COMPOUND INTEREST INSTALLMENT MCQ SET 1
1. A sum of Rs.4,620 is to be paid back in 2 equal annual installments . How much is each installment (in Rs.) if the interest is compounded annually at 10% per annum ?
(a) 2,662
(b) 2,420
(c) 2,552
(d) 2,750
Answer: A
2. Rajnish borrowed Rs.1500 from a bank and repaid the entire amount with interest in two equal annul installments , the first installment being paid a year after Rajnish borrowed from the bank . If the rate of interest was 40% per annum , compounded annually , then what was the value (in Rs.) of each installment paid by Rajnish?
(a) 1125
(b) 1470
(c) 1225
(d) 1350
Answer: C
3. A man borrowed some money and returned it in two installments of Rs.3,025 each . If the rate of interest is 10% per annum , compound annually , find the sum borrowed .
(a) Rs.5,575
(b) Rs.6,250
(c) Rs.6,525
(d) Rs.5,250
Answer: D
4. Loan is to be repaid in two equal yearly installments . If the rate of interest is 10% per annum , compounded annually and each installment is Rs.6,897 , then find the total interest charged .
(a) Rs.1,644
(b) Rs.1,824
(c) Rs.1,914
(d) Rs.1,734
Answer: B
5. A loan is to be returned in two equal yearly installments . If the rate of interest is 10% p.a. , compounded annually and each installment is Rs.6534 , then the total interest charged (in Rs.) is :
(a) 1728
(b) 1867
(c) 1642
(d) 1579
Answer: A
6. A man borrowed money and paid back in two equal annual installments of Rs.1,089 each at 10% compound interest compounded annually for 2 years . What was the sum (in Rs.) borrowed ?
(a) 1,890
(b) 2,178
(c) 1,800
(d) 2,090
Answer: A
7. A sum of money was borrowed and paid back in two equal annual installments of Rs.980 each allowing 4% compound interest . The sum (in Rs, to the nearest tens) borrowed was :
(a) 1,850
(b) 1,960
(c) 1,760
(d) 2,050
ย Answer: A
8. Aย sum of Rs. x was borrowed and paid back in two equal yearly installments , each of Rs.35,280 . If the rate of interest was 5% compounded annually , then the value of x is:
(a) 64,400
(b) 65,600
(c) 64,800
(d) 65,400
Answer: B
9. Neeraj took Rs.6800 as a loan which along with interest is to be repaid in two equal annual installments . If the rate of interest is 12ยฝ% compounded annually , then the value of each installment is:
(a) Rs.8100
(b) Rs.4150
(c) Rs.4050
(d) Rs.4000
Answer: C
10. Surekha borrowed a sum of money and returned it in two equal installments of Rs.5547 each . If the rate of interest was 7ยฝ% p.a. compounded yearly , the total interest paid by her was:
(a) Rs.1,144
(b) Rs.1,134
(c) Rs.1,096
(d) Rs.1,126
Answer: B
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