89
Q:

What is the rate of interest p.c.p.a.?

I. An amount doubles itself in 5 years on simple interest.

II. Difference between the compound interest and the simple interest earned on a certain amount in 2 years is Rs. 400.

III. Simple interest earned per annum is Rs. 2000

A) I only B) II and III only
C) All I, II and III D) I only or II and III only

Answer:   D) I only or II and III only



Explanation:

I.P*R*5100=PR=20

 II.P1+R1002-P-P*R*2100=400=>pR2=4000000

 III.P*R*1100=2000=>PR=200000

 PR2PR=4000000200000R=20

 

Thus I only or (II and III) give answer.

 

 Correct answer is (D)

Subject: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO
Q:

Two payments of $10,000 each must be made one year and four years from now. If money can earn 9% compounded monthly, what single payment two years from now would be equivalent to the two scheduled payments?

A) 19296 B) 19396
C) 19496 D) 19596
 
Answer & Explanation Answer: A) 19296

Explanation:

The single equivalent payment will be PV + FV.
FV = Future value of $10,000, 12 months later
 $10,000 *(1.0075)/12
 $10,938.07
PV=  Present value of $10,000, 24 months earlier
 $10,000/(1.0075)24
 $8358.31
The equivalent single payment is
$10,938.07 + $8358.31 = $19,296.38

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Exam Prep: Bank Exams
Job Role: Bank PO

2 4983
Q:

Mr. and Mrs. Espedido’s property taxes, amounting to $2450, are due on July 1.What amount should the city accept if the taxes are paid eight months in advance and the city can earn 6% compounded monthly on surplus funds?

A) 2354.17 B) 2354
C) 2376 D) 2389
 
Answer & Explanation Answer: A) 2354.17

Explanation:

i=j/m

PV=  FV(1+  i)^-n 

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1 4492
Q:

If an investment can earn 4% compounded monthly, what amount must you invest now in order to accumulate $10,000 after 3 years?

A) 8695.61 B) 6786
C) 3478 D) 4092
 
Answer & Explanation Answer: A) 8695.61

Explanation:

i=j/m

PV = FV (1+  i)^-n 

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0 3811
Q:

Other things being equal, would an investor prefer an interest rate of 10.5% compounded monthly or 11% compounded annually for a two-year investment?

A) 1232 B) 1243
C) 1254 D) 1262
 
Answer & Explanation Answer: A) 1232

Explanation:

i=j/m

 

FV=  PV(1+  i)^n 

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Exam Prep: Bank Exams
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0 2987
Q:

What annual payment will discharge a debt of Rs.7620 due in 3years at1623 % per annum interest?

A) 5430 B) 4430
C) 3430 D) 2430
 
Answer & Explanation Answer: C) 3430

Explanation:

Let each installment be Rs.x. Then, 

(P.W. of Rs.x due 1 year hence) + (P.W of Rs.x due 2 years hence) + (P.W of Rs. X due 3 years hence) = 7620.

 

x1+503x100+x1 +503x1002+x1 +503x1003 = 7620

 

 6x7+36x49+216x343=7620

 

 294x + 252x + 216x = 7620 x 343

 

 => x = 3430

 

 Amount of each installment = Rs.3430

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

78 26378
Q:

A sum of money amounts to Rs.6690 after 3 years and to Rs.10,035 after 6 years on compound interest.find the sum.

A) 4360 B) 4460
C) 4560 D) 4660
 
Answer & Explanation Answer: B) 4460

Explanation:

Let the sum be Rs.P.then
P(1+R/100)^3=6690…(i) and P(1+R/100)^6=10035…(ii)
On dividing,we get (1+R/100)^3=10025/6690=3/2.
Substituting this value in (i),we get:
P*(3/2)=6690 or P=(6690*2/3)=4460
Hence,the sum is rs.4460.

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263 73482
Q:

A certain sum amounts to Rs.7350 in 2 years and to Rs.8575 in 3 years.find the sum and rate percent

A) 3400 B) 4400
C) 5400 D) 6400
 
Answer & Explanation Answer: C) 5400

Explanation:

Interest for 1 year is the same whether it's simple interest or the compound interest.

Now interest of third year = 8575 - 7350 = 1225; means principal for this interest is 7350 if comound interest is takenIf 7350 is the principal interest = 1225

if 100 is the principal interest =(1225/7350) * 100 = 50/3 %

When a thing increases for two successive times the overall increase on initial amount = a + b + (a * b)/100

Therefore overall interest for two years = 50/3 + 50/3 + [(50/3)*(50/3)]/100 = 325/9 %

Therefore amount after 2 years = 100 + 325/9 = 1225/9

If 1225/9 is the amount principal =100

if 7350 is the amount principal =(900/1225)*7350 =5400

So sum = 5400; Rate = 50/3 %

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68 34756
Q:

Divide Rs. 1301 between A and B, so that the amount of A after 7 years is equal to the amount of B after 9 years, the interest being compounded at 4% per annum.

A) Rs.625 B) Rs.626
C) Rs.286 D) Rs.627
 
Answer & Explanation Answer: A) Rs.625

Explanation:

Let the two parts be Rs. x and Rs. (1301 - x).

 x1+41007=1301-x1+41009

 x1301-x=1+41002=2625*2526

 

=> 625x=676(1301-x) 

1301x=676 x 1301x=676.
So,the parts are rs.676 and rs.(1301-676)i.e rs.676 and rs.625

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33 25477