What will be compounded amount?

Question: What will be compounded amount?
[A].
I alone sufficient while II alone not sufficient to answer
[B].

II alone sufficient while I alone not sufficient to answer
[C].

Either I or II alone sufficient to answer
[D].

Both I and II are not sufficient to answer 

Answer: Option C

Explanation:

 I. Amount = Rs. 200 x 1 + 6 16
100
II. Amount = Rs. 200 x 1 + 6 16
100

Thus, I as well as II gives the answer.

Correct answer is (C).

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

Question:
The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

[A].

3

[B].

4

[C].

5

[D].

6

Answer: Option B

Explanation:

P 1 + 20 n > 2P         6 n > 2.
100 5
Now, 6 x 6 x 6 x 6 > 2.
5 5 5 5

So, n = 4 years.

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

Question:
The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

[A].

6.06%

[B].

6.07%

[C].

6.08%

[D].

6.09%

Answer: Option D

Explanation:

Amount of Rs. 100 for 1 year
when compounded half-yearly
= Rs. 100 x 1 + 3 2 = Rs. 106.09
100

Effective rate = (106.09 – 100)% = 6.09%

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:

Question:
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:

[A].

625

[B].

630

[C].

640

[D].

650

Answer: Option A

Explanation:

Let the sum be Rs. x. Then,

C.I. = x 1 + 4 2 – x = 676 x – x = 51 x.
100 625 625
S.I. = x x 4 x 2 = 2x .
100 25
51x 2x = 1
625 25

x = 625.

There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

Question:
There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs. 12,000 after 3 years at the same rate?

[A].

Rs. 2160

[B].

Rs. 3120

[C].

Rs. 3972

[D].

Rs. 6240

Answer: Option C

Explanation:

Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.

R = 100 x 60 = 10% p.a.
100 x 6

Now, P = Rs. 12000. T = 3 years and R = 10% p.a.

C.I.
= Rs. 12000 x 1 + 10 3 – 1
100
= Rs. 12000 x 331
1000
= 3972.

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

Question:
Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:

[A].

Rs. 1550

[B].

Rs. 1650

[C].

Rs. 1750

[D].

Rs. 2000

Answer: Option C

Explanation:

C.I.
= Rs. 4000 x 1 + 10 2 – 4000
100
= Rs. 4000 x 11 x 11 – 4000
10 10
= Rs. 840.
Sum = Rs. 420 x 100 = Rs. 1750.
3 x 8

The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

Question:
The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

[A].

Rs. 400

[B].

Rs. 500

[C].

Rs. 600

[D].

Rs. 800

Answer: Option B

Explanation:

Let the sum be Rs. P.

Then, P 1 + 10 2 – P = 525
100
P 11 2 – 1 = 525
10
P = 525 x 100 = 2500.
21

Sum = Rs . 2500.

So, S.I. = Rs. 2500 x 5 x 4 = Rs. 500
100

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

Question:
At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

[A].

6%

[B].

6.5%

[C].

7%

[D].

7.5%

Answer: Option A

Explanation:

Let the rate be R% p.a.

Then, 1200 x 1 + R 2 = 1348.32
100
1 + R 2 = 134832 = 11236
100 120000 10000
1 + R 2 = 106 2
100 100
1 + R = 106
100 100

R = 6%

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

Question:
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

[A].

2

[B].

2 1
2

[C].

3

[D].

4

Answer: Option A

Explanation:

Amount = Rs. (30000 + 4347) = Rs. 34347.

Let the time be n years.

Then, 30000 1 + 7 n = 34347
100
107 n = 34347 = 11449 = 107 2
100 30000 10000 100

n = 2 years.

The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

Question:
The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:

[A].

Rs. 2.50

[B].

Rs. 3

[C].

Rs. 3.75

[D].

Rs. 4

Answer: Option B

Explanation:

S.I. = Rs 1200 x 10 x 1 = Rs. 120.
100
C.I. = Rs. 1200 x 1 + 5 2 – 1200 = Rs. 123.
100

Difference = Rs. (123 – 120) = Rs. 3.