Simple Interest and Compound Interest

Simple Interest est charged by the company is 12% per

If Principal = Rs. ‘P’, Time = ‘T’ years, Rate annum, then find each instalment?
= ‘R%’ per annum, Sol. Balance of the price to be paid
through instalments
Simple Interest (SI) = P = 19200 – 4800 = 14400
Amount = Principal + Simple Interest Now, according to the formula,

Example:
Find the simple interest on Rs. 200 for 5
years at 6% per annum?
Sol. Here, P = Rs. 200, T = 5 years, where,
R = 6%
P  R  T 200  5  6
 SI   = Rs.60
100 100
(i) If rate of interest is half-yearly, Rate
  12x   12x  
R  x   x  12  100    x  12  100  +...+
  % and Time = 2T     
2
(ii) If rate of interest is quarterly, Rate  12x  4  
x  
 12  100  
R
  % and Time = 4T
4
(iii) If rate of interest is monthly, Rate
R
  % and Time = 12T Compound Interest
 12 
Installments If Principal = Rs. P, Time = n years, Rate =
r% per annum and interest compounded
When the borrower paid total money in
annually
some equal parts, then we can say that
he is paying in installments. (i) When interest compounded annually
n
For simple interest,  r 
 Amount  P 1  
 100 
(ii) When interest compounded half yearly

 
2n
 r 
where A = Total amount paid  2 
 Amount  P 1 
 100 
x = value of each installment  
Example: (iii) When interest compounded quarterly
A scooty is sold by an automobile agency
 
4n
for Rs. 19200 cash or for Rs. 4800 cash  r 
down payment together with five equal  Amount  P 1  4 

 100 
monthly instalments. If the rate of inter-  
[1]
 Simple Interest and Compound Interest
(iv) When interest compounded monthly Concept 5:
When difference between the CI and SI
 
12n
 r 
12  on a certain sum of money for 2 years at
 Amount  P 1 
 100  r%, is given by,
  2
 r 
Difference  P  
(v) When time is in fraction of a year, say  100 
4 Example:
3 years The difference between the CI and SI on a
5
certain sum of money at 5% per annum
  4 
r    5r  
3 for 2 years is Rs. 1.50, Find the sum

 Amount  P 1   1  100  2
 100    P 5 
  Sol. 1.5  , P  Rs.600
1002
(vi) When rate of interest is r1% durring
Concept 6:
first year, r2% durring 2nd year, r3%
The difference between CI and SI on a
durring 3rd year.
certain sum for 3 years is given by,
Amount = Pr2  300  r 
Difference =
1003
Concept 2 :
Example: If the difference between CI and
SI on a certain sum of money for 3 years
at 5% per annum is Rs. 122 find the sum.
2
P 5  300  5  ,
Sol. 122  P = Rs. 16000
1003
Concept 3: Concept 7: If a sum ‘A’ becomes ‘B’ in t1
A sum of money, placed at compound in- years at compound rate of interest, then
terest, becomes n times in t years and m after t2 years the sum becomes
times in x years
then, n1t  m 1 x
Example:
Example:
A sum of money at compound interest
amounts to thrice itself in 3 years, in how Rs. 4800 becomes Rs. 6000 in 4 years at
money years will it be 9 times it self? a certain rate of CI.
What will be the sum after 12 years.
1 1 1 2 1 2
Sol. 3 3
 9 x, 3 3
 3 x,  , x=6 years
3 x
Required Amount =
Concept 4:
Relationship between CI and SI for two = Rs. 9375
years Concept 8:
CI 200  r
 If a sum of money Rs. x is divided among
SI 200 ‘n’ parts in such a manner that when placed
Example:
at CI, amount obtained in each case re-
The SI on a certain sum of money for 2
mains equal while the rate of interest on
years at 10% per anuum is Rs. 400, find
each part is r1, r2, r3 ....... rn respectively and
CI at the same rate and for the same time.
time period for each part is t1, t2, t3 ....... tn
210 respectively. Then the divided parts of sum
Sol. CI   400  Rs.420
200 will be in the ratio of:

