# Practice Test: Question Set - 06

**1. If the compound interest on a certain sum for 3 years at 20% per annum is Rs. 728, find the simple interest.**

- (A) Rs.900

- (B) Rs.200

- (C) Rs.300

- (D) Rs.600

**2. What will be the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years?**

- (A) 1 : 3

- (B) 1 : 4

- (C) 2 : 3

- (D) None of
these

**3. A man invested**

^{1}/_{3}of his capital at 7%, ¼ at 8% and the remainder at 10%. If his annual income is Rs. 561, the capital is?- (A) Rs. 5,600

- (B) Rs. 4,650

- (C) Rs. 6,900

- (D) Rs. 6,600

**4. A sum of money placed at compound interest doubles itself in 5 years. It will amount to gain eight times itself in:**

- (A) 10 years

- (B) 12 years

- (C) 15 years

- (D) 20 years

**5. What sum of money lent out at compound interest will amount to Rs. 968 in 2 years at 10% per annum, interest being charged annually?**

- (A) Rs. 900

- (B) Rs. 825

- (C) Rs. 780

- (D) Rs. 800

**6. The rates of simple interest in ICICI and HDFC bank are in the ratio 5:4. A person wants to deposit his total savings in two banks in such a way that he received equal half yearly interest from both. He should deposit the savings in ICICI and HDFC bank in the ratio:**

- (A) 2 : 5

- (B) 4 : 5

- (C) 5 : 2

- (D) 5 : 4

**7. A sum of Rs. 1600 lent at simple interest at 12.5% per annum will become double in**

- (A) 6 years

- (B) 7½ years

- (C) 8 years

- (D) 9¼ years

**8. At what rate percent per annum will a sum of Rs. 3,600 become Rs. 4,500 in 10 years at simple interest?**

- (A) 5 %

- (B) 2.5 %

- (C) 10 %

- (D) 6.75 %

**9. Find out the capital required to earn a monthly interest of Rs. 600 at 6% simple interest.**

- (A) Rs. 1 lakh

- (B) Rs. 1.2
lakhs

- (C) Rs.
1.1 lakhs

- (D) Rs. 1.3
lakhs

**10. The cost of a machine is estimated to be decreasing at the rate of 15% every year. If it costs Rs. 6,000 now, what will be the estimated value of the machine after 2 years?**

- (A) Rs. 3,750

- (B) Rs. 4,335

- (C) Rs. 3,225

- (D) Rs. 5,000

**11. A man borrows Rs. 4,000 from a bank at 7½ % interest. At the end of every year, he pays Rs. 1,500 as part repayment of loan and interest. How much does he still owe to the Bank after 3 such annual payments?**

- (A) Rs. 123.25

- (B) Rs. 25

- (C) Rs. 124.25

- (D) Rs. 125

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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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