12 www.tarainstitute.

in SIMPLE AND COMPOUND INTEREST

23. What annual payment will discharge a debt of ` 1025 25. What annual payment will discharge a debt of ` 50,440
due in 2 years at the rate of 5% compound interest? due in 3 years at 5% per annum compounded annually?
(a) ` 550 (b) ` 551.25 (a) ` 18,522 (b) ` 20,570
(c) ` 560 (d) ` 560.75 (c) ` 20,800 (d) ` 16,576
(e) None of these
24. The simple interest on a sum of money for 3 years is
` 240 and the compound interest on the sum at same
rate for 2 years in ` 170. The rate % p.a. is
(a) 16% (b) 8%
1 1
(c) 12 % (d) 8 %
2 3
(e) None of these
 www.tarainstitute.in 13

ANSWERS & EXPLANATIONS

EXERCISE 1
PR T
1. (d) S.I.  5760  3  6
100 9. (a) Required Simple Interest = = `
100
810  100 1036.80
P  Rs1500
96
6420  7  4
2. (b) S. I. = 81 – 72 = ` 9 10. (e) Simple interest =  1797.60
100
9  100  4
 T  2 years 11. (c) Let the required time = t years
72  25
3. (e) Let the principal be = `x Simple interest = (11442 – 9535) = `1907
 Interest = (19050 – x) P×T× R
Now, Simple =
100
Interest 100
Principal = 9535  4  t
Time Rate 1907 
(19050 x) 100 100
 x=
3 9 1907  100
 27x = 1905000 – 100x t= = 5 years
 127x =1905000 9535  4
1905000 12. (d) Interest = (25451 – 16420) = `9031
x = = `15000
127 Interest 100
4. (a) Interest on ` 1 in 4 years = ` 0.4 Rate
Principal× Time
 Interest on ` 100 in 4 years = ` 40
 Interest on ` 100 in 1 year = ` 10 9031  100
Principal×Time×Rate = 11%
 Interest = 16420  5
100
450 2 10 3460  6  8.5
= = ` 90 13. (b) Simple interest = = `1764.60
100 100
P× R × T 14. (b) Let the principal be = `100
5. (b) Simple Interest =  Simple interest
100
31400  8 12 100  8  6
` 30144 = = `48
100 100
Required amount = ` (31400 + 30144)  Amount (100 + 48) = `148
= ` 61544
 When the amount is = `148, the principal =
(26350  21250) 100 `100
6. (e) Rate =
21250  6  When amount = `28046, the principal
510000
= = 4% 100
127500 = × 28046 = `18950
48
 Simple interest = (`28046 – 18950) = `9096
7. (a) SI = ` (12710 – 10250)= ` 2460
(31684  17800)  100
S.I. 100 2460 100 15. (d) Rate of Interest = %
time = =  6 years 17800  6
Principal  Rate 10250  4
1388400
2 = = 13%
 5  106800
8. (a) Required Amount = 15000  1   = `
 100  5580  5  6.5
16537.50 16. (b) Required interest = ` = `1813.5
100
 14 www.tarainstitute.in SIMPLE AND COMPOUND INTEREST
P×R×T  107 3 
17. (c) Simple interest = = 3080  100   1
100
  
56500 × 3 × 12
=` = 20340 1225043  1000000 
100 = 3080   
Required amount = ` (56500 + 20340) = `76840  1000000 
8376  100 225043
18. (d) Amount invested = = 3080 
8 6 1000000
= ` 17450 = ` 693 (approximate)
19. (c) Compound interest 24. (d) Compound Interest
2
 15   R 
T

= 8000  1    8000  p  1 
 100     1
 100  
3
23
= 8000    8000  4 
2

20
   8560 1    1
= 12167 – 8000  100  
= ` 4167
Rate
Time  8560[(1.04) 2  1]  8560(1.0816  1)
20. (e) Amount = Principal 1
100 = 8560 × 0.0816 = `698.496  `698
2 T
 8  R
= 5000 1+  25. (b) Required Compound Interest = P 1 1
 100  100
2
 2 
 5000 1    2

