# 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**

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