Compound Interest - Multiple Choice Questions, Math, class 8 - B Com PDF Download

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1. Sudhanshu invested ` 15,000 at interest @ 10% p.a for one
year. If the interest is compounded every six months what
amount will Sudhanshu get at the end of the year?
(a) ` 16,537.50 (b) ` 16,5000
(c) ` 16,525.50 (d) ` 18,150
(e) None of these
2. What would be the compound interest obtained on an
amount of ` 1,250 at the rate of 8% p.a. after 2 year ?
(a) ` 200 (b) ` 208
(c) `212 (d) `220
(e) None of these
3. Shyam invests an amount of ` 5,690 at the rate of 5 per cent
per annum for 3 years. What approximate amount of
compound interest will he obtain at the end of 3 years?
(a) ` 854 (b) ` 799 (c) ` 843
(d) ` 787 (e) ` 897
4 . The simple interest accrued on an amount of ` 84,000 at the
end of three year is ` 30,240. What would be the compound
interest accrued on the same amount at the same rate in the
same period?
(a) ` 30,013.95 (b) ` 31,013.95
(c) ` 32,013.95 (d) ` 33,013.95
(e) ` 34,013-95
5 . What will be the difference between the compound interest
and simple interest at the rate of 5% p.a. on an amount of
` 4,000 at the end of two years?
(a) ` 10 (b) ` 20
(c) ` 30 (d) Data inadequate
(e) None of these
6. Pamela invested an amount of ` 35,000 for two year at the
rate of 5% p.a. What amount of compound interest would
she receive at the end of two year ?
(a) ` 3587.50 (b) ` 3500
(c) ` 3580.50 (d) ` 3565.50
(e) None of these
RESPONSE
GRID
1. a b c d e 2. a b c d e 3. a b c d e 4. a b c d e 5. a b c d e
6. a b c d e 7. a b c d e 8. a b c d e 9. a b c d e 10. a b c d e
11. a b c d e 12. a b c d e
Max. Marks : 25 No. of Qs. 25 Time : 20 min. Date : ........./......../................
7. Rohit invested some amount at the rate of 6 pcpa and at the
end of  3 yr he got ` 8730 simple interest. How much compound
interest he will get on same amount and same rate of interest
after 2 yr.
(a) ` 5820 (b) ` 5949.60
(c) ` 5900 (d) ` 5994.60
(e) None of these
8. Sonika invested an amount of  ` 5800 for 2 years. At what rate
of compound interest will she get an amount of  ` 594.5 at the
end of two years ?
(a) 5 p.c.p.a. (b) 4 p.c.p.a.
(c) 6 p.c.p.a. (d) 8 p.c.p.a.
(e) None of these
9. What would be the compound interest accrued on an amount
of  ` 7400 @ 13.5 p.c.p.a. at the end of two years ?
(Rounded off to two digits after decimal)
(a) ` 2136.87 (b) ` 2306.81
(c) ` 2032.18 (d) ` 2132.87
(e) None of these
10. If the compound interest accrued on an amount of  ` 14500 in
two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11 (b) 9
(c) 15 (d) 1 8
(e) None of these
11. What will be the compound interest accrued on an amount of
` 10000 @ per annum in two years if the interest is 20%
compounded half-yearly ?
(a) ` 4400 (b) ` 4600
(c) ` 4641 (d) ` 4680
(e) None of these
12. What will be the difference between the simple interest and
compound interest earned on a sum of ` 985.00 at the rate of
14% per annum at the end of two years ?
(a) ` 16.408 (b) ` 14.214
(c) ` 19.218 (d) ` 17.405
(e) None of these
One of the leading publishers in India, Disha Publication provides books and study materials for
schools and various competitive exams being continuously held across the country. Disha's sole
purpose is to encourage a student to get the best out of preparation. Disha Publication offers an
online bookstore to help students buy exam books online with ease. We, at Disha provide a wide
array of Bank / Engg./ Medical & Other Competitive Exam books to help all those aspirants who
wish to crack their respective different levels of Bank / Engg./ Medical & Other Competitive
exams. At Disha Publication, we strive to bring out the best guidebooks that students would find
to be the most useful for all kind of competitive exam.
ABOUT DISHA PUBLICATION
COMPOUND INTEREST
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1. Sudhanshu invested ` 15,000 at interest @ 10% p.a for one
year. If the interest is compounded every six months what
amount will Sudhanshu get at the end of the year?
(a) ` 16,537.50 (b) ` 16,5000
(c) ` 16,525.50 (d) ` 18,150
(e) None of these
2. What would be the compound interest obtained on an
amount of ` 1,250 at the rate of 8% p.a. after 2 year ?
(a) ` 200 (b) ` 208
(c) `212 (d) `220
(e) None of these
3. Shyam invests an amount of ` 5,690 at the rate of 5 per cent
per annum for 3 years. What approximate amount of
compound interest will he obtain at the end of 3 years?
(a) ` 854 (b) ` 799 (c) ` 843
(d) ` 787 (e) ` 897
4 . The simple interest accrued on an amount of ` 84,000 at the
end of three year is ` 30,240. What would be the compound
interest accrued on the same amount at the same rate in the
same period?
(a) ` 30,013.95 (b) ` 31,013.95
(c) ` 32,013.95 (d) ` 33,013.95
(e) ` 34,013-95
5 . What will be the difference between the compound interest
and simple interest at the rate of 5% p.a. on an amount of
` 4,000 at the end of two years?
(a) ` 10 (b) ` 20
(c) ` 30 (d) Data inadequate
(e) None of these
6. Pamela invested an amount of ` 35,000 for two year at the
rate of 5% p.a. What amount of compound interest would
she receive at the end of two year ?
(a) ` 3587.50 (b) ` 3500
(c) ` 3580.50 (d) ` 3565.50
(e) None of these
RESPONSE
GRID
1. a b c d e 2. a b c d e 3. a b c d e 4. a b c d e 5. a b c d e
6. a b c d e 7. a b c d e 8. a b c d e 9. a b c d e 10. a b c d e
11. a b c d e 12. a b c d e
Max. Marks : 25 No. of Qs. 25 Time : 20 min. Date : ........./......../................
7. Rohit invested some amount at the rate of 6 pcpa and at the
end of  3 yr he got ` 8730 simple interest. How much compound
interest he will get on same amount and same rate of interest
after 2 yr.
(a) ` 5820 (b) ` 5949.60
(c) ` 5900 (d) ` 5994.60
(e) None of these
8. Sonika invested an amount of  ` 5800 for 2 years. At what rate
of compound interest will she get an amount of  ` 594.5 at the
end of two years ?
(a) 5 p.c.p.a. (b) 4 p.c.p.a.
(c) 6 p.c.p.a. (d) 8 p.c.p.a.
(e) None of these
9. What would be the compound interest accrued on an amount
of  ` 7400 @ 13.5 p.c.p.a. at the end of two years ?
(Rounded off to two digits after decimal)
(a) ` 2136.87 (b) ` 2306.81
(c) ` 2032.18 (d) ` 2132.87
(e) None of these
10. If the compound interest accrued on an amount of  ` 14500 in
two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11 (b) 9
(c) 15 (d) 1 8
(e) None of these
11. What will be the compound interest accrued on an amount of
` 10000 @ per annum in two years if the interest is 20%
compounded half-yearly ?