 25  8 
= 3000  100   1
1 
27 27
 5000    5832 `   
25 25
 CI = ` (5832 – 5000) = 832 `  27  2 
 T

= 3000  25   1
1 
R 
 1   
21. (b) Compount Interest = P  
 100  
2
 8    729  625 
= 1250   1    1 = 3000  
 100    625 
2
= 1250 × [(1.08) – 1)] 3000 104
=1250 × (1.1664 –1) = = `499.20
625
= ` (1250 × 0.1664)
= ` 208  14  8 
26. (c) Required Amount = 24000 1  
 T   100 
R 
22. (c) Compound Interest = P 1  100   1 212
  = 24000 × = `50880
100
 2 
6 
 1 
= 15800  100   1  Rate
Time

  27. (b) Amount = Principal 1

100
= 15800 × [(1.06)2 –1)]
= 15800 × (1.1236 – 1)  2

8 
= 15800 × 0.1236  1250 1    1
= ` 1952.88  100  
23. (b) Compound Interest  108 108  100 100 
 1250   
 7   3
 100 100 
= 3080 1  100   1
  
 www.tarainstitute.in 15

1250 1664 r 23
 1 
  ` 208 100 20
10000
r 23 3
Time
  1 
Rate 100 20 20
28. (e) Amount = Principal = 1 100  3
100  r=  15
20
3
 5  33. (c) Compound interest
= 5690  1  
 100  3
 12.5 
 8400 1   – 8400
21 21 21  100 
= 5690 ×   = `6586.90 = 11960.1562 – 8400
20 20 20
= ` 3560.1562
 Compound interest = ` (6586.9 – 5690) =
3
`896.9  897  r 
34 (d) 25500  1   – 25500
2  100 
Rate
29. (c) Compound Interest = Principal 1 1 = 8440.5
100 3
 r 
 25500  1  
 2
  100 
4  26 26
 4500 1    1  4500    1 = 8440.5 + 25500
  100    25 25  3
  1  r   33940.5
 676  625  51  100  25500
 4500   = 4500 × 625 = `367.20
 625  1331 3
  11 
=  
30240  100 1000  10 
30. (e) Rate   12%
84000  3 r   11 

Compound interest  1    
3
 100   10 
 12  r 11
= 84000  1   – 84000  1 
 100  100 10
= 118013.95 – 84000
r 11 1
= ` 34013.95   1 
100 10 10
31. (a) Simple interest 100
 r  10
4000 5 2 10
= = ` 400  Simple interest
100
Compound interest 25500  10  3
2
=
5 100
= 4000 1 4000 = ` 7650
100
15300 100
4000 105 105 35 (e) Rate = = 8.5%
= 4000 45000 4
100 100
= 4410 – 4000 = ` 410 Compound interest
 Difference = 410 – 400 4
8.5
= ` 10 = 45000 1 – 45000
100
2
  r 4
32. (c) 14500  1   108.5
 100  = 45000 1
= 14500 + 4676.25 100

r 
2
19176.25 529 = 45000 × 0.3858 = ` 17364 (approx)
  =
1   400 36. (a) Principal
 100  14500
1200  100
2 2 =
  r   23  48
1   
 100   20  = ` 3750
 16 www.tarainstitute.in SIMPLE AND COMPOUND INTEREST
Simple interest on thrice that principal
120  100
3750  3  6  3  R  10%
= 600  2
100
= ` 2025 7. (c) Difference in S.I.  P  T (R1  R 2 )
37. (a) Compound interest 100
2
5  P 4 2
= 35000  1   – 35000  56  ( R1 – R2 = 2)
 100  100
= 38587.50 – 35000
= ` 3587.50 56 100
 P  Rs 700
42

