INTEREST & ANNUITY

1) An amount of Rs. 2,300/- was borrowed by Ankit, at a simple interest of 12 % p.a. He returned the
amount with interest, after 3 years. Calculate the total amount, including the simple interest he had to
repay. (Ans: Rs. 3,128/-)

2) A sum of Rs. 10.000/- was taken as a loan by Atul at a Simple Interest of 14% p.a. Find the total
amount with interest to be returned by him after 1 ½ years? (Ans: Rs. 12,100/-)

3) A sum of Rs. 25,000/- accumulated to Rs. 55,000/- after 12 years. Find the rate of simple interest p.a.
(Ans: 10%)

4) A sum of Rs. 6,400 accumulated to Rs. 9,280/- in a certain period. If the rate of interest is 9%, find the
period? (Ans: 5 years)

5) Simple Interest on a certain amount of money for 4 years at 8% p.a. is less than the Simple Interest on
the same amount for 5 ½ years @ 7% p.a. by Rs. 585/-. Find the Principal Amount? (Ans: Rs. 9,000/-).

6) If the Simple Interest on a certain amount of money for 3 years at 10% p.a. is less than the Simple
Interest on the same amount for 4 ½ years @ 9% p.a. by Rs. 1,260/-. Find the Principal Amount? (Ans:
Rs. 12,000/-).

7) Anu kept a certain amount in a bank, giving simple interest at 8% p.a. for 5 years and got a simple
interest of Rs. 10,000/-. Her friend Disha, also kept an identical amount in another bank for 3 1⁄2 years,
giving simple interest at 11% p.a. Calculate the interest Disha will get? (Ans: Rs. 9,625/-).

8) Ajit and Akshay kept exactly identical amounts in two different banks giving simple interest at 9% and
10% respectively. Ajit got interest of Rs. 4,050 after 2 ½ years while Akshay kept his money in the
other bank for 4 ½ years. Calculate the simple interest he will receive? (Ans: Rs. 8,100/-).

9) John borrowed Rs. 80,000/- from his friend, partly at 10% p.a. and the remaining at 12% p.a. After 4
years, he returned the total amount with a total simple interest of Rs. 34,400/-, find the amounts he
borrowed at each of these rates? (Ans: Rs. 50,000/- & Rs. 30,000/-).

10) Mr. Khan borrowed Rs. 60,000/- partly at 9% p.a. and the remaining at 10% p.a. After 3 years, he
returned the total amount with the total simple interest of Rs. 16,800/-. Find the amounts he borrowed
at each of these rates? (Ans: Rs. 40,000/- & Rs. 20,000)

11) Calculate the Compound Interest on Rs. 20,000/- for 4 years at 8% p.a.? (Ans: Rs. 7,209.78/-)

12) The accumulated amounts for a certain Principal, with Compound Interest at a certain rate in 2 years
and in 4 years are respectively Rs. 2,662/- and Rs. 3,221.02/-. Find the Principal and the rate of
interest? (Ans: Rs. 2,200/- & 10%)

13) The Simple and Compound Interest for 2 years, on the same Principal, at the same rate are Rs. 7,200/-
and Rs. 7,632/- respectively. Find the Principal and the rate of interest? (Ans: Rs. 30,000/- & 12%).

14) Jay kept Rs. 20,000/- for 4 years in a bank as a fixed deposit. At time of maturity he received a total
amount of Rs. 27,210/- with compound interest. Find the rate of interest? (Ans: 8%).

15) The difference between Simple and Compound Interest on a certain Principal for 2 years at 6% rate of
interest p.a. is Rs. 13.50/-, find the Principal. (Ans: Rs. 3,750/-)
16) Juhi kept Rs. 30,000/- as a fixed deposit in a bank for 2 years. She received Rs. 34,347/- at the time of
maturity. Calculate rate of interest p.a. compounded annually. (Ans: 7%)

17) Find the amount accumulated after 3 years if a sum of Rs. 8,000/- is kept in a fixed deposit at a
compound interest of 12% p.a. Compounded Half yearly? (Ans: Rs. 11,348.15/-)

18) The difference between simple interest and compound interest on a sum for 4 years at 10% p.a. is Rs.
1,025.60/-. Find the sum? (Ans: Rs. 16,000/-)

19) A car was bought at Rs. 5,40,000/-. Find its resale price after 3 years by considering 8% depreciation
p.a.? (Ans: 4,20,491.52/-).

20) An equipment was purchased at Rs. 10,50,000/-. Find its market price after 5 years by taking into
account 8% depreciation p.a.? (Ans: Rs. 6,92,035.59/-)

21) An equipment was purchased at Rs. 10,00,000/-. Find its depreciated value for 5 years by considering
8% depreciation for each year? (Ans: 9,20,000/-; Rs. 8,46,400/-; Rs. 7,78,688/-; Rs. 7,16,392.96/-;
Rs. 6,59,081.52/-).

22) An office furniture set was purchased for Rs. 6,00,000/-. Find its depreciated value for 4 years by
considering 6% depreciation p.a. for each year? (Ans: Rs. 5,64,000/-; Rs.5,30,160/-; Rs. 4,98,350.40/-;
Rs. 4,68,449.38/-)

23) A car was purchased at a certain price. Its value after 1 year was Rs. 3,12,800/- with a certain rate of
depreciation. Further, its value decreased to Rs. 2,87,776/- after 2 years. Find the original price of the
car and the rate of depreciation p.a.? (Ans: Rs. 3,40,000/-; 8%)

24) A computer was bought at a certain price. Its value after 1 year was Rs. 45,000/- after considering a
certain rate of depreciation. Further, its value decreased to Rs. 40,500/- after 2 years at the same rate of
depreciation. Find the original price of the computer and the rate of depreciation p.a.?
(Ans:Rs. 50,000/-; 10%)

25) The machinery has a resale price of Rs. 49,572/-, after 3 years with 10% rate of depreciation p.a. Find
its original price? (Ans: Rs. 68,000/-).