(a) ` 4400 (b) ` 4600
(c) ` 4641 (d) ` 4680
(e) None of these
12. What will be the difference between the simple interest and
compound interest earned on a sum of ` 985.00 at the rate of
14% per annum at the end of two years ?
(a) ` 16.408 (b) ` 14.214
(c) ` 19.218 (d) ` 17.405
(e) None of these
One of the leading publishers in India, Disha Publication provides books and study materials for
schools and various competitive exams being continuously held across the country. Disha's sole
purpose is to encourage a student to get the best out of preparation. Disha Publication offers an
online bookstore to help students buy exam books online with ease. We, at Disha provide a wide
array of Bank / Engg./ Medical & Other Competitive Exam books to help all those aspirants who
wish to crack their respective different levels of Bank / Engg./ Medical & Other Competitive
exams. At Disha Publication, we strive to bring out the best guidebooks that students would find
to be the most useful for all kind of competitive exam.
ABOUT DISHA PUBLICATION
COMPOUND INTEREST
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RESPONSE
GRID
13. a b c d e 14. a b c d e 15. a b c d e 16. a b c d e 17. a b c d e
18. a b c d e 19. a b c d e 20. a b c d e 21. a b c d e 22. a b c d e
23. a b c d e 24. a b c d e 25. a b c d e
13. A sum of money at compound interest amounts in two years
to ` 2809, and in three years to ` 2977.54. Find the rate of
interest and the original sum.
(a) 2000 (b) 2100
(c) 2200 (d) 2500
(e) 3000
14. In what time will 6250 amount to ` 6632.55 at 4 p.c. compound
interest payable half-yearly?
(a)
3
5
(b)
3
2
(c)
3
4
(d)
5
2
(e)
9
11
15. If the simple interest on a certain sum of money for 3 years at
5% is ` 150, find the corresponding CI.
(a) 1 97 (b) 157.62
(c) 137.36 (d) 117.17
(e) 127.34
16. A sum of money becomes eight times in 3 years if the rate is
compounded annually . In how much time, the same amount
at the same compound interest rate will become sixteen times?
(a) 6 years (b) 4 years
(c) 8 years (d) 5 years
(e) None of these
17. The difference between the simple interest and the compound
interest compounded annually at the rate of 12% per annum
on Rs 5000 for two years will be :
(a) Rs 47.50 (b) Rs 63
(c) Rs 45 (d) Rs 72
(e) None of these
18. Rahul borrowed a certain sum from Dhawan at a certain rate
of simple interest for 2 years. He lent this sum to Ramesh at
the same rate of interest compounded annually for the same
period. At the end of two years, he received Rs 4200 as
compound interest but paid Rs 4000 only as simple interest.
Find the rate of interest.
(a) 12% (b) 25%
(c) 35% (d) 10%
(e) None of these
19. What will Rs 1000 be worth after three years if it earns interest
at the rate of 5% compounded annually ?
(a) Rs 1075 (b) Rs 1257
(c) Rs 1157 (d) Rs 1300
(e) None of these
20. A sum of money invested at compound interest amounts in
3 years to Rs 2,400 and in 4 years to Rs. 2,520. The interest
rate per annum is :
(a) 6% (b) 5%
(c) 1 0% (d) 12%
(e) None of these
21. A computer is available for Rs. 39,000 cash or Rs. 17,000 as
cash down payment followed by five monthly installments
of Rs. 4,800 each. What is the rate of interest under the
instalment plan ?
(a) 35.71% p.a. (b) 37.71% p.a.
(c) 36.71% p.a. (d) 38.71% p.a.
(e) None of these
22. Under the Rural Housing Scheme, the Delhi Development
Authority (DDA) allotted a house to Kamal Raj for Rs.
1,26,100. This payment is to be made in three equal annual
instalments. If the money is reckoned at 5% per annum
compound interest, then how much is to be paid by Kamal
Raj in each instalment ?
(a) Rs. 45,205 (b) Rs. 47,405
(c) Rs. 46,305 (d) Rs. 48,505
(e) None of these
23. A finance company declares that, at a certain compound
interest rate, a sum of money deposited by anyone will
become 8 times in three years. If the same amount is deposited
at the same compound rate of interest, then in how many
year will it become 16 times ?
(a) 5 years (b) 4 years
(c) 6 years (d) 7 years
(e) None of these
24. Seema invested an amount of Rs. 16,000 for two years on
compound interest and received an amount of Rs. 17,640 on
maturity . What is the rate of interest ?
(a) 5 % pa (b) 8 % pa
(c) 4 % pa (d) Data inadequate
(e) None of these
25. Two friends A and B jointly lent out Rs. 81,600 at 4% per
annum compound interest. After 2 years A gets the same
amount as B gets after 3 years. The investment made by B
was
(a) Rs. 40,000 (b) Rs. 30,000
(c) Rs. 45,000 (d) Rs. 38,000
(e) None of these
Page 3


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1. Sudhanshu invested ` 15,000 at interest @ 10% p.a for one
year. If the interest is compounded every six months what
amount will Sudhanshu get at the end of the year?
(a) ` 16,537.50 (b) ` 16,5000
(c) ` 16,525.50 (d) ` 18,150
(e) None of these
2. What would be the compound interest obtained on an
amount of ` 1,250 at the rate of 8% p.a. after 2 year ?
(a) ` 200 (b) ` 208
(c) `212 (d) `220
(e) None of these
3. Shyam invests an amount of ` 5,690 at the rate of 5 per cent
per annum for 3 years. What approximate amount of
compound interest will he obtain at the end of 3 years?
(a) ` 854 (b) ` 799 (c) ` 843
(d) ` 787 (e) ` 897
4 . The simple interest accrued on an amount of ` 84,000 at the
end of three year is ` 30,240. What would be the compound
interest accrued on the same amount at the same rate in the
same period?
(a) ` 30,013.95 (b) ` 31,013.95
(c) ` 32,013.95 (d) ` 33,013.95
(e) ` 34,013-95
5 . What will be the difference between the compound interest
and simple interest at the rate of 5% p.a. on an amount of
` 4,000 at the end of two years?
(a) ` 10 (b) ` 20
(c) ` 30 (d) Data inadequate
(e) None of these
6. Pamela invested an amount of ` 35,000 for two year at the
rate of 5% p.a. What amount of compound interest would
she receive at the end of two year ?
(a) ` 3587.50 (b) ` 3500
(c) ` 3580.50 (d) ` 3565.50
(e) None of these
RESPONSE
GRID
1. a b c d e 2. a b c d e 3. a b c d e 4. a b c d e 5. a b c d e
6. a b c d e 7. a b c d e 8. a b c d e 9. a b c d e 10. a b c d e
11. a b c d e 12. a b c d e
Max. Marks : 25 No. of Qs. 25 Time : 20 min. Date : ........./......../................
7. Rohit invested some amount at the rate of 6 pcpa and at the
end of  3 yr he got ` 8730 simple interest. How much compound
interest he will get on same amount and same rate of interest
after 2 yr.
(a) ` 5820 (b) ` 5949.60
(c) ` 5900 (d) ` 5994.60
(e) None of these
8. Sonika invested an amount of  ` 5800 for 2 years. At what rate
of compound interest will she get an amount of  ` 594.5 at the
end of two years ?
