a2zinterviews

9.	If the simple interest on a sum of money at 5% per annum for 3 years is Rs.1200, find the compound interest on the same sum for the same period at the same rate.
	A.  1251
	B.  1261
	C.  1271
	D.  1281

Solution

Clearly, Rate = 5% p.a. Time = 3 years S.I =Rs.1200. So,Principal =Rs.(100 x 1200/3x5) =Rs.8000. Amount =Rs.[8000 x (1+5/100)³] =Rs(8000x21/20x21/20x21/20) = Rs.9261 C.I =Rs.(9261-8000) =Rs.1261.

10.	What will be the compound interest on a sum of Rs.25,000 after 3 years at the rate of 12 p.c.p.a?
	A.  Rs.9000.30
	B.  Rs. 9720
	C.  Rs. 10123.20
	D.  Rs. 10483.20

Solution

Amount = Rs.(25000x(1+12/100)³ =Rs.(25000x28/25x28/25x28/25) = Rs. 35123.20. C.I =Rs(35123.20-25000) =Rs.10123.20.

11.	The compound interest on Rs.30,000 at 7% per annum is Rs.4347. The period (in years) is
	A.  2
	B.  2½
	C.  3
	D.  4

Solution

Amount =Rs(30000 + 4347) = Rs.34347. Let the time be n years. Then, 30000(1+7/100)^n = 34347. =34347/3000 =11449/1000 =(107/100)^n n= 2years.

12.	The present worth of Rs.169 due in 2 years at 4% per annum compound interest is
	A.  Rs.150.50
	B.  Rs.154.75
	C.  Rs.156.25
	D.  Rs.158

Solution

Present Worth = Rs.[169/(1+4/100)²] = Rs.(169x25/26x25/26) = Rs.156.25