EXERCISE 2 8. (a)
16
25
P
PR R
100
1 1 1
1. (b) Rest part  1      1600 40
3 6 2  R2  R  8%
25 5
Rate % per annum on total sum
Also, time = 8 years
9. (a)  Rate = 5 paise per rupee = 5%
1  1  1 
   3     6     8   6% 200  5  7
3  6  2   S.I.  = ` 70
100
600  100 10. (c) Shortcut method :
 P  Rs 5, 000
6 2 If borrowed amount be ` M and it is to be paid in
2. (c) S.I. in I case = 2P – P = ` P equal instalments, then
P  100 ra n(n  1)
 R  10% M  na  
P  10 100  Y 2
Now, S.I. in II case = 3P – P = ` 2P where Y = no. of instalments per annum
2P  100 a = annual instalment
 T  20 years
P  10 Here, M = 4200, y = 1, r = 10, n = 5, a = ?
4P 100  2 10a 5(5  1)
3. (d) R   32% 4200  5a  
5 P  5 100 2
1  4200  a 5  1  6a  4200
4. (b) Here S.I.  P and R = T
9  a = ` 700
P 100 11. (b) Let the sum borrowed be x. Then,
R 
9 PR  x  6  2   x  9  3   x  14  4 
 100    100    100   11400
100 10 1      
 R2  R  3 %
9 3 3
 3x 27x 14x  95x
5. (a) S.I. for 1½ years = ` (1164 – 1008) = ` 156      11400   11400
 25 100 25  100
 156  2  2 
S. I. for 2 years = `    Rs 208  11400  100 
 3  x    12000.
 Principal = ` (1008 – 208) = ` 800  95 
Now , P = 800, T= 2, S.I. = 208 Hence, sum borrowed = ` 12,000.
12. (a) Gain in 2 years
 100  208 
 Rate    %  13%  25 2   5000  4  2 
 800  2  = Rs.  5000     
6. (b) S.I. for 5 years = ` (1020 –720) = ` 300  4 100   100 
300 = ` (625 – 400) = ` 225.
SI. for 2 years = Rs  2  Rs 120
5  225 
 Principal = ` (720 – 120) = ` 600
 Gain in 1 year = Rs.   = ` 112.50
 2 
Now, P = 600, T = 2, S.I. = 120
 www.tarainstitute.in 17

13. (d) We need to know the S.I., principal and time to 12, 000  10  1 x  20  1 (12000  x)  14  1
find the rate. Since the principal is not given, so  
100 100 100
data is inadequate.
14. (c) Let the principal be P and rate of interest be R%.  120000 + 20 x = (12000 + x) 14
 6x = 168000 – 120000
 P R 6   x = ` 8000
  100   6PR 6  Total investment = 12,000 + 8000 = ` 20,000
  
Required ratio =    2 : 3. 22. (b) Let sum be ` P. Then,
 P  R  9   9PR 9
  100   2
   r 
4P  P 1  
 100 
15. (d) Difference of S.I. = Rs 31.50
Let each sum be ` x. Then r
 1  2  r  100%
100
1
x4 7
2 x47 n
  31.50 r 
100 100 23. (c) A  P1   ; A = Amount
 100 
7 x 1 63 P = Principal
or  
100 2 2 r = rate of interest
or x = ` 900 n = time
3
16. (d) Let the rate be R% p.a. Then,  105 
Required amount  1000 
 5000  R  2   3000  R  4   100 
    2200
 100   100  21 21 21
= 1000   
 2200  20 20 20
 100R  120R  2200  R     10.
 220  = ` 1000 × 1.157 = ` 1157
17. (d) Let the original rate be R%. 24. (b) Here, n = 2 for interest is reckoned half-yearly.
Then, new rate = (2R)%. 3
2
 10  2
 725  R 1   362.50  2R  1  A  8, 000 1  
    33.50  2  100 
 100   100  3 
3
 (2175  725)R  33.50  100  3  10050  21 
A  8, 000    Rs 9261  Rs9200
10050  20 
R   3.46%
2900 5 5
 R   R 
25. (a) P 1    2P  1    2 … (i)
18. (c)  1500  R1  3    1500  R 2  3   13.50  100   100 
 100   100 
n
R 
Let P 1    8P
1350  100 
 4500(R1  R 2 )  1350  R1  R 2   0.3%
4500 3
n  5
19. (c) Here S.I. = ` 9, P = Re 1  R  3 R  
 1    2   1    [By (i)]
9  100  100   100  
R   15%
1  60 n 15
 R   R 
9 PTT  1    1  
20. (d) P  100   100 
16 100
 n = 15 years
900
2 30 1 26. (b) P becomes 2P in 6 years at r% p.a.
T  T  7 years
16 4 2
21. (a) Let the second amount be ` x. Then,
 18 www.tarainstitute.in SIMPLE AND COMPOUND INTEREST

