Unit-4:
(a)Profit, loss and discount
(b)Simple interest and compound interest
(c)Annuity
(d)Share and dividend
Q1.
A sum of money placed at C.I. double itself in 5 years. It will amount to eight times itself at the same rate of interest in ___________
years.
(a) 10 (b) 15 (c) 16 (d) 20
Solution.
(x1)1/(n1) = (x2)1/(n2)
(2)1/5 = (8)1/(n2)
(2)1/5 = (2)3/(n2)
n2 = 15
Solution
Q2.
The difference between the interest received from two different schemes on Rs. 1000 for 2 years is Rs. 5. Find the difference between their
rates .
(a) 1% (b) 0.9% (c) 0.25% (d) 0.4%
Solution.
r
1 - r
2 =
Id x 100 / sum x t
=
5 x 100 / 1000 x 2
=
500 / 2000
=
1 / 4
= 0.25%
Solution
Q3.
In the case of ordinary annuity payment is made at the end of the period.
(a) True (b) False (c) None of these
Solution.
(a) True
Solution
Q4.
The least number of complete years in which a sum of money put out at 20% C.I will be more than doubled in _________ years .
(a) 7 (b) 3 (c) 4 (d) 5
Solution.
(c) 4
Solution
Q5.
A shopkeeper buys some juice . He sells it at Rs.10 a litre, he loses Rs.300, but when he sells it at Rs.11 a litre, he gains 200, How much
Juice did he purchase ?
(a) 150 litres (b) 300 litres (c) 400 litres (d) 500 litres
Solution.
Quantity of juice =
Different in amount / Different in rate
=
200 - (-300) / 11 - 10
= 500 litres
Solution
Q6.
A sum of Rs.3600 is lent out in two parts in such a way that the interest on one part at 10% for 2 years is equal to that on another
part at 5% for 4 years . find the two sums .
(a) 1800,1800 (b) 2000,1600 (c) 3000,600 (d) 2500, 1100
Solution.
(a) 1800,1800
S
1 : S
2 =
1 / r1 t1
:
1 / r2 t2
=
1 / 20
:
1 / 20
S
1 : S
2 = 1 : 1
Solution
Q7.
Two equal amounts of money are deposited in two banks each 12% per annum for 4 years and 5 years respectively. If the difference between
their interests Rs.36, find the sum.
(a) 900 (b) 300 (c) 400 (d) 600
Solution.
Sum =
Id x 100 / r1 t1 - r2 t2
=
36 x 100 / 60 - 48
=
3600 / 12
= 300
Solution
Q8.
A invest Rs. 10,000 every year starting from today for next 10 years. Assume interest rate is 8% per annum.compounded annually . Calculate
future value of the annuity. Given that (1 + 0.08)10 = 2.158925
(a) 1 lac (b) 156454 (c) 2 lac
(d) 164840
Solution.
(b) 156454
Solution
Q9.
A man sold a table at a loss of 9% had he been able to sell it at a gain of 12% , it would have fetched Rs.84 more than it did, what was the cost price
.
(a) Rs. 700 (b) Rs. 600 (c) Rs. 350 (d) Rs. 400
Solution.
112% of CP - 91% of CP = 84
21% of CP = 84
21/100 of CP = 84
CP = 400
Solution
Q10.
A person bought an article and sold it at a loss of 10% . If he had bought it for 20% less and sold it for Rs. 66 more he would have had a profit
of 40% . find C.P .
(a) Rs. 600 (b) Rs.300 (c) Rs.400 (d) Rs.500
Solution.
(b) Rs.300
Solution