26) A car was purchased 3 years back. Its current resale price with 5 % depreciation is Rs. 2,57,212.50/-.
Find its original price? (Ans: Rs. 3,00,000/-).

27) Find the future value of Rs. 24,500/- kept as a fixed deposit after 7 years at 7% p.a. compound
annually? (Rs. 39,341.65/-)

28) Mrs. Khanna kept Rs. 55,000/- in a bank in fixed deposit for 3 years at 9% p.a. so as to get a minimum
of Rs. 70,000/- after 3 years. Check whether her requirement will be fulfilled or not. (Ans: Rs.
71,226.60/-. Requirement is fulfilled with an excess amount of Rs. 1,226.60/-)

29) Sohail promised to pay Aamir Rs. 15,000/- after 3 years with compound rate of interest 8% p.a. He also
promised to pay Aakash Rs. 20,000/- after 4 years with compound rate of interest 9% p.a. Find the
present worths of these payments. Also find the total present worth of the money Sohail has to pay.
(Ans: Rs. 11,907.48/-; Rs. 14,168.50/-; Rs. 26,075.99/-)

30) Salil will pay Shrikant Rs. 25,000/- after 2 years and he will pay Subhash Rs. 32,000/- after 3 years.
Find the total present worth of both the payments, if the interest rate is 8% p.a. compounded annually.
(Rs. 21,433.47/-; 25,402.63/-; 46,836.10/-)
31) Kamal deposits Rs. 5,000/- at the end of each year in a bank at 9% p.a. compound interest. What will
be the total amount she will receive after 6 years? (Ans: Rs. 37,616.67/-).

32) Find the amount accumulated after 3 years if a sum of Rs. 8,000/- is kept in a fixed deposit at a
compound interest of 12% p.a. Compounded annually.
33) Nishant deposits Rs. 6,000/- at the end of every month in a bank giving 9% compound interest p.a. Find
the accumulated amount after one year? (Ans: Rs. 75,037.60/-)

34) A person invests Rs. 5,000/- at the end of every year with a company which pays interest at 10% p.a.
He allows his deposits to accumulate with the company at compound rate. Find the amount standing to
his credit one year after he has made his investment for the fourth time? (Ans: Rs. 25,525.50/-)

35) Find the annuity at the end of each year for 10 years if its maturity value is Rs. 1,05,292.40/- at
compound interest of 12% p.a.? (Ans: Rs. 6,000/-.)

36) Find the annuity to be paid at the end of every month if the maturity value after 3 years @ 12% p.a. is
Rs. 38,769.19/-? (Ans: Rs. 900/-)

37) Mr. Shah deposited Rs. 12,000/- at the end of every year for 3 years. He received interest at 8% per
annum compounded half yearly. Find the accumulated amount after 3 years. Also state the effective
rate? (Ans: Rs. 39,017.50/-; 8.16%)

38) Anu deposited Rs. 25,000/- at the end of every year for 4 years, with interest as 12% p.a., compounded
quarterly. Find the effective rate of interest and the accumulated value after 3 years? (Ans: Rs.
84,820.72/-; 12.55%)

39) Ketan purchased a second hand motorbike with initial payment of Rs. 20,000/- and six monthly
installments of Rs. 5,000/- each. If the seller wishes to get 12% compound interest p.a., find the price
of the bike? (Ans: Rs. 48,977.38/-)

40) Mita purchased a refrigerator with a down payment of Rs. 2,500/- and the remaining amount to be paid
in 6 equal monthly installments of Rs. 1,000/- each. Find the price of the fridge if the company wants
to earn 12% p.a.? (Ans: Rs. 8,290/-)

41) Ashutosh purchased an Innova car with a down payment of Rs. 1,50,000/-and the remaining amount to
be paid in 10 equal quarterly installments. If the company wants to get 12% p.a., find the installment
amount, given that the price of the car is Rs. 9,60,000/-? (Ans: Rs. 95,034/-)

42) Neha bought a washing machine by paying Rs. 6,000/- and the remaining amount in 4 equal quarterly
installments. If the price of the washing machine is Rs. 16,000/- and the shopkeeper wants to earn 12%
rate of interest, compounded annually, find the installment amount? (Ans: Rs. 2,693/-).

43) Radha purchases TV worth Rs. 5,000/- from a dealer at 8% p.a., reducing balance interest rate. Find
the EMI, if the repayments are to be made in 6 months? (Ans: Rs. 852.89/-).

44) Ramesh takes a loan of Rs. 1,20,000/- from a bank for a period of 8 months. Compute the EMI at 12%
p.a. on reducing balance? (Ans: Rs. 15,683/-)

45) Mr. Sinha wants to take a loan of Rs. 2 lakhs, to be repaid in 3 years. Bank X offers him a loan at 10%
p.a., flat interest rate and Bank Y offers him a loan at 12% p.a. on reducing balance. Comparing the
EMI, decide which offer should be accepted. (Ans: Rs. 7,222/-; Rs. 6,643/-. So Bank Y is chosen).
46) Rishabh required a loan of Rs. 6 lakhs which he wanted to repay in 4 years. IPL Bank offered him at
9% p.a. on monthly reducing balance and HCL Bank at 10% p.a. Flat interest rate. Comparing the
EMI, advise him about the choice of the Bank? (Ans: Rs. 14,931/- ; Rs. 17,500/-. So IPL Bank is
chosen).
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