Question : The compound interest on INR 18,000 at 7% per annum, compounded annually, is INR 1,260. What is the period?
Option 1: 1 year
Option 2: 2 years
Option 3: 3 years
Option 4: 4 years
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Correct Answer: 1 year
Solution : Use : A = P × $[1+ \frac{R}{100}]^{t}$ A = CI + P, where A = Amount, CI = Compound interest, P = Principal, R = Rate of interest, t = time According to the question ⇒ A = CI + P = 1260 + 18000 = Rs.19,260 ⇒ 19260 = 18000 × $[1+ \frac{7}{100}]^{t}$ ⇒ 19260 = 18000 × $[1.07]^{t}$ ⇒ [1.07]$^{t}$ = $\frac{19260}{18000}$ ⇒ [1.07]$^{t}$ = 1.07 ⇒ t = 1 Hence, the correct answer is 1 year
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Question : The simple interest on a certain sum of money for 2 years at 7% per annum is double the compound interest on INR 1,000 for 2 years at 10% per annum, compounded annually. What is the sum placed on simple interest?
Option 1: INR 1,000
Option 2: INR 2,000
Option 3: INR 3,000
Option 4: INR 4,000
Question : The compound interest received on INR 18,000 for 2 years is INR 7,920 when the interest is compounded annually. What is the rate of interest per annum?
Option 1: 15%
Option 2: 12.5%
Option 3: 20%
Option 4: 25%
Question : On a certain sum of money, the simple interest for 2 years is INR 150 at the rate of 10% per annum. What is the difference between compound interest and simple interest for 2 years if, in the case of compound interest, interest is compounded annually at the rate of 10% per annum?
Option 1: INR 5
Option 2: INR 10
Option 3: INR 7.5
Option 4: INR 12.5
Question : Raja borrowed INR 15,000 on simple interest at the rate of 13% per annum and lent it on compound interest at the rate of 15% per annum, compounded annually. What is Raja's gain in two years?
Option 1: INR 1,080.00
Option 2: INR 1,125.00
Option 3: INR 937.50
Option 4: INR 865.50
Question : The difference between the simple interest and the compound interest at the same rate for INR 32,000 for 2 years is 80. What is the rate of interest, if in the case of compound interest, interest is compounded annually?
Option 1: 8% per annum
Option 2: 2% per annum
Option 3: 5% per annum
Option 4: 12% per annum
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