[2]
 Simple Interest and Compound Interest

7 years be equal to B’s share at the end of

1 1 1
: : : ......... : 9 years, CI being 4%. Find A’s share.
t t t
 r1  1  r2  2  r3  3 A’s share : B’s share =
1 
 100   1   1 
 100 
   100   

1
tn
 rn 
1  100 
 
625
= 1:  676 : 625
Example: 676
A sum of Rs. 3903 is divided between A 676
and B, so that A’s share at the end of the A’share =  676  625   3903  Rs.2028

Types of Questions

1. A sum of money becomes four times

1 1
in 20 years at SI. Find the rate of in- part of his sum at 7% SI, part at
terest. 3 4
8% SI and remaining part at 10% SI.
Sol. Given, T = 20 years
If Rs. 510 is his annual total interest,
Let sum = P then find the money lent out.
Then, the sum after 20 years = 4P Sol. Let entire sum = P
 SI = 4P – P = 3P Now, according to the question,
Now,
PRT P  R  20 20R R
3P   3 
100 100 100 5
 Rs. 15%
2. A sum becomes two times in 5 years at
a certain rate of interest. Find the time
in which the same amount will be 8
times at the same rate of interest.
Sol. Let sum = P 4. A sum of Rs. 7700 is lent out in two
Then, for 5 years, parts in such a way that the interest
SI = 2P – P = P on one part at 20% for 5 years is equal
to that on another part at 9% for 6
PRT years. Find the two sums.
SI 
100 Sol. Let the first sum be Rs. x. Then, sec-
ond sum
P  R  5 PR
P    R  20% = Rs. (7700 – x)
100 20
Now, according to the question,
Again, for another time (T)
SI = 8P – P – P=7P x  20  5  7700  x   9  6

100 100
P  20  T 20TP TP
 7P     50x = (7700 – x) × 27
100 100 5
 50x = 7700 × 27 – 27x
 T = 7×5 = 35 years
 77x = 7700 × 27
3. Ravi lent out a certain sum. He lent
 x = Rs. 2700

[3]
 Simple Interest and Compound Interest

 The second part = (7700 – x)

= 7700 – 2700
= Rs. 5000 Sol.
5. What annual payment will discharge
a debt of Rs. 848 in 8 years at 8% per
annum? = Rs. 7803
Sol. Here, P = Rs. 848, T = 8 years, R = 8% 9. Rs. 7500 is borrowed at CI at the rate
According to the formula, of 4% per annum. What will be the
100P amount to be paid after 6 months, if
Annual payment = interest is compounded quarterly?
RT(T  1)
100T 
2
100  848 848  100
 Sol.
8  8  8  1 800  32 
100  8 
2 = Rs. 7650.75
84800
 = Rs.828125 10. Find the compound interest on Rs.
1024 2000 at 5% per annum, compounded
6. Raviraj invested an amount of
1
Rs. 10000 at compound interest rate yearly for 2 years?
2
of 10% per annum for a period of three
years. How much amount will Raviraj Sol.
get after 3 years?
n 2
 r   5   5 
Sol. Amount P 1  2000 1  1
 100 
     2260.125
 100   200 
where P  Principal, r  Rate, n  time CI = 2260.12 – 2000 = Rs. 260.125
3 11. An amount of money grows upto Rs.
 10 
Amount = 10000 1    Rs.13310 4840 in 2 years and upto Rs. 5324 in
 100  3 years on compound interest. Find
the rate per cent.
7. Se ema inve sted an amount of
Rs.16000 for two years at compound Sol. P + CI of 3 years = Rs. 5324
interest and received an amount of Rs. P + CI of 2 years = Rs. 4840
17640 on maturity. What is the rate CI for 3rd year = 5324 – 4840
of interest? = Rs. 484

