Chapter -1

Time Value of Money

MCQs.
1. ₹ 8,000 becomes ₹ 10,000 in two years at simple interest. The amount that will become ₹
6,875 in 3 years at the same rate of interest is:

(a) ₹ 4,850 (c) ₹ 5,500

(b) ₹ 5,000 (d) ₹ 5,275
2. The difference between the simple and compound interest on a certain sum for 3 years at
5% p.a. is & ₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is:

(a) ₹ 3,175 (c) ₹ 3,275

(b) ₹ 3,075 (d) ₹ 2,975

3. Mr. X Invests ₹ 10,000 every year starting from today for next 10 years suppose interest
rate is 8% per annum compounded annually. Calculate future value of the annuity; (Given
that (1 + 0.08)" = 2.15892500]

(a) ₹ 1,56,454.88 (c) ₹ 1,56,554.88

(b) ₹ 1,44,865.625 (d) None of these

4. The present value of an annuity of ₹ 3,000 for 15 years at 4.5% p.a. C.I. is: [Given that
(1.045)" - 1.935282]

(a) ₹ 23,809.67 (c) ₹ 32,908.67

(b) ₹ 32,218.67 (d) None of these

5. The rate of simple interest on a sum of money is 6% p.a. for first 3 years, 8% p.a. for the
next five years and 10% p.a. for the period beyond 8 years, If the simple interest accrued
by the sum for a period for 10 years is ₹ 1,560. The sum is:

(a) ₹ 1,500 (c) ₹ 3,000

(b) ₹ 2,000 (d) ₹ 5,000

6. A sum of money doubles itself in 10 years. The number of years it would treble itself is:

(a) 25 years (c) 20 years

(b) 15 years (d) None.

7. In what time will ₹ 3,90,625 amounts to ₹ 4,56,976 at 8% per annum, when the interest is
compounded semi-annually? [Given: (1.04)" = 1.16986]

(a) 2 years (c) 5 years

(b) 4 years (d) 7 years

1
8. A machine can be purchased for ₹ 50.000. Machine will contribute ₹ 12,000 per year for
the next five years, assume borrowing cost is 10% per annum. Determine whether
machine should be purchased or not:

(a) Should be purchased (c) Can't say about purchase

(b) Should not be purchased (d) None of the above

9. How much amount is required to be invested every year so as to accumulate ₹ 3,00,000 at

the end of 10 years, if interest is compounded annually at 10%?

(a) ₹ 18,823.65 (c) ₹ 18,832.65

(b) ₹ 18,828.65 (d) ₹ 18,882.65

10. A certain sum of money amounts to ₹ 6,300 in two years and ₹ 7,875 in three years nine
months at simple interest. Find the rate of interest per annum:

(a) 20% (c) 15%

(b) 18% (d) 10%

11. How long will ₹ 12,000 take to amount to ₹ 14,000 at 5% p.a. converted quarterly? [Given:
(1.0125)12.4 =1.1666]

(a) 3 years (c) 13.5 years

(b) 3.1 years (d) 12.4 years.

12. A company is considering proposal of purchasing a machine either by making full

payment of ₹ 4,000 or by leasing it for four years at an annual rate of 1,250. Which course
of action is preferable, if the company can borrow money at 14% compounded annually?

(a) Leasing is preferable

(b) Should be purchased
(c) No difference
(d) None of these

13. Vipul purchases a car for ₹ 5,50,000. He gets a loan of ₹ 5,00,000 at 15% p.a. from a Bank
and balance ₹ 50,000 he pays at the time of purchase. He has to pay the whole amount of
loan in 12 equal monthly instalments with interest starting from the end of the first
month. The money he has to pay at the end of every month is: [Given (1.0125)" =
1.16075452]

(a) ₹ 45,130.43 (c) ₹ 45,330.43

(b) ₹ 45,230.43 (d) None of these

14. If ₹ 1,000 be invested at interest rate of 5% and the interest be added to the principal
every 10 years, then the number of years in which it will amount to ₹ 2,000 is:

