Page 1 :
Chapter 4, Simple and compound interest including, Annuity Application, , MULTIPLE CHOICE QUESTIONS (M.C.Q.), , Pick up the Correct answer from each of the following question., 1, The sum of money that amounts to Rs1,110 in 10 years at the rate of 5% simple interest will be , (a) Rs.700 (b) Rs.740 (c) Rs.760 (d) Rs.780, 2. The simple interest on Rs.15,300 from 3™ March, 1997 to 27" July, 1997 at 33% per annum is —, , (a) Rs.224.50 (b) Rs.229.50 (c) Rs.234.50 (d) Rs.274.50, , 3. In how many years a sum will be doubled at 12% per annum at simple interest ?, (a) 6 years (b) 7 years (c) 8 years (d) 8 1 years, , 4. The compound interest on Rs.10,000 at 20% per annum at the end of 1 year 6 months if the interest, is calculated half yearly will —, , (a) Rs.3,000 (b) Rs.3,300 (c) Rs.3,310 (d) Rs.3,330., , 5. The principal for which the difference of simple interest and compound interest at 10% per annum is, Rs.100 in 2 years, is , (a) Rs.8,000 (b) Rs. 10,000 (c) Rs.12,000 (d) Rs.14,000., , 6. Asum of money invested at compound interest becomes Rs.1,020 after 3 years and Rs.1,088 after 4, years. The rate of interest is , (a) 5.60% (b) 6.66% (c) 7.66% (d) 8.66%., , 7. The difference between S.I. and C.|. on a sum for 2 years at 8% per annum is Rs.160. If the interest, were compounded half yearly, the difference in interest in two years will be nearly , (a) Rs.246.50 (b) Rs.240 (c) Rs.168 (d) Rs.160., , 8. Acertain sum invested at compound interest becomes Rs.6,500 after a period of 6 years and Rs.7,800, after a further period of 2 more years. The amount due after a further period of 2 more years is , (a) Rs.9,360 (b) 6,500 (c) Rs.9,100 (d) Rs.9,390., , 9. In how many years at compound interest, will a sum of money become 27 times when it trebles itself, in 2 years at compound interest ?

Page 2 :
(a) 9 years (b) 6 years (c) 12 years (d) 134 years, , 10. To find out the total compound interest accrued on a sum of money after 5 years, which of the, following information’s given in statements A and B is/are sufficient ?, A. The rate of interest is 6 percent per annum, B. The total simple interest on the same amount after 5 years at the same rate will be Rs.600, , (a) Only A is sufficient (b) Either A or B is sufficient, (c) Both A and B together are needed (d) Only B is sufficient., 11. X, ¥ and Z are the three sums of money such that Y is the simple interest on X and Z is the simple, interest on Y for the same time and rate. The relation between X, Y and Z is —, (a) P=YZ (b) Y7=ZX ()Z=XY (d) XYZ =1, , 12. If the compound interest on a certain sum of money for 2 years is Rs.2,700 and the simple interest, on the same sum for the same period is Rs.2,500, the rate of interest will be , (a) 16 percent (b) 10 percent (c) 18 percent (d) 24 percent, , 13. A sum of Rs.79,300 was divided into three parts such that their amounts after 2, 3 and 4 years at 10%, simple interest were equal. The ratio between the three parts is —, , wy BL, , (a) 2:3:4 (b) 12:13:14 (o) ; seta, , wel, , rie, , 14, Sunil lent a sum of money at 4 percent simple interest. In 8 years the interest amounted to Rs.3,400, less than the sum lent. The sum lent was —, , (a) Rs.7,000 (b) Rs.5,000 (c) Rs.5,700 (d) Rs.6,000., , 15. The simple interest on a certain sum for 14 months at 6 percent per annum is Rs.25 more than the, simple interest on the same sum for 8 months at 8 percent. The sum borrowed is , (a) Rs.1,500 (b) Rs.1,700 (c) Rs.2,000 (d) Rs.2,500., , 16. An amount of money fetches a simple interest of Rs.4,320 at the rate of 4 percent per annum at the, end of 6 years. What is the principal amount ?, , (a) Rs.24,000 (b) Rs.12,000, (c) Rs.18,000 (d) Rs.20,000, , 17. Suresh wishes to earn a monthly interest of Rs.600. The interest rate is 12 percent per annum but it, is paid every month. He must invest —, , (a) Rs.80,000 (b) Rs.60,000 (c) Rs.90,000 (d) Rs.1,20,000., , 18. John borrowed Rs.1,00,000 at 10 percent per annum simple interest. He immediately lent the whole, sum at 10 percent per annum compound interest. At the end of 2 years, he would gain , (a) Rs.1,000 (b) Rs.1,800 (c) Rs.2,000 (d) Rs.100.