A  r 
n 484  100
Sol.  1  Required r%  10%
 4840
P  100 
12. Find the ratio of CI to SI on a certain
sum at 10% per annum for 2 years?
CI 200  r 210
Sol.    21 : 20
SI 200 200
13. Rs. 1600 becomes Rs. 2000 in 2 years
8. Rs. 7500 is borrowed at CI at the rate at a certain rate of compound interest.
of 4% per annum. What will be the What will be the sum after 4 years?
amount to be paid after 1 year, if in- Sol. If a sum ‘A’ becomes ‘B’ in t1 years at
terest is compounded halfyearly? CI, then after t2 years, the sum be-

[4]
 Simple Interest and Compound Interest

 3  4  5 
2249.52  P 1  1  1  
 100  100  100 
comes
P = Rs. 2000
15. Find the difference between CI and SI
Required Amount = on Rs. 8000 for 3 years at 2.5% pa.

Pr2  300  r 
Sol. Difference = [only pos-
1003
sible for 3 years]
14. What sum of money at compound in-
terest will amount to Rs. 2249.52 in 3 2
8000  2.5   300  2.5 
years, if the rate of interest is 3% for =
the first year, 4% for the second year 1003
and 5% for the third year? =Rs. 15.125
 r1   r2   r3 
Sol. A  P 1   1   1  
 100   100   100 

Questions

1. What is S.I. of Rs. 800 on 5% per an- (a) Rs. 4442 (b) Rs. 4452
num for 3 years? (c) Rs. 4462 (d) Rs. 4482
(a) 120 (b) 140 (e) None of these
(c) 210 (d) 230 6. What would be the C.I. obtained on
(e) None of these an amount of Rs. 12000 at the rate of
2. How many years will it take for 9 p.c.p.a for 3 years?
amount of Rs. 600 to yield Rs. 120 as (a)Rs. 3840 (b) Rs. 3740.75
interest at 10% per annum of S.I.? (c) Rs. 3540 (d) Rs. 3640
(a)1 year (b) 3 year (e) None of these
(c) 2 year (d) 4 year 7. What would would be the C.I. obtained
(e) None of these on an amount of Rs. 4800 at the rate
3. A sum of Rs. 15000 amount gave Rs. of 5 p.c.p.a for 3 years?
4500 as interest in 5 year. What is rate (a) Rs. 448.7 (b) Rs. 817.8
of interest? (c) Rs. 623.5 (d) Rs. 756.6
(a)3% (b)4% (e) None of these
(c)5% (d) 6% 8. What would be the C.I. obtained on
(e) None of these an amount of 12500 at the rate of 12
4. A sum of money becomes Rs. 1100 in p.c.p.a. after 2 years?
2 years and Rs. 1400 in 6 years at S.I. (a) Rs. 3180 (b) Rs. 3360
Find the rate percent. (c) Rs. 3540 (d) Rs. 3720
(e) None of these
17 7
(a) 7 (b) 1 9. The difference between simple and com-
19 13 pound interest on sum of 10000 is 64
4 2 for 2 years. Find the rate of interest.
(c) 2 (d) 5 (a) 8 (b) 64
3 3
(c) 4 (d) 2
(e) None of these
(e) None of these
5. What would be the C.I. on Rs. 17500
10. The difference between simple and
at the rate of 12 p.c.p.a. after 2 years?
compound interest compounded an-
[5]
 Simple Interest and Compound Interest