2
(a) 16 3 years (c) 16 years
2
1 (d) 6 3 years.
(b) 6 4 years

2
15. The annual birth and death rates per 1000 per 39.4 and 19.4 respectively. The number of
years in which the population will be doubled assuming there is no immigration or
emigration is:

(a) 35 years (c) 25 years

(b) 30 years (d) None of these

16. The effective rate of equivalent to nominal rate of 6% compounded monthly is:

(a) 6.05 (c) 6.26

(b) 6.16 (d) 6.07

17. A company establishes a sinking fund to provide for the payment of ₹ 2,00,000 debt
maturing in 20 years. Contributions to the fund are to be made at the end every year. Find
the amount of each annual deposit is interest is 5% per annum:

(a) ₹ 6,142 (c) ₹ 6,052

(b) ₹ 6,049 (d) ₹ 6,159

18. A person borrows ₹ 50,000 for 2 years at 4% p.a. simple interest. He immediately lends
1
to another person 6 % p.a. simple interest for 2 years. Find his gain in the transaction per
4
year:

(a) ₹ 112.50 (c) ₹ 225

(b) ₹ 125 (d) ₹ 167.50

19. A person deposited ₹ 5,000 in a bank. The deposit was left to accumulated at 6%
compounded quarterly for the first five year and at 8% compounded semi-annually for
the next eight years. The compounded amount at the end of 13 years is:

(a) ₹ 12621.50 (c) ₹ 13613.10

(b) ₹ 12613.10 (d) None.

20. Raja aged 40 wishes his wife Rani to have ₹ 40 lakhs at his death. Is his expectation of life
is another 30 years and he starts making equal annual investments commencing now at
3% compound interest p.a. How much should he invest annually?

(a) ₹ 84,077 (c) ₹ 84,449

(b) ₹ 81,628 (d) ₹ 84,247

1 1
21. Two equal sums of money were lent at simple interest at 11% p.a. for 3 years and 4 years
2 2
respectively.
If the difference in interests for two periods was ₹ 412.50, then each sum is:

(a) ₹ 3,250 (c) ₹ 3,750

(b) ₹ 3,500 (d) ₹ 4,350

3
22. Anshul’s father wishes to have ₹ 75,500 in a bank account when his first college expenses
begin. How much amount his father should deposit it now at 6.5% compounded annually
if Anshul is to start college in 8 years hence for now?

(a) ₹ 45,360 (c) ₹ 55,360

(b) ₹ 46,360 (d) ₹ 48,360

23. A company may obtain a machine either by leasing it for 5 years (useful life) at an annual
rent of ₹ 2,000 or by purchasing the machine for ₹ 8,100. If the company can borrow
money at 18% p.a., which alternative is preferable?

(a) Leasing (c) Can’t say

(b) Purchasing (d) None of these

24. In how much time would the simple interest on a certain sum be 0.125 times the principle
at 10% p.a.?

1 1
(a) 14 years (c) 24 years
3 3
(b) 14 years (d) 24 years

25. The difference between compound interest and simple interest on a certain sum for 2
years @ 10 % p.a. is ₹ 10. Find the sum:

(a) ₹ 1,010 (c) ₹ 1,000

(b) ₹ 1,095 (d) ₹ 990

26. A machine worth ₹ 4,90,740 is depreciated at 15% on its opening value each year. When
its value would reduce to ₹ 2,00,000:

(a) 5 years 6 months (c) 5 years 5 months

(b) 5 years 7 months (d) None

27. A sinking fund is created for redeeming debentures worth ₹ 5 lacs at the end of 25 years.
How much provision needs to be made out of profits each year provided sinking fund
investments can earn interest at 4% p.a.?

