Compound Interest

Question 1 2. 4 yr
Akanskha invests Rs. x in insurance which gives her 3. 5 yr
returns at 21% annually and Rs. y in mutual funds 4. 8 yr
which gives her returns of 10% compounded half 5. None of these
yearly. If Akanskha gets the same returns from both Question 7
the investments after 1 year, then what is the square A borrowed sum was paid in the two annual
root of the ratio of x to y? installments of Rs. 121 each. If the rate of CI is
1. 1 : 2 10% pa, what sum was borrowed?
1. Rs. 217.80
2. 11 : 21
2. Rs. 210
3. 21 : 22
3. Rs. 220
4. 21 : 25 4. Rs. 200
5. None of these 5. None of these
Question 2 Question 8
Irfan borrows a sum of Rs. 64000 at 5% pa A sum of money lent at CI for 2 yr at 20% pa
compound interest. He repays a certain amount at would fetch Rs. 964 more, if the interest was
the end of one year and the balance amount of Rs. payable half yearly than if it was payable
35700 at the end of the second year. What amount annually. What is the sum?
does he repay in the first year? 1. Rs. 40000
1. Rs. 34000 2. Rs. 60000
2. Rs. 37200 3. Rs. 90000
3. Rs. 36400 4. Rs. 500000
4. Rs. 35700 5. None of these
5. Rs. 33200 Question 9
Question 3 A sum of money is borrowed and paid back in
If the compound interest accrued on an amount of two annual installments of Rs. 1764 each,
Rs. 15,000 in two years is Rs. 2,496, what is the rate allowing 5% CI. What was the sum borrowed?
1. Rs. 4000
of interest p.c.p.a.?
2. Rs. 3340
1. 8%
3. Rs. 3000
2. 10%
4. Rs. 3280
3. 6% 5. None of these
4. Can't be determined Question 10
5. None of these The income of a company increases 20% pa. If
Question 4 its income is Rs. 2664000 in the year 1998, what
What is be the compound interest (in Rs.) accrued on an was its income in 1996?
amount of Rs. 15000 at the rate of 20 per cent annum in 1. Rs. 1800000
two years, if the interest is compounded half-yearly? 2. Rs. 4536527
1. 6196.5 3. Rs. 1850000
2. 6916.5 4. Rs. 3830000
3. 4641.5 5. None of these
4. 6961.5 Question 11
5. None of these Find compound interest on Rs. 7000 at 21% per
Question 5
annum for 2 years 4 months, compounded annually.
The compound interest on Rs. 10,000 in 2 years at 4%
1. Rs. 3824.9
per annum, the interest being compounded yearly, is
2. Rs. 3966.1
1. Rs. 636.80
2. Rs. 816
3. Rs. 4094.4
3. Rs. 912 4. Rs. 11109
4. Rs. 828.82 5. Rs. 21109
Question 12
5. None of these
Find the compound interest on Rs. 7500 in 2 years at 6%
Question 6
per annum, the interest being compounded half-yearly.
Find the least number of complete year in which
1. Rs. 941.31
a sum of money put out at 30% CI, will be more
2. Rs. 834.44
than double.
1. 3 yr 3. Rs.746.21

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 Compound Interest
4. Rs. 764 2. 10%
5. Rs. 864 3. 15%
Question 13 4. 20%
Find the compound interest on Rs. 10,000 at 20% 5. 25%
per annum for 6 months. compounded quarterly. Question 19
1. Rs.4353 Divide Rs. 841 between A and B, so that the
2. Rs. 1329 amount of A after 7 years is equal to the amount
3. Rs. 1025 of B after 9 years, the interest being
compounded at 5% per annum.
4. Rs. 2649
1. Rs. 441 and Rs. 400
5. Rs. 3649
2. Rs. 453 and Rs. 564
Question 14
3. Rs. 321 and Rs. 583
If the simple interest on a sum of money at 5% per
4. Rs. 349 and Rs. 867
annum for 2 years is Rs. 1400, find the compound 5. Rs. 359 and Rs. 967
interest on the same sum for the same period at the Question 20
same rate. A certain sum amounts to Rs. 6250 in 2 years
1. Rs. 1023 and to Rs. 6875 in 3 years. Find the sum.
2. Rs. 1435 1. Rs. 5674.69
3. Rs. 3232 2. Rs. 4233
4. Rs. 1255 3. Rs. 5254.45
5. Rs. 1355 4. Rs. 5165.29
Question 15 5. Rs. 6165.29
If Rs. 1000 amounts to Rs. 1166.40 in two years Question 21
compounded annually, Find the rate of interest per sum of money doubles itself at compound interest in
annum. 5 years. In how many years will it become eight
1. 2% p.a times?
2. 4% p.a 1. 20 years
2. 25 years
3. 6% p.a
3. 30 years
4. 8% p.a
4. 15 years
5. 10% p.a 5. 25 years
Question 16
Question 22
If the compound interest on certain sum What annual payment will discharge a debt of Rs.
at 16(2/3)% for 3 years is Rs. 1270. Find the 7620 due in 3 years at 50/3% per annum
simple interest on the same sum at the same rate compound interest?
for the same period . 1. Rs. 3430
1. Rs. 1202 2. Rs. 4334
2. Rs. 1104 3. Rs. 6465
3. Rs. 1080 4. Rs. 4544
4. Rs. 1432 5. Rs. 7584
5. Rs. 1532 Question 23
Question 17 In a factory the production of cement rose 4840
The difference between the compound interest tonnes from 4000 tonnes in two years. Find the rate
and simple interest on certain sum at 10% per of growth per annum.
annum for 2 years is Rs. 175. Find the sum . 1. 10
1. Rs. 17500 2. 12
2. Rs. 17854 3. 8
3. Rs. 17533 4. 9
4. Rs. 17132 5. 11
5. Rs. 18132 Question 24
Question 18 Amit borrowed Rs. 20,000 from his friend at 15% per
The difference between the compound interest annum simple interest he lent it to Tarun at the same
and simple interest accrued on an amount of but rate compounded annually. Find his gain after 2
Rs. 18,000 in 2 years was Rs. 720. What was years.
the Rate of interest p.c.p.a.? 1. 324
1. 5% 2. 604

