MM8: Math of Investment 9.

Simple Interest on 1500 at 7% per annum for a

Midterm Examinations certain time is 210. Find the time.
(a) 2 years
Directions: Analyze each problem carefully and shade (b) 1.5 years
the letter of your BEST answer on the ANSWER (c) 2.8 years
SHEET provided. Strictly No Erasures Allowed. (d) 3 years
10. Sarvesh borrowed P5,000 from Arun with simple
1. A man borrows P4000 at 8% per annum on interest. After 2 years, Arun got 1,000 more than what
compound interest. At the end of every year, he pays he had given to Sarvesh. What was the percentage of
P1500 as part payment of the loan and interest. How interest per annum?
much does he still owe to the bank after 3 such annual (a) 10
payments? (b) 20
(a) 1,799 (c) 2,000 (c) 15
(b) 169.25 (d) 234.13 (d) 5
2. If the amounts for a fixed principal after 3 and 2 years 11. If the compound interest on a certain sum of money
at a certain rate of compound interest are in the ratio for 2 ½ years at 5% per annum be 104.05, what would
21: 20. The rate of interest is be the simple interest?
(a) 7% (c) 5% (a) 215.75
(b) 6% (d) 4% (b) 125.75
3. A man invested 1/3rd of the sum at 7%, 1/4th at 8% (c) 100
and the remaining at 10% for one year. If the annual (d) 225
interest is 408, then the investment is 12. What annual installment will discharge a depth of
(a) 8,400 2710 due in 4 years at 7% simple interest?
(b) 4,800 (a) 1000
(c) 5,000 (b) 225
(d) 7,200 (c) 500
4. Calculate the amount at 4480 at 8% per annum for 3 (d) 150
years. 13. Find the compound interest on 6400 for 2 years,
(a) 5842.90 compounded annually at 7.5% per annum.
(b) 6000 (a) 1000
(c) 5555.20 (b) 996
(d) 5600 (c) 1006
4. Find the compound interest on 12000 for 3 years at (d) None of these
10% per annum compounded annually. 14. A certain sum of money at simple interest amounts
(a) 3972 to 1260 in 2 years and to 1350 in 5 years. The rate
(b) 3872 percent per annum is ___
(c) 3772 (a) 2 years
(d) 3672 (b) 2.5 years
5. The cost of a machine is estimated to be decreasing (c) 3 years
at the rate of 15% every year. If it costs 6,000 now, (d) 3.5 years
what will be the estimated value of the machine after 2 15. Sarvesh borrowed 5,000 from Arun with simple
years? interest. After 2 years, Arun got 1,000 more than what
(a) 3,750 he had given to Sarvesh. What was the percentage of
(b) 4,335 interest per annum?
(c) 3,225 (a) 10 (c) 15
(d) 5,000 (b) 20 (d) 5
6. Mr. Yogendra gave some money at simple interest 16. A sum of money doubles itself at compound interest
and, at the end of 10 years, got back twice the sum. in 15 years. It will become 8 times in
The rate percent per annum is: (a) 40 years
(a) 2% (b) 30 years
(b) 4% (c) 60 years
(c) 5% (d) 45 years
(d) 10% 17. A certain sum lent out at simple interest and the true
7. The compound interest on 2500 at the rate of 6% p.a. discount on a certain sum for 1 year at 5% is 1 find the
after 2 years will be sum.
(a) 309 (a) 400
(b) 318 (b) 420
(c) 320 (c) 450
(d) 322 (d) 500
8. What annual installment will discharge a depth of 18. If the compound interest on a certain sum of money
2710 due in 4 years at 7% simple interest? for 2 ½ years at 5% per annum be 104.05, what would
(a) 1000 be the simple interest?
(b) 225 (a) 215.75 (c)100
(c) 500 (b) 125.75 (d) 225
(d) 150
19. Abhinav invested 1/3 of his capital at 7%, 1/4 at 8% 30. A sum was put at simple interest at a certain rate for
and the remainder at 10%. If his annual income is 561, 2 years. Had it been put at 1% higher rate, it would
the capital is ___ have fetched 24 more. Find the sum.
