Simple & Compound Interest Level-2 Quiz-3

1. Find the effective annual rate of interest if the rate of interest is 18% p.a., and the interest is compounded once every 4 months.

2. Dolly deposited Rs. 20,000 at 10% p.a. simple interest for a period of n years. Lilly deposited Rs. 18,000 at the same rate at compound interest for the same period. After n years, the amount received by Dolly is Rs. 2,042 more than the amount received by Lilly. Find the value of n.

3. Find the difference between the simple interest and compound interest (compounded annually) on Rs. 500 at 10% p.a. for 2 years (in Rs.).

4. Janardhan deposited a certain sum of money in a fixed deposit account at k% p.a., interest being compounded annually. If the interest accrued for the 3rd and the 4th years is Rs. 5,000 and Rs. 6,250 respectively, what is the total interest accrued for the first two years? (in Rs. ).

5. If compound interest for third year is Rs. 1,000 on a certain sum at the rate of 10% p.a. compounded annually, then what is the compound interest for 7 th year? (in Rs. )

6. A sum of money under compound interest doubles in 4 years. In how many years will it become 16 times itself?

7. The value of a motorcycle is Rs. 80,000 and its value depreciates by 20% every year, with respect to its value at the beginning of the year. What is the profit earned by selling the motorcycle at the end of the 2 nd year at Rs. 53,600?

8. Find the compound interest earned on a sum of Rs. 32,000 at 25% p.a. for 4 years (in Rs.).

9. A loan is taken today and repaid in two annual instalments (each paid at the end of an year) of Rs. 2,662 each. The rate of interest is 10% p.a. and it is compounded annually. Find the sum borrowed.

10. The compound interests earned in the third and the fourth years on a certain sum of money are Rs. 576 and Rs. 691.2 respectively. Find the sum (in Rs. ).