1.Find the amount on Rs.

8000 in 9 months at 20% per annum, if the interest being

compounded quarterly?
1)Rs.1261 2)Rs.9261 3)Rs.9621 4)Rs.9162
Answer: 2
Explanation:A = 8000(21/20)3 = 9261

2. Every year an amount increases by 1/8th of itself. How much will it be after two years if
its present value is Rs.64000?
1)Rs.81000 2)Rs.80000 3)Rs.75000 4)Rs.64000
Answer: 1
Explanation: 64000* 9/8 * 9/8 = 81000

3. Rajan borrowed Rs.4000 at 5% p.a compound interest. After 2 years, he repaid Rs.2210 and
after 2 more year, the balance with interest. What was the total amount that he paid as interest?
1)Rs.635.50 2)Rs.613.50 3)675.50 4)Rs.653.50
Answer:1
Explanation:4000+200+200+10 =4410
(5%)(5%)(5% of200)
    4410-2210(after 2 years he paid 2210)=2200(remaining amount)
    2200+110+110+5.50 =2425.50
(5%)(5%)(5% of 110)
 2425.50+2210= 4635.50-4000=635.50

4. Indu gave Bindu Rs.1250 on compound interest for 2 years at 4% per annum. How much loss
would Indu has suffered had she given it to Bindu for 2 years at 4% per annum simple interest?
1)Rs.10 2)Rs.2 3)Rs.5 4)Rs.3
Answer: 2
Explanation:1250 = D(100/4)2 =>D = 2

5. In one year, the population, of a village increased by 10% and in the next year, it
decreased by 10%. If at the end of 2nd year, the population was 7920, what was it in the
beginning?
Answer: 2
Explanation: x*110/100 * 90/100 = 7920
 X*0.99=7920
 X=7920/0.99=8000

6. How much more would Rs.20000 fetch, after two years, if it is put at 20% p.a. compound
interest payable half yearly than if is put at 20% p.a. compound interest payable yearly?
1)Rs.482 2)Rs,424 3)Rs842 4)Rs512
Answer: 1
Explanation: 20000(11/10)4 - 20000(6/5)2 = 482

7. A money lender lends Rs.2000 for six months at 20% p.a. rate. It the interest is reckoned
quarterly than find the amount given after time limit.
1)Rs.2205 2)Rs.2200 3)Rs.2160 4)Rs.2040
Answer: Option A
Explanation: A = 2000(21/20)2 = 2205

8. A sum amount to Rs.1344 in two years at simple interest. What will be the compound
interest on the same sum at the same rate of interest for the same period?
1)Rs.150 2)Rs.140 3)Rs.130 4)Data insufficient
Answer: 4

9. The population of a city increases at the rate of 4% p.a. but there is an additional annual
increase of 1% in the population due to some job seekers. The percentage increase in the
population after 2 years is?
1)10 2)11 3)10.25 4)10.15
Answer: 3
Explanation:5%+5%+5% of 5=10.25%

10. Find the amount on Rs.5000 in 2 years, the rate of interest being 4% per first year and
5% for the second year?
1)Rs.460 2)Rs.5640 3)Rs.5460 4)Rs.5604
Answer: 3
Explanation: 5000 * 104/100 * 105/100= 5460
11What amount does Kiran get if he invests Rs.8000 at 10% p.a. compound interest for two
years, compounding done annually?
1)Rs.9630 2)Rs.9680 3)Rs.9610 4)Rs.9650
Answer: 2
Explanation: A= P{1 + R/100}n 
 => 8000{1 + 10/100}2  = Rs.9680

12. The compound interest earned by Sunil on a certain amount at the end of two years at
the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of
two years in the form of principal plus interest earned.
1)Rs.18828.80 2)Rs.19828 3)Rs.18028 4)Rs.17828.80

Answer: 2
Explanation: Let the sum be Rs.P
 P{ [ 1 + 8/100]2 - 1 } = 2828.80 
P(8/100)(2 + 8/100) = 2828.80 [a2 - b2 = (a - b) ( a + b)] P = 2828.80 / (0.08)(2.08) = 1360/0.08 =
17000 Principal + Interest = Rs. 19828.80
13. Find the compound interest accrued on an amount of Rs.14,800 at 13.5% p.a at the end of
two years. (Round off your answer to nearest integer)
1)Rs.4273 2)Rs.4613 3)Rs.4064 4)Rs.4266
Answer: 4
Explanation: CI = 14800{ [ 1 + 13.5/100] 2 - 1 } 
= 14800 { [1 + 27/200]2 - 1 
= 14800 { 2 + 27/200}{27/200} 
= (74)[2 + 27/200](27) = 
1998[2 + 27/200] = 3996 + 269.73 = Rs. 4266

