Simple And Compound Interest Including Annuity - Applications

20 Questions  I  By Sweetsalman123 on March 19, 2012
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1.  A company borrows Rs. 10000 on condition to repay it with compound interest at 5%p.a. by annual installments of Rs. 1000 each. The number of years by which the debt will be clear is
A.
B.
C.
D.
2.  The present value of an annuity of Rs. 80 a years for 20 years at 5% p.a is
A.
B.
C.
D.
3.  The C.I on Rs. 16000 for 1 Vi years at 10% p.a payable half -yearly is 
A.
B.
C.
D.
4.  Mr. X borrowed Rs. 5120 at 12 % % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is  
A.
B.
C.
D.
5.  A sum of money amount to Rs. 6200 in 2 years and Rs. 7400 in 3 years. Theprincipal and rate of interest are        
A.
B.
C.
D.
6.  A person desires to create a fund to be invested at 10% CI per annum to provide for a prize of Rs. 300 every year. Using V = a/I find V and V will be
A.
B.
C.
D.
7.  A person bought a house paying Rs. 20000 cash down and Rs. 4000 at the end of each year for 25 yrs. at 5% p.a. C.I. The cash down price is
A.
B.
C.
D.
8.  Mr. Paul borrows Rs. 20000 on condition to repay it with C.I. at 5% p.a in annq installments of Rs. 2000 each. The number of years for the debt to be paid off is
A.
B.
C.
D.
9.  The amount of an annuity certain of Rs. 150 for 12 years at 3.5% p.a C.I is 
A.
B.
C.
D.
10.  The effective rate of interest corresponding to a nominal rate 3% p.a payable half yearly is 
A.
B.
C.
D.
11.  P = Rs. 10000, I = Rs. 2500, R = 12«math xmlns=¨http://www.w3.org/1998/Math/MathML¨»«mfrac»«mn»1«/mn»«mn»2«/mn»«/mfrac»«/math» % SI. The number of years T will be Options: A.1«math xmlns=¨http://www.w3.org/1998/Math/MathML¨»«mfrac»«mn»1«/mn»«mn»2«/mn»«/mfrac»«/math» years B.2 years C.3 years D.None of these
A.
B.
C.
D.
12.  The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a C.I. annually is 
A.
B.
C.
D.
13.  If P = Rs. 1000, R = 5% p.a, n = 4; What is Amount and C.I. is 
A.
B.
C.
D.
14.  If the amount of an annuity after 25 years at 5% p.a C.I is Rs. 50000 the annuity will be
A.
B.
C.
D.
15.  P = Rs. 12000, A = Rs. 16500, T = 2«math xmlns=¨http://www.w3.org/1998/Math/MathML¨»«mfrac»«mn»1«/mn»«mn»2«/mn»«/mfrac»«/math»  years. Rate percent per annum simple interest  will be
A.
B.
C.
D.
16.  The effective rate of interest corresponding a nominal rate of 7% p.a convertible quarterly is
A.
B.
C.
D.
17.  If P = Rs. 4500, A = Rs. 7200, than Simple interest i.e. I will be 
A.
B.
C.
D.
18.  Rs. 100 will become after 20 years at 5% p.a compound interest amount
A.
B.
C.
D.
19.  Given annuity of Rs. 100 amounts to Rs. 3137.12 at 4.5% p.a C. I. The number of years will be
A.
B.
C.
D.
20.  A man purchased a house valued at Rs. 300000. He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is [Given log 10.6 = 1.0253 and log 31.19 - 1.494]
A.
B.
C.
D.
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