# Practice Test: Question Set - 03

1. For how many years should Rs. 1200 be invested at 10% p.a in order to earn the same simple interest as is earned by investing Rs. 1800 at 12% p.a for 5 years?
(A) 9
(B) 10
(C) 11
(D) 12

2. The simple interest on a certain sum of money for 4 years at 4 percent per annum exceeds the compound interest on the same sum for 3 years at 5 percent per annum by Rs. 57. Find the sum.
(A) Rs. 24,000
(B) Rs. 12,500
(C) Rs. 26,700
(D) Rs. 23,050

3. A sum of Rs. 15,500 was lent partly at 5% at partly at 8% p.a. simple interest. The total interest received after 3 years was Rs. 3000. The ratio of money lent at 5% to that lent at 8% is:
(A) 8 : 5
(B) 5 : 8
(C) 31 : 6
(D) 16 : 15

4. A tree increases annually by one-fourth of its height. By how much will it increase after 2 years, if it stands today 64 cm high?
(A) 76 cm
(B) 80 cm
(C) 100 cm
(D) 105 cm

5. The difference between compound interest and simple interest on certain sum of money in 2 years at 4% per annum is Rs. 50. Find the sum;
(A) Rs. 30,550
(B) Rs. 31,250
(C) Rs. 25,670
(D) Rs. 35,400

6. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
(A) 3
(B) 4
(C) 5
(D) 6

7. The simple interest on a sum of money will be Rs.6000 after 10 years. If the principal is triple after 5 years, what will be total interest at the end of the 10th year?
(A) Rs. 6000
(B) Rs. 9000
(C) Rs. 12,000
(D) Rs.15,000

8. A sum doubles in 20 years at simple interest. How much is the rate per annum?
(A) 5%
(B) 4%
(C) 12%
(D) 6⅔ %

9. In how many years will a sum of Rs. 8000 at 10% per annum compounded semi-annually become Rs. 9261?
(A) 2½
(B) 1½
(C) 2⅓
(D) 1⅓

10. A certain sum lent out at simple Interest and the true discount on a certain sum for 1 year at 5% is Rs. 1. Find the sum:
(A) Rs. 400
(B) Rs. 420
(C) Rs. 450
(D) Rs. 500

11. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
(A) Rs. 625
(B) Rs. 630
(C) Rs. 640
(D) Rs. 650

12. An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:
(A) 10%
(B) 10.25%
(C) 10.5%
(D) None of these

13. Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
(A) Rs. 1550
(B) Rs. 1650
(C) Rs. 1750
(D) Rs. 2000

14. The difference between the compound interest and the simple interest on a certain sum at 10% per annum for two years is Rs. 60. Find the sum.
(A) Rs. 6,000
(B) Rs. 6,200
(C) Rs. 8,000
(D) Rs. 8,200

15. What is the difference between the compound interests on Rs. 5000 for 1½ years at 4% per annum compounded yearly and half-yearly?
(A) Rs. 2.04
(B) Rs. 3.06
(C) Rs. 4.80
(D) Rs. 8.30

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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