Before solving the
problem Know Interest Formula
When a sum of money is borrowed for a
period, an extra amount has to be paid along with the borrowed money. The fixed
rate of the extra amount is called interest. The interest are of two types:
simple interest and compound interest.
Simple interest is the interest paid at the
end of the period. Compound interest is the total interest that includes the
original interest and the interest of the new principal which is obtained by
adding the original principal to the due interest.
The Interest formula is given as,
Problems
1. A father left a will of Rs.35 lakhs
between his two daughters aged 8.5 and 16 such that they may get equal amounts
when each of them reach the age of 21 years. The original amount of Rs.35 lakhs
has been instructed to be invested at 10% p.a. simple interest. How much did
the elder daughter get at the time of the will?
(A)Rs. 17.5 lakhs
(B)Rs. 21 lakhs
(C)Rs. 15 lakhs
(D)Rs. 20 lakhs
Ans : B
2. What will Rs.1500 amount to in three
years if it is invested in 20% p.a. compound interest, interest being
compounded annually?
(A)2400
(B)2592
(C)2678
(D)2540
Ans : B
3. If a sum of money grows to 144/121 times
when invested for two years in a scheme where interest is compounded annually,
how long will the same sum of money take to treble if invested at the same rate
of interest in a scheme where interest is computed using simple interest
method?
(A)9 years
(B)22 years
(C)18 years
(D)33 years
Ans : B
4. The population of a town was 3600 three
years back. It is 4800 right now. What will be the population three years down
the line, if the rate of growth of population has been constant over the years
and has been compounding annually?
(A)6000
(B)6400
(C)7200
(D)9600
Ans : B
5. A man invests Rs.5000 for 3 years at 5%
p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the
interest earned is deducted at the end of each year. Find the amount at the end
of the third year.
(A)5624.32
(B)5630.50
(C)5788.125
(D)5627.20
Ans : A
6. The difference between the compound
interest and the simple interest on a certain sum at 12% p.a. for two years is
Rs.90. What will be the value of the amount at the end of 3 years?
(A)9000
(B)6250
(C)8530.80
(D)8780.80
Ans : D
7. Vijay invested Rs.50,000 partly at 10%
and partly at 15%. His total income after a year was Rs.7000. How much did he
invest at the rate of 10%?
(A)Rs.40,000
(B)Rs.40,000
(C)Rs.12,000
(D)Rs.20,000
Ans : B
8. A sum of money invested for a certain
number of years at 8% p.a. simple interest grows to Rs.180. The same sum of
money invested for the same number of years at 4% p.a. simple interest grows to
Rs.120 only. For how many years was the sum invested?
(A)25 years
(B)40 years
(C)33 years and 4 months
(D)Cannot be determined
Ans : A
9. How long will it take for a sum of money
to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?
(A)8 years
(B)64 years
(C)72 years
(D)56 years
Ans : D
10. Rs. 5887 is divided between Shyam and
Ram, such that Shyam’s share at the end of 9 years is equal to Ram’s share at
the end of 11 years, compounded annually at the rate of 5%. Find the share of
Shyam.
(A)2088
(B)2000
(C)3087
(D)None of these
Ans : C
Questions shared by our
friend
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