# PE 1 - SICI | Arithmetic - Simple & Compound Interest

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

The cost of a computer depreciates by Rs 720 during the second year and Rs 648 during the third year. What is the rate of depreciation per annum and the original cost of computer?

- (a)
100/9%, Rs. 800

- (b)
100/9%, Rs. 888.8

- (c)
10%, Rs. 8000

- (d)
10%, Rs. 800

Answer: Option C

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

The value of a fridge which costs Rs 6,000 depreciates by 10% each year. After how many years will its depreciated value be Rs 4374?

- (a)
3

- (b)
1

- (c)
4

- (d)
2

Answer: Option A

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

A sum of Rs 6,600 was taken as a loan. This is to be repaid in two equal annual installments. If the rate of interest is 20% compounded annually then find the value of each installment.

- (a)
Rs. 4400

- (b)
Rs. 2220

- (c)
Rs. 4320

- (d)
Rs. 4420

Answer: Option C

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

A man borrowed a certain sum of money and paid back in two equal installments. If the rate of compound interest is 4% and if he paid back Rs 1014 annually. What sum did he borrow?

- (a)
Rs. 1921.5

- (b)
Rs. 1912.5

- (c)
Rs. 1192.5

- (d)
None of these

Answer: Option B

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

What equal installment will discharge a debt of Rs. 1007 due in 5 years, rate of interest being 3% p.a.?

- (a)
RS. 200

- (b)
Rs. 190

- (c)
Rs. 210

- (d)
None of these

Answer: Option B

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

Krishna borrows Rs. 45K from a bank at 10% compound interest. He repays it in three annual installments that are in arithmetic progression. He ends up paying 54K totally. How much did he pay in year 1?

- (a)
Rs. 16,500

- (b)
Rs. 19,500

- (c)
Rs. 21,000

- (d)
Rs. 18,000

Answer: Option B

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

A bicycle is sold by a shopkeeper for Rs. 19,200 cash or for Rs. 4,800 cash down payment together with five equal monthly instalments. If the rate of interest charged by the shopkeeper is 12% per annum find each instalment. [Enter the nearest possible integer as your answer in Rs.]

Answer: 2965

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

George borrows Rs 2,100 at the rate of 10% per annum compounded annually and has to repay it in two equal instalments in 2 years. What is the value of each instalment?

- (a)
Rs. 1100

- (b)
Rs. 1080

- (c)
Rs. 1070

- (d)
None of these

Answer: Option D

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

John purchased a new bike worth Rs 96,000 on instalment at 5% p.a. interest compounded annually. At the end of one year, he repaid a certain amount and he repaid the balance amount of Rs 63000 at the end of the second year. What amount did he repay at the end of the first year?

- (a)
Rs. 40,000

- (b)
Rs. 40,800

- (c)
Rs. 41,400

- (d)
Rs. 42,000

Answer: Option B

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

Find the effective rate of interest if rate of interest is 40% p.a. and interest being compounded quarterly?

- (a)
45%

- (b)
46.41%

- (c)
48%

- (d)
47.5%

Answer: Option B

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**PE 1 - SICI | Arithmetic - Simple & Compound Interest**

Find the CI realized in the year at a rate of 40% p.a., with compounding being done quarterly, on a sum of Rs 1000?

- (a)
420

- (b)
400

- (c)
424.20

- (d)
464.10

Answer: Option D

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