Problem Solving MCQ Set 7

Question: A father left a will of Rs.35 lakhs between his two daughters aged 8.5 and 16 such that they may get equal amounts when each of them reach the age of 21 years. The original amount of Rs.35 lakhs has been instructed to be invested at 10% p.a. simple interest. How much did the elder daughter get at the time of the will?

1. Rs. 17.5 lakhs
2. Rs. 21 lakhs
3. Rs. 15 lakhs
4. Rs. 20 lakhs

Question: What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest, interest being compounded annually?

1. 2400
2. 2592
3. 2678
4. 2540

Question: If a sum of money grows to 144/121 times when invested for two years in a scheme where interest is compounded annually, how long will the same sum of money take to treble if invested at the same rate of interest in a scheme where interest is computed using simple interest method?

1. 9 years
2. 22 years
3. 18 years
4. 33 years

Question: The population of a town was 3600 three years back. It is 4800 right now. What will be the population three years down the line, if the rate of growth of population has been constant over the years and has been compounding annually?

1. 6000
2. 6400
3. 7200
4. 9600

Question: A man invests Rs.5000 for 3 years at 5% p.a. compound interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the third year.

1. 5624.32
2. 5630.50
3. 5788.125
4. 5627.20

Question: The difference between the compound interest and the simple interest on a certain sum at 12% p.a. for two years is Rs.90. What will be the value of the amount at the end of 3 years?

1. 9000
2. 6250
3. 8530.80
4. 8780.80