14. Raj invested an amount of Rs.17400 for two years. Find the rate of compound interest
that will fetch him an amount of Rs.1783.50 at the end of two years?
1)8%p.a 2)6%p.a 3)4%p.a 4)5%p.a
Answer: 4
Explanation: Let the rate of interest be R% p.a. 
17400[1 + R/100]2 = 17400 + 1783.50 
[1 + R/100]2 = (17400 + 1783.50)/17400 
= 1 + 1025/10000 = 1 + 41/400 
= 441/400 = [21/20]2 
[1 + R/100] = 21/20 
R/100 = 1/20 
Therefore R = 5

15. Compound interest earned on a sum for the second and the third years are Rs.1200
and Rs.1440 respectively. Find the rate of interest?
1)18%p.a 2)22%p.a 3)20%p.a 4)24%p.a
Answer: 3
Explanation: Rs.1440 - 1200 = Rs.240 is the interest on Rs.1200 for one year. 
Rate of interest = (100 * 240) / (100 * 1) = 20% p.a

16. A sum of Rs.4800 is invested at a compound interest for three years, the rate of interest
being 10% p.a., 20% p.a. and 25% p.a. for the 1st, 2nd and the 3rd years respectively. Find
the interest received at the end of the three years.
1)Rs.2520 2)Rs.3120 3)Rs.3320 4)Rs.2760
Answer: 2
Explanation:Let A be the amount received at the end of the three years. 
A = 4800[1 + 10/100][1 + 20/100][1 + 25/100] 
A = (4800 * 11 * 6 * 5)/(10 * 5 * 4) =Rs.7920 
So the interest = 7920 - 4800 = Rs.3120

17. A man gets a simple interest of Rs.500 on a certain principal at the rate of 5% p.a in two
years. Find the compound interest the man will get on twice the principal in two years at the
same rate.
1)Rs.500 2)Rs.256.25 3)Rs.5012.50 4)Rs.5062.50
Answer: 2
Explanation: Let the principal be Rs.P 
S.I at 5% p.a in 8 years on Rs.P = Rs.500
(P)(8)(5)/100 = 500
P = 1250
C.I on Rs.2P i.e., Rs.2500 at 5% p.a in two years
=2500{ [1 + 5/100]2 - 1} = 2500{ 212 - 202 /202} 
= 2500/400(441 - 400)
= 25/4(41) = 1025/4 = Rs.256.25

18. The simple interest accrued on an amount of Rs.49500 at he end of three is Rs.17820.

What would be the compound interest accured on the same amount at teh same rate in the
same period? (Round off your answer to two decimal places)
1)Rs.20043.94 2)Rs.18654.81 3)Rs.20264.46 4)Rs.19612.41
Answer: Option A
Explanation: Let the rate of interest be R% p.a. 
(49500)(3)(R)/100 = 17820 
495R = 5940  =>R = 12 
CI on Rs.49500 at 12% p.a. for three years 
= 49500{[1 + 12/100]3 - 1} = 69543.936 - 49500 = Rs.20043.94 
when rounded off to two decimal places.

19. The compound interest accrued on an amount of Rs.44000 at the end of two years is
Rs.1193.60. What would be the simple interest accrued on the same amount at the same rate in
the same period?
1)Rs.10840 2)Rs.10720 3)Rs.10560 4)Rs.10280
Answer: 3
Explanation: Let the rate of interest be R% p.a. 
4400{[1 + R/100]2 - 1} = 11193.60 
[1 + R/100]2 = (44000 + 11193.60)/44000
[1 + R/100]2 = 1 + 2544/1000 = 1 + 159/625 
[1 + R/100]2 = 784/625 = (28/25)2 
1 + R/100 = 28/25 
R/100 = 3/25 
Therefore R = 12 SI on Rs.44000 at 12% p.a. for two years = 44000(2)(12)/100 
=Rs.10560
20. A person got Rs.48 more when he invested a certain sum at compound interest instead
of simple interest for two years at 8% p.a. Find the sum?
1)Rs.7500 2)Rs.7000 3)Rs.8000 4)Rs.6500
Answer: 1
Explanation:P = (d * 1002) / R2 
=> (48 * 100 * 100) / 8 * 8 = Rs.7500