Quantitative Aptitude · Commerce Accountancy

Interest and Annuities

621 Questions

Interest and annuities represent a critical quantitative aptitude section focusing on the mathematical calculation of simple interest, compound interest, and future values of investments. Questions challenge candidates to determine maturity values, compute recurring deposit returns, and calculate prevailing interest rates. Mastery of this topic is essential for scoring high in banking and SSC examinations.

Simple and compound interestFuture value of annuitiesRecurring deposit calculationsInterest rate determinationPresent value formulas

Interest and Annuities Questions

Multiple choice mathematics and statistics interest applying compound interest compound interest formula with different successive rate of interest compound interest ( for different time period)

Raj borrows Rs.$16,000$; out of which Rs.$9,000$ at $5\%$ and remaining at $6\%$. Find the total interest paid by him in $4$ years.

  1. $1600$
  2. $3480$
  3. $3600$
  4. $3300$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

${ I } _{ 1 }=\dfrac { P\times R\times T1 }{ 100 } =\dfrac { 9000\times 5\times 4 }{ 100 } =Rs.1800$


${ I } _{ 2 }=\dfrac { 7000\times 6\times 4 }{ 100 } =Rs.1680$


$\therefore $ Total Interest $=Rs.1800+Rs.1680=Rs.3480$

Multiple choice book keeping and accountancy adjustments in preparation of financial statements accrued income earned or accrued income need for adjustment, closing stock and outstanding expenses

Calculate Outstanding interest on 10 % govt bonds Rs. 15000.

  1. 1520

  2. 1500

  3. 2000

  4. 2200
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Calculation of Interest on Govt Bonds = 15000 * 10 / 100 

                                                                 = 1500

Multiple choice book keeping and accountancy company accounts - redemption of debentures debentures redemption methods of redemption of debentures accounting effects for redemption of debentures

X. Ltd. issued $500, 15\%$ Debentures of Rs$100$ each at a discount of $10\%$ redeemable at a premium of $5\%$ after $4$ years. The amount of annual interest on Debentures is -

  1. Rs$6,750$
  2. Rs$7,500$
  3. Rs$7,875$
  4. Rs$7,125$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The face value of the debentures is 500 * 100 = 50,000. The interest is 15% of the face value. 15% of 50,000 = 7,500.

Multiple choice maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

Ajit opens a bank account by depositing Rs $20,000$. At the end of each year, he withdraws a sum of money that makes the balance exactly half of what it was in the beginning of the year. If the bank pays $10\%$ interest, what is the total amount withdrawn by Ajit at the end of three years?

  1. Rs $17,856$
  2. Rs $20,377$
  3. Rs $18,330$
  4. Rs $19,400$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

$Depositing\quad amount=Rs20000,\ Amount\quad after\quad 1\quad year=1.1*20000=Rs22000,\ Amount\quad withdrawn=amount\quad left=0.5*22000=Rs11000\ Amount\quad after\quad 2\quad year=1.1*11000=Rs12100,\ Amount\quad withdrawn=amount\quad left=0.5*12100=Rs6050\ Amount\quad after\quad 3\quad year=1.1*6050=Rs6655,\ Amount\quad withdrawn=amount\quad left=0.5*6655=Rs3327.5\ Total\quad amount\quad withdrawn=Rs3327.5+6050+11000=Rs20377.5 $

Multiple choice maths calculating and mental strategies 3 finding percentage of a number how many in all? problems on percentage

Choose the correct answer from the alternatives given.
Some money was lent on $4\%$ compound interest. If the difference in interest of second and the first year is $88$, find out the sum.

  1. $Rs. 50,000$
  2. $Rs. 60,000$
  3. $Rs. 65,000$
  4. $Rs. 55,000$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For compound interest at rate r, the interest in the first year is P*r and in the second year is P*r*(1+r). The difference is P*r^2. Given r=0.04 and difference=88, we have P*(0.04)^2 = 88, so P*0.0016 = 88, which gives P = 55,000.

Multiple choice commerce micro, medium and small enterprises (msmes) nabard and kvic funding and assistance to small businesses privileges and other promotional measures for msmes

Short term loan under Mahila Bachat Gat is for a duration less than ____.

  1. 6 months

  2. 5 months

  3. 1 year

  4. 1.5years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Short-term loans in the context of microfinance and Bachat Gat operations are typically defined as loans with a maturity period of less than one year.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1.1.05 X draws a bill on Y for Rs. 30,000 for 3 months. At maturity Y requests X accepts Rs 10,000 in cash and for balance to draw a fresh bill for 2 months together with 12% p.a interest, Amount of interest will be ___________.

  1. Rs. 400

  2. Rs. 600

  3. Rs. 480

  4. Rs. 760
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cash paid is 10,000, leaving a balance of 20,000. Interest is charged on the balance for 2 months: 20,000 * 12% * (2/12) = 400.

