CA/CMA

Difference between SI and CI

20. The difference between compound interest and simple interest on a certain sum for 2 years 10% p.a. is
₹10. Find the sum:
[a] ₹ 1,010 [b] ₹ 1,095 [c] ₹ 1,000 [d] ₹ 990

21. If the difference of S.I and C.I is ₹ 72 at 12% for 2 years. Calculate the amount
[a] ₹ 8,000 [b] ₹ 6,000 [c] ₹ 5,000 [d] ₹ 7,750

22. The difference between the compound interest and simple interest at 10% per annum for 4 years on
₹ 10,000 is ₹ _______
[a] 650 [b] 640 [c] 641 [d] 600

23. The difference between the simple and compound interest on a certain sum for 3 year at 5% p.a. is
₹ 228.75. The compound interest on the sum for 2 years at 5% p.a. is :
[a] ₹ 3,175 [b] ₹ 3,075 [c] ₹ 3,275 [d] ₹ 2,975

24. The difference between compound interest and simple interest on a certain sum for 3 years at 5% per
annum is Rs. 76.25. Find the sum.
(a) Rs. 5,000 (b) Rs. 8,000 (c) Rs. 9,000 (d) Rs. 10,000

SUMS WITH COMPOUNDING TIMES

25.The C.l on Rs. 16000 for 1.5years at 10% p.a payable half-yearly is
(a) Rs. 2222 (b) Rs. 2522 (c) Rs. 2500 (d) None

26. If A = Rs. 1000, n = 2 years, R = 6% p.a compound interest payable half-yearly, then principal (P) is
(a) Rs. 888.48 (b) Rs. 885 (c) 800 (d) None

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27. In how many years a sum of money trebles at 5% p.a. compound interest payable on half- yearly basis?
(a) 18 years 7 months (b) 18 years 6 months (c) 18 years 8 months (d) 22 years 3 months

28. A sum of money is put at compound interest for 2 years at 20% p.a. It would earn Rs. 482 more, if the
interest Were payable half-yearly than it were payable yearly; then the sum is
(a) Rs. 20,000 (b) Rs. 25,000 (c) Rs. 26,000 (d) None

29. In how many years will a sum of Rs. 800 at 10% per annum compounded semi-annually become Rs.
926.10 ?
(a) 1.33years (b) 1.5 years (c) 2.33 years (d) 2.5 years

30. The compound interest on half yearly rests on Rs 10,000 the rate for the first and second years being 6%
and for the third year 9% p.a is
(a) Rs 2200 (b) Rs 2287 (c) Rs 2285 (d) Rs 2290

31.The rate percent p.a is Rs 8,000 amount to Rs 9,261 in 1 year 6 months, compounded semi-annually
(a) 10% (b) 8% (c) 5% (d) None

32. The compound interest on Rs 12,000 for 9 months at 20% p.a interest being compounded quarterly is
(a) Rs 1,891.50 (b) Rs 1,901.50 (c) Rs 1,791.50 (d) None

33. The C.l on Rs. 40000 at 10% p.a for 1 year when the interest is payable quarterly is
(a) Rs. 4000 (b) Rs. 4100 (c) Rs. 4152.51 (d) None

34. The C.l on Rs,4000 for 6 months at 12% p.a. payable quarterly is
(a) Rs.243.60 (b) Rs.240 (c) Rs.243 (d) None

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35. How long will Rs. 12,000 take to amount to, Rs. 14,000 at 5% p.a. converted quarterly? [Given :
(1.0125)12.4 = 1.1666]
(a) 3 years (b) 3.1 years (c) 13.5 years (d) 12.4 years.

36. Rs 3000 is invested at annual rate of interest 5%. The amount after 2 years if the compounding is done
monthly [Given that (1.00416)24 =1.104765291
(a) 3314.29 (b) 3250.50 (c) 3330.29 (d) None

EFFECTIVE RATE INTEREST

38. The effective annual rate of interest corresponding to nominal rate 6% p.a. payable half yearly is
[a] 6.06% [b] 6.07% [c] 6.08% [d] 6.09%

39. The effective rate of interest equivalent to the nominal of 7% converted monthly:
[a] 7.26% [b] 7.22% [c] 7.02% [d] 7.20%

40. Find the effective rate of interest on ₹ 10,000 on which interest is payable half yearly at 5% p.a.
[a] 5.06% [b] 4% [c] 0.4% [d] 3%

41. Find the effective rate of interest at 10% p.a when interest is payable quarterly.
[a] 10.38% [b] 5% [c] 5.04% [d] 4%

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42. An amount is lent at a nominal rate of 4.5% per annum compounded quarterly. What would be the gain
in rupees over when compounded annually?
[a] 0.56 [b] 0.45 [c] 0.76 [d] 0.85

43. Which is a better investment 9% p.a. compounded quarterly or 9.1% p.a. simple interest?
[a] 9% compounded [b] 9.1% S.T [c] Both are same [d] Cannot be said

44. If the nominal rate of growth is 17% and inflation is 9% for the five years. Let P be the Gross Domestic
Product (GDP) amount at the present year then the projected real GDP after 6 years is:
[a] 1,587 P [b] 1,921 P [c] 1,403 P [d] 2.51 P

PRESENT VALUE AND FUTURE VALUE

46. Find the present value of 1,00,000 to be required after 5 years if the interest rate be 9%. Given that 1.095
= 1.5386
[a] 78,995.98 [b] 64,994.15 [c] 88,992.43 [d] 93,902.12

47. Find the future value of ₹ 1,000 made annually for 7 year at interest rate of 14% compounded annually
[Given that 1.147 = 2.5023)
[a] ₹ 2,502.3 [b] ₹ 2852.58 [c] ₹ 3,000 [d] ₹ 5,000

48. The present value of Rs10,000 due in 2 years at 5% p.a. compound interest when the interest is paid on
half-yearly basis is ________. (a) 9,070 (b) 9,069 (c) 9,061 (d) None