,OPRANKERS™ § LEGALEDGE i ASSIGNMENT 08 aa BE SEL jrections: Solve the following question and select the best answer lect the best Di cooter costs Rs.25,000 when it is brand new. h year, its value is only 80% of what it wa sa a Bee AUthe end of each year, its value is only 80% of what it Value of the scootgs atthe end of 3 years? nin ; w end of 3 years {a) Rs.10.000 (b) Rs.12,500 ‘ore 2,800 (a) Ra.12,000, Cee Bed ter aca cereal ple intre est for two years is 12:10 ® per annum, find the rate of inert rh terest forthe sme principal and rate of interest fortwo years is 12 {130% 115% Uiion, (a) 300% 3, Itthe difference between the simple and the compound interests on some principal amount at 20% for 3 years is Ras, then the principal amount must be ‘ompound interests. principal amount at 20° ye (@) Rs.650 (&) Rs.600 ss75 (a) Rs400 Abank offers 10% interest rate co c mpounded annually. A person deposits Rs.10,000 every year in his account. If he 0 es any amount then how much balance will his account show aftr four Years? 1051 (b) Rs.d5095 (Rs36110 (4) 51000 |) Asumis invested for 3 years compounded at 5%, 10: 1 ively. In the sum amounts to Breese. Un Grek ee , 10% and 20% respectively. In three years, if the sum. (a) Rs.11000 AF Rs.12000 (©) Rs.3000 (a) Rs.14000 6, _ Whatwill be the difference in the compound interest on Rs.50,000 at 12% for one year, when the interest is paid yearly and half-yearly? (@) R500 (b) Rs.600 hire (4) Rs.360, Akash borrows Rs.65,000 at 10% per annum simple interest for 3 years and lends it at 10% per annum, compound interest for 3 years. Find his gain after three years. Rs.2015 () Rs.1330 (©) Rs.1300 (a) None of these. § Divide Rs.1301 between A and B, so that the amount of A after 7 years is equal to the amount of B after 9 years, the J interest being compounded at 4% per annum. _{oRs.676 and Rs.625 —(b) Rs.650 and Rs.651_(<) Rs.670 and Rs631__ (dl) Rs660 and Rs.630 ©) A man burrows Rs4000 from a bank at 7% compoundinterest, At the end of every year, he pays Rs:1500 as part repayment of loan and interest. How much does he stil owe tothe bank aftr three such installments? Spayis.123.25 ()Rsa25 (©) Rs400 (a) Rs460.18 (60) The effective annual rate of interest corresponding toa nominal rate of 8% per annum payable half yearly s @ss (b) 8.01% (8.13% 6.16% 11, The population of a village is 19900. Ifthe population increases by 10% in the first year, by 20% in the second year and due to mass exodus, it decreases by 5% in the third year, what will be its population after 3 years? (@) 13860 (&) 11540 (©) 12860 2540 12. The difference between the compound interest and simple interest earned at the end of second year on a sum of ‘money at 10% per annum is Rs.20. The sum is (@) Rs.4.000 pre2.000 (0 s.1500 (€) Data inadequate (Ram oes oan of R000 and pay ae RAH ar years Th compound intrest ae pr annum willbe approximately @) 8% 9% Sonne jus —_— OLegalbdge Tutorials Page 63 0896 Replication or other unanchorzed nse ofthis material is proibited by the copyright ans of IndiaTOPRANKERS” ine ratio ofthe amount for two years under C1 annually and s same, then the value of the rate of interest i seman sear ane (a) 16.66% 15, Two friends A and B jointly lent out Re.81600 at 4% por annum compound interest, After Yours A Gee the gy, amount as B gets after 3 years, The investment made by B was 5.38000 (ayfs.40000 () Rs.30000 (@) Rs.5000 Oi 16. The diferencebetwcen compound interest and simple intrest at he same Fate RASIH0 fOr 2 Year 8 R72 The of interest per annum is ox (b) 8% () 10% worian 3), The present value of an opti Ifits value will depreciate 5% in the fist Year, 4% in the tical instrument is Rs-20000. second year and 2% in the third year, what will be itg value after three years? Sere (ROA S py Rot74752 (@) Rs175568 & Hie aa iy compounding rate of interest s 10% on an investment, what isthe present value of Rs.50000 that is, ved after two years? a. CO ReAoHE BH (b) Rs.41037.33, (© Rsa132231 (a) Rs40000 1% Sonika invested an amount of Rs.5800 for 2 years. At what rate of compound interest will she get an amount of Rs.594.5 at the end of two years? ” ()5% perannum (6) 4% per annum (€) 6% perannum ——_(4) 8% perannum 