# CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Find the C.I. on Rs. 2000 for 3 years at 10% p.a.

- (a)
Rs. 562

- (b)
Rs. 662

- (c)
Rs. 500

- (d)
Rs. 516.50

Answer: Option B

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Find the C.I. on 5000 for 2 years at 4 1/2% p.a. when interest iscompounded annually.

- (a)
Rs. 460.125

- (b)
Rs. 480

- (c)
Rs. 620.14

- (d)
Rs. 504.5

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Find the C.I. on Rs. 2000 at 12% p.a. for 3 years when the C.I. is reckoned yearly.

- (a)
Rs. 881.84

- (b)
Rs. 809.86

- (c)
Rs. 888.48

- (d)
Rs. 848.88

Answer: Option B

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

What will Rs. 12,500 amount to at C.I. for 3 years at 4% when C.I. is reckoned yearly.

- (a)
Rs. 13,600.2

- (b)
Rs. 13,801.2

- (c)
Rs. 14,200

- (d)
Rs. 14,060.80

Answer: Option D

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

- (a)
2

- (b)
$2\frac{1}{2}$

- (c)
3

- (d)
4

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

- (a)
6%

- (b)
6.5%

- (c)
7%

- (d)
7.5%

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Every year an amount increases by 1/8th of itself, How much will it be after two years if its present value is Rs. 64000?

- (a)
Rs. 81000

- (b)
Rs. 80000

- (c)
Rs. 75000

- (d)
None of these

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

A sum of money put out at C.I. amounts to Rs. 57,840 in 2 years and in 3 years to Rs. 61,455. Find the rate of interest.

- (a)
$5\frac{3}{4}\%$

- (b)
6%

- (c)
$5\frac{1}{2}\%$

- (d)
$6\frac{1}{4}\%$

Answer: Option D

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:

- (a)
3

- (b)
4

- (c)
5

- (d)
6

Answer: Option B

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Find the amount due on Rs. 2000 for 2.5 years at 10% p.a., compounded yearly.

Answer: 2541

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

What is the compound interest on Rs. 6950 for 3 years if interest is payable half-yearly, at the rate of 6% p.a. for the first two years and at the rate of 9% p.a. for the third year

- (a)
Rs. 1590

- (b)
Rs. 1502

- (c)
Rs. 1482

- (d)
Rs. 1615

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Determine the C.I. on Rs. 2400 at 10% p.a. for $1\frac{1}{2}$ years when C.I. is compounded half yearly.

- (a)
Rs. 367.20

- (b)
Rs. 390

- (c)
Rs. 387.10

- (d)
Rs. 378.30

Answer: Option D

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:

- (a)
Rs. 120

- (b)
Rs. 121

- (c)
Rs.122

- (d)
Rs.123

Answer: Option B

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per annum compounded yearly and half-yearly?

- (a)
Rs.2.04

- (b)
Rs. 3.06

- (c)
Rs.4.80

- (d)
Rs.8.30

Answer: Option A

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

- (a)
6.06%

- (b)
6.07%

- (c)
6.08%

- (d)
6.09%

Answer: Option D

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

The effective annual rate of interest corresponding to a nominal rate of 12% per annum payable every 4 months is:

- (a)
1.78%

- (b)
12.49%

- (c)
12%

- (d)
13.26%

Answer: Option B

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

An amount lent at CI doubles in 2 years. How long will it take for the amount to become 8 times when lent at same rate of interest?

- (a)
15 years

- (b)
21 years

- (c)
6 years

- (d)
Can’t be determined

Answer: Option C

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

An amount lent at CI becomes 5 times in 7 years. How long will it take for the amount to become 125 times when lent at same rate of interest?

Answer: 21

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**CRE 2 - Compound Interest | Arithmetic - Simple & Compound Interest**

Find the amount due on Rs. 1000 for 2 1/3 years at 30% p.a., compounded yearly.

Answer: 1859

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