(a) 5 p.c.p.a. (b) 4 p.c.p.a.
(c) 6 p.c.p.a. (d) 8 p.c.p.a.
(e) None of these
9. What would be the compound interest accrued on an amount
of  ` 7400 @ 13.5 p.c.p.a. at the end of two years ?
(Rounded off to two digits after decimal)
(a) ` 2136.87 (b) ` 2306.81
(c) ` 2032.18 (d) ` 2132.87
(e) None of these
10. If the compound interest accrued on an amount of  ` 14500 in
two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11 (b) 9
(c) 15 (d) 1 8
(e) None of these
11. What will be the compound interest accrued on an amount of
` 10000 @ per annum in two years if the interest is 20%
compounded half-yearly ?
(a) ` 4400 (b) ` 4600
(c) ` 4641 (d) ` 4680
(e) None of these
12. What will be the difference between the simple interest and
compound interest earned on a sum of ` 985.00 at the rate of
14% per annum at the end of two years ?
(a) ` 16.408 (b) ` 14.214
(c) ` 19.218 (d) ` 17.405
(e) None of these
One of the leading publishers in India, Disha Publication provides books and study materials for
schools and various competitive exams being continuously held across the country. Disha's sole
purpose is to encourage a student to get the best out of preparation. Disha Publication offers an
online bookstore to help students buy exam books online with ease. We, at Disha provide a wide
array of Bank / Engg./ Medical & Other Competitive Exam books to help all those aspirants who
wish to crack their respective different levels of Bank / Engg./ Medical & Other Competitive
exams. At Disha Publication, we strive to bring out the best guidebooks that students would find
to be the most useful for all kind of competitive exam.
ABOUT DISHA PUBLICATION
COMPOUND INTEREST
2
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RESPONSE
GRID
13. a b c d e 14. a b c d e 15. a b c d e 16. a b c d e 17. a b c d e
18. a b c d e 19. a b c d e 20. a b c d e 21. a b c d e 22. a b c d e
23. a b c d e 24. a b c d e 25. a b c d e
13. A sum of money at compound interest amounts in two years
to ` 2809, and in three years to ` 2977.54. Find the rate of
interest and the original sum.
(a) 2000 (b) 2100
(c) 2200 (d) 2500
(e) 3000
14. In what time will 6250 amount to ` 6632.55 at 4 p.c. compound
interest payable half-yearly?
(a)
3
5
(b)
3
2
(c)
3
4
(d)
5
2
(e)
9
11
15. If the simple interest on a certain sum of money for 3 years at
5% is ` 150, find the corresponding CI.
(a) 1 97 (b) 157.62
(c) 137.36 (d) 117.17
(e) 127.34
16. A sum of money becomes eight times in 3 years if the rate is
compounded annually . In how much time, the same amount
at the same compound interest rate will become sixteen times?
(a) 6 years (b) 4 years
(c) 8 years (d) 5 years
(e) None of these
17. The difference between the simple interest and the compound
interest compounded annually at the rate of 12% per annum
on Rs 5000 for two years will be :
(a) Rs 47.50 (b) Rs 63
(c) Rs 45 (d) Rs 72
(e) None of these
18. Rahul borrowed a certain sum from Dhawan at a certain rate
of simple interest for 2 years. He lent this sum to Ramesh at
the same rate of interest compounded annually for the same
period. At the end of two years, he received Rs 4200 as
compound interest but paid Rs 4000 only as simple interest.
Find the rate of interest.
(a) 12% (b) 25%
(c) 35% (d) 10%
(e) None of these
19. What will Rs 1000 be worth after three years if it earns interest
at the rate of 5% compounded annually ?
(a) Rs 1075 (b) Rs 1257
(c) Rs 1157 (d) Rs 1300
(e) None of these
20. A sum of money invested at compound interest amounts in
3 years to Rs 2,400 and in 4 years to Rs. 2,520. The interest
rate per annum is :
(a) 6% (b) 5%
(c) 1 0% (d) 12%
(e) None of these
21. A computer is available for Rs. 39,000 cash or Rs. 17,000 as
cash down payment followed by five monthly installments
of Rs. 4,800 each. What is the rate of interest under the
instalment plan ?
(a) 35.71% p.a. (b) 37.71% p.a.
(c) 36.71% p.a. (d) 38.71% p.a.
(e) None of these
22. Under the Rural Housing Scheme, the Delhi Development
Authority (DDA) allotted a house to Kamal Raj for Rs.
1,26,100. This payment is to be made in three equal annual
instalments. If the money is reckoned at 5% per annum
compound interest, then how much is to be paid by Kamal
Raj in each instalment ?
(a) Rs. 45,205 (b) Rs. 47,405
(c) Rs. 46,305 (d) Rs. 48,505
(e) None of these
23. A finance company declares that, at a certain compound
interest rate, a sum of money deposited by anyone will
become 8 times in three years. If the same amount is deposited
at the same compound rate of interest, then in how many
year will it become 16 times ?
(a) 5 years (b) 4 years
(c) 6 years (d) 7 years
(e) None of these
24. Seema invested an amount of Rs. 16,000 for two years on
compound interest and received an amount of Rs. 17,640 on
maturity . What is the rate of interest ?
(a) 5 % pa (b) 8 % pa
(c) 4 % pa (d) Data inadequate
(e) None of these
25. Two friends A and B jointly lent out Rs. 81,600 at 4% per
annum compound interest. After 2 years A gets the same
amount as B gets after 3 years. The investment made by B
was
(a) Rs. 40,000 (b) Rs. 30,000
(c) Rs. 45,000 (d) Rs. 38,000
(e) None of these
3
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HINTS & SOLUTIONS
1. (a) Required Amount = 15000
2
5
1
100
æö
+
ç÷
èø
 =  ` 16537.50
2. ( b) Compound interest Amount = Principal
Time
Rate
11
100
éù
æö
+-
êú
ç÷
èø êú
ëû
2
8
1250 1 1
100
108108 100100
1250
100100
éù
æö
= +-
êú
ç÷
èø
êú
ëû
æö ´ -´
=´
ç÷
´
èø
12501664
208
10000
´
==`
3. (e) Amount = Principal  
Time
Rate
1
100
æö
+
ç÷
èø
= 5690
3
5
1
100
æö
+
ç÷
èø
 = 5690 × 
21 21 21
20 20 20
´´
= `6586.90
\ Compound interest = `(6586.9 – 5690)  = `896.9 »
8 97
4. (e) Rate
30240 100
12%
84000 3
´
==
´
Compound interest
= 84000
3
12
1
100
æö
+
ç÷
èø
–  84000
= 118013.95 – 84000 = ` 34013.95
5. (a) Simple interest  = 
4000 5 2
100
´´
 = ` 400
Compound interest
= 
2
5
4000 1 4000
100
æö
+-
ç÷
èø
= 
4000 105 105
4000
100 100
´´
-
´
 = 4410 – 4000 = ` 410
\  Difference = 410 – 400  = ` 10
6. (a) Compound interest  =
2
5
35000 1
100
æö
+
ç÷
èø
– 35000
= 38587.50 – 35000 = ` 3587.50
7. (d) Principle = 
8730 100
48500
63
´
=
´
Compound Interest 
2
6
48500 1 1
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 48500 × 0.1236 = ` 5994.60
8. (a) 594.5 = 
2
r
5800 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
594.5 r
11
5800 100
æö
=+-
ç÷
èø
Þ 0.1025 + 1 = 
2
r
1
100
æö
+
ç÷
èø
Þ
( )
2
100r
1.1025
10000
+
=
Þ 1.1025 × 10000 = (100 + r)
2
.