(a) ₹ 12,006 (c) ₹ 12,039

(b) ₹ 12,040 (d) ₹ 12,035

28. If the difference between simple interest and compound interest is ₹ 11 at the rate of 10%
for two years, then find the sum:

(a) ₹ 1,200 (c) ₹ 1,000

(b) ₹ 1,100 (d) None of these

29. Future value of an ordinary annuity:

4
 (a) A (n, i) = A[(1+𝑖)𝑛−1
𝑖
] (c) A (n, i) =A [1−(1+𝑖)𝑛
𝑖
]
(b) A (n, i) =A [ ] (d) A (n, i) =A [ ]
(1+𝑖)𝑛+1 (1+𝑖)𝑛−1
𝑖 𝑖(1+𝑖)𝑛

30. Find the numbers of years in which a sum doubles itself at the rate of 8% p.a.

1
(a) 112
1
(b) 122
1
(c) 92
1
(d) 132

31. In how many years, a sum will become double at 5% p.a. compound interest.

(a) 14.0 years (c) 16 years

(b) 15 years (d) 14.3 years

32. The time by which sum of money is 8 times of itself doubles itself in 15 years interest
compounded annually.

(a) 42 years (c) 45 years

(b) 43 years (d) 46 years

33. What is the rate of simple interest if a sum of money amounts to ₹ 2,784 in 4 years and ₹
2,688 in 3 years?

(a) 1% p.a. (c) 5% p.a.

(b) 4% p.a. (d) 8% p.a.

34. A sum amount to ₹ 1,331 at a principle of ₹ 1,000 at 10% compounded annually. Find the
time.

(a) 3.31 years (c) 3 years

(b) 4 years (d) 2 years

35. Paul borrows ₹ 20,000 on condition to repay it with compound interest at 5% p.a. in
annual instalment of ₹ 2,000 each. Find the number of years in which the debt would be
paid off.

(a) 10 years (c) 14 years

(b) 12 years (d) 15 years

36. In how many years, a sum of ₹ 1,000 compounded annually @ 10% will amount to ₹
1,331?

(a) 6 years (c) 4 years

(b) 5 years (d) 3 years

5
37. The compounded interest for a certain sum @ 5% p.a. for the first year is ₹ 25. The S-I for
the same money @ 5% p.a. for 2 years will be.

(a) ₹ 40 (c) ₹ 60
(b) ₹ 50 (d) ₹ 70

38. At what % rate of compounded interest (C.I) will a sum of money become 16 times in four
years, if interest is being calculated compounding annually:

(a) r = 100% (c) r = 200%

(b) r = 10% (d) r = 20%

39. Find the present value of an annuity of ₹ 1,000 payable at the end of each year for 10
years. If rate of interest is 6% compounding p.a. (given (1.06)-10 = 0.5584):

(a) ₹ 7,360 (c) ₹ 12,000

(b) ₹ 8,360 (d) None of these

40. If the simple interest on a sum of money at 12% p.a. for two years is ₹ 3,600. The
compound interest on the same sum for two years at the same rate is:

(a) ₹ 3,816 (c) ₹ 3,861

(b) ₹ 3,806 (d) ₹ 3,860

41. The future value of an annuity of ₹ 5,000 is made annually for 8 years at interest rate of
9% compounded annually [Given that {1.09}8 = 1.99256] is_____

(a) ₹ 55,142.22 (c) ₹ 65,532.22

(b) ₹ 65,142.22 (d) ₹ 57,425.22

42. The effective annual rate of interest corresponding to nominal rate 6% p.a. payable half
yearly is

(a) 6.06% (c) 6.08%

(b) 6.07% (d) 6.09%

43. The cost of Machinery is ₹ 1,25,000/- If its useful like is estimated to be 20 years and the
rate of depreciation of its cost is 10% p.a., then the scrap value of the Machinery is

(a) ₹ 15,187 (c) ₹ 15,300

(b) ₹ 15,400 (d) ₹ 15,250

44. Mr. X invests ‘P’ amount at simple interest rate 10% and Mr. Y invests ‘Q’ amount at
Compound Interest rate 5% compounded annually. At the end of two years both get the
same amount of interest, then the relation between two amounts P and Q is given by:

