Question : The simple interest accrued on a certain principal is Rs. 1200 in 3 years at 8% per annum. What would be the compound interest (compounding annually) accrued on twice that principal at 10% per annum in 2 years?
Option 1: Rs. 1,050
Option 2: Rs. 2,150
Option 3: Rs. 2,100
Option 4: Rs. 1,100
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Correct Answer: Rs. 2,100
Solution : Let the principal be Rs. $x$. Time = 3 years Rate = 8% per annum Simple interest after T years = $\frac{\text{Principal × Rate × Time}}{100}$ $⇒1200 = \frac{x \times 8 \times 3}{100}$ $\therefore x = 5000$ Now Principal, $P$ = Rs. 5000 × 2 = Rs. 10,000 Rate, $R$ = 10% Time, $n$ = 2 years $\therefore$ Compound Interest = $P[(1+\frac{R}{100})^{n}-1]$ = $[10000(1+\frac{10}{100})^{2}-1]$ = Rs. 2,100 Hence, the correct answer is Rs. 2,100.
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Question : At a certain sum of money with the interest rate of 6% per annum for 4 years, the simple interest is Rs. 4500. Find the compound interest (compounding annually) of 2 years at the same sum when the rate of interest is 4% per annum.
Option 1: Rs. 1,530
Option 2: Rs. 1,430
Option 3: Rs. 1,830
Option 4: Rs. 1,560
Question : At what rate of compound interest (compounding annually) per annum will a sum of Rs. 1,000 become Rs. 1,060.90 in 2 years?
Option 1: 2% per annum
Option 2: 4% per annum
Option 3: 3% per annum
Option 4: 5% per annum
Question : A sum of Rs. 2,000 becomes Rs. 3,120 in two years at a certain rate of simple interest. What is the rate of interest per annum?
Option 1: 34% per annum
Option 2: 33% per annum
Option 3: 30% per annum
Option 4: 28% per annum
Question : A person borrows Rs. 20000 at the rate of 6% per annum on simple interest for 3 years. He immediately lends it to another person at the rate of 8.5% per annum on simple interest for 3 years. What is the value of gain per year?
Option 1: Rs. 1500
Option 2: Rs. 500
Option 3: Rs. 800
Option 4: Rs. 200
Question : A certain sum was invested at the rate of 10% for 2 years at Compound interest and compounded annually. The same sum was invested for the same period and the same rate of interest at Simple interest. If the difference between Compound interest and Simple interest was Rs. 200 find the sum.
Option 1: Rs. 30,000
Option 2: Rs. 25,000
Option 3: Rs. 22,000
Option 4: Rs. 20,000
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