Simple & Compound Interest Level-3 Quiz-1

1. Find the sum of the present values of the payments received at 10% p.a. under compound interest, interest being compounded annually if Rs. 7,700 and Rs. 7,260 are received at the end of the 1st year and 2nd year respectively (in Rs. )

2. Pradeep borrowed Rs. 12,600 at 10% p.a. rate of compound interest. If this amount has to be repaid in two equal annual instalments,  nd the value of each instalment. (Each instalment is paid at the end of an year.) (in Rs. )

3. What equal annual instalment (in Rs. ) will discharge a loan of Rs. 72,800 borrowed at 20% p.a. compounded annually in 3 years?

4. Ravi bought a car worth Rs. 7,55,000. He paid Rs. 1,05,000 as down payment and paid the remaining amount including interest, in 3 equal instalments. Interest was charged at 14% p.a. compounded annually. If he paid the first, the second and the third instalments at the ends of the
first, second and third years respectively, the value of each instalment he paid (in Rs. ) is [Assume (1/1.14)^3 = 0.675]

5. Kashi borrowed Rs. 12,000 at 10% p.a. rate of compound interest. He repaid a certain amount at the end of the 1st year. Then, he paid Rs. 10,120 at the end of the 2nd year to completely discharge the loan. What amount did he repay at the end of 1st year? (in Rs. )

6. A sum of Rs. 6,440 is due to be repaid over four years. It has to be repaid in four equal annual instalments (the instalments being payable at the ends of the 1st , 2nd , 3rd and 4th years) at 10% p.a. simple interest. Find the value of each instalment.

7. A person deposited Rs. 100 in a bank which pays at r % p.a. with interest being compounded annually. The same person invested another Rs. 100 in another bank which pays at 2r% p.a. simple interest. In how many years will the two deposits amount the same?

8. A sum of money yields an interest of Rs. 2,016 for the second year and an interest of Rs. 2,257.92 for the third year at a certain rate of interest, compounded annually. What is the sum? (in Rs. )

9. How much will Rs. 10,000, approximately amount to in 2 years at 15% p.a., with the interest being compounded every 6 months? (in Rs. )

10. If the rate of interest is 10% p.a. where interest is compounded every 4 months, what is the effective annual rate of interest?