41𝑄 41𝑄
(a) P = 80
(b) P = 40

6
 41𝑄 41𝑄
(c) P = 100 (d) P = 200

45. If the difference of S.I and C.I is ₹ 72 at 12% for 2 years. Calculate the amount.

(a) ₹ 8,000 (c) ₹ 5,000

(b) ₹ 6,000 (d) ₹ 7,750

46. If a simple on a sum of money at 6% p.a. for 7 years is equal to twice of simple interest on
another sum for 9 years at 5% p.a. The ratio will be:

(a) 2:15 (c) 15:7

(b) 7:15 (d) 1:7

47. By mistakes a clerk, calculated the simple interest on principle for 5 months at 6.5% p.a.
instead of 6 months at 5.5% p.a. if the error in calculation was ₹ 25.40. The original sum
of principle was____.

(a) ₹ 60,690 (c) ₹ 90,660

(b) ₹ 60,960 (d) ₹ 90,690

48. If the simple interest on ₹ 1,400 for 3 years is less then the simple interest on ₹ 1,800 for
the same period by ₹ 80, then the rate of interest is

(a) 5.67% (c) 7.20%

(b) 6.67% (d) 5.00%

49. Nominal rate of interest is 9.9% p.a. If interest is Compound monthly, what will be the
effective rate of interest
4033
(Given {4000}12 = 1.1036{approx.})

(a) 10.36% (c) 11.36%

(b) 9.36% (d) 9.9%

4
50. The S.I. on a sum of money is 9 of the principle and the no. of years is equal to the rate of
interest p.a. Find the rate of interest p.a.?

(a) 5% (c) 22/7%

(b) 20/3% (d) 6%

51. Simple interest on ₹ 2,000 for 5 months at 16% p.a. is ______.

(a) ₹ 133.33 (c) ₹ 134.00

(b) ₹ 133.26 (d) ₹ 132.09

52. How much investment is required to yield an Annual income of ₹ 420 at 7% p.a. Simple
interest.

7
 (a) ₹ 6,000 (c) ₹ 5,580
(b) ₹ 6,420 (d) ₹ 5,000

53. Mr. X invests ₹ 90,500 in post office at 7.5% p.a. simple interest. While calculating the rate
was wrongly taken as 5.7% p.a.
The difference in amounts at maturity is ₹ 9,774. Find the period for which the sum was
invested:

(a) 7 years (c) 6 years

(b) 5.8 years (d) 8 years

54. The difference between compound and simple interest on a certain sum of money for 2
years at 4% p.a. is ₹ 1. The sum (in ₹) is:

(a) 625 (c) 640

(b) 630 (d) 635

55. A sum of money compounded annually becomes ₹ 1,140 in two years and ₹ 1,710 in three
years.
Find the rate of interest p.a.

(a) 30% (c) 50%

(b) 40% (d) 60%

56. On what sum difference compound interest and simple interest for two years at 7% p.a.
interests is ₹ 29.4

(a) ₹ 5,000 (c) ₹ 6,000

(b) ₹ 5,500 (d) ₹ 6,500

57. In what time will a sum of money double itself at 6.25% p.a. simple interest?

(a) 5 years (c) 12 years

(b) 8 years (d) 16 years

58. What principle will amount to ₹ 370 in 6 years at 8% p.a. at simple interest?

(a) ₹ 210 (c) ₹ 310

(b) ₹ 250 (d) ₹ 350

59. The partners A and B together lent ₹ 3,903 at 4% p.a. interest compounded annually. After
a span of 7 years, A gets the same amount as B gets after 9 years. The share of A in the sum
of ₹ 3,903 would have been:

(a) ₹ 1,875 (c) ₹ 2,028

(b) ₹ 2,280 (d) ₹ 2,820

60. If a sum triples in 15 years at simple interest, the rate of interest p.a. amount will be:

8
 (a) 13.0% (c) 13.5%
(b) 13.3% (d) 18.0%

61. How much amount is required to be invested every year as to accumulated ₹ 6,00,000 at
the end of 10 years. If interest is compounded annually at 10% rate of interest [Given:
(1.1)10 = 2.59374].

