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Compound Interest

Important Instructions
21.

Rajan borrowed Rs.4000 at 5% p.a compound interest. After 2 years, he repaid Rs.2210 and after 2 more year, the balance with interest. What was the total amount that he paid as interest?

Answer: A

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22.

What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?

Answer: D

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23.

Amit gave his friend Rs. 11000. This was to be repaid in 2 yearly installments with a rate of interest of 20% compounded annually. How much would be the value of each installment?

Answer: A

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24.

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?

Answer: A

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25.

The sum of money at compound interest amounts to thrice itself in 3 years. In how many years will it be 9 times itself?

Answer: D

100 ---- 300 --- 3

             900 --- 3

                        ----

                 6 years

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26.

The difference between simple interest and C.I. at the same rate for Rs.5000 for 2 years in Rs.72. The rate of interest is?

Answer: B

5000 = 72(100/R)⊃2;

 

5 R⊃2; = 720 => R = 12

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27.

The compound interest earned by Sunil on a certain amount at the end of two years at the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of two years in the form of principal plus interest earned.

Answer: B

Let the sum be Rs.P

 P{ [ 1 + 8/100]⊃2; - 1 } = 2828.80 

P(8/100)(2 + 8/100) = 2828.80 [a⊃2; - b⊃2; = (a - b) ( a + b)] P = 2828.80 / (0.08)(2.08) = 1360/0.08 = 17000 Principal + Interest = Rs. 19828.80

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28.

Find the C.I. on Rs. 15,625 for 9 months at 16% per annum compounded quarterly?

Answer: C

P = Rs. 15625, n = 9 months = 3 quarters, R = 16% p.a. per quarter. 

Amount = [15625 * (1 + 4/100)⊃3;] 

= (15625 * 26/25 * 26/25 * 26/25) = Rs. 17576 C.I. = 17576 - 15625 = Rs. 1951.

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29.

An amount becomes 4 times in 6 years. In how many years will it become 64 times if the rate of interest remains unchanged?

Answer: B

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30.

Find the sum The difference between the compound and S.I. on a certain sum of money for 2 years at 10% per annum is Rs.15 of money?

Answer: A

P = 15(100/10)⊃2;

=> P = 1500

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