6  882  20 882  400 

r  
2P P 1   Rs.1640.
100  21 441 

6
 r  30. (b) For, T = 2 years
 1   2
 100  2 2
 R   10 
Required difference  P    2000  
 r 
64
 r 
24  100   100 
 24  1    1  
 100   100  = ` 20
31. (d) For T = 2 years
 P becomes 16 P in 24 years
2
15 15  R 
 R   R  2P Difference  P  
27. (b) P 1    2P  1    2 ..... (i)  100 
 100   100  P
2
R 
n  15 
Let P 1    8P
144  P  
 100   100 

n 15
3 144  20  20
 R   R   P  Rs 6400
3  [using 33
 1    8  2    1   
 100  
100  
 32. (b) For T = 2 years,
(i)] R  S.I.
n 45
C. I. – S. I. 
 R   R  2  100
 1    1    n  45.
 100   100  R  40
41 – 40 
Thus, the required time = 45 years 2  100

28. (b) Let sum be ` P 2  100

R  5%
40
3 3
 r   r 
3P  P 1    1   3 … (i)
 100   100  = ` [21600 – (2880 + 2400 + 2000)] = ` 14320.
n
33. (a) For T = 2 years,
 r 
Now, let P 1    9P R  S.I.
 100  C. I. – S. I. 
2  100
n 3 2
 r  2
 r   4  S.I.
 1    9  3   1    [By (i)] 408 – S.I. 
 100  2  100
 100  
 204 S.I.  81600
n 6
 r   r 
 1    1   81600
 100   100   S.I.   Rs400
204
n=6
34. (b) Since, each year the profit is on the previous
29. (b) Principal year’s capital,
= (Present worth of ` 882 due 1 year hence) +  it is similar to Compound Profit.
(Present worth of ` 882 due to 2 years hence)  Compound Profit

 
   5  10  15  
882 882
    40, 000 1   1  1  –1
 5   5 
2  100  100  100  
 1   
100  1  100  
    21 11 23 
 40, 000     1
 20 10 20 
 www.tarainstitute.in 19

= 40,000 [1.328 –1]= ` 13, 130

xr 2 2xr
35. (a) For first year, S.I. = C.I.    4200
Now, ` 10 is S.I. on ` 100. 10000 100
 20r + 4000 = 4200 [from (i)]
 100 
 Rs. 16 is S.I. on Rs.  16   Rs.160.  r = 10%
 10  39. (a) % interest on total amount per annum
So, S.I. on principal for 1 year at 10% is ` 160
 100  160  3620  100 362
 Principal = Rs.    Rs.1600. =  %
 10  1  16500   33
Amount for 2 years compounded half yearly Now, use Alligation method.

