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The effective annual rate of interest corresponding to a nominal rate of 22% per annum payable halfyearly is? 
A) 44% B) 23.21% C) 46.42% D) 22% Correct Answer : 23.21% Explanation : Amount = P[1+(R/2)/100]^{2n} , if interest is payable halfyearly Let the amount is 100 for one year Then, Effective rate = 123.21 100 = 23.21% 
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The difference between compound and simple interests on a certain sum for 2 years at 5% per annum is Rs.40. The sum is? 
A) Rs.16,000
B) Rs.15,000
C) Rs.12,000
D) Rs.10,000
Correct Answer : Rs.16,000 Explanation : Let the sum be rs X then, As is given, CI  SI = 40 
If Rs. 7500 are borrowed at compound interest at the rate of 4% per annum, then after 2 years the amount to be paid is ? 
A) Rs. 8082
B) Rs. 7800
C) Rs. 8100
D) Rs. 8112
Correct Answer : Rs. 8112 Explanation : Amount = P(1+R/100)^{n} , if interest is payable annually 
The compound interest on Rs 2800 for 1^{1}/_{2} years at 10% per annum is ? 
A) Rs. 441.35
B) Rs. 436.75
C) Rs. 434
D) Rs. 420
Correct Answer : Rs. 434 Explanation : Let Principal = P, Rate = R% per annum, Time = n years. So, Amount = 2800 * (1 + 10/100) * (1 + (1*10/2) / 100) 
A money lender lends Rs 2000 for 6 months at 20% per annum whereas the interest is compounded quarterly. After the given period he will get the amount of ? 
A) Rs. 2205
B) Rs. 2200
C) Rs. 2160
D) Rs. 2040
Correct Answer : Rs. 2205 Explanation : Let Principal = P, Rate = R% per annum, Time = n years. Hence,required amount = 2000* (1 + (20/4) / 100 )^{4*1/2} 
The compound interest on a certain sum of money for 2 years at 10% per annum is Rs 420. The simple interest on the same sum at the same rate and for the same time will be ? 
A) Rs. 350
B) Rs. 375
C) Rs. 380
D) Rs. 400
Correct Answer : Rs. 400 Explanation : Let the principle is P. So, simple interest.= P*R*T / 100 = 2000* 2* 10 / 100 = 400 
The difference between the simple and the compound interest compounded every six months at the rate of 10 percent per annum at the end of two years is Rs 124.05. What is the sum ? 
A) Rs. 10000
B) Rs. 6000
C) Rs. 12000
D) Rs. 8000
Correct Answer : Rs. 8000 Explanation : Let Principal = P, Rate = R% per annum, Time = n years. Then,CI  SI = ( P*(1 + 5/100)^{4}  P )  ( P* 10* 2 / 100 ) = 124.05 

In what time will Rs 90600 amounts to Rs 109626 at 10% compound Interest? 
A) 2 years
B) 3 years
C) 5 years
D) 4 years
Correct Answer : 2 years Explanation : Amount = P(1+R/100)^{n} , if compound interest is payable annually 
Compound interest on a certain sum of money at 20% per annum for 2 years is Rs 5995. What is the simple interest on the same money at 8% per annum for 6 years ? 
A) Rs. 5989
B) Rs. 6789
C) Rs. 6540
D) Rs. 7844
Correct Answer : Rs. 6540 Explanation : Let Principal = P, Rate = R% per annum, Time = n years. Hence Simple Interest, SI = P*R*T / 100 = 13625 * 8 * 6 / 100 = 6540 
On a simple interest rate of 20% annually, a trader gets 6000 rupees in 3 years. How much he gets more if the lent was on compound interest ? 
A) 1200
B) 480
C) 4000
D) 400
Correct Answer : 480 Explanation : Let Principal = P, Rate = R% per annum, Time = n years. Compound Interest, CI=P*(1 + R/100)^{n } P Hence, trader will be get more if the lent was on CI = CI  SI = 2730  2250 = 480 

The difference between the compound interest and the simple interest on a certain sum at 5% per annum for 2 years is Rs 1.50 . The sum is ? 
A) 600
B) 500
C) 400
D) 300
Correct Answer : 600 Explanation : Let the sum is 100 then So, 0.25 : 1.50 : : 100 : P 
If the compound interest on a certain sum for 2 years at 12.5% per annum is 170, the simple interest will be? 
A) 200
B) 150
C) 160
D) 170
Correct Answer : 160 Explanation : Let the principle is P Simple interest SI = P* T* R /100 
Albert invested an amount of Rs 8000 in a fixed deposit scheme for 2 years at compound interest rate 5% annum . How much amount will Albert get on maturity of the fixed deposit ? 
A) Rs. 8600
B) Rs. 8620
C) Rs. 8820
D) Rs. 8840
Correct Answer : Rs. 8820 Explanation : Amount= 8000*(1 + 5/100)² 
A man borrows 12500 from a bank at 20% compound interest. At the end of every year he pays 2000 as part repayment. How much (in rupees) does he still owe to the bank after three such instalments? 
A) 15600
B) 12864
C) 13780
D) 14320
Correct Answer : 14320 Explanation : Remaining amount after 1 year = 12500 *(120/100)  2000 = 13000 
A sum of 2400 deposited on compound interest, doubled after 5 years. How much will it be after 20 years? 
A) 24000
B) 38400
C) 19200
D) 14320
Correct Answer : 38400 Explanation : 2P = P *(1 + R/100)^{5} The amount becomes 2^{4 }times = 16 times and required amount = 2400*16 =38400 
In how many years Rs 800 will be Rs 882 at 5% per annum if compounded annually? 
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Correct Answer : 2 years Explanation : amount = P ( 1 + R/100 )^{n} 
How much will the compound interest at the rate of 15/2% annually in 2 years on 6400 rupees? 
A) 1016
B) 996
C) 976
D) 966
Correct Answer : 996 Explanation : compound interest, CI= 6400* (1 + (15 / 2) / 100 )^{2 }  6400 