(a) ₹ 37,467 (c) ₹ 37,647

(b) ₹ 37,476 (d) ₹ 37,674

62. The future value of an annuity of ₹ 1,000 made annually for 5 years at the interest of 14%
compounded annually is:

(a) ₹ 5,610 (c) ₹ 6,160

(b) ₹ 6,610 (d) ₹ 5,160

63. A sum of money invested of compound interest doubles itself in four years. It becomes 32
times of itself at the same rate of compound interest in

(a) 12 years (c) 20 years

(b) 16 years (d) 24 years

64. A certain of money was invested sat simple rate of interest for three years. If the same has
been invested at a rate that was seven percent higher, the interest amount would have
been ₹ 882 more. The amount of sum invested is:

(a) ₹ 12,600 (c) ₹ 4,200

(b) ₹ 6,800 (d) ₹ 2,800

65. A sum of money doubles itself in 8 years at simple interest. The number of years it would
triple itself is _______.

(a) 20 years (c) 16 years

(b) 12 years (d) None of these.

66. A sum of ₹ 44,000 is divided into three parts such that the corresponding interest earned
after 2 years, 3 years and 6 years may be equal. If the rates of simple interest are 6% p.a.,
8% p.a. and 6% p.a. respectively, then the smallest part of the sum will be:

(a) ₹ 4,000 (c) ₹ 10,000

(b) ₹ 8,000 (d) ₹ 12,000

67. Suppose your parent decides to open a PPF (Public Provident Fund) account in a bank
toward your name with ₹ 10,000 every year starting from today for next 16 years. When
you receive and get 8.5% p.a. interest rate compounded annually. What is the present
value of this annuity? (Give Answer in ₹ without any fraction.)
(Given P (15,0.085) = 8.304236576)

9
 (a) 83,042 (c) 93,042
(b) 1,66,084 (d) 8,30,423

68. In how many years will a sum of money become four times at 12% p.a. simple interest?

(a) 18 years (c) 25 years

(b) 21 years (d) 28 years

69. The simple interest for a certain sum for 2 years at 10% p.a. is ₹ 90. The corresponding
compound interest is (in ₹):

(a) 99 (c) 94.50

(b) 95.60 (d) 108

70. If an amount is kept at simple interest, it earns an interest of ₹ 600 in first two years but
when kept at compound interest it earns an interest of ₹ 660 for the same period, then
the rate of interest and principal amount respectively are:

(a) 20%, ₹ 1,200 (c) 20%, ₹ 1,500

(b) 10%, ₹ 1,200 (d) 10%, ₹ 1,500

71. The sum invested at 4% p.a. compounded semi-annually amounts to ₹ 7,803 at the end of
one year, is:

(a) ₹ 7,000 (c) ₹ 7,225

(b) ₹ 7,500 (d) ₹ 8,000

72. A compound interest on a sum for 2 years is ₹ 30 more than the simple interest at the rate
of 5% p.a. then the sum is

(a) ₹ 11,000 (c) ₹ 12,000

(b) ₹ 13,000 (d) ₹ 15,000

73. A person lends ₹ 6,000 for 4 years and ₹ 8,000 for 3 years at simple interest. If he gets ₹
2,400 as total interest, the rate of interest is:

(a) 5% (c) 6%
(b) 4% (d) 7%

74. The future value of an annuity of ₹ 1,500 made annually for five years at interest rate 10%
compounded annually is (Given that {1.1}5 = 1.61051):

(a) ₹ 9,517.56 (c) ₹ 9,715.56

(b) ₹ 9,157.65 (d) ₹ 9,175.65

75. The difference between the compound interest and simple interest at 10% p.a. for 4 years
on ₹ 10,000 is ₹ ________.

10
 (a) 650 (c) 641
(b) 640 (d) 600

76. How much amount is required to be invested every year as to accumulate ₹ 7,96,870 at
the end of 10 years. If interest compounded annually at 10% given that A(10,0.1) =
15.9734?

