Simple & Compound Interest Level-3 Quiz-2

1. A sum was borrowed at 20% p.a. compound interest. It was repaid in three annual instalments at the end of one year, two years and three years respectively. The first, second and third instalments were Rs. 2,400, Rs. 2,304 and Rs. 5,184 respectively. Find the sum borrowed (in Rs.).

2. A sum of Rs. 2,000 was split into two parts. One of the parts was invested at 8% p.a. simple interest and the other part was invested at 5% p.a. compound interest. Each part was invested for two years. The total interest realized from the two parts was Rs. 251. Find the value of the part invested at simple interest.

3. Ramu borrowed Rs. 62,500 from a bank at 20% p.a., interest being compounded annually. He repaid it in two annual instalments. The amount he paid at the end of the second year was Rs. 2,000 more than that paid at the end of the first year. Find the amount (in Rs. ) he paid at the end of the first year.

4. What annual instalment will discharge a debt of Rs. 1,450 due after five years at 8% p.a. simple interest?

5. The difference in the simple interest and the compound interest on Rs. 1,600 for 2 years at a certain rate of interest is Rs. 16. Find the simple interest on that sum of money for 2 years (in Rs. ).

6. If Rs. 6,000 has been lent at 10% p.a., the interest being compounded annually, what is the interest for the 4 th year? (in Rs. )

7. In which year will a sum of money invested at 10% p.a. compound interest (compounded annually) double? (Given log1.1 = 0.0414)

8. Mohan borrowed Rs. 16,000 from a bank at simple interest at a certain rate of interest. After four years, he borrowed Rs. 28,880 from the same bank. Starting from the fifth year, the bank charged compound interest on the total amount repayable on the two loans at 10% p.a. At the end of six years, Mohan repaid a total of Rs. 60,500 and thereby cleared both loans. Find the rate of interest on the first loan for the first four years (in % p.a.)

9. Raghu borrowed Rs. 4,000 at a certain rate of simple interest payable at the end of 7 years. After 2 years, he repaid Rs. 3,000 towards the principal and after 5 more years, he repaid Rs. 3,600 to settle his loan. Find the rate of interest.

10. A man borrowed a sum of Rs. 42,000 at 10% p.a. compound interest and initially planned to repay it in two equal annual instalments (the instalments being paid at the end of each year). He actually repaid it in three equal annual instalments. What is the difference between each instalment initially planned and each instalment actually paid (rounded off to the nearest rupee)?