(IGP) IAS Pre Paper - 2: GS - Basic Numeracy - Compound Interest (MCQ -14)

1. The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?
(a) 8
(b) 11
(c) 12
(d) None of these

2. The difference between simple and compound interests and compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
(a) 625
(b) 620
(c) 640
(d) 660

3. The compound interest on a sum of money for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound interest and the simple interest for 3 years will be:
(a) Rs. 50
(b) Rs. 67
(c) Rs. 98.56
(d) Rs. 75.45

4. The difference between the simple interest on a certain sum at the rate of 10% per annum for 2 years and compound interest which is compounded every 6 months is Rs. 124.05. What is the principal sum?
(a) Rs. 9000
(b) Rs. 8000
(c) Rs. 10,000
(d) Rs. 13,000

5. The difference between compound interest and simple interest on a sum for 2 years at 10% per annum, when the interest is compounded annually is Rs. 16. If the interest were compounded half-yearly, the difference in two interests would be:
(a) Rs. 24.81
(b) Rs. 30
(c) Rs. 31.61
(d) Rs. 35

6. A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs. 482 more, if the interest was payable half-yearly than if it was payable annually. The sum is:
(a) Rs. 12,000
(b) Rs. 20,000
(c) Rs. 40,000
(d) Rs. 60,000

7. On a sum of money, the simple interest for 2 years is Rs. 660, while the compound interest is Rs. 696.30, the rate of interest being the same in both the cases. The rate of interest is:
(a) 13%
(b) 14%
(c) 12%
(d) 11%

8. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is:
(a) 6.10%
(b) 6.11%
(c) 6.08%
(d) 6.09%

10. Mr. Dua investedmoney in two schemes A and B offering compound interest @ 8 p.c.p.a. and 9 p.c.p.a. respectively. If the total amount of interest accrued through two schemes together in two years was Rs. 4818.30 and the total amount invested was Rs. 27,000, what was the amount invested in Scheme A?
(a) Rs. 12,000
(b) Rs. 14,500
(c) Rs. 16,000
(d) cannot be determined

11. Sum of money becomes Rs. 13,380 after 3 years and Rs. 20,070 after 6 years on compound interest. The sumis:
(a) Rs. 9200
(b) Rs. 9000
(c) Rs. 8920
(d) Rs. 9040

12. A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20 years, it will become:
(a) Rs. 1,10,000
(b) Rs. 1,30,000
(c) Rs. 1,24,000
(d) Rs. 1,92,000

13. A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself at the same rate of interest in:
(a) 7 years
(b) 12 years
(c) 15 years
(d) 30 years

14. If a sum on compound interest becomes three times in 4 years, then with the same interest rate, the sum will become 27 times in:
(a) 11 years
(b) 12 years
(c) 24 years
(d) 38 years

15. The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:
(a) 7
(b) 4
(c) 5
(d) 8

16. A man borrows Rs. 2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly instalments. How much will each instalment be?
(a) Rs. 1275
(b) Rs. 1383
(c) Rs. 1352
(d) Rs. 1287

17. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
(a) Rs. 650
(b) Rs. 551.25
(c) Rs. 560
(d) Rs. 660.75

18. A man borrows Rs. 12,500 at 20% compound interest. At the end of every year he pays Rs. 2000 as part repayment. How much does he still owe after three such instalments?
(a) Rs. 14,000
(b) Rs. 13,684
(c) Rs. 15,600
(d) None of these

19. A sum of money is borrowed and paid back in two annual instalments of Rs. 882 each allowing 5% compound interest. The sum borrowed was:
(a) Rs. 1900
(b) Rs. 1640
(c) Rs. 1680
(d) Rs. 2000

20. Find the compound interest on Rs. 9375 at 8% per annum for 2 yr.
(a) Rs. 1560
(b) Rs. 1512
(c) Rs. 1590
(d) Rs. 1548

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