nually on a certain sum of money for 18. What time taken by sum of Rs. 7000
2 years at 4% per annum is Rs. 1. The to became 10500 at the rate of 5% per
sum (in Rs.) is: annum?
(a) 625 (b) 630 (a)8 years (b) 10 years
(c) 640 (d) 650 (c) 5 years (d) 15 years
(e) None of these (e) None of these
11. Find the compound interest on Rs. 19. A sum fetched a total simple interest
12500 at 8% per annum for 9 months of Rs. 4016.25 at the rate of 9% p.a.
compounded quarterly. in 5 years. What is the sum?
(a) Rs. 1020 (b) Rs. 1428 (a)Rs. 4462.50 (b) Rs. 8032.50
(c) Rs. 510 (d) Rs. 550 (c) Rs. 8900 (d) Rs. 8925
(e) None of these (e) None of these
12. Find the compound Interest on Rs. 20. If the difference between the C.I. com-
32000 at 20% per annum for 1 year, pounded half yearly and simple inter-
compounded half yearly. est on a sum at 10% per annum for
(a) Rs. 6320 (b) Rs. 6720 one year is Rs. 25, the sum is:
(c) Rs. 6400 (d) Rs. 6500 (a) Rs. 9000 (b) Rs. 9500
(e) None of these (c) Rs. 10,000 (d) Rs. 10,500
13. The difference between C.I. & S.I. on (e) None of these
Rs. 700 in 2 years at 5% per annum is: 21. Prabhat took a certain amount as a
(a) Rs. 10 (b) Rs. 5 loan from bank at the rate of 8%
(c) Rs. 1 (d) Rs. 2.5 Simple interest per annum and gave
(e) Rs. 1.75 the same amount to Ashish as a loan
14. The difference between the compound at the rate of 12% p.a. on S.I. If at the
and simple interest on a sum of money end of 12 yrs, he made a profit of Rs.
1 320 in the deal, What was the origi-
for 2 years at 6 % per annum is nal amount?
4
Rs. 10. The sum is (a) Rs. 500 (b) Rs. 600
(a) Rs. 2000 (b) Rs. 2200 (c) Rs. 666.67 (d) Rs. 750.27
(c) Rs. 2560 (d) Rs. 2600 (e) None of above
(e) None of these 22. What annual instalment will discharge
15. If a sum of money doubles itself in 8 a debt of Rs. 1092 due in 3 years at
years at S.I. then the rate of interest 12% Simple interest?
per annum is: (a) Rs. 250 (b) Rs. 275
(a) Rs. 10.5 (b) Rs. 12.5 (c) Rs. 300 (d) Rs. 325
(c) Rs. 11.5 (d) Rs. 13.5 (e) Rs. 350
(d) None of these 23. A Man invests a certain sum of money
16. What sum lent at 10% per year on S.I. at 6% p.a. Simple interest and another
will amount to Rs. 450 in 2 years? sum at 7% p.a. Simple interest. His
(a) Rs. 350 (b) Rs. 375 income from interest after 2 years was
(c) Rs. 240 (d) Rs. 280 Rs. 354. One fourth of the first sum is
equal to one fifth of the second sum.
(e) None of these
Find the total sum he invested?
17. Nutan invest Rs. 22400 on S.I. at rate
(a) Rs. 1500 (b) Rs. 1200
12 p.c.p.a. How much amount she will
get after seven year. (c) Rs. 2700 (d) Rs. 5400
(a) 41,116 (b) 41,216 (e) None of these
(c) 42,116 (d) 42, 216 24. Mr. Thomas invested an amount of
(e) None of these Rs. 13,900 divided in two different

