Compound Interest Installment MCQ Set 1

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

Show Answer

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

Show Answer

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

Show Answer

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

Show Answer

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

Show Answer

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

Show Answer

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

Show Answer

 Answer: A

8. A  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

Show Answer

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 12½% compounded annually , then the value of each installment is:

(a) Rs.8100

(b) Rs.4150

(c) Rs.4050

(d) Rs.4000

Show Answer

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 7½% 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

Show Answer

Answer: B