Hi readers,

From past 4 years I am analyzing the paper pattern of various competitive exams, in every exam you will find at least 1 question from this chapter. Few questions are repeated every year. Today I am sharing all those questions.

From past 4 years I am analyzing the paper pattern of various competitive exams, in every exam you will find at least 1 question from this chapter. Few questions are repeated every year. Today I am sharing all those questions.

## Ques 1.

An electric iron is sold for Rs 110 cash or Rs 50 cash down payment followed by Rs 62 after a month. Find the rate of interest charged under the installment plan.

**Ans 1.**Present worth of the amount to be paid in installment = Rs (110-50) = Rs 60

Let the rate of interest be r% p.a.

After a month the worth of Rs 60 would be : Rs ( 60 + 20 xr /100 x 1/12)

But 60 + r/20 = 62

∴ r = ( 62 - 60 ) 20 = 40 % p.a. ## Ques 2.

A loan of Rs 2550 is to be paid back in two equal half - yearly installments . How much is each installment if the interest is compounded half - yearly at 8% p.a.?

**Ans 2.**Present worth of loan = Rs 2550

Let each installment be Rs x.

## Ques 3.

Kusum borrowed money and returned it in 3 equal quarterly installments of Rs.4630.50 each . What sum had she borrowed if the rate of interest was 20% p.a. compounded quarterly ? Find also the total interest charged .

**Ans 3.**Using the concept of present worth we have :

Total value of the three installment = Rs (4630.50 x 3) = Rs 13891.50

∴ Total interest charged = Rs(13891.50 - 12610) = 1281.50.## Ques 4.

A steel container is sold at Rs 120 cash or Rs 25 as cash down payment and Rs.25 a month for 4 months .The rate of interest per annum charged under the installment plan is .

(a) 26.09%

(b) 24.09%

(c) 20 %

(d) 23.25%

**Ans 4.**26.09%

Hint : Present worth of the balance amount to be paid = Rs (120-25) = Rs 95

Worth of Rs 95 after 4 months =

## Ques 5.

A sum of Rs 7500 is to be paid back in three equal annual installments .How much is each installment if the interest is compounded annually at 4% p.a.?

(a) Rs. 1000.05

(b) Rs 981.65

(c) Rs 163.58

(d) Rs 2701 .61

**Ans 5.**2701.61

Hint : 7500 =

## Ques 6.

A man borrows money on compound interest and return it in two equal half - yearly installments of Rs 4410 each. Find the interest charged if the rate of interest is 10 % p.a. compounded half - yearly.

(a) Rs 600

(b) Rs 720

(c) Rs 620

(d) Rs 660

**Ans 6.**RS 620

Hint : Sum borrowed

## Ques 7.

Sunder borrowed money and returned it in 3 equal quarterly installments of Rs. 17576 each . What sum had he borrowed if the rate of interest was 16% p.a. compounded quarterly ?

(a) Rs 50000

(b) Rs 48786

(c) Rs 48775

(d) None of these

**Ans 7.**48775

Hint : Required sum =

## Ques 8.

A loan of Rs 8400 is to be paid in two equal half - yearly installment the interest being charged at 10% per annum compounded half - yearly . Find each installment( approx ).

(a) Rs 4450

(b) Rs 4400

(c) Rs 4850

(d) Rs 4500

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*Bank Exams Today Notes*

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