20. Rohit earns an interest of Rs.1,656 for the third year and Rs.1,440 for the second year on the same sum. Find the ra, of interest iis ent at compound interest, Arse (18% () 12% (a) none of these 21. In how many years will a sum of Rs.800 at 10% per annum compound interest, compounded semi-annually becomes Rs.926.10? : IE 12 o2t 2, @ A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to four times itself? (@) 12 years (b) 13 years SB years (a) 16 years (B_A-sum 012000 deposited at compound interet becomes double alle 5 years After 20 years i will become (@) Rs.48,000 (©) Rs.96,000 (©) Rs.1,90,000 (@) Rs.1,92,000 24, Ifthe difference between 51. and C.l. for 2 years on a sum of money lent at 5% is Rs.6, then the sum is (@) Rs.2200 BE Rs.2400 (0) Rs.2600, (a) Rs.2000 é Appl of mosny a compound intern double lf in 5 yar. wil nome ght ne of tein 45 years (6) 48 years (©) 54 years (a) 60 years SS | ‘Sanjay borrowed a certain sum from Anil at a certain rate of simple interest for 2 years. He lent this sum to Ram at / the same rate of interest compounded annually for the same period. At the end of two years, he received Rs.4200 as ‘compound interest but paid Rs.4000 only as simple interest, Find the rate of interest, @) 15% (b) 20% (©) 35% (ortox 27. Whatis the compound interest on Rs.5,000 for 4 yea per annum for the next 2 yegrs? (@) Rs.2,32050 3,712 (©) Rs3,745 (a) None of these the rate of interest is 10% p.a. for the first 2 years and 20% OLegalEdge Tutorials Page 64 0f% Replication or oer umaurtborized use of this material is probibited by the copyright laws of IndiaTOPRANKERS” @ LEGALEDGE hi i oepsaae Sompound interest and Simple interest. 10% 7 num, when the > sren apodeme Rai maaan 8 prema he a will he 2481 o3 ©) Rsa161 (0 Rsa240 (a) Rs.2640 per cent. ‘and the number of years is equal tothe rate per cent per annum, find the rate 4% wy: y ees re 6x (2% ual amounts of each Rs.43,892 is ten 30% C.L annually. By how much i Xt to two person for3 years. One at the rate of 30% S.J. and second at the rateof one a Percent the Cl greater than the simple interest received in This 3 yearsduration? (038338 (a) None of these: are ae A0s cm (b) 500 cm (©) 405 em (4) 625m yatta ets @ Seperuml amount tony, ona per aman comput uel yey and te cond the valu ofthe second per ent? pho 396 (b)10% (oot ase Fr er sermotain um of money for 2 years at 8% per annum on simple interest and immediately lent itt Rav bul oy Compound interegt and gained by Rs.16, What amount did Amit borrow? (Rs 2500 (0 Rs.2s000 (@) Rs.1800 Sar are re innate between Anjali and Arun, who ae respectively 18 nd 19 years olin sucha way that Stee a rec aled at 4% per annum compounded annually, they shall receive the same amount on reaching 21 years of age. What isthe share of Anji eh (a) Rs-16000 () Rs.5000 (o Rs15600 (a) Rs.14600 Mr, Jeevan wanted to give some amount of money to his two children, so that although today they may not be singin the ature the money would bea seo thom, He divides sum of Bo 1730 between Ns to sors of10 years and 13 years respectively in such a way each would receive the same amount at 3% per annum compound interest when he attains the age of $0 Years. What would be the original’ share of the younger son? 1078959.60 (6) 8559.80 (6) 8569.80 (4) 399530 SB 36, Mungeri lal has two investment plans: A and B, to choose from plan A offers interest of 10% compounded annually while plan B offers simple interest of 12% per annum how many years is plan B a better investment? @3 Os os ws 37, Aman gets a simple interest of Rs:1000 on a certain principal atthe rate of 5% per annum in 4 years. What compound interest will the man get on twice the principal in two years atthe same rate? (@) Rs.1050 (b) Rs.1005 (9) Rs1025 GByNone of these 58, Aman borrows Rs.4000 at 20% compound rat of interest, Al the end of each year he pays ck Rs.1500 How much mount should he pay atthe end of the third year to clea ll his dues? (oy hs2952 (b) Rs 2852 (6) Rs.2592 (4) Ro.2058 ©LegalEdge Tutorials, Page 68 of 96 Replication or other unauthorized we ofthis material is probed bythe copyright laws of Idax $= 12800 1. (© 25000(1- 2)’ = 250005 x5 2 @ 2 ef ton r) 3. Latthe principal be Rs. 100. 