Þ 11025 = (100 + r)
2
.
Þ 105 = 100 + r
\ r = 5%
9. (d) Compound interest = 
2
27
7400 1 1
200
éù
æö
ê + -ú
ç÷
èø êú
ëû
= 
2
227
7400 1
200
éù
æö
ê -ú
ç÷
èø êú
ëû
= 
227 227 200 200
7400
200 200
´ -´ éù
êú
´
ëû
= 
51529 40000
7400
40000
- éù
êú
ëû
= 
11529
7400
40000
´
= 2132.865 = ` 2132.87
10. (c)
T
r
C.I.P11
100
éù
æö
= +- êú
ç÷
èø êú
ëû
4676.25 = 14500
2
r
11
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
4676.25 r
11
14500 100
æö
=+-
ç÷
èø
  Þ 
2
4676.25 r
11
14500 100
æö
+=+
ç÷
èø
Þ 
2
4676.25 14500 r
1
14500 100
+ æö
=+
ç÷
èø
Þ 
19176.25 r
1
14500 100
=+ Þ 
r
1.3225 1
100
=+
Þ 
13225 r
1
10000 100
=+ Þ 
115 r
1
100 100
=+
 Þ 
r 115
1
100 100
=-
Þ 
r 115 100
100 100
-
=
 Þ 
r 15
100 100
=
  Þ r = 15%
11. (c) Compound interest accrued half-yearly.
R = 20% yearly = 10% half-yearly
n = 2 years = 4 half-yearly
n
r
CIP11
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 
4
10
10000 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
 = 
4
11
10000 1
10
éù
æö
ê -ú
ç÷
èø êú
ëû
Page 4


1
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1. Sudhanshu invested ` 15,000 at interest @ 10% p.a for one
year. If the interest is compounded every six months what
amount will Sudhanshu get at the end of the year?
(a) ` 16,537.50 (b) ` 16,5000
(c) ` 16,525.50 (d) ` 18,150
(e) None of these
2. What would be the compound interest obtained on an
amount of ` 1,250 at the rate of 8% p.a. after 2 year ?
(a) ` 200 (b) ` 208
(c) `212 (d) `220
(e) None of these
3. Shyam invests an amount of ` 5,690 at the rate of 5 per cent
per annum for 3 years. What approximate amount of
compound interest will he obtain at the end of 3 years?
(a) ` 854 (b) ` 799 (c) ` 843
(d) ` 787 (e) ` 897
4 . The simple interest accrued on an amount of ` 84,000 at the
end of three year is ` 30,240. What would be the compound
interest accrued on the same amount at the same rate in the
same period?
(a) ` 30,013.95 (b) ` 31,013.95
(c) ` 32,013.95 (d) ` 33,013.95
(e) ` 34,013-95
5 . What will be the difference between the compound interest
and simple interest at the rate of 5% p.a. on an amount of
` 4,000 at the end of two years?
(a) ` 10 (b) ` 20
(c) ` 30 (d) Data inadequate
(e) None of these
6. Pamela invested an amount of ` 35,000 for two year at the
rate of 5% p.a. What amount of compound interest would
she receive at the end of two year ?
(a) ` 3587.50 (b) ` 3500
(c) ` 3580.50 (d) ` 3565.50
(e) None of these
RESPONSE
GRID
1. a b c d e 2. a b c d e 3. a b c d e 4. a b c d e 5. a b c d e
6. a b c d e 7. a b c d e 8. a b c d e 9. a b c d e 10. a b c d e
11. a b c d e 12. a b c d e
Max. Marks : 25 No. of Qs. 25 Time : 20 min. Date : ........./......../................
7. Rohit invested some amount at the rate of 6 pcpa and at the
end of  3 yr he got ` 8730 simple interest. How much compound
interest he will get on same amount and same rate of interest
after 2 yr.
(a) ` 5820 (b) ` 5949.60
(c) ` 5900 (d) ` 5994.60
(e) None of these
8. Sonika invested an amount of  ` 5800 for 2 years. At what rate
of compound interest will she get an amount of  ` 594.5 at the
end of two years ?
(a) 5 p.c.p.a. (b) 4 p.c.p.a.
(c) 6 p.c.p.a. (d) 8 p.c.p.a.
(e) None of these
9. What would be the compound interest accrued on an amount
of  ` 7400 @ 13.5 p.c.p.a. at the end of two years ?
(Rounded off to two digits after decimal)
(a) ` 2136.87 (b) ` 2306.81
(c) ` 2032.18 (d) ` 2132.87
(e) None of these
10. If the compound interest accrued on an amount of  ` 14500 in
two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11 (b) 9
(c) 15 (d) 1 8
(e) None of these
11. What will be the compound interest accrued on an amount of
` 10000 @ per annum in two years if the interest is 20%
compounded half-yearly ?
(a) ` 4400 (b) ` 4600
(c) ` 4641 (d) ` 4680
(e) None of these
12. What will be the difference between the simple interest and
compound interest earned on a sum of ` 985.00 at the rate of
14% per annum at the end of two years ?
(a) ` 16.408 (b) ` 14.214
(c) ` 19.218 (d) ` 17.405
(e) None of these
One of the leading publishers in India, Disha Publication provides books and study materials for
schools and various competitive exams being continuously held across the country. Disha's sole
purpose is to encourage a student to get the best out of preparation. Disha Publication offers an
online bookstore to help students buy exam books online with ease. We, at Disha provide a wide
array of Bank / Engg./ Medical & Other Competitive Exam books to help all those aspirants who
wish to crack their respective different levels of Bank / Engg./ Medical & Other Competitive
exams. At Disha Publication, we strive to bring out the best guidebooks that students would find
to be the most useful for all kind of competitive exam.
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RESPONSE
GRID
13. a b c d e 14. a b c d e 15. a b c d e 16. a b c d e 17. a b c d e
18. a b c d e 19. a b c d e 20. a b c d e 21. a b c d e 22. a b c d e
23. a b c d e 24. a b c d e 25. a b c d e
13. A sum of money at compound interest amounts in two years
to ` 2809, and in three years to ` 2977.54. Find the rate of
interest and the original sum.
(a) 2000 (b) 2100
(c) 2200 (d) 2500
(e) 3000
14. In what time will 6250 amount to ` 6632.55 at 4 p.c. compound
interest payable half-yearly?
(a)
3
5
(b)
3
2
(c)
3
4
(d)
5
2
(e)
9
11
15. If the simple interest on a certain sum of money for 3 years at
5% is ` 150, find the corresponding CI.
(a) 1 97 (b) 157.62
(c) 137.36 (d) 117.17
(e) 127.34
16. A sum of money becomes eight times in 3 years if the rate is
compounded annually . In how much time, the same amount
at the same compound interest rate will become sixteen times?