Multiple choice book keeping and accountancy bills of exchange renewal of the bill retirement and renewal of a bill accounting treatment of bill transaction

On 1st Jan X draws a bill on Y for 1,50,000. At maturity Y requests X to draw a fresh bill for 2 months together with 12% p.a. interest. Nothing charges 500. The amount of interest will be:

  1. 3,000.

  2. 3,010.

  3. 2,500.

  4. 2,750.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest is calculated on the principal (1,50,000) plus noting charges (500) for 2 months at 12%. Interest = 1,50,500 * 0.12 * (2/12) = 3,010.

Multiple choice maths ratio, proportion and unitary method more on proportion terms related to proportion proportion

Divide Rs 7053 into three parts so that the amount after 2, 3 and 4 years respectively may be equal, the rates of interest being 4% per annum. 

  1. Rs 2500, Rs 3500, Rs 1053

  2. Rs 2436, Rs 2349, Rs 2268

  3. Rs 2568, Rs 3200, Rs1285

  4. Rs 2360, Rs 2289, Rs 2404
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Take the parts as x, y & z.

Then x+y+z=7053.
Obtain the the respective amounts for x,y & z, which are equal, for the 
given years.
Now solve for x, y & z.

Multiple choice elements of accounts ratio analysis liquidity ratios accounting ratio's accounting ratios

Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of current liabilities?

  1. $Rs20,000$
  2. $Rs30,000$
  3. $Rs50,000$
  4. $Rs60,000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Net working capital = Current assets - Current liabilities
$Rs. 30000$ = Current assets - Current liabilities
Therefore, Current assets = Current liabilities + $Rs. 30000$
Current ratio = Current assets/ Current liabilities
$2.5$ = [Current liabilities + $Rs. 30000$] / Current liabilities
 $2.5$ Current liabilities  = Current liabilities + $Rs. 30000$
Current liabilities = $Rs. 30000/ 1.5$
Therefore, Current liabilities = $Rs. 20000$
Multiple choice elements of accounts ratio analysis liquidity ratios accounting ratio's accounting ratios

Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of quick assets?

  1. $Rs 20,000$
  2. $Rs 30,000$
  3. $Rs 50,000$
  4. $Rs 60,000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Net working capital = Current assets - Current liabilities
$Rs. 30000$ = Current assets - Current liabilities
Therefore, Current assets = Current liabilities + $Rs. 30000$
Current ratio = Current assets/ Current liabilities
$2.5$ = [Current liabilities + $Rs. 30000$] / Current liabilities
 $2.5$ Current liabilities  = Current liabilities + $Rs. 30000$
Current liabilities = $Rs. 30000/ 1.5$
Therefore, Current liabilities = $Rs. 20000$
Now,
Current assets = Current liabilities + $Rs. 30000$
                          = $Rs.20000 + Rs. 30000$
                          =$Rs. 50000$
Now, Quick Ratio = Quick Assets/ Current liabilities
                     $1.5$   = Quick Assets/ $20000$
Therefore,
                  Quick Assets = $Rs. 30000$
Multiple choice elements of accounts ratio analysis liquidity ratios accounting ratio's accounting ratios

Given current ratio = $2.5$
Quick ratio = $1.5$
Net working capital = Rs $30,000$
What is the amount of current assets?

  1. $Rs 20,000$
  2. $Rs 30,000$
  3. $Rs 50,000$
  4. $Rs 60,000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Net working capital = Current assets - Current liabilities
$Rs. 30000$ = Current assets - Current liabilities
Therefore, Current assets = Current liabilities + $Rs. 30000$
Current ratio = Current assets/ Current liabilities
$2.5$ = [Current liabilities + $Rs. 30000$] / Current liabilities
 $2.5$ Current liabilities  = Current liabilities + $Rs. 30000$
Current liabilities = $Rs. 30000/ 1.5$
Therefore, Current liabilities = $Rs. 20000$
Now,
Current assets = Current liabilities + $Rs. 30000$
                          = $Rs.20000 + Rs. 30000$
                          =$Rs. 50000$.
Multiple choice elements of book keeping and accountancy adjustments in preparation of financial statements manager's commission on net profit preparation of final accounts preparation of financial statements

Opening capital Rs. 100000 and additional capital on 1st Oct was Rs. 20000
Interest on capital @ 10% on 31st march closing will be ?

  1. 5,000

  2. 8,000

  3. 11,000

  4. None of these.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest on capital = 100000 * 10 / 100

                                = 10000
Additional Capital Introduced on 1st Oct = 20000 * 10 / 100 * 6 / 12
                                                                     = 1000
Total = 10000 + 1000
          = 11000