0 Reo CL =100(1 +22)" — 100 = 100x$x $x!" 100 = 100225] = 91 or scL-sh= Mt 6p att UF ferences Ra, Pinciple= R100 If Difference is Rs 8, Principle = * Rs.375, 4 @) Rs10000 after years become = 10000ft + 22] = 10000 385 #8532 0% 0 = 14681 Rs.10000 after 3 years become 10% 40% 9 = 13310 5.10000 alter years become = 10000x # x 4 = 12100 [Rs 10000 after 1 year become Rs:11000 : Total amount after 4 year become Rs.51051. 5. (b) LetPhe the sum. + Amount aller one year= P+ 5% of P= 22 Amount aero yours = 22+ 10% 0/2 oe 16632 = P = 12000, 6 (© CLONRs 500006 12% for one year, when the interest is paid half yearly =Rs6180 CL when the interest is paid yearly = Sm som + Required difference = 6180 ~ 6000 = Rs.180. 7. (a) Sion R565000 @ 10% for 3 years = = Rs. 19500 CL on Rs 65000 @ 10% for 3 years 10. 0. 2 a uw 15, 16, WV, TaND EXPLANATIONS i) @ @ @ 0) © TOPRANKERS - ANSWEI {AssiGNMENT 08 ox uel ae ooo Eeattctonn = Rs.21515 + Required gain = 21515 ~ 19509 = Letaount of A= P ‘Amount of B= 1901 -P arte’ if) =c0301- (tsp P= (1301-P) (x55) =3625P = 1301X 676 ~ 676P =P =676 ‘+ A gets Rs 876 and B gets Rs.625 ‘Amount remaining after 1 yoar=4000 (1+ y55) ~ 1500 = Re any 2 yoar = 2800 (1 + 75) ~ 1500 = Reasip 3 year=1510(1+ 28) ~ 1500 = Rarzag Rate of 8% per annum payable haf yey So, effective rate = 4% Effective annual rate = 444% = g 16, Reams Population after 3 years = 10000 x HE x 3 x 75 = 12540 sum = Difference (32%)* «2x (22-20% 100 = 52,000 Let the rate of compound interest be r. hen 100% (14-3) = 1330 a(i+ a), ion Pers @ Let the investment made by B= x Then investment made by Value after 2 year = 19000 - 19000x = 19000 - 760 ©LegalEdge Tutorials Repletion or oer anautborized use ofthis material is probed bythe copyright lave of India Page 66089T OPRANKERS” Value after 3 yours = 18240 - 18249 2. = Ral 78752 ios 2%, @ LEGALEDGE ee AP Wbecomes # time in-45 years vg Uaibetnventnnt to Ren © Nlaneacm ‘Ate toys them 10014251 pea insinorctlyhen ane «Rel trcsved when the mveamene eae {Re S000 ts eeived when te 8 = React haar e a te eal (oat) 2 2.) Ch s00f(1+ 01025 +1» (145) scene =s000 xii = Rean2 11025 = 28a) Ret6intleSL onSi for your 110255 16000 16 Bora = Rs. 160 Petey (ore, Rs:160 is the simple interest forthe first (057 = 002 payee ie bien 3 100 mi ee Now principal = Rs (i222) = Ra. 600 a Inert onR/0 «R26 forth nd year ‘Amount for yours compounded ball yory Soe n= sie —e [too ¢¢ + 236] Retsil. a) Rate of intone 10% per annum So, ae Ch =a5tist ean = Rass BO ert forall endo oo eo 1.230 Raaz0 Therefore, A= PUSH me eegSh cams neat unt ) ET for year Re 92510 = s00 4222 Sl forayou = Re720 52610= 800 HE Mine the terest onthe interes for the ist year al? Rae e758. 7) 2510 = 0 “is mp tat the rate of tees 108 as 926.1 x10 ox 100 = 10% 00x10 306 mel (2 iene the pinot your as 1440 00, =70 ay @) Herc, ie = 3 al yeors ~thyeer 22. (9, Reg time = S222 8 yrs ao B @ AnP(148) a © 32. (a) let the value of second rate of interest be X% and onc, the principal wil become 16 times in 20 tshlamountsbe Peach "eta6x 12000) apa (tec) =R61,92,000 9 (148) 24 (8) Diference = 2 toss _ 0048 26x 22885 25P = 6000 © Toox.100 ~~ 300 MOR 00 ee Ss stbase % 38, (Latent bortow Rex ithecomes time in 30 ear ‘OLegalledge Twrorias Tap 670896 Replication o ether smauthorized eof hs materials proibited by th copyright laws of India@ Taek Lt the share of Anya be x + Then the share of Arun i (30600 3) 36. xx(144)" = 0600-29 (144)° 10600 — x * = 245 30600 2x Rarso0 the amount with the young son ae young son be x, time be 20 ‘amount with the elder son be x) time be 17 years, rate 3% oe We know that A-P(144)' Since, oth reosved the same amount aa +a (18750 - 2(1 + =(+y) 2S 37. » @ @ = ©LegalEdge Tutorials cation or otberwnantbrized use ofthis materia is proibted bythe copyright laws of India = 2092727 = 18750__ 9959.60 oxeseaat zo92Te ‘il forth year plan B will etch Rs-48 ang I or ade fith Year interest from pik pales 60 and from plan A will be Rs.6, es Ey $ 10008100 = ps, 5000 7 ‘Compound interest = r0000[(2 + = 10000x 24 = Rs.1025 tthe end of 1 year = 4000% 22 = 4909 ‘But he pays back = 1500 “At the end of 2ne year = sax = 3960 ~ 1500 = 2460 ‘tthe end of 9 year = 2460x 222 = Rs.2952 Page 68 0f%