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For Complete study, first click the following links and Read the Chapter, with Complete text of theories, Examples, in Text, Audio & Video Tutorials.

After study, click the following link and go through all the Model MCQ with answers and explanation.

After study, write the MCQ Answers in one line, with Question Number and correct option in the following Format (shown as example), for the entire set of 9 MCQs. First write the Question Number, then the correct option of that Question, write a comma, then the next question and correct option, as shown below.

1b,2c,3d,…….9c

Interest and Annuity MCQ Test

## Interest and Annuity MCQ Test Set # 1

1. The amount to be paid back on a loan of  Rs. 18,000 at 5.5% per annum with Interest, after 3 years

a. 20970

b. 19970

c. 20370

d. 21990

2. The difference between compound interest and simple interest on a certain amount of money at 5% per annum for 2 years is  Rs.15. Find the sum

(a) Rs 4500 (b) Rs 7500 (c) Rs 5000 (d) Rs 6000

3. The effective rate corresponding to a stated rate of 6% compound semiannually is approximately:

a) 6.6%

b) 6.09%

c) 6.69%

d) 5.89%

4. ₹ 60,000, was lent partly at 5% and the rest at 4% simple interest. If the total annual interest is ₹ 2560, the money lent at 4% was

(a) ₹ 40000

(b) ₹ 44000

(c) ₹ 30000

(d) ₹ 45000

5. In how many years ₹ 3,000 would give simple interest of ₹ 1,080 at 12% per annum ?

(a) 3 years

(b) 2½ years

(c) 2 years

(d) 3½ years

6. P took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. P paid Rs. 432 as interest for the loan period, what was the rate of interest?

a) 3.6

b) 6

c) 18

d) 9

7. X lent Rs. 5000 to Y for 2 years, and also lent Rs. 3000 to Z for 4 years on simple interest. The Rate of Interest is same for both Y and Z.  X received Rs. Total Interest of 2200 from Y and Z. The rate of interest per annum is:

a. 5%

b. 7%

c. 9%

d. 10%

8. The Ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years is :

a. 1 : 3

b. 1 : 4

c. 2 : 3

d. 3:5

9. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends the borrowed money to another person at 6.25% p.a for 2 years. Find his gain per year.

a. Rs. 112.50

b. Rs. 125

c. Rs. 225

d. Rs. 167.50