Simple and compound interest
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See all →- At what rate of simple interest per annum will a sum of money double itself in 8 years? Answer: B. 12.5% Answer: (B) 12.5% To double, SI = P. P = P × R × 8/100 ⇒ R = 100/8 = 12.5% . 1
- What is the compound interest on ₹15,625 for 3 years at 8% per annum, compounded annually? Answer: C. ₹4,058 Answer: (C) ₹4,058 Amount = 15625 × (27/25)³ = 15625 × 19683/15625 = 19683 . CI = 19683 - 15625 = 4058 . (₹3,750 is the si... 1
- A sum of money amounts to ₹6,900 in 3 years and to ₹7,500 in 5 years at simple interest. What is the rate of interest per annum? Answer: D. 5% Answer: (D) 5% Interest for 2 years = 7500 - 6900 = 600, so 300 per year. Principal = 6900 - 3 × 300 = 6000 . Rate = 300/6000... 1
- What is the difference between the compound interest (compounded annually) and the simple interest on ₹12,000 for 2 years at 10% per annum? Answer: A. ₹120 Answer: (A) ₹120 For 2 years, CI - SI = P(R/100)² = 12000 × 0.01 = 120 . Check: CI = 2520, SI = 2400. 1
- A sum of money lent at simple interest amounts to Rs. 7,800 in 3 years and to Rs. 9,000 in 5 years. What is the rate of interest per annum? Answer: B. 10% Answer: (B) 10% Interest for 2 years = 9000 − 7800 = 1200, so Rs. 600 per year. Principal = 7800 − 3 × 600 = 6000. Rate = 600... 1
- What is the compound interest on Rs. 16,000 at 10% per annum for 3 years, compounded annually (in Rs.)? Answer: C. 5296 Answer: (C) 5296 Amount = 16000 × (1.1)³ = 21296 . CI = 21296 − 16000 = Rs. 5,296. 1