6. Past Questions

Question 1

In the beginning of the year 2004, a person invests some amount in a bank. In the beginning of 2007, the accumulated interest is Rs. 10,000 and in the beginning of 2010, the accumulated interest becomes Rs. 25,000. The interest rate is compounded annually and the annual interest rate is fixed. The principal amount is:
[XAT 2015]

		Rs. $16,000$
		Rs. $18,000$
		Rs. $20,000$
		Rs. $25,000$
		None of the above

Question 2

Three years ago, your close friend had won a lottery of Rs. $1$ crore. He purchased a flat for Rs. $40$ lakhs, a car for Rs. $20$ lakhs and shares worth Rs. $10$ lakhs. He put the remaining money in a bank deposit that pays compound interest @ $12$ percent per annum. If today, he sells off the flat, the car and the shares at certain percentage of their original value and withdraws his entire money from the bank, the total gain in his assets is $5 \%$. The closest approximate percentage of the original value at which he sold off the three items is
[IIFT 2013]

		$60$ percent
		$75$ percent
		$90$ percent
		$105$ percent

Question 3

ICICI bank offers a $1$-year loan to a company at an interest rate of $20$ percent payable at maturity, while Citibank offers on a discount basis at a $19 \%$ interest rate for the same period. How much should the ICICI Bank decrease/increase the interest rate to match up the effective interest rate of Citibank?
[FMS 2009]

		Increase by $3.5 \%$
		Decrease by $1.8 \%$
		Increase by $1 \%$
		Decrease by $1.4 \%$