(a) 6 years (b) 4 years
(c) 8 years (d) 5 years
(e) None of these
17. The difference between the simple interest and the compound
interest compounded annually at the rate of 12% per annum
on Rs 5000 for two years will be :
(a) Rs 47.50 (b) Rs 63
(c) Rs 45 (d) Rs 72
(e) None of these
18. Rahul borrowed a certain sum from Dhawan at a certain rate
of simple interest for 2 years. He lent this sum to Ramesh at
the same rate of interest compounded annually for the same
period. At the end of two years, he received Rs 4200 as
compound interest but paid Rs 4000 only as simple interest.
Find the rate of interest.
(a) 12% (b) 25%
(c) 35% (d) 10%
(e) None of these
19. What will Rs 1000 be worth after three years if it earns interest
at the rate of 5% compounded annually ?
(a) Rs 1075 (b) Rs 1257
(c) Rs 1157 (d) Rs 1300
(e) None of these
20. A sum of money invested at compound interest amounts in
3 years to Rs 2,400 and in 4 years to Rs. 2,520. The interest
rate per annum is :
(a) 6% (b) 5%
(c) 1 0% (d) 12%
(e) None of these
21. A computer is available for Rs. 39,000 cash or Rs. 17,000 as
cash down payment followed by five monthly installments
of Rs. 4,800 each. What is the rate of interest under the
instalment plan ?
(a) 35.71% p.a. (b) 37.71% p.a.
(c) 36.71% p.a. (d) 38.71% p.a.
(e) None of these
22. Under the Rural Housing Scheme, the Delhi Development
Authority (DDA) allotted a house to Kamal Raj for Rs.
1,26,100. This payment is to be made in three equal annual
instalments. If the money is reckoned at 5% per annum
compound interest, then how much is to be paid by Kamal
Raj in each instalment ?
(a) Rs. 45,205 (b) Rs. 47,405
(c) Rs. 46,305 (d) Rs. 48,505
(e) None of these
23. A finance company declares that, at a certain compound
interest rate, a sum of money deposited by anyone will
become 8 times in three years. If the same amount is deposited
at the same compound rate of interest, then in how many
year will it become 16 times ?
(a) 5 years (b) 4 years
(c) 6 years (d) 7 years
(e) None of these
24. Seema invested an amount of Rs. 16,000 for two years on
compound interest and received an amount of Rs. 17,640 on
maturity . What is the rate of interest ?
(a) 5 % pa (b) 8 % pa
(c) 4 % pa (d) Data inadequate
(e) None of these
25. Two friends A and B jointly lent out Rs. 81,600 at 4% per
annum compound interest. After 2 years A gets the same
amount as B gets after 3 years. The investment made by B
was
(a) Rs. 40,000 (b) Rs. 30,000
(c) Rs. 45,000 (d) Rs. 38,000
(e) None of these
3
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HINTS & SOLUTIONS
1. (a) Required Amount = 15000
2
5
1
100
æö
+
ç÷
èø
 =  ` 16537.50
2. ( b) Compound interest Amount = Principal
Time
Rate
11
100
éù
æö
+-
êú
ç÷
èø êú
ëû
2
8
1250 1 1
100
108108 100100
1250
100100
éù
æö
= +-
êú
ç÷
èø
êú
ëû
æö ´ -´
=´
ç÷
´
èø
12501664
208
10000
´
==`
3. (e) Amount = Principal  
Time
Rate
1
100
æö
+
ç÷
èø
= 5690
3
5
1
100
æö
+
ç÷
èø
 = 5690 × 
21 21 21
20 20 20
´´
= `6586.90
\ Compound interest = `(6586.9 – 5690)  = `896.9 »
8 97
4. (e) Rate
30240 100
12%
84000 3
´
==
´
Compound interest
= 84000
3
12
1
100
æö
+
ç÷
èø
–  84000
= 118013.95 – 84000 = ` 34013.95
5. (a) Simple interest  = 
4000 5 2
100
´´
 = ` 400
Compound interest
= 
2
5
4000 1 4000
100
æö
+-
ç÷
èø
= 
4000 105 105
4000
100 100
´´
-
´
 = 4410 – 4000 = ` 410
\  Difference = 410 – 400  = ` 10
6. (a) Compound interest  =
2
5
35000 1
100
æö
+
ç÷
èø
– 35000
= 38587.50 – 35000 = ` 3587.50
7. (d) Principle = 
8730 100
48500
63
´
=
´
Compound Interest 
2
6
48500 1 1
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 48500 × 0.1236 = ` 5994.60
8. (a) 594.5 = 
2
r
5800 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
594.5 r
11
5800 100
æö
=+-
ç÷
èø
Þ 0.1025 + 1 = 
2
r
1
100
æö
+
ç÷
èø
Þ
( )
2
100r
1.1025
10000
+
=
Þ 1.1025 × 10000 = (100 + r)
2
.
Þ 11025 = (100 + r)
2
.
Þ 105 = 100 + r
\ r = 5%
9. (d) Compound interest = 
2
27
7400 1 1
200
éù
æö
ê + -ú
ç÷
èø êú
ëû
= 
2
227
7400 1
200
éù
æö
ê -ú
ç÷
èø êú
ëû
= 
227 227 200 200
7400
200 200
´ -´ éù
êú
´
ëû
= 
51529 40000
7400
40000
- éù
êú
ëû
= 
11529
7400
40000
´
= 2132.865 = ` 2132.87
10. (c)
T
r
C.I.P11
100
éù
æö
= +- êú
ç÷
èø êú
ëû
4676.25 = 14500
2
r
11
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
4676.25 r
11
14500 100
æö
=+-
ç÷
èø
  Þ 
2
4676.25 r
11
14500 100
æö
+=+
ç÷
èø
Þ 
2
4676.25 14500 r
1
14500 100
+ æö
=+
ç÷
èø
Þ 
19176.25 r
1
14500 100
=+ Þ 
r
1.3225 1
100
=+
Þ 
13225 r
1
10000 100
=+ Þ 
115 r
1
100 100
=+
 Þ 
r 115
1
100 100
=-
Þ 
r 115 100
100 100
-
=
 Þ 
r 15
100 100
=
  Þ r = 15%
11. (c) Compound interest accrued half-yearly.
R = 20% yearly = 10% half-yearly
n = 2 years = 4 half-yearly
n
r
CIP11
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 
4
10
10000 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
 = 
4
11
10000 1
10
éù
æö
ê -ú
ç÷
èø êú
ëû
4
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= 
11 11 11 11 10 10 10 10
10000
10 10 10 10
´ ´ ´ -´ ´´ éù
êú
´´´ ëû
= 
14641 1000
10000
10000
- éù
êú
ëû
 = 
4641
10000
10000
éù
êú
ëû
 = ` 4641
12. (e) Required difference = 
2
R
P
100
æö
ç÷
èø
 = 
2
14
985
100
æö
ç÷
èø
= 
196
985 19.306
10000
´=
13. (d) Difference in amounts = 2977.54 – 2809 = ` 168.54
Now, we see that ` 168.54 is the interest on  ` 2809 in one
year (it is either simple or compound interest because both
are the same for a year).