[6]
 Simple Interest and Compound Interest

schemes A and B at the simple inter- end of the year, the amount he would
est rate of 14% p.a. and 11% p.a. re- have gained by way of interest is:
spectively. If the total amount of (a) Rs. 120 (b) Rs. 121
simple interest earned in 2 years be (c) Rs. 122 (d) Rs. 123
Rs. 3508, what was the amount in-
(e) None of these
vested in Scheme B?
30. Aditya invested certain amount in two
(a)Rs. 6400 (b) Rs. 6500
different schemes A and B. Scheme A
(c) Rs. 7200 (d) Rs. 7500
offer S.I @ 12 p.c.p.a. and scheme B
(e) None of these offer C.I. @ 10 p.c.p.a. Interest accured
25. An automobile financier claims to be on the amount invested in scheme A
lending money at simple interest, but in 2 years was Rs. 3600 and the total
he includes the interest every six amount invested was Rs. 35000. What
months for calculating the principal. was the interest accured on the
If he is charging an interest of 10%, amount invested in scheme B?
the effective rate of interest becomes: (a) Rs. 4500 (b) Rs. 4200
(a)10% (b) 10.25% (c) Rs. 4000
(c) 10.5% (d) 15% (d) Cannot be determine
(e) None of these (e) None of these
26. A sum of Rs. 725 is lent in the begin- 31. The population of a town in 2009 was
ning of a year at a certain rate of in- 125000. It increase 10% per year.
terest. After 8 months, a sum of Rs. What is the population after 3 years?
362.50 more is lent but at the rate (a)166375 (b) 170000
twice the former. At the end of the
(c) 125000 (d) 10000
year, Rs. 33.50 is earned as interest
(e) None of these
from both the loans. What was the
original rate of interest? 32. A sum of Rs. 1500 amounts to Rs.
3000 in five years at a certain rate of
(a) 3.6% (b) 4.5%
simple interest. If the rate of interest
(c) 5% (d) 6%
is increased by 1% the same sum in
(e) None of these the same time would amount to:
27. Aditya invest Rs. 50,000 in a fixed de- (a)Rs. 3,288 (b) Rs. 3,312
posit at 10% C.I. for 2 years. At the
(c) Rs. 3,340 (d) Rs. 3075
end of 2 years she put the money in
(e) None of these
another deposit at 12% S.I. for 3 years.
What was the final value of the initial 33. Abhinav invested a certain amount at
Investment? the rate of 8 p.c.p.a. for 5 years and
(a) Rs. 80000 (b) Rs. 81280 obtained a SI of Rs. 3800. Had he in-
(c) Rs. 82280 (d) Rs. 83280 vested the same amount at the same
interest for 2 years, how much amount
(e) None of these
would she have obtained as CI at the
28. There is 60% increase in an amount
end of 2 years?
in 6 years at simple interest. What will
be the compound interest of Rs. (a)Rs. 1520 (b) Rs. 1550.5
12,000 after 3 years at the same rate? (c) Rs. 1550 (d) Rs. 1580.8
(a) Rs. 2160 (b) Rs. 3120 (e) None of these
(c) Rs. 3972 (d) Rs. 6240 34. Nutan borrowed some money at rate
(e) None of these of 4 p.c.p.a. for the first three year, at
the rate of 8 p.c.p.a. for the next 2
29. A bank offers 5% compound interest
years and at the rate of 9 p.c.p.a. for
calculated on half-yearly basis. A cus-
the period beyond 5 years. If she pay
tomer deposits Rs. 1600 each on 1st
a total SI of Rs. 19550 at the end of 7
January and 1st July of a year. At the

[7]
 Simple Interest and Compound Interest

years. How much money did she bor- (a) Only I (b) Only II
row? (c) Either I or II (d)neither I or II
(a) Rs. 41500 (b) Rs. 42500 (e) both I and II together
(c) Rs. 39500 (d) Rs. 40500 40. Which of the statement given below
(e) None of these are sufficient to answer the following
35. Girish invested some money in a bank. question.
After eight years his amount became What is the rate of interest per annum
triple. How many times of the original on an investment of Rs. 800?
sum will the money become in 20 (1)The income from S.I. at the end of
years at Simple Interest? 3 years at the same rate of interest
(a) 5 times (b) 6 times is 19
(c) 7 times (d) 8 times (2)C.I. is 15.76 more than S.I. on same
(e) None of these sum & same rate in 2 years
36. Ram divided 2189 in three parts such (a) Only I (b) Only II
that interest on them after 1, 2 and 3 (c) Either I or II (d) neither I nor II
years respectively be equal. The rate (e) Both I and II together
of SI is 4% per annum in all cases. 41. According to a census report, the
The smallest part is population growth rate of Faridabad
(a)Rs. 702 (b) Rs. 398 is going to be an increasing A.P. with
(c) Rs. 425 (d) Rs. 756 first year’s rate as 5% and common
(e) Rs. 1093 difference as 5%, but simultaneously
37. Ravi invested a total amount of Rs. the migration rate is an increasing
65000 in three different schemes A, G.P. with first term as 1% and com-
B, C with rate of interest 12 p.c.p.a., mon ratio of 2. If population on 31
16 p.c.p.a. and 18 p.c.p.a. respectively December 2010 is 1 million, then find
and earned a total interest of Rs. in which year will Faridabad witness
10,180 in one year. If the amount in- its first fall in population?
vested in A is 72% of the amount in- (a) 2016 (b) 2014
vested in C then what was the amount (c) 2013 (d) 2019
invested in scheme B. (e) None of these
(a) Rs. 15000 (b) Rs. 25000 42. Monica deposited a total of Rs. 10500
(c) Rs. 22000 (d) Rs. 18000 with a bank in two different deposit
(e) cannot determine schemes at 10% p.a., interest being
38. The population of Mumbai increase compounded annually. As per the
5% per annum. It’s population was schemes, she gets the same amount
100000 in 2004. What was it’s popu- after 2 years on the first deposit as
lation after 3 year? she gets after 3 years on the second
deposit. How much money did she de-
(a)115760 (b) 123575
posit for 3 years?
(c) 132557 (d) 11000
(a)Rs. 4500 (b) Rs. 5000
(e) None of these
(c) Rs. 6500 (d) Rs. 7200
39. Which of the statement given below
(e) None of these
are sufficient to answer the following
question. What is the rate of interest 43. A sum of money invested at simple in-
p.c.p.a. on the amount of Rs. 15000 terest for two years at 5% p.a.
taking loan? amounted to Rs. 2750. The rate at
which the sum should have been in-
(1)The difference between C.I. & S.I.
vested to get Rs. 300 as interest after
is Rs. 170
two years would be?
(2)The S.I. of 2 years is Rs. 2500 (a)6% (b) 6.9%
[8]
 Simple Interest and Compound Interest