Page 3 :
19. Arun and Ajay borrowed Rs.400 each at 10% interest per annum. Arun borrowed at compound, interest while Ajay borrowed at simple interest. In both the cases, the interest was calculated half, yearly. At the end of one year —, , (a) Both paid the same amount as interest (b) Arun paid Rs.1 more as interest, (c) Ajay paid Rs.5 more as interest (d) Ajay paid Rs.5 less as interest., , 20. A sum of money is invested at 3 percent and a second sum twice as large as the first is invested at, 24 percent. Total interest is Rs.448 per year. The sum invested at a= percent is —, , (a) Rs.5,600 (b) Rs.12,000 (c) Rs.11,200 (d) Rs.11,000, 21. Atul lent a sum of money at simple interest. The sum trebled in 16 years. The interest rate was —, (a) 10 percent (b) 8 percent (c) 16 percent (d) 12.5 percent, , 22. Nishtha borrowed Rs.1,000 at 10 percent per annum simple interest from a co-operative society on, January 1, 1997. She cleared the loan by paying Rs.1,020. The amount was paid on =, , (a) March 15,1997 (b) March 13, 1997 (c) March 16, 1997 (d) March 14, 1997, , 23. Sohan borrows Rs.3,000 at 5 percent and Rs.4,500 at 6 percent at the same time and on the condition, that the whole loan will be repaid when the interest amounts to Rs.1,260. The loan will have to be, repaid after (a) 6 years (b) 3 years (c) 5 years (d) 2 years., , 24. If an amount doubles itself in 5 years at simple interest, it will become three times in —, (a) 10 years (b) 12 years (c) 8 years (d) None of these, , 25. The difference between simple interest and compound interest on a sum of money for 2 years at 5%, is Rs.25. The sum is —, , (a) Rs.8,000 (b) Rs.9,000 (c) Rs.10,000 (d) Rs.15,000, , 26. Asum of money becomes Rs.6,500 after 3 years and Rs.10,562.50 after 6 years on compound interest., The sum is , (a) Rs.4,000 (b) Rs.4,500 (c) Rs.4,800 (d) None of these, , 27. Simple interest on a certain sum at the rate of 4.5% per annum for 4 years and 6 years differs by, Rs.216. The sum is , (a) Rs.2,400 (b) Rs.2,100 (c) Rs.3,900 (d) Rs.1,800, , 28. Meenakshi gets 16 : % simple interest on her fixed deposits. Her interest will be equal to the deposit, , (a) 8 (b) 8.5 (c)6 (d) 6.25

Page 4 :
29. Rs.12,500 lent at compound interest for two years at 10% per annum fetches Rs...... more, if the, interest was payable half yearly than if it was payable annually , (a) zero (b) Rs.10.48 (c) Rs.38.50 (d) Rs.68.82, 30. Two friends Gita and Renu invested a total of Rs.60,000 together at compound interest at 12.5 % per, , annum in such a way that Gita gets the same amount after two years what Renu gets after five years., Gita’s investment is more than that of Renu by nearly , (a) Rs.10,492 (b) Rs.12,470 (c) Rs.12,890 (d) None of these, , 31. The simple interest on a certain sum of money at 3 2 % per annum for 23 years is Rs.658. The sum, is(a) Rs.7,480 (b) Rs.7,840 (c) Rs.8,120 (d) Rs.8,400., , 32. What will be the difference between simple and compound interest on Rs.8,000 at the rate of 5 percent, per annum at the end of 3 years ?, , (a) Rs.61.00 (b) Rs.122.00 (c) Rs.91.50 (d) Rs.152.50, , 33. “th of a sum is invested at 3% simple interest, : rd at 4% and the remainder at 5%. If the total yearly, interest is Rs.150, the sum is - :, , (a) Rs.4,000 (b) Rs.3,600 (c) Rs.3,000 (d) Rs.5,000, , 34. Harish purchased a cycle and he was to pay total of Rs.1,575 in three years. If the rate of interest is, 5%, he should pay annual instalment of Rs. ........... to complete his payment., , (a) 500 (b) 525 (c) 550 (d) None of these., , 35. Out of Rs.70,000, | invest Rs.30,000 at 4% and Rs.20,000 at 3%, simple interest. At what rate of interest, must | invest the balance so as to get a return of 5% on the whole amount per annum ?, , (a) 5% (b) 7% (c) 8% (d) 8.5%, , 36. The difference between compound interest and simple interest on a sum for 3 years at 5% per annum, is Rs.122. The sum is , (a) Rs.15,000 (b) Rs.16,000 (c) Rs.12,000 (d) Rs.18,000, , 37. Yogesh invested Rs.40,000 in two parts. On the one part he gets interest at the rate of 10% while on, the other he gets 6%. If his income on the total investment is 7.5%, the two parts are in the ratio -—, , (a) 3:5 (b) 2:7 (c) 5:3 (d)7:2, 38. The amount of Rs.600 will earn Rs.300 as simple interest @ 10% per annum in (a) 4 years (b) 5 years (c) 6 years (d) 7 years, , 39, At certain rate of simple interest, Rs.1,000 becomes Rs.2,000 in 5 years and at a different rate of, interest it becomes Rs.3,000 in 12 years. The better rate of interest is —, , (a) 24% (b) 15% (c) 20% (d) 16.67%

Page 5 :
40. The difference between simple interest and compound interest on a certain sum of money at the end, of 2 years is Rs.117 at 15% per annum, the interest being credited annually. The principal is , (a) Rs.5,200 (b) Rs.5,980 (c) Rs.6,760 (d) None of these., 41. At simple interest rate of 4 i% per annum, how much time is needed for Rs.432 to yield an interest, of Rs.78.66 ?, (a) 2 years 10 months (b) 3 years, (c) 3 years and 10 months (d) 4 years, , (e) None of these, , 42. Rs.1,000 is invested at 5% simple interest. If the interest is added to the principal every 10 years, the, amount will become Rs.2,000 after —, , (a) 15 years (b) 18 years (c) 20 years (d) 165 years, , 43. If Rs.64 amounts to Rs.83.20 in 2 years, what will Rs.86 amount to in 4 years at the same rate percent, per annum ?, (a) Rs.137.60 (b) 124.70 (c) Rs.114,80 (d) Rs.127.40, , 44, Vineet deposited Rs.15,600 in a fixed deposit at simple interest at the rate of 10%. After every second, year he converts his interest earnings into deposits. His interest in the fourth year is , (a) Rs.1,716 (b) Rs.1,560 (c) Rs.3,432 (d) Rs.1,872, , 45. The simple interest on a sum increases by Rs.768 if the rate of interest is increased by 4%. If the rate, of interest is increased by 3%, the interest will increase by —, , (a) an amount which depends on the time for which the money is invested, (b) Rs.576, , (c) Rs.480, , (d) Depends on the initial rate, , 46. Mohan borrows Rs.50,000 from a bank at 10% per annum. He repays Rs.25,000 at the end of each, year. What amount does he owe to the bank after the second repayment ?, , (a) Rs.10,000 (b) Rs.8,000 (c) Rs.12,000 (d) None of these., , 47. The simple interest on a sum of money is 4/9 of the principal and the number of years is equal to the, rate of interest. The rate percent is —, , (a) x (b) 6 (c)6 @s, , wr, , 48. A sum of money at simple interest becomes 1.5 times of itself in 3 years. In how many years will the, same treble itself ?, , (a) 10 years (b) 11 years (c) 12 years (d) 13 years