interest and compound interest at the same rate for
Rs.5000 for 2 years is Rs. 72. The rate of interest is?
1)10% 2)12% 3)6% 4)8%

Answer: 2
Explanation: 5000 × (1 +R/100) 2 – 5000 –(10000R/100)= 72 
=> 5000 [(1 + R/100) 2 – 1 – R/50] = 72 
=> 1 + R2/100 + 2R/100 – 1 – R/50 = 72/5000 
=> R2 = (72/5000 × 10000) = 144 or R =12%
18. A sum of money amounts to Rs. 10648 in 3years and Rs. 9680 in 2 years. The rate of
interest is?
1)5% 2)10% 3)15% 4)20%
Answer: 2
Explanation: P be the principle and R % Per annum be the rate. 
P(1 + R/100) 3 = 10648 - (i) 
P(1 + R/100) 2 = 9680 - (ii) 
 By dividing (i) and (ii) 
(1 +R/100) = 10648/9680 Or 
R/100 = 968/9680 = 1/10 or R = 10 %

19. A sum amounts to Rs. 2916 in 2 years and to Rs.3149.28 in 3 years at compound Interest.
The sum is?
1)Rs.1500 2)Rs.2000 3)Rs.2500 4)Rs.3000
Answer: 3
Explanation: P be the principle and R % per annum be rate 
P(1 + R/100) 3 = 3149.28 - (i) 
P(1 + R/100) 2 = 2916 - (ii) 
 By dividing (i) and (ii) 
(1 + R/100) = 3149.28/2916 R/100 = 233.28/2916 
or R =233.28/2916 x 100 = 8 % 
P(1 +8/100) 2 = 2916 or  P × 27/25 × 27/25 = 2916  Or = 1822500/729= Rs.2500

20. A sum of money becomes Rs.6690 after three years and Rs.10.035 after six years on
compound interest. The sum is?
1)Rs.4400 2)Rs.4445 3)Rs.4460 4)Rs.4520
Answer: 3
Explanation: Sum be P 
P(1 + R/100)   = 6690 - (i) 
3

 P(1 + R/100) 2 = 10, 035 - (ii) 

 By dividing (i) and (ii) 
(1 + R/100) 3 = 10035/6690 = 3/2 
Therefore, P = (6690 x 2/3) = Rs. 4460