Hence, rate of interest = 
168.54 100
6%
2809
´
=
Now, for the original sum,
2809 = 
2
6
1
100
x
æö
+
ç÷
èø
   or,
2
53
2809
50
x
æö
=
ç÷
èø
\
2809 50 50
2500
53 53
x
´´
==
´
`
14. (b)
2
6632.55 6250 1
100
t
æö
=+
ç÷
èø
or,
6632.55 51
625000 50
t
æö
=
ç÷
èø
  or,
663255 51
625000 50
t
æö
=
ç÷
èø
or,
132651 51
125000 50
t
æö
=
ç÷
èø
or   
3
51 51
50 50
t
æö æö
=
ç÷ ç÷
èø èø
\ t = 3
Hence, the time is 
3
22
t
=
15. (b) Whenever the relationship between CI and SI is asked for 3
years of time, we use the formula:
SI = 
CI
100 1 1
100
t
rt
r
´
éù
æö
+- êú
ç÷
èø ëû
3
53
150 CI
5
100 1 1
100
´
=´
éù
æö
+- êú
ç÷
èø ëû
9261 8000
150 100
8000
CI=
53
- éù
´
êú
ëû
´
150 100 1261 1261
157.62
5 3 8000 8
´´
= ==
´´
`
16. (b) Let the sum of money be Rs x.
Now , 
3
81
100
r
xx
æö
=+
ç÷
èø
or, 
3
3
1 (2)
100
r æö
+=
ç÷
èø
    or    
12
100
r
+=
Again, let the sum becomes 16 times in n years.
Then, 161
100
n
r
xx
æö
=+
ç÷
èø
Þ  
n
2 16 =   or 
n 4
2 2 = or 4 n =
17. (d) Required difference
= 
100
2 12 5000
5000
100
12
1 5000
2
´ ´
-
ú
ú
û
ù
ê
ê
ë
é
- ÷
ø
ö
ç
è
æ
+
= 1200 1
25
28
25
28
5000 - ÷
ø
ö
ç
è
æ
- ´
= 
784 625
5000 1200 Rs.72
625
- æö
-=
ç÷
èø
18. (d) Let the money borrowed be Rs x and the rate of interest
charged = r%
Time = 2 years
Now , 4000 = 
100
2 r x ´ ´
Þ r x = 200000 ............. (i)
Again, 
2
r
x 1 x 4200
100
æö
+ =+
ç÷
èø
Þ
 
2
2
4200
10000 100
xr xr
+=
or  20r + 4000 = 4200 [f ro m (i)]
or   r = 10%
19. (c)
n
100
r
1 P A ÷
ø
ö
ç
è
æ
+ = ; A = Amount
P = Principal ;  r  = rate of interest ; n = time
Required amount 
3
100
105
1000 ÷
ø
ö
ç
è
æ
=
= 
20
21
20
21
20
21
1000 ´ ´ ´
= Rs 1157.625
20. (b) Let the rate of interest be r %.
Therefore, 
4
3
1
2520 100
2400
1
100
r
r
æö
+
ç÷
èø
=
æö
+
ç÷
èø
Þ 
21
1
100 20
r
+=
  or r = 5%
Page 5


1
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1. Sudhanshu invested ` 15,000 at interest @ 10% p.a for one
year. If the interest is compounded every six months what
amount will Sudhanshu get at the end of the year?
(a) ` 16,537.50 (b) ` 16,5000
(c) ` 16,525.50 (d) ` 18,150
(e) None of these
2. What would be the compound interest obtained on an
amount of ` 1,250 at the rate of 8% p.a. after 2 year ?
(a) ` 200 (b) ` 208
(c) `212 (d) `220
(e) None of these
3. Shyam invests an amount of ` 5,690 at the rate of 5 per cent
per annum for 3 years. What approximate amount of
compound interest will he obtain at the end of 3 years?
(a) ` 854 (b) ` 799 (c) ` 843
(d) ` 787 (e) ` 897
4 . The simple interest accrued on an amount of ` 84,000 at the
end of three year is ` 30,240. What would be the compound
interest accrued on the same amount at the same rate in the
same period?
(a) ` 30,013.95 (b) ` 31,013.95
(c) ` 32,013.95 (d) ` 33,013.95
(e) ` 34,013-95
5 . What will be the difference between the compound interest
and simple interest at the rate of 5% p.a. on an amount of
` 4,000 at the end of two years?
(a) ` 10 (b) ` 20
(c) ` 30 (d) Data inadequate
(e) None of these
6. Pamela invested an amount of ` 35,000 for two year at the
rate of 5% p.a. What amount of compound interest would
she receive at the end of two year ?
(a) ` 3587.50 (b) ` 3500
(c) ` 3580.50 (d) ` 3565.50
(e) None of these
RESPONSE
GRID
1. a b c d e 2. a b c d e 3. a b c d e 4. a b c d e 5. a b c d e
6. a b c d e 7. a b c d e 8. a b c d e 9. a b c d e 10. a b c d e
11. a b c d e 12. a b c d e
Max. Marks : 25 No. of Qs. 25 Time : 20 min. Date : ........./......../................
7. Rohit invested some amount at the rate of 6 pcpa and at the
end of  3 yr he got ` 8730 simple interest. How much compound
interest he will get on same amount and same rate of interest
after 2 yr.
(a) ` 5820 (b) ` 5949.60
(c) ` 5900 (d) ` 5994.60
(e) None of these
8. Sonika invested an amount of  ` 5800 for 2 years. At what rate
of compound interest will she get an amount of  ` 594.5 at the
end of two years ?
(a) 5 p.c.p.a. (b) 4 p.c.p.a.
(c) 6 p.c.p.a. (d) 8 p.c.p.a.
(e) None of these
9. What would be the compound interest accrued on an amount
of  ` 7400 @ 13.5 p.c.p.a. at the end of two years ?
(Rounded off to two digits after decimal)
(a) ` 2136.87 (b) ` 2306.81
(c) ` 2032.18 (d) ` 2132.87
(e) None of these
10. If the compound interest accrued on an amount of  ` 14500 in
two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11 (b) 9
(c) 15 (d) 1 8
(e) None of these
11. What will be the compound interest accrued on an amount of
` 10000 @ per annum in two years if the interest is 20%
compounded half-yearly ?
(a) ` 4400 (b) ` 4600
(c) ` 4641 (d) ` 4680
(e) None of these
12. What will be the difference between the simple interest and
compound interest earned on a sum of ` 985.00 at the rate of
14% per annum at the end of two years ?
(a) ` 16.408 (b) ` 14.214
(c) ` 19.218 (d) ` 17.405
(e) None of these
One of the leading publishers in India, Disha Publication provides books and study materials for
schools and various competitive exams being continuously held across the country. Disha's sole
purpose is to encourage a student to get the best out of preparation. Disha Publication offers an
online bookstore to help students buy exam books online with ease. We, at Disha provide a wide
array of Bank / Engg./ Medical & Other Competitive Exam books to help all those aspirants who
wish to crack their respective different levels of Bank / Engg./ Medical & Other Competitive
exams. At Disha Publication, we strive to bring out the best guidebooks that students would find
to be the most useful for all kind of competitive exam.