(a) 5600 (a) 1200 (c) 2000
(b) 6200 (b) 1600 (d) 2400
(c) 6400 31. The difference between the compound and the
(d) 6600 simple interest on a certain sum at 7½% per annum for
20. Ram borrowed 5,000 from Sanjay with simple 3 years is 110.70. Find the sum:
interest. After 2 years, Sanjay got 1,000 more than what (a) 6400
he had given to Ram. What was the percentage of (b) 1200
interest per annum? (c) 3200
(a) 10 (c) 15 (d) 5000
(b) 20 (d) 5 32. The simple interest on a sum of money is 19th of
21. Find the compound interest on 8000 for 3 years at the principal and the number of years is equal to the
5% per annum. rate of percent per annum. The rate of interest per
(a) 1451 annum is __
(b) 1381 (a) 2%
(c) 1261 (b) 5%
(d) 1151 (c) 4%
22. At what rate per annum will a sum of 2000 amount (d) 3 1/3%
to 2205 in 2 years, compounded annually? 33. The sum fetched a total simple interest of 4016.25
(a) 5% at the rate of 9 p.c.p.a. in 5 years. What is the sum?
(b) 10% (a) 8925
(c) 15% (b) 8259
(d) None of these (c) 8529
23. At what rate per annum will a sum of 3,600 become (d) 8952
4,500 in 10 years at simple interest? 34. The difference in simple interest between 13% and
(a) 5% 12% p.a. for a sum in one year is 110. Then the sum is
(b) 2.5% (a) 13,000
(c) 10% (b) 15,000
(d) 6.75% (c) 10,000
24. The difference between the compound and the (d) 11,000
simple interest on a certain sum at 7½% per annum for 35. The present population of a town is 25000. It grows
3 years is 110.70. Find the sum: at the rate of 4%, 5% and 8% during the first year,
(a) 6400 second year and third year respectively. Find its
(b) 1200 population after 3 years.
(c) 320050 (a) 29484
(d) 2400 (b) 29844
25. Find the sum of money which increases 1/10 of (c) 24984
itself every year and amounts to 450 in 5 years at S.I (d) 29848
___ 36. The simple interest on a certain sum of money for 4
(a) 250 years at 4 percent per annum exceeds the compound
(b) 300 interest on the same sum for 3 years at 5 percent per
(c) 350 annum by 57. Find the sum.
(d) 400 (a) 24,000 (c) 26,700
26. Mathew bought a microwave for 4000 on credit. The (b) 12,500 (d) 23,050
rate of interest for the first year is 5% and for the 37. A sum of 1600 lent at simple interest at 12.5% per
second year is 15%. How much will it cost him if he annum will become double in
pays the amount after two years? (a) 6 years (c) 8 years
(a) 4950 (c) 4620 (b) 7.5 years (d) 9 1/4 years
(b) 4830 38. Find compound interest of 5,000 at 10% per annum
(c) for 3 years
(d) 4240 (a) 1,655 (c) 1,667
27. A sum doubles in 20 years at simple interest. How (b) 1,659 (d) 1,648
much is the rate per annum? 39. The value of a mobile phone which was purchased
(a) 5% (c) 12% 2 years ago depreciates at 12% p.a.. If its present value
(b) 4% (d) 18% is 9680, for how much was it purchased?
28. Find the compound interest on 8000 for 3 years at (a) 10000 (c) 11500
5% per annum. (b) 12000 (d) 12500
(a) 1451 (c) 1261 40. At what rate per annum simple interest will a sum of
(b) 1381 (d) 1151 money triple itself in 25 years?
29. If the amounts for a fixed principal after 3 and 2 (a) 8 (c) 9.5
years at a certain rate of compound interest are in the (b) 8.5 (d) 10
ratio 21 : 20. The rate of interest is
(a) 7% (c) 5%
(b) 6% (d) 4%