(c) 7.6% (d) 8.1% (c) Rs. 1950 (d) Rs. 2120
(e) None of these (e) None of these
44. A sum of Rs. 1000 after 3 years at com- 49. A sum of Rs. 2540 is lent out in two
pound interest becomes a certain parts, one at 12% and the other at
amount that is equal to the amount 1
that is the result of a 3 year deprecia- 12 % . If the total annual return on
2
tion from Rs. 1728. Find the differ- the total money invested is Rs. 312.42,
ence between the rates of C.I. and de- find the money lent at 12% p.a?
preciation? (Given C.I. is 10% p.a.)
(a) Rs. 996 (b) Rs. 1016
(a)1.7% (b) 2.9% (c) Rs. 1265 (d) Rs. 1295
(c) 4% (d) 7.6% (e) None of these
(e) None of these
50. A part of Rs. 38800 is lent out at 72%
45. When the rate of interest in a bank is for six months. The rest of the amount
reduced from 5% p.a. to 4.5% p.a., is lent out at 5% p.a. after one year.
Bani deposited Rs. 4000 in her sav- The ratio of interest after 3 years from
ing account. She found that the new the time when first amount was lent
interest income remained the same as out is 5 : 4. Find the second part that
before. Find her original deposit? was lent out at 5%.
(a)Rs. 3600 (b) Rs. 3150 (a)Rs. 28800 (b) Rs. 29586
(c) Rs. 2980 (d) Rs. 2768 (c) Rs. 31776 (d) Rs. 32846
(e) None of these (e) None of these
46. Two equal sums were lent at simple 51. A certain sum of money invested at com-
interest for 4 years and for 3 years re- pound interest becomes 1.44 times of
spectively. The rate of interest in the itself in 2 years. If twice this sum were
latter case was 3% higher than that lent at simple interest, in how many
of the former case, but the amount in years would it double itself?
each was Rs. 1088. (a) 2 years (b) 2.5 years
Find the rate of interest of the former (c) 3 years (d) 5 years
case? (e) None of these
(a) 7% (b)9%
52. Arun gives his wife Asha a birthday
(c)11% (d) 13% gift, giving her each year a number of
(e) None of these rupees equal to the number of years
1 of her age. If her birthday falls on Au-
47. Kavita invested rd of her money at gust 8, what sum must be placed at
3
1 simple interest at 7% on January 1,
4% p.a., th at 3% p.a. and the rest
4 before she is 42, in order to raise the
at 5% p.a. She received an annual in- required sum?
terest of Rs. 500 on her money. Find (a) Rs. 1000 (b) Rs. 1200
the total money invested. (c) Rs. 1500 (d) Rs. 1900
(a) Rs. 21500 (b) Rs. 16480 (e) None of these
(c) Rs. 12000 (d) Rs. 11200 53. Bindu lends Rs. 10000 in four parts
(e) None of these to her friends. If she gets 8% on Rs.
48. Shruti borrowed Rs. 2500 from her 2000, 7.5% on Rs. 4000 and 8.5 % on
two friends. For one loan she paid 8% Rs. 1400, what percent must she get
p.a. and for the other 6% p.a. simple for the remainder, if the average in-
interest. If she paid Rs. 180 as total terest is 8.13% ?
interest for one year, how much did (a) 6.3% (b) 8.6%
she borrow at 8% p.a.? (c) 9% (d) 9.2%
(a)Rs. 1500 (b) Rs. 1700 (e) None of these