ABOUT DISHA PUBLICATION
COMPOUND INTEREST
2
Buy books : http://www.dishapublication.com/entrance-exams-books/bank-exams.html
RESPONSE
GRID
13. a b c d e 14. a b c d e 15. a b c d e 16. a b c d e 17. a b c d e
18. a b c d e 19. a b c d e 20. a b c d e 21. a b c d e 22. a b c d e
23. a b c d e 24. a b c d e 25. a b c d e
13. A sum of money at compound interest amounts in two years
to ` 2809, and in three years to ` 2977.54. Find the rate of
interest and the original sum.
(a) 2000 (b) 2100
(c) 2200 (d) 2500
(e) 3000
14. In what time will 6250 amount to ` 6632.55 at 4 p.c. compound
interest payable half-yearly?
(a)
3
5
(b)
3
2
(c)
3
4
(d)
5
2
(e)
9
11
15. If the simple interest on a certain sum of money for 3 years at
5% is ` 150, find the corresponding CI.
(a) 1 97 (b) 157.62
(c) 137.36 (d) 117.17
(e) 127.34
16. A sum of money becomes eight times in 3 years if the rate is
compounded annually . In how much time, the same amount
at the same compound interest rate will become sixteen times?
(a) 6 years (b) 4 years
(c) 8 years (d) 5 years
(e) None of these
17. The difference between the simple interest and the compound
interest compounded annually at the rate of 12% per annum
on Rs 5000 for two years will be :
(a) Rs 47.50 (b) Rs 63
(c) Rs 45 (d) Rs 72
(e) None of these
18. Rahul borrowed a certain sum from Dhawan at a certain rate
of simple interest for 2 years. He lent this sum to Ramesh at
the same rate of interest compounded annually for the same
period. At the end of two years, he received Rs 4200 as
compound interest but paid Rs 4000 only as simple interest.
Find the rate of interest.
(a) 12% (b) 25%
(c) 35% (d) 10%
(e) None of these
19. What will Rs 1000 be worth after three years if it earns interest
at the rate of 5% compounded annually ?
(a) Rs 1075 (b) Rs 1257
(c) Rs 1157 (d) Rs 1300
(e) None of these
20. A sum of money invested at compound interest amounts in
3 years to Rs 2,400 and in 4 years to Rs. 2,520. The interest
rate per annum is :
(a) 6% (b) 5%
(c) 1 0% (d) 12%
(e) None of these
21. A computer is available for Rs. 39,000 cash or Rs. 17,000 as
cash down payment followed by five monthly installments
of Rs. 4,800 each. What is the rate of interest under the
instalment plan ?
(a) 35.71% p.a. (b) 37.71% p.a.
(c) 36.71% p.a. (d) 38.71% p.a.
(e) None of these
22. Under the Rural Housing Scheme, the Delhi Development
Authority (DDA) allotted a house to Kamal Raj for Rs.
1,26,100. This payment is to be made in three equal annual
instalments. If the money is reckoned at 5% per annum
compound interest, then how much is to be paid by Kamal
Raj in each instalment ?
(a) Rs. 45,205 (b) Rs. 47,405
(c) Rs. 46,305 (d) Rs. 48,505
(e) None of these
23. A finance company declares that, at a certain compound
interest rate, a sum of money deposited by anyone will
become 8 times in three years. If the same amount is deposited
at the same compound rate of interest, then in how many
year will it become 16 times ?
(a) 5 years (b) 4 years
(c) 6 years (d) 7 years
(e) None of these
24. Seema invested an amount of Rs. 16,000 for two years on
compound interest and received an amount of Rs. 17,640 on
maturity . What is the rate of interest ?
(a) 5 % pa (b) 8 % pa
(c) 4 % pa (d) Data inadequate
(e) None of these
25. Two friends A and B jointly lent out Rs. 81,600 at 4% per
annum compound interest. After 2 years A gets the same
amount as B gets after 3 years. The investment made by B
was
(a) Rs. 40,000 (b) Rs. 30,000
(c) Rs. 45,000 (d) Rs. 38,000
(e) None of these
3
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HINTS & SOLUTIONS
1. (a) Required Amount = 15000
2
5
1
100
æö
+
ç÷
èø
 =  ` 16537.50
2. ( b) Compound interest Amount = Principal
Time
Rate
11
100
éù
æö
+-
êú
ç÷
èø êú
ëû
2
8
1250 1 1
100
108108 100100
1250
100100
éù
æö
= +-
êú
ç÷
èø
êú
ëû
æö ´ -´
=´
ç÷
´
èø
12501664
208
10000
´
==`
3. (e) Amount = Principal  
Time
Rate
1
100
æö
+
ç÷
èø
= 5690
3
5
1
100
æö
+
ç÷
èø
 = 5690 × 
21 21 21
20 20 20
´´
= `6586.90
\ Compound interest = `(6586.9 – 5690)  = `896.9 »
8 97
4. (e) Rate
30240 100
12%
84000 3
´
==
´
Compound interest
= 84000
3
12
1
100
æö
+
ç÷
èø
–  84000
= 118013.95 – 84000 = ` 34013.95
5. (a) Simple interest  = 
4000 5 2
100
´´
 = ` 400
Compound interest
= 
2
5
4000 1 4000
100
æö
+-
ç÷
èø
= 
4000 105 105
4000
100 100
´´
-
´
 = 4410 – 4000 = ` 410
\  Difference = 410 – 400  = ` 10
6. (a) Compound interest  =
2
5
35000 1
100
æö
+
ç÷
èø
– 35000
= 38587.50 – 35000 = ` 3587.50
7. (d) Principle = 
8730 100
48500
63
´
=
´
Compound Interest 
2
6
48500 1 1
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 48500 × 0.1236 = ` 5994.60
8. (a) 594.5 = 
2
r
5800 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
594.5 r
11
5800 100
æö
=+-
ç÷
èø
Þ 0.1025 + 1 = 
2
r
1
100
æö
+
ç÷
èø
Þ
( )
2
100r
1.1025
10000
+
=
Þ 1.1025 × 10000 = (100 + r)
2
.
Þ 11025 = (100 + r)
2
.
Þ 105 = 100 + r
\ r = 5%
9. (d) Compound interest = 
2
27
7400 1 1
200
éù
æö
ê + -ú
ç÷
èø êú
ëû
= 
2
227
7400 1
200
éù
æö
ê -ú
ç÷
èø êú
ëû
= 
227 227 200 200
7400
200 200
´ -´ éù
êú
´
ëû
= 
51529 40000
7400
40000
- éù
êú
ëû
= 
11529
7400
40000
´
= 2132.865 = ` 2132.87
10. (c)
T
r
C.I.P11
100
éù
æö
= +- êú
ç÷
èø êú
ëû
4676.25 = 14500
2
r
11
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
Þ 
2
4676.25 r
11
14500 100
æö
=+-
ç÷
èø
  Þ 
2
4676.25 r
11
14500 100
æö
+=+
ç÷
èø
Þ 
2
4676.25 14500 r
1
14500 100
+ æö
=+
ç÷
èø
Þ 
19176.25 r
1
14500 100
=+ Þ 
r
1.3225 1
100
=+
Þ 
13225 r
1
10000 100
=+ Þ 
115 r
1
100 100
=+
 Þ 
r 115
1
100 100
=-
Þ 
r 115 100
100 100
-
=
 Þ 
r 15
100 100
=
  Þ r = 15%
11. (c) Compound interest accrued half-yearly.