 4
5  
= Rs. 1600   1     Rs.1944.81.
  100   Scheme Scheme

A B
 C.I. = ` (1944.81 – 1600) = ` 24.81. 10% 12%
1600 10  2 
S.I. = Rs.    Rs. 320.
362
%
 100  33
 (C.I.) – (S.I.) = ` (344.81 – 320) = ` 24.81.
36. (d) Let the principal be ` P and rate of interest be  362   362 
R% per annum. 12    33  10 
 33   
Differecne of C.I. and S.I. for 3 years
Hence, ratio of amount invested in schemes A and
  R 
3   P  R  3  PR  300  R 
2 B
  P  1    P     .
  100    100  104  100  362 362
= 12 : 10 17 :16
33 33
2
 R 
Difference of C.I. and S.I. for 2 years = P   16 16500
 100  Hence, amount invested in B = = ` 8000
17 16
PR 2  300  R  40. (c) Let the amount invested at 20% rate be ` x.
  According to the question,
 10 4  100   25   300  R   25
 
PR 2 8  100  8 10 20 14
12000   x  (12000  x ) 
10 4 100 100 100

100 1 x 7
R  12 %. or, 1200   1680  x
8 2 5 50
n n
 20  6 x 7
37. (b) P 1    2P or    2 or,  x  480
 100  5 5 50

6 6 6 6 3
Now,       2. So, n = 4 years or, x  480
5 5 5 5 50
38. (d) Let the money borrowed be ` x and the rate of  x = ` 8000
interest charged = r%  Total amount invested ` = (12000 + 8000)
Time = 2 years = ` 20000
xr2 41. (c) Let one gets = ` x
Now, 4000 = then, second gets = ` (68,000 – x)
100
Given : A1 = A2
 r x = 200000 ... (i)
x  10  8 (68000  x) 10  6
2 x  (68, 000  x) 
 r  100 100
Again, x 1    x  4200
 100 
 20 www.tarainstitute.in SIMPLE AND COMPOUND INTEREST
 x[100  80]  (68, 000  x)[100  60] 20 P[(1  i)2  1  2i] P(i)2
 
180x 61 P[(1  i)3  1  3i] P (i3  3i 2 )
  68, 000 – x
160
i2 1
 34x  68000 16  x  ` 32, 000  
3 2 3i
i  3i
 second gets = ` 36,000
42. (d) Let the parts be x, y and [2379 – (x + y)]. 1
 60  20i  61  20i  1  i 
 5   5  20
x   x  2   y   y  3 
 100   100  r 1 r
As we know, i  r 5
 5  100 20 100
 z  z  4 
 100  1 1
Hence, P = 20× × = 20×20×20 = 8000.
i i
11x 23y 6z 10k 20k 5k 3. (a) Let A lent ` x and B lent ` y
   kx ,y ,z
10 20 5 11 23 6 Since, A and B together lent out ` 81600
But x + y +z = 2379.  x + y = 81,600
Now, given (r) Rate = 4%
10k 20k 5k
    2379 4 26
11 23 6  1 r 1
100 25
 1380 k + 1320 k + 1256 k = 2379 × 11 × 23 ×
According to the question, we have
6
3–2
2379  11  23  6 3  11 23  6 x 26 26
k 
3965 5 y 25 25

 10 3 11 23  6  25
 x    828.  Investment made by B = 81600 40, 000
 11 5  51
Hence, the first part is ` 828. 4. (c) Let the sum invested at 5% be ` x.

According to the question,

EXERCISE 3 x 5 4 (12000 – x) 4 6
= 2580
110 100 100
1. (d) Population after 1st year = 10, 000
100
= 11000 20x 288000 24x 258000
Population after 2nd year
120  288000 – 258000  24x – 20x
= 11000 13200
100
Population after 3rd year  4x  30000  x = ` 7500.
95 5. (c) Let the sum be ` x and rate % be R.
= 13200 12,540
100
x R 2
Hence, population after 3rd year = 12, 540. 720 x .......(1)
100
Pr t
2. (b) Let I1  x R 7
100 1020 x ...... (2)
100
and i)t
I2 = P (1+ – P = P[(1+ i)t – 1]
According to the question, 2Rx 7Rx
 x+ 720 and x + 1020
20 = P [(1 + i)2 – 1–2i] and 61 100 100
= P [(1+ i)3 – 1– 3i] 5Rx
 300 (Subtracting)
On dividing, we get 100
 5Rx = 30000  Rx = 6000
 www.tarainstitute.in 21