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 Simple Interest and Compound Interest

54. A sum of money at compound interest simple interest on the same sum and
amounts in two years to Rs. 2809, and for the same time and at the same rate
in three years to Rs. 2977.54. Find the by Rs. 183, find the sum.
rate of interest and the original sum. (a) Rs. 17560 (b) Rs. 21680
(a)4%, Rs. 2500 (b) 6%, Rs. 1800 (c) Rs. 24000 (d) Rs. 26780
(c) 4%, Rs. 1800 (d) 6%, Rs. 2500 (e) None of these
(e) None of these 58. If the compound interest on a certain
55. Sapna borrowed a certain sum of sum of money for 3 years at 5% p.a. is
money from Kavita under the follow- Rs. 504.40, find the corresponding
ing repayment scheme based on simple interest.
simple interest. 8% p.a. for the initial (a) Rs. 329.24 (b) Rs. 384.78
2 years, 9.5% p.a. for the next 4 years, (c) Rs. 435.45 (d) Rs. 480.00
11% p.a. for the next 2 years, 12% p.a. (e) None of these
after the first 8 years. Find the amount
59. Find the least number of complete
which a sum of Rs. 9000 taken for 12
years in which a sum of Rs. 1500 at
years becomes at the end of 12 years.
25% compound interest will be more
(a)Rs. 20160 (b) Rs. 22350
than double.
(c) Rs. 23470 (d) Rs. 24567
(a) 4 years (b) 5 years
(e) None of these
(c) 6 years (d) 7 years
56. If Rs. 1200 amounts to Rs. 1323 in 2
years at compound interest com- (e) None of these
pounded annually, what will Rs. 1600 60. If the compound interest on a certain
amount to in 3 years at the same rate? sum of money for 2 years is Rs.164
(a) Rs. 1780.45 (b) Rs. 1852.50 whereas the simple interest for 3 years
(c) Rs. 1945.55 (d) Rs. 2166.76 at the same rate is Rs. 240 on the
(e) None of these same sum, find the sum.
57. If the compound interest on a certain (a)Rs. 1200 (b) Rs. 1400
sum for 3 years at 5% p.a exceeds the (c) Rs. 1600 (d) Rs. 1800
(e) None of these

A nswers Key SIMPLE INTEREST AND COMPOUND INTEREST

1. (a) 2. (c) 3. (d) 4. (a) 5. (b) 6. (c) 7. (d) 8. (a) 9. (a) 10. (a)
11. (e) 12. (b) 13. (e) 14. (c) 15. (b) 16. (b) 17. (b) 18. (b) 19. (d) 20. (c)
21. (c) 22. (d) 23. (c) 24. (a) 25. (b) 26. (e) 27. (c) 28. (c) 29. (b) 30. (b)
31. (a) 32. (d) 33. (d) 34. (b) 35. (b) 36. (b) 37. (c) 38. (a) 39. (c) 40. (c)
41. (a) 42. (b) 43. (a) 44. (a) 45. (a) 46. (b) 47. (c) 48. (a) 49. (b) 50. (a)
51. (d) 52. (a) 53. (c) 54. (d) 55. (a) 56. (b) 57. (c) 58. (d) 59. (a) 60. (c)

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