Simple & Compound Interest Level-3 Quiz-3

1. A person borrowed a sum of `6,000 at 10% p.a., interest compounded annually. If the money is to be repaid in three equal annual instalments, each payable at the end of the year, then what is the value of each instalment?

2. Rekha borrows a sum of `3,00,000 at 16 2 / 3 % p.a. rate of compound interest for 3 years. She repays two instalments of `1,40,000 each at the end of the first and second year. What amount does she repay at the end of the third year to clear the debt?

3. A certain amount of money lent at compound interest becomes 2.25 times itself in 3 years. If the rate of interests for the first, second and the third years are in the ratio 4 : 5 : 10, find the rate of interest for the third year given that the interest is compounded annually?

4. Arjun borrowed some money from Bharath at 8% p.a. annum simple interest and twice that amount from Charan at 9% p.a. simple interest. He then added some more money of his own and lent the entire amount to Dheeraj at 10% p.a. simple interest. At the end of the year Arjun gained `1,400. If Arjun lent `40,000 to Dheeraj, then how much did Arjun borrow from Bharath?

5. A few years back Bart borrows a certain sum of money at a certain rate of simple interest. Now the same sum becomes 200% of what he borrowed. After 2 years, the amount will increase by 12 × 5% compared to the present value. After how many years from now will the amount be
5 times the sum?

6. Naresh and Prabhat borrowed `50,000 and `70,000 respectively from a co-operative bank at compound interest. While Naresh was charged 6% p.a. and 8% p.a. for the first and second years respectively, Prabhat was charged 5% and 9% p.a. for the first and second years respectively. Prabhat repaid `35,000 at the end of the first year, while Naresh did not make any such partial repayment. Both cleared their loans at the end of the second year. How much more or less interest did Prabhat pay, compared to Naresh?

7. A sum doubles in six years at a certain rate of compound interest in one scheme. In another scheme, the same sum doubles in six years at a different rate of simple interest. In either scheme, a customer has the choice of switching after a minimum of two years, in which case he would
be given interest for the period for which the amount is invested. If every three years, a customer switches between these two schemes, starting with the simple interest scheme, in how many years, will the sum amount to 4.5 times its value?

8. If the interest compounded annually on a certain sum at a certain rate of interest for 2 years is equal to 55% of the simple interest on the same amount at the same interest rate for twice the time period, fi nd the rate percentage.

9. A man can purchase a flat from a co-operative credit society for `2,75,000 cash or `1,10,000 as down payment and the remaining amount along with the interest in two equal annual instalments. If the society charges interest at 20% p.a. compounded annually, and the man purchased a flat on instalment basis, how much more did he pay as compared to an outright purchase?

10. The rate of interest on a sum of money lent at simple interest, (in % per annum) is 5/2 times the period (in years) for which it is lent. If the simple interest for the given period on the sum lent is 10% of the sum, find the period (in years) for which the sum is lent.