Simple Interest and Compound Interest Question Sheet (Installments)

Table Of Content

Practice Question

Answer Key

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Q.1 A sum of Rs. 1275 is borrowed at 4% pa compound interest and paid back in 2 equal annual installments. What is the amount of each installment?

a.Rs. 600

b.Rs. 676

c.Rs. 650

d.Rs. 689

Q.2 A sum of Rs. 550 is to be repaid in 2 equal annual installments. If rate =20% compounded annually, then the value of each installment will be?

a.Rs. 350

b.Rs. 250

c. Rs. 360

d. Rs. 400

Q.3 Three equal installments, each of Rs. 300, were paid at the end of the year on a sum borrowed at 20% compounded annually. Find the sum.

a.Rs. 632 

b.Rs. 650

c.Rs. 600

d.None of these 

Q.4 What annual installment will discharge a debt of Rs.19800 borrowed today, in 3 years at 10% p.a. simple interest?

a.Rs. 5400

b.Rs. 7800

c.Rs. 6600

d.Rs. 6200

Q.5 A borrowed money is to be paid back in two equal annual installments of Rs. 7260. If the borrowed is being compounded at the rate of 10% per annum, how much money was borrowed?

a.Rs. 12000

b.Rs. 12060

c.Rs. 12600

d.Rs. 16200

Q.6 What annual installment will discharge a debt of Rs. 9800 in 4 years at 15% p.a. simple interest?

a.Rs. 1500

b.Rs. 1800

c.Rs. 3200

d.Rs. 2400

Q.7 John took ₹24750 as a loan, which along with interest is to be repaid in two equal annual instalments. If the rate of interest is 20% compounded annually, then find the value of each installment.

a.Rs.13600

b.Rs.16200

c.Rs.14900

d.Rs.15900

Q.8 Rahul borrowed Rs. 1,00,000 at the rate of 8% p.a. compound interest, interest being compounded annually. How much should he repay at the end of the first year, so that by repaying 54,000 at the end of the second year he can clear the loan?

a.Rs. 46,000

b.Rs. 58,000

c.Rs. 54,000 

d.Rs. 50,000

Q.9 A customer goes to a shop to purchase a car for Rs. 500000. The shopkeeper follows the following scheme: He offers a discount of 8% with a down payment of Rs. 50000 and 3 equal yearly installments at the rate of 20% pa (CI). Find the value of the yearly installments.

a.Rs. 185674 

b.Rs. 189651

c.Rs. 194367

d.Rs. 174342

Q.10 A sum of Rs.1000 is due to be repaid at the end of two years. If it has to be repaid in two equal annual installments (the first installment being paid at the end of the first year), at 10% p.a. compound interest, find the value of each installment.

a.Rs.605

b.Rs.500

c.Rs.576.19

d.Rs. 571.43

Q.11 John borrowed Rs. 2,10,000 from a bank at an interest rate of 10% per annum, compounded annually. The loan was repaid in two equal instalments, the first after one year and the second after another year. The first instalment was interest of one year plus part of the principal amount, while the second was the rest of the principal amount plus due interest there on. Then each instalment, in Rs., is:

a.Rs. 1,00,000

b.Rs. 1,10,000

c.Rs. 1,20,000

d.Rs. 1,21,000

Q.12 A man buys a scooter on making a cash down payment of Rs. 16224 and promises to pay two more yearly installment of equivalent amount in next two years. If the rate of interest is 4% per annum compounded yearly, the cash value of the scooter is:

a.Rs. 40000

b.Rs. 46824

c.Rs. 46000

d.Rs. 50000

Q.13 A loan of Rs 2550 is to be paid back in two equal half - yearly installments. How much is each installment, if the interest is compounded half - yearly at 8% p.a.?

a.Rs. 1225

b.Rs. 1275

c.Rs. 1352

d.Rs. 1368

Q.14 Ryan purchased a cabinet worth Rs.3000. However he did not have enough money for a cash down payment so he opted for an option of Rs.600 down payment followed by 3 monthly instalments of Rs.840 each. Then he was charged simple interest at the rate of .......... pcpa.

