# Practice Test: Question Set - 02

**1. The simple interest on Rs. 18,200 from March 9th 2001 to May 21st, 2001 at 7**

^{1}/_{2 }% rate will be:- (A) Rs. 290

- (B) Rs. 273

- (C) Rs. 288

- (D) Rs. 225

**2. A man borrowed Rs. 8000 at 10% per annum simple interest and immediately lent the whole sum at 10% per annum compound interest. What does he gain at the end of 2 years?**

- (A) Rs. 60

- (B) Rs. 80

- (C) Rs. 100

- (D) Rs. 120

**3. A sum of money was lent at simple interest at 11% p.a. for 3½ years and 4½ years respectively. If the difference in interests for two periods was Rs. 5500, then the sum is:**

- (A) Rs. 50,050

- (B) Rs. 55,000

- (C) Rs. 50,000

- (D) Rs. 50,500

**4. The compound interest on Rs. 5600 for 1½ years at 10% per annum, compounded annually, is:**

- (A) Rs. 882.70

- (B) Rs. 873.50

- (C) Rs. 868

- (D) Rs. 840

**5. The difference between the interests received from ICICI bank and HDFC bank on Rs. 500 for 2 years is Rs. 2.50. The difference between their rates is:**

- (A) 1%

- (B) 0.5%

- (C) 0.25%

- (D) 2.5%

**6. A sum of Rs. 11,000 was taken as a loan. This is to be repaid in two equal installments. If the rate of interest be 20% compounded annually, then the value of each installment is:**

- (A) Rs. 8420

- (B) Rs. 7920

- (C) Rs. 7200

- (D) Rs. 7000

**7. A person borrowed Rs. 1500 at the rate of 5% per annum S.I. What amount will he pay to clear the debt after 4 years?**

- (A) Rs. 2000

- (B) Rs. 1880

- (C) Rs. 1800

- (D) Rs. 1600

**8. In how many years will a sum of money double itself at 4% per annum?**

- (A) 8 years

- (B) 16 years

- (C) 12 years

- (D) 25 years

**9. A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:**

- (A) 5%

- (B) 8%

- (C) 12%

- (D) 15%

**10. The difference in simple interest at 13% and 12% p.a. of a sum in one year is Rs. 110. Then the sum is:**

- (A) Rs. 13,000

- (B) Rs. 15,000

- (C) Rs. 10,000

- (D) Rs. 11,000

**11. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?**

- (A) 6%

- (B) 6.5%

- (C) 7%

- (D) 7.5%

**12. What is the principal amount which earns Rs. 1320 as compound interest for the second year at 10%**

- (A) Rs. 10000

- (B) Rs. 12000

- (C) Rs. 13200

- (D) Rs. 11880

**13. Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5% p.a. How much amount will Albert get on maturity of the fixed deposit?**

- (A) Rs. 8600

- (B) Rs. 8620

- (C) Rs. 8820

- (D) None of
these

**14. A man borrows Rs. 4,000 at 8% per annum on compound interest. At the end of every year he pays Rs. 1,500 as part payment of loan and interest. How much does he still owe to the bank after 3 such annual payments?**

- (A) Rs. 1,799

- (B) Rs. 169.25

- (C) Rs. 2,000

- (D) Rs. 234

**15. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?**

- (A) 8%

- (B) 10%

- (C) 12%

- (D) None
of these

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__Simple and Compound Interest:__**Formula: Simple and Compound Interest Formulas**

**Solved Examples: Solved Examples: Set 01**

**Practice Test: Practice Test: 01 Practice Test: 02 Practice Test: 03**

**Practice Test: 04 Practice Test: 05 Practice Test: 06**

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