(a) ₹ 40,000 (c) ₹ 48,000

(b) ₹ 4,50,000 (d) ₹ 50,000

77. If compound interest on any sum at the rate of 5% for two years I s₹ 512.50 then the sum
would be:

(a) ₹ 3,000 (c) ₹ 5,000

(b) ₹ 4,000 (d) ₹ 6,000

78. The effective rate of interest equivalent to the nominal rate of 7% converted monthly:

(a) 7.26% (c) 7.02%

(b) 7.22% (d) 7.20%

79. Mr. X invest ₹ 10,000 every year starting from today for next: 10 years suppose interest
rate is 8% p.a. compound annually.
Calculate future value of the annuity.

(a) ₹ 1,56,454.88 (c) ₹ 1,44,864.625

(b) ₹ 1,56,554.88 (d) None of these

80. How much amount is required to be invested every year so as to accumulate ₹ 3,00,000
at the end of 10 years, if interest is compound at 10%?

(a) ₹ 18,823.65 (c) ₹ 18,828.65

(b) ₹ 18 (d) ₹18,882.65

81. If ₹ 1,000 to be invested at interest rate of 5% and the interest added to the principal
every 10 years, then the number of years in which it will amount to ₹ 2,000 is:

2
(a) 16 years (c) 16years
3 2
1 (d) 6 years
(b) 64years 3

82. A person borrows ₹ 5,000 for 2 years at 4% p.a. simple interest. He immediately lends to
1
another person at 64% p.a. for 2 years find his gain in the transaction for year.

(a) ₹ 112.50 (c) ₹ 125

(b) ₹ 225 (d) ₹ 107.50

11
83. If an amount is kept at S.I. it earns an interest of ₹ 600 in first two years but when kept at
compound interest it earns an interest of ₹ 660 for the same period, then the rate of
interest and principal amount respectively are:

(a) 20%, ₹ 1,200 (c) 10%, ₹ 1,200

(b) 20%, ₹ 1,500 (d) 10%, ₹ 1,500

84. The future of an annually of ₹ 1,000 made annually for 5 years at the interest of 14%
compounded annually is:

(a) ₹ 5,610 (c) ₹ 6,160

(b) ₹ 6,610 (d) ₹ 5,160

85. If ₹ 10,000 is invested at 8% per year compound quarterly, then the value of the
investment after 2 years is [given (1+0.2)8 = 1.171659]

(a) ₹ 11,716.59 (c) ₹ 117.1659

(b) ₹ 10,716.59 (d) None of these

86. A bank pays 10% rate of interest compounded annually. A sum of ₹ 400 is deposited in
the bank. The amount at the end oof 1 year will be

(a) ₹ 440 (c) ₹ 441

(b) ₹ 439 (d) ₹ 442

87. A certain money doubles itself in 10 years when deposited on simple interest. It would
triple itself is:

(a) 20 years (c) 25 years

(b) 15 years (d) 30 years

88. A man deposited ₹ 8,000 in a bank for 3 years at 5% p.a. compound interest, after 3 years
he will get

(a) ₹ 8,800 (c) ₹ 9,200

(b) ₹ 9,261 (d) ₹ 9,000

89. If in two years’ time a principal of ₹ 100 amounts to be ₹ 121 when the interest at the rate
of r% is compounded annually, then the value of r will be

(a) 10.5 (c) 15

(b) 10% (d) 14

90. A certain sum of money Q was deposited for 5 years and 4 months at 4.5% simple interest
and amounted to ₹ 248, then the value of Q is