a.19.50% Per Annum

b.20.50% Per Annum

c.19% Per Annum

d.20% Per Annum

e.21% Per Annum

Q.15 Rakesh has applied for a loan of Rs.300000. He has two options, the first is a fixed rate of compound interest of 6% for three years and the other is a floating rate of 7% for the first year, 6% for the second year and 5% for the third year. If he repays the loan after three years, then which option is beneficial to Rakesh and by how much?

a.Fixed Rate, Rs.318

b.Floating Rate, Rs.318

c.Floating Rate, Rs.31.8 

d.Fixed Rate, Rs.31.8

Q.16 A person borrows two equal sums at the same time at 5 and 4 percent respectively and finds that if he repays the former sum with simple interest on a certain date 6 months before the latter on which simple interest is also charged, he will have to pay in each case the same amount, viz., Rs.1100. Find the sum of money borrowed

a.Rs.850

b.Rs.1000

c.Rs.995

d.Rs.990

Q.17 Rahul borrows Rs. 1,00,000 from a bank at 10 % p.a.  simple interest and clears the debt in five years.  If the installments paid at the end of the first, second, third and fourth years to clear the debt are Rs. 10,000, Rs. 20,000, Rs. 30,000 and Rs. 40,000 respectively, what amount should be paid at the end of the fifth year to clear the debt?  

a.Rs. 20000

b.Rs. 24500

c.Rs. 30000

d.Rs. 35900

Q.18 A sum of Rs.1000 is due to be repaid at the end of two years. If it has to be repaid in two equal annual installments (the first installment being paid at the end of the first year), at 10% p.a. compound interest, find the value of each installment.

a.Rs. 605

b.Rs. 500

c.Rs. 576.19

d.Rs. 571.43

Q.19 Sapna borrowed Rs.900 at 10% p.a. compound interest. If she pays back Rs.500 at the end of the 1st year, find the amount which she has to pay in the 2nd year to clear his debt (in Rs.).

a.520

b.429

c.539

d.439

Q.20 Slipkart, an online shopping portal, introduces two schemes for their customers, during a sale, on a washing machine whose price is Rs. 15000. In scheme 1: they sell the washing machine at 20% discount and in scheme 2: they sell it at a down payment of Rs. 5000 and three installments of Rs. 3000 payable at intervals of a year.  Assuming that Slipkart invests its money at compound interest of 10% compounded annually, which offer is more profitable for them and by how much, at the end of three years?  

a.Scheme 1, Rs. 613

b.Scheme 2, Rs. 613

c. Scheme 1, Rs. 1226 

d.Scheme 2, Rs. 1226

Q.21 What is the present worth of Rs. 2,59,005.8 due 3 years from now at 9% p.a. compound interest, compounded annually? 

a.Rs. 1,60,000

b.Rs. 1,75,000

c.Rs. 1,80,000

d.Rs. 2,00,000

Q.22 Ramu borrowed Rs. 40,000 from a bank at 15% p.a. compound interest, compounded annually. At the end of the first year he paid Rs. 10,000 and at the end of the second year he paid Rs. 15,000. At the end of the third year, he wanted to clear the loan. How much should he pay to clear the loan? 

a.Rs. 27,360

b.Rs. 29,360

c.Rs. 28,360

d.Rs. 30,360

Q.23 A farmer borrowed Rs.3600 at 15% per annum at simple interest. At the end of 4 years he cleared his account by paying Rs.4000 and a goat. The price of the goat is:

a.Rs.1000

b.Rs.1200

c.Rs.1550

d.Rs.1760

Q.24 An amount of Rs. 2400 is due after 6 years under SI at 10% p.a. Find its present value.

a.Rs. 1200

b.Rs. 1500

c.Rs. 1800

d.Rs. 3840

Q.25 What is the  present value of Rs. 1500 due after 5 years at 10% p.a simple interest?

a.Rs. 1400

b.Rs. 1200

c.Rs. 1100

d.Rs. 1000

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