Chapter – 7 (Compound interest)

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 : –

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