(a) ₹ 200 (c) ₹ 220

(b) ₹ 210 (d) ₹ 240

12
91. If compound interest on a sum for 2 years at 4% p.a. is ₹ 102, then the simple interest on
the same sum for the same period at the same rate will be

(a) ₹ 99 (c) ₹ 100

(b) ₹ 101 (d) ₹ 95

92. A man invests an amount of ₹ 15,860 in the names of his three sons A, B and C in such a
way that they get same amount after 2,3 and 4 years respectively. If the rate of interest is
5%, then the ratio of amount invested in the same of A, B and C is

(a) 6:4:3 (c) 30:12:5

(b) 3:4:6 (d) None of these

93. If the difference between the compound interest compounded annually and simple
interest on a certain amount at 10% p.a. for two years is ₹ 372, then the principal amount
is

(a) ₹ 37,200 (c) ₹ 37,500

(b) ₹ 37,000 (d) None of these

94. The effective rate of interest for one year deposit corresponding to a nominal 7% rate of
interest p.a. convertible quarterly is

(a) 7% (c) 7.4%

(b) 7.5% (d) 7.18%

95. How much will ₹ 25,000 amount to in 2 years at compound interest if the rates for the
successive years are 4% and 5% per year

(a) ₹ 27,300 (c) ₹ 27,500

(b) ₹ 27,000 (d) ₹ 27,900

96. ₹ 8,000/- at 10% p.a. interest compounded half yearly will become at the end one year

(a) ₹ 8,800 (c) ₹ 8,900

(b) ₹ 8,820 (d) ₹ 9,600

97. The value of furniture depreciates by 10% a year, it the present value of the furniture in
an office is ₹ 21,870, calculate the value of furniture 3 years ago

(a) ₹ 30,000 (c) ₹ 40,000

(b) ₹ 35,000 (d) ₹ 50,000

98. The certain sum of money became ₹ 692/- in 2 years and ₹ 800/- in 5 years then the
principle amount is ______

(a) ₹ 520 (b) ₹ 620

13
 (c) ₹ 720 (d) ₹ 820

99. A sum of money amount to ₹ 6,200 in 2 years and ₹ 7,400 in 3 years as per S.I. then the
principal is

(a) ₹ 3,000 (c) ₹ 3,800

(b) ₹ 3,500 (d) None

100. A sum was invested for 3 years as per C.I. and the rate of interest for first year is 9%, 2nd
year is 6% and 3rd year is 3% p.a. respectively. Find the sum if the amount in three years
is ₹ 550?

(a) ₹ 250 (c) ₹ 462.16

(b) ₹ 300 (d) ₹ 350

𝑃𝑇𝑅
101. P = ₹ 5,000 R = 15% T = 41/2 using I = 100 then I will be

(a) ₹ 3,375 (c) ₹ 3,735

(b) ₹ 3,300 (d) None

102. The effective rate of interest does not depend upon

(a) Amount of principal (c) Number of conversation periods

(b) Amount of interest (d) None of these

103. A person wants to lease out a machine costing ₹ 5,00,000 for a 10-year period. It has
fixed a rental of ₹ 51,272 p.a. payable annually starting from the end of first year. Suppose
rate of interest is 10% p.a. compounded annually on which money can be invested. To
whom this agreement is favorable?

(a) Favour of Lessee (c) Not for both

(b) Favour of Lessor (d) Can’t be determined

104. Let a person invest a fixed sum at the end of each month in an account paying interest
12% per year compounded monthly. If the future value of this annuity after the 12th
payment is ₹ 55,000 then the amount invested every month is?

