#### Data Interpretation

• ( 1 ) A sum is invested at compounded interest payable annually. The interest in the first two successive years was Rs. 400 and Rs. 420. The sum is

• 1) Rs. 8000
• 2) Rs.7500
• 3) Rs. 8500
• 4) Rs. 8200
• Discussion in forum
Solution : simple Interest on Rs.400 for 1 year = 420 - 400 = 20
Rate = 100 * SI/PT = 100 * 20/(400 * 1) = 5%
Rs.400 is the interest on the sum for 1st year
Hence, sum = 100 * SI/RT = 100 * 400/5 * 1 = Rs. 8000

discussion

• ( 2 ) Rs.100 doubled in 5 years when compounded annually. How many more years will it take to get another Rs.200 compound interest

• 1) 3years
• 2) 5years
• 3) 6years
• 4) 7years
• Discussion in forum
Solution : Rs.100 invested in compound interest becomes Rs.200 in 5 years.
The amount will double again in another 5 years.
i.e., the amount will become Rs.400 in another 5 years.
So, to earn another Rs.200 interest, it will take another 5 years.

discussion

• ( 3 ) 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?

• 1) Rs.81000
• 2) Rs.80000
• 3) Rs.75000
• 4) Rs.64000
• Discussion in forum
Solution : 64000 * (9/8) * (9/8) = 81000

discussion

• ( 4 ) Find the amount on Rs.8000 in 9 months at 20% per annum, if the interest being compounded quarterly?

• 1) Rs.1261
• 2) Rs.9261
• 3) Rs.9621
• 4) Rs.9162
• Discussion in forum
Solution : A = 8000(21/20)3 = 9261

discussion

• ( 5 ) A $1000 face value Series S50 compound interest Canada Savings Bond (CSB) was presented to a credit union branch for redemption.What amount did the owner receive if the redemption was requested on:January 17, 2001? • 1) 1206 • 2) 1306 • 3) 1406 • 4) 1506 • Discussion in forum Answer : 2) 1306 Solution : I= ptr Therefore, the total amount the owner received on January 17, 2001 was$1295.57 + $10.47 =$1306.04

discussion

• ( 6 ) In what time will Rs. 1000 become Rs. 1331 at 10% per annum compounded annually?

• 1) 1years
• 2) 2years
• 3) 3years
• 4) 4years
• Discussion in forum
Solution : Principal = Rs. 1000
Amount = Rs. 1331
Rate = 10% p.a.
Let the time be n years. Then,
[ 1000 (1+ (10/100))n] = 1331
or (11/10)n = (1331/1000) = (11/10)3
n = 3 years

discussion

• ( 7 ) A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year?

• 1) Rs.25600.24
• 2) Rs.32000.50
• 3) Rs.18060.36
• 4) Rs.18600
• Discussion in forum
Solution : 6 1/4% = 1/16
x * (15/16) * (15/16) * (15/16) = 21093
x = 25600.24

discussion

• ( 8 ) Find the sum lend at C.I. at 5 p.c per annum will amount to Rs.441 in 2 years?

• 1) Rs.420
• 2) Rs.400
• 3) Rs.375
• 4) Rs.380
• Discussion in forum
Solution : 441 = P(21/20)2
P = 400

discussion

• ( 9 ) A construction company borrowed Rs. 8,50,000 for 5 years at interest rate 1 ½ % p.a. How much annual interest, the company had to pay?

• 1) Rs.63,750
• 2) Rs. 1,27,500
• 3) Rs.12,750
• 4) Rs.25,000
• Discussion in forum
Solution : S.I = 850000 * (3/2) *100 = 4250 * 15 = Rs. 63750

discussion

• ( 10 ) The population of a town is 50,000. It decreases by 20 per thousand per year. Find out the population after 2 years?

• 1) Rs. 46,000
• 2) Rs. 46,020
• 3) Rs. 48,000
• 4) Rs. 48,020
• Discussion in forum
Solution : Required population = Initial population (1 - r/1000)n
= 50,000 (1 - 20/1000)2
= 48,020

discussion