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

Apurva deposited a certain sum of money in a bank that offered 6% rate of simple interest per annum. At the end of the second year, he received Rs. 150 as interest. How much money will Apurva get at the end of eight years?

  1. Rs. 1850

  2. Rs. 1250

  3. Rs. 650

  4. Rs. 600

  5. Rs. 2100
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let the money invested by Apurva, i.e. principal be Rs. P. Rate of interest (R) = 6% per annum Time period (T) = 2 years Interest received (I) = Rs. 150 Thus, Apurva had invested Rs. 1250 in funds. At the end of 8 years, she will get Rs. 1850 Option (1) is correct.

Multiple choice

The current (2010) Bank Rate is

  1. 6%

  2. 8%

  3. 9%

  4. 9·5%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is a factual question about the specific Bank Rate prevailing in 2010. The Bank Rate is the rate at which the Central Bank lends to commercial banks, serving as a benchmark for other interest rates in the economy.

Multiple choice

The simple interest on a sum of money will be Rs. 4200 after 8 years. If the principal is doubled after three years, what will be the total interest at the end of 8 years?

  1. Rs. 6825

  2. Rs. 8400

  3. Rs. 9975

  4. Rs. 5250

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let the money be p and the rate be r.

Then, p*r*8 = 4200*100            p*r = 52500 Now, for 3 years, SI = p*r*3/100             = 52500*3/100 = 1575 For the next 5 years, money is 2p. So, SI = 2p*r*5/100 = p*r/10             = 52500/10 = 5250 Total SI = 1575+5250 = 6825

Multiple choice

Ajay is a partner in a firm and he has granted a loan to the firm of Rs 1,50,000 on 1st April 2005. What interest would he get if the books are closed on 31st December 2005 in absence of any the partnership deed?

  1. Rs 5,000

  2. Rs 6000

  3. Rs 6,750

  4. No interest to be provided
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

1,50,000 X  9  X  6 = Rs 6,750 . The interest is provided @  6% p.a. on the loan given in absence of any the partnership deed.                                            12    100                         

Multiple choice

The rate of interest on Savings Bank accounts is

  1. 3.5 % p.a.;

  2. 4%p.a;

  3. 4.5% p.a

  4. 5%p.a

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Historically, 3.5 percent was the standard regulated rate for savings accounts in India for many years. While rates are now deregulated, this is the traditional answer for this specific exam question.