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 Compound Interest
3. 450 equal annual installments. First at the end of one year
4. 572 and other at the end of the second year. The value of
5. 658 each installment.
Question 25 1. 3032
Akash borrowed Rs. 72,000 from a bank to purchase 2. 6050
one bike. If the rate of interest be 10% per annum 3. 4500
compounded annually, what payment he will have to 4. 5630
make after 2 years 4 months? 5. 9635
1. 75,752 Question 31
2. 86,350 Sanjay purchased a hotel worth rupees 10 lakhs and
3. 85,040 Anita purchased a car worth Rs. 16 lakh. The value of
4. 90,024 hotel every year increase by 20% of the previous
5. 89,456 value and the value of car every depreciates by 25%.
Question 26 What is the difference between the price of hotel
Certain sum amounts to Rs. 1,952 in two years and to and car after 3 years?
Rs. 2,147.20 in 3 years at compound interest, then
1. 10,53,000
rate percent is:
2. 10,63,000
1. 11%
2. 13% 3. 11,53,000
3. 10% 4. 10,43,000
4. 12% Question 32
st
5. 25% C.I. Rs. 5000 for 3 years at 8% for 1 year and 10%
nd rd
Question 27 for 2 year and 12% for 3 year will be-
The difference between simple and compound 1. 1325.6
interests compounded annually on a certain sum of 2. 1652.8
money for 2 years at 4% per annum is Re. 1. The sum 3. 1734.9
(in Rs.) is: 4. 1263.8
1. Rs. 625 5. 1236.8
2. Rs. 630 Question 33
3. Rs. 640 A has lent some money to B at 6% p.a. and C at 10%
4. Rs. 650 at the end of the year he has gain the over all
5. Rs. 750 interest at 8% p.a. in what ratio has he lent the
Question 28 money to A and B?
A man gave 50% of his savings of Rs 84,100 to his 1. 1 : 2
wife and divided the remaining sum between his two
2. 2 : 1
sons A and B of 15 and 13 years of age respectively.
3. 1 : 1
He divided it in such a way that each of his sons,
when they attain the age of 18 years, would receive 4. 2 : 3
the same amount at 5% compound interest per 5. 4 : 5
Question 34
annum. The share of B was
1. Rs 20,000 Loan of 10,000 was lent to a person at for 3 years @
2. Rs 20,050 10% for 1st year, 15% for rest 2 years. Find the
3. Rs 22,000 amount?
4. Rs 22,050 1. 14537.5
5. Rs 25,356 2. 14547.5
Question 29 3. 14647.5
The difference between compound and simple rates 4. 14537.8
of interest on Rs. 10000 for 3 years at 5% p.a. is : 5. 14589.3
1. 76 Question 35
2. 76.25 The difference between C.I. and S.I. on a sum of
3. 76.5 money lent for 2 years at 10% is Rs. 40. The sum is:
4. 76.75 1. 2,000
5. 86.25 2. 3,500
Question 30
3. 3,700
Arvind takes a loan of Rs. 10500 at 10% p.a.
4. 4,000
compounded annually which is to be repaid in two
5. 5,580

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 Compound Interest
Question 36
If P is the principal amount and the rate of interest is Student's Name
r% per annum and the compound interest is
calculated k times in a year, the what is the amount
at the end of n yr? write your answer here
nk
r (1) (11) (21) (31) (41)
1. P(1 + )
100k
nk
(2) (12) (22) (32) (42)
kr
2. P(1 + )
100 (3) (13) (23) (33) (43)
n/k
kr
3. P(1 + ) (4) (14) (24) (34) (44)
100

kr
n/k (5) (15) (25) (35) (45)
4. P(1 + )
100k
5. None of these (6) (16) (26) (36) (46)
Question 37
An amount of Rs. X at compound interest at 20% per (7) (17) (27) (37) (47)
annum for 3 year becomes y. what is y : x?
1. 3 : 1 (8) (18) (28) (38) (48)
2. 36 : 25
3. 216 : 125
(9) (19) (29) (39) (49)
4. 125 : 216
5. 236 : 156
Question 38 (10) (20) (30) (40) (50)
What is the least number of complete year in which
a sum of money at 20% compound interest will be
more than doubled? RIGHT…………WRONG……….MARKS……….
1. 7
2. 6
3. 5
4. 4
5. 6
Question 39
What is the compound interest on Rs. 1600 at 25%
per annum of 2 year compounded annually?
1. Rs. 700
2. Rs. 750
3. Rs. 800
4. Rs. 900
5. Rs. 500
Question 40
On what sum of money will the difference between
simple interest and compound interest for 2 years at
5% pa be equal to Rs. 63?
1. Rs. 25,200
2. Rs. 24,800
3. Rs. 25,500
4. Rs. 24,600
5. Rs. 26,200