(a) ₹ 4,837 (c) ₹ 4,337

(b) ₹ 4,637 (d) ₹ 3,337

105. If PI2 = ₹ 96, and R = 8% compounded annually then P =

(a) ₹ 14,000 (c) ₹ 16,000

(b) ₹ 15,000 (d) ₹ 17,000

106. Determine the present value of perpetuity of ₹ 50,000 per month @ rate of interest 12%
p.a. is ______

14
 (a) ₹ 45,00,000 (c) ₹ 55,00,000
(b) ₹ 50,00,000 (d) ₹ 60,00,000

107. In a simple interest if the principal is ₹ 2,000 and the rate and times are the roots of the
equation x2 - 11x + 30 = 0 then the simple interest is

(a) ₹ 500 (c) ₹ 700

(b) ₹ 600 (d) ₹ 800

108. A man invests ₹ 12,000 at 10% p.a. and another sum of money at 20% p.a. for one year.
The total investments earn at 14% p.a. simple interest the total investment is:

(a) ₹ 8,000 (c) ₹ 14,000

(b) ₹ 20,000 (d) ₹ 16,000

109. The difference in simple interest of a sum invested of ₹ 1,500 for 3 years is ₹ 18. The
difference in their rates is:

(a) 0.4 (c) 0.8

(b) 0.6 (d) 0.10

110. Find the effective rate of interest on ₹ 10,000 on which interest is payable half yearly at
5% p.a.

(a) 5.06% (c) 0.4%

(b) 4% (d) 3%

111. Find the effective rate of interest at 10% p.a. when interest is payable quarterly.

(a) 10.38% (c) 5.04%

(b) 5% (d) 4%

112. What will be the population after 3 years when present population is ₹ 25,000 and
population increases at the rate of 3% in I year, at 4% in II year and 5% in III year?
(a) ₹ 28,119 (c) ₹ 27,000
(b) ₹ 29,118 (d) ₹ 30,000

113. The value of scooter is ₹ 10,000 find its value after 7 years if rates of depreciation is 10%
p.a.
(a) ₹ 4,782.96 (c) ₹ 42,079
(b) ₹ 4,278.69 (d) ₹ 42,000

114. SI = 0.125P at 10% p.a. Find time.

(a) 1.25 years (b) 25 years

15
 (c) 0.25 years (d) None

115. Scrap value of a machine valued at ₹ 10,00,000 after 10 years within depreciation at
10% p.a.:
(a) ₹ 3,48,678.44 (c) ₹ 4,00,000
(b) ₹ 3,84,679.45 (d) ₹ 3,00,000

116. The difference between CI and SI for 2 years, is 21. If rate of interest is 5% find principal

(a) ₹ 8,400 (c) ₹ 8,000

(b) ₹ 4,800 (d) ₹ 8,200
117. Present value of a scooter is ₹ 7,290 if its value decreases every year by 10% then its
value before 3 years is equal to:
(a) 10,000 (c) 20,000
(b) 10,500 (d) 20,500

16
1. B 36. D 71. C
2. B 37. B 72. B
3. A 38. A 73. C
4. B 39. A 74. A
5. B 40. A 75. B
6. C 41. A 76. B
7. A 42. D 77. D
8. B 43. A 78. C
9. A 44. A 79. B
10. A 45. C 80. A
11. B 46. C 81. A
12. A 47. B 82. A
13. A 48. B 83. B
14. A 49. A 84. B
15. A 50. B 85. B
16. B 51. A 86. A
17. B 52. A 87. A
18. A 53. C 88. A
19. B 54. A 89. B
20. A 55. C 90. B
21. C 56. C 91. A
22. A 57. D 92. C
23. A 58. B 93. A
24. A 59. C 94. A
25. C 60. B 95. D
26. A 61. C 96. A
27. A 62. B 97. B
28. B 63. C 98. A
29. A 64. C 99. B
30. B 65. C 100. C
31. D 66. B 101. C
32. C 67. C 102. A
33. B 68. C 103. A
34. C 69. C 104. A
35. D 70. C 105. C

17
106. B
107. B
108. B
109. B
110. A
111. A
112. A
113. A
114. A
115. A
116. A
117. A

18