R = 20% yearly = 10% half-yearly
n = 2 years = 4 half-yearly
n
r
CIP11
100
éù
æö
= ê + -ú
ç÷
èø êú
ëû
= 
4
10
10000 1 1
100
éù
æö
ê + -ú
ç÷
èø êú
ëû
 = 
4
11
10000 1
10
éù
æö
ê -ú
ç÷
èø êú
ëû
4
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= 
11 11 11 11 10 10 10 10
10000
10 10 10 10
´ ´ ´ -´ ´´ éù
êú
´´´ ëû
= 
14641 1000
10000
10000
- éù
êú
ëû
 = 
4641
10000
10000
éù
êú
ëû
 = ` 4641
12. (e) Required difference = 
2
R
P
100
æö
ç÷
èø
 = 
2
14
985
100
æö
ç÷
èø
= 
196
985 19.306
10000
´=
13. (d) Difference in amounts = 2977.54 – 2809 = ` 168.54
Now, we see that ` 168.54 is the interest on  ` 2809 in one
year (it is either simple or compound interest because both
are the same for a year).
Hence, rate of interest = 
168.54 100
6%
2809
´
=
Now, for the original sum,
2809 = 
2
6
1
100
x
æö
+
ç÷
èø
   or,
2
53
2809
50
x
æö
=
ç÷
èø
\
2809 50 50
2500
53 53
x
´´
==
´
`
14. (b)
2
6632.55 6250 1
100
t
æö
=+
ç÷
èø
or,
6632.55 51
625000 50
t
æö
=
ç÷
èø
  or,
663255 51
625000 50
t
æö
=
ç÷
èø
or,
132651 51
125000 50
t
æö
=
ç÷
èø
or   
3
51 51
50 50
t
æö æö
=
ç÷ ç÷
èø èø
\ t = 3
Hence, the time is 
3
22
t
=
15. (b) Whenever the relationship between CI and SI is asked for 3
years of time, we use the formula:
SI = 
CI
100 1 1
100
t
rt
r
´
éù
æö
+- êú
ç÷
èø ëû
3
53
150 CI
5
100 1 1
100
´
=´
éù
æö
+- êú
ç÷
èø ëû
9261 8000
150 100
8000
CI=
53
- éù
´
êú
ëû
´
150 100 1261 1261
157.62
5 3 8000 8
´´
= ==
´´
`
16. (b) Let the sum of money be Rs x.
Now , 
3
81
100
r
xx
æö
=+
ç÷
èø
or, 
3
3
1 (2)
100
r æö
+=
ç÷
èø
    or    
12
100
r
+=
Again, let the sum becomes 16 times in n years.
Then, 161
100
n
r
xx
æö
=+
ç÷
èø
Þ  
n
2 16 =   or 
n 4
2 2 = or 4 n =
17. (d) Required difference
= 
100
2 12 5000
5000
100
12
1 5000
2
´ ´
-
ú
ú
û
ù
ê
ê
ë
é
- ÷
ø
ö
ç
è
æ
+
= 1200 1
25
28
25
28
5000 - ÷
ø
ö
ç
è
æ
- ´
= 
784 625
5000 1200 Rs.72
625
- æö
-=
ç÷
èø
18. (d) Let the money borrowed be Rs x and the rate of interest
charged = r%
Time = 2 years
Now , 4000 = 
100
2 r x ´ ´
Þ r x = 200000 ............. (i)
Again, 
2
r
x 1 x 4200
100
æö
+ =+
ç÷
èø
Þ
 
2
2
4200
10000 100
xr xr
+=
or  20r + 4000 = 4200 [f ro m (i)]
or   r = 10%
19. (c)
n
100
r
1 P A ÷
ø
ö
ç
è
æ
+ = ; A = Amount
P = Principal ;  r  = rate of interest ; n = time
Required amount 
3
100
105
1000 ÷
ø
ö
ç
è
æ
=
= 
20
21
20
21
20
21
1000 ´ ´ ´
= Rs 1157.625
20. (b) Let the rate of interest be r %.
Therefore, 
4
3
1
2520 100
2400
1
100
r
r
æö
+
ç÷
èø
=
æö
+
ç÷
èø
Þ 
21
1
100 20
r
+=
  or r = 5%
5
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21. (d) Cash Price  (C.P .)= Rs. 39,000
Cash Down Payment (D.P .) = Rs. 17000
Balance Due  (B.D) = Rs. 22000
P = V alue of Instalment = Rs. 4800
n = No. of Instalments = 5
R = Rate of interest
Q
  
nR (n 1)R
1 BD 1 nP
1200 2400
- æ ö ìü
+ =+
íý ç÷
è ø îþ
\  
5R
1 22000
1200
æö
+
ç÷
èø
 = 
4800 5
2400
R 4
1 ´
þ
ý
ü
î
í
ì
+
Þ  
5R
1 11
1200
æö
+
ç÷
èø
 = 
4R
1 12
2400
ìü
+
íý
î þ
Þ  
55R 24R
11 12
1200 1200
+ =+
Þ   
55R 24R 31R
11
1200 1200 1200
- =Þ=
Þ  R = 
1200
38.71%
31
=
22. (c) Let the amount of each instalment be Rs. x.
Amount of Rs. 100 for 3 years 
3
5
1001
100
æö
=+
ç÷
èø
= 
21 21 21
100
20 20 20
´´´ = Rs.
9261
80
Present value of Rs. 
9261
80
 due after 3 years = Rs. 100
Present value of Rs. x due after 3 years
= 
100 80
9261
´
´ x = Rs. 
8000x
9261
Amount of Rs. 100 for 2 years = 
2
5
100 1
100
æö
+
ç÷
èø
          =
21 21 441
100
20 20 4
´ ´=
Present value of Rs. x due after 2 years = Rs. 
400
x
441
Similarly , present value of Rs. x due after 1 year
                        = Rs.
21
x
20
\
  
8000 400 20
x x x 126100
9261 441 21
+ +=
Þ  8000x + 8400x + 8820x = 126100 × 9261
Þ  25220x = 126100 × 9261
Þ  x = 
126100 9261
Rs 46305
25220
´
=
23. (b) Given 
3
r
8P P1
100
æö
=+
ç÷
èø
Where P = Principal amount,
r = Compound interest rate
r 100% Þ=
\ let the time in which the principal amount
becomes 16 times be n
Then 16P 
n
100
P1
100
æö
=+
ç÷
èø
Þ 16 
n
2 n 4yrs. = Þ=
24. (a) Amount = Rs. 17640,  Principal = Rs. 16000
Time = 2 yrs,  Rate = R
17640 = 16000
2
R
1
100
æö
+
ç÷
èø
2
17640 R
1
16000 100
æö
Þ =+
ç÷
èø
 
2
R
1.1025 1
100
æö
Þ =+
ç÷
èø
R
1 1.05
100
Þ+= 
R
1.05 –1 0.05
100
Þ == 
Þ
 R = 5%
25. (a) Let A lent Rs. x and B lent Rs. y
Since, A and B together lent out Rs. 81600
\ x + y = 81,600
Now , given (r) Rate = 4%
\  
4 26
1 r1
100 25
+=+=
According to the question, we have
3–2
x 26 26
y 25 25
æö
==
ç÷
èø
\ Investment made by B = 
25
81600 40, 000
51
´=