*Questions With Solution*

**1. **A sum of money borrowed under compound interest doubles itself in **10** years. When will it become fourfold of itself at the same rate of interest?

**A. 5 years B. 20 years C. 24 years D. 40 years**

Solution : –

**2. **A sum of money on compound interest amounts to Rs. 10648 in 3 years and Rs. 9680 in 2 years. The rate of interest per annum is-

**A. 5% B. 10% C. 15% D. 20%**

Solution : –

**3. **The difference between the compound and the simple interest on a sum for **2** years at **10% **per annum, when the interest is compounded annually, is Rs. **28** If the yearly interest were compounded half-yearly, then the difference in the two interests will be-

**A. 44 B. 43.40 C. 28.35 D. 43.10**

Solution : –

**4. **A sum of Rs. **6000 **is deposited under compound interest for **3 **years at **5% **per annum. What will be the difference of interest between **3 **years and **2** years**?**

**A. 75.00 B. 30.75 C. 330.75 D. 375.00**

Solution : –

**5. **A certain sum becomes Rs. **5832 **in **2** years at **8%** per annum compound interest, the sum is-

**A. 5000 B. 5200 C. 5280 D. 5400**

Solution : –

**6. **At a certain rate per annum, the simple interest on a sum of money for one year is Rs. **260 **and the compound interest on the same sum for two years is Rs. **540.80.** The rate of interest per annum is-

**A. 4% B. 6% C. 8% D. 10%**

Solution : –

**7. **A sum of Rs. **3200 **invested at **10% **per annum compounded quarterly amounts to Rs. **3362.** Find the duration of that investment

**A. 1/2 Years B. 2 Years C. 1 Years D. 3/4 Years**

Solution : –

**8. **The compound interest of **2** years at **5% **per annum on a centain sum of money is Rs. 410. What is the simple interest on the same amount for the same rate and time?

**A. 400 B. 300 C. 350 D. 405**

Solution : –