6000 2 x  10  8 (68000  x)  10  6
 (1)  720 x x  (68, 000  x) 
100 100 100
 x = ` 600, R = 10 %
 x[100  80]  (68, 000  x)[100  60]
Alternatively:
Interest for 5 yrs. = 1020 – 720 = ` 300 180x
  68, 000 – x
160
 Interest for 2 yrs. = 120
 Sum = 720 – 120 = ` 600  34x  68000 16  x  Rs32,000
120 100
 second gets = ` 36,000
Rate % = 10
Qr t Rrt
600 2
8. (b) P  and Q 
6. (d) Let the Rate % be R and P be principle. 100 100
Given : P Q rt
  
(C.I. S.I.) for 3 years 25 Q R 100
(C.I. S.I) for 2 years 8  Q2 = PR.
 25 [(C.I. – S.I.) for 2 years] 9. (b) Interest for one year
= 8 [(C.I. – S.I.) for 3 years]
3 51
...(i)  Rs. 212.50 
 1  Rs.
 (C.I. – S.I.) for 2 years 100 8
Thus in 8 years, the interest is ` 51.
2
R P R 2 10. (b) Let he borrowed at 5% = ` x
P 1 P
100 100  He borrowed at 7% = ` (2500 – x)
Now I1 + I2 = 275
R2 2R 2 PR x  5  2 (2500  x)  7  2
P 1 P   275
10000 100 100 100 100
 10x + 14 (2500 – x) = 27500
P R2 PR 2  4x = 35000 – 27500 = 7500
P P ...(ii)
10000 10000  x = ` 1875
(C.I. – S.I.) for 3 years  Sum borrowed at 7% rate
= 2500 – 1875 = ` 625
3
R P R 3 11. (a) Let the sum be ` x. Then,
P 1 P
100 100
 x  6  3   x  9  5   x  13  3 
 100    100    100   8160
     
R3 3R R 3RP
P 1 1 P  18 x + 45x + 39x = (8160 × 100)
(100)3 100 100 100 102x = 816000
x = 8000.
PR3 3PR 2 12. (a) Let the sum invested in Scheme A be ` x and that
...(iii)
1000000 10000 in Scheme B be ` (13900 – x).
From (i), (ii) and (iii),
Then,  x 14  2    (13900  x) 11 2   3508
PR2 R 3  100   100 
25 8 PR 2
10000 1000000 10000  28x – 22x = 350800 – (13900 × 22)
6x = 45000
25 R 300
 8 x = 7500.
10000 1000000 1000000 So, sum invested in Scheme B = ` (13900 – 7500)
1 = ` 6400.
 8(R + 300) = 2500  R = 12 %. 13. (b) Let the sum invested at 9% be ` x and that
2
invested at 11% be ` (100000 – x).
7. (c) Let one gets = ` x
Then,
then, second gets = ` (68,000 – x)
Given : A1 = A2  x  9 1   (100000  x) 111
  
 100   100 
 22 www.tarainstitute.in SIMPLE AND COMPOUND INTEREST

39 1  2
  10  968 10 10
 100000    17. (c) 968  P 1 
 4 100  100  P  Rs800
  11  11
9x  1100000  11x 39000 18. (a) If ‘x’ be the interest of third year, then 108% of
   9750
100 4 x= 486
 2x = (1100000 – 975000) = 125000 100
x = 62500.  x  486   450
108
 Sum invested at 9% = ` 62500.
19. (c) Let Principal P = ` x
Sum invested at 11% R = r%
= ` (100000 – 62500) = ` 37500. C.I. = 200 at the end of Ist year
14. (a) Let x, y and z be the amounts invested in schemes or 200 + 220 at the end of IInd year
A, B and C respectively. Then, We know that
 x 10  1   y 12 1   z 15  1  n
 100    100    100   3200 C.I. P 1
r
1
     
100
 10x + 12y + 15z = 320000 ..... (i)
At the end of Ist year
12
Now, z = 240% of y = y ..... (ii) r
5 200 x 1 1
100
3
And, z = 150% of x = x
2 xr
200 …(1)
100
2  2 12  8
 x  z     y  y ..... (iii) At the end of IInd year
3 3 5  5
2
From (i), (ii) and (iii), we have : r
420 x 1 1
16y + 12y + 36y = 320000  64y = 320000 100
 y = 5000.
 Sum invested in Scheme B = ` 5000. r r
x 2 …(2)
15. (d) Let the parts be x, y and [2600 – (x + y)]. Then, 100 100
x  4  1 y  6 1 [2600  (x  y)]  8 1 On dividing (2) by (1) we get
 
100 100 100 420 r
2
y 4 2 2 200 100
   or y  x.
x 6 3 3 r
2.1 2
100
 5 
 2600  x   8 r
x  4  1 3  2.1 2
So,  100
100 100  r = 0.10 × 100  r = 10%
(7800  5x)  8 20. (c) Let sum be ` P. Then,
 4x   52x  (7800  8)
3 2 2
 20  6 36
A  P 1    P   P … (i)
 7800  8   100  5
  25
x    1200.
 52 
2 2 4
 Money invested at 4% = ` 1200. 20   11 
and A  482  P 1    P 
16. (a) Let the amount of the loss at 4% per annum  2  100   10 
be ` x.
Amount given at 5% per annum = ` (1200 – x) 36P  11 
4

 By (i),  482  P  
x  4  2 (1200  x )  5  2 25  10 
Now,   110
100 100
 x = ` 500   11 4 36 
 P       482
And, (1200 – x) = 1200 – 500 = ` 700  10  25 
 
 www.tarainstitute.in 23

23. (b) Let each instalment be ` x. Then,

 14641 36 
 P    482 (Present worth of ` x due 1 year hence) +
 10000 25  (Present worth of ` x due 2 years hence)
= ` 1025
14641  14400 
 P   482
 10000  x x
  1025
 5   2
5 
482 10000 1   1
P  20, 000  100   100 
241
1 20x 400x
21. (c) Increment   100  12 1 %    1025
8 2 21 441

5/ 2  1025  441 
 25   820x  1025  441     551.25
 H  10 1    820 
 100 2
So, value of each instalment = ` 551.25.
5/2 2 1/ 2
 1
 10 1  
 1  1
 10 1   1   24. (c) S. I. for I year  240  Rs80  C.I. for I year
 8  8  8 3
C. I for 2 years = ` 170 = C. I. for I year + C. I.
2
9  1  for II year
 10   1   Now, C. I. for II year = 170 – 80 = ` 90
 8   28 
 Interest on ` 80 for 1 year = 90 – 80 = ` 10
10  81 17 10

64
  13.44ft
16  Rate of interest   100  12 1 %
80 2
 Increment in height = 13.44 – 10 = 3.44 ft 25. (a) Let each instalment be ` x. Then,
22. (c) Let the value of each instalment be ` x. Then, (Present worth of ` x due 1 year hence) + Present
(present worth of ` x due 1 year hence) + (present worth of ` x due 2 years hence) + (Present
worth of ` x due 2 years hence) = ` 2550 worth of ` x due 3 years hence) = 50440
x x x x x
   2550     50440
 4  2 2 3
 4   5   5   5 
1   1   1  100  1  1  100 
 100   100     100   

25x 625x 3
   2550 20x 400x  20 
26 676      x  50440
21 441  21 
 2550  676  50440
 1275x  2550  676     1352.
 1275  x  9261  Rs 18,522
25220
 value of each instalment = ` 1352.