SIMPLE AND COMPOUND

INTEREST
 SIMPLE AND COMPOUND INTEREST
1. Find the simple interest earned on ₹ 20,000 for 2 years at 10 % p. a?

A. ₹ 4500 B. ₹ 2000 C. ₹ 4000 D. ₹ 6000

 SIMPLE AND COMPOUND INTEREST
2. The interest for the 3rd year on a certain sum at a certain rate of simple interest
is ₹ 3,000. Find the sum of the interests accrued on it the 6th, 7th and 8th years?

A. ₹ 6,000 B. ₹ 9,000 C. ₹ 4,500 D. ₹ 12,000

 SIMPLE AND COMPOUND INTEREST
3. Find the present value ( in ₹) of ₹ 3,000 due after 5 years at 10 % p.a Simple
interest?

A. ₹ 1500 B. ₹ 1800 C. ₹ 2000 D. ₹ 2500

 SIMPLE AND COMPOUND INTEREST
4. What would a sum of ₹ 8,800 amount to in 16 years at a simple interest rate of
12 % every year?

A. ₹ 14,440 B. ₹ 18,843 C. ₹ 25,696 D. ₹ 32,322

 SIMPLE AND COMPOUND INTEREST
5. At simple interest, a sum becomes three times in 20 years. Find the time in
which the sum will be double at the same rate of interest?

A. 8 years B. 10 years C. 12 years D. 14 years

 SIMPLE AND COMPOUND INTEREST
6. Ashok has to deposit a total of ₹ 18,000 in two savings schemes of a bank, of
which the first one yields a simple interest of 6 % p.a and the second one yields 8
% p.a. simple interest. How much should Ashok deposit in the first scheme so
that the total amount deposited earns interest at a rate of 7.6 % p.a?

A. ₹ 4400 B. ₹ 3600 C. ₹ 7200 D. ₹ 5600

 SIMPLE AND COMPOUND INTEREST
7. Abhay borrowed some money form Ajay at 15 % per annum simple interest.
He then added some more amount and lent to Vijay at 20 % per annum simple
interest. At the end of the year, the difference between the interest received and
paid by Abhay is ₹ 325. If Abhay lent ₹ 3,500 to Vijay, then how much loan did
Abhay take from Ajay?

A. ₹ 1,000 B. ₹ 1,800 C. ₹ 2,200 D. ₹ 2,500

 SIMPLE AND COMPOUND INTEREST
8. Sachin would have paid ₹ 5280 at the end of 4 years, for a sum of money
borrowed, at rate of 8% p.a. S.I. If he wants to repay his loan a year before its
due, then what is the amount paid by him?

A. ₹ 5060 B. ₹ 4960 C. ₹ 4760 D. ₹ 4670

 SIMPLE AND COMPOUND INTEREST
9. A father left a will of ₹35 lakhs between his two daughters aged 8.5 and 16
such that they may get equal amounts when each of them reach the age of 21
years. The original amount of ₹35 lakhs has been instructed to be invested at
10% p.a. simple interest. How much did the elder daughter get at the time of the
will?

A. ₹ 17.5 lakhs B. ₹ 21 lakhs C. ₹ 15 lakhs D. ₹ 20 lakhs

 SIMPLE AND COMPOUND INTEREST
10. Some amount was lent at 10% p.a Simple Interest. After 1 year, ₹ 4400 is
repaid and the rest of the amount is repaid at 20% p.a. If the 2nd year’s interest is
11/7 of the first year’s interest, find the amount of money that was lent out
initially ?

A. ₹ 12000 B. ₹ 13000 C. ₹ 14000 D. ₹ 15000

 SIMPLE AND COMPOUND INTEREST
11. .A certain sum of money amounts to ₹1210 in 2 years and to ₹1331 in 3 years at
compound interest. find the rate of interest.

A. 10% B. 11% C. 12% D. 13%

 SIMPLE AND COMPOUND INTEREST
12. The sum that amounts to ₹ 2704 in 2 yrs at 4% per annum CI compounded
annually is:

A. ₹ 2200 B. ₹ 3200 C. ₹ 2500 D. ₹ 2800

 SIMPLE AND COMPOUND INTEREST
13. Aswin invested ₹4000 in a fixed deposit scheme for 2 years at CI rate 10% per
annum. How much amount(in ₹) will Aswin get on maturity of the fixed
deposit?

A. 4730 B. 4690 C. 4840 D. 4880

 SIMPLE AND COMPOUND INTEREST
14. A sum of money under compound interest doubles itself in 4 years. In how
many years will it become 16 times of itself?

A. 12 years B. 16 years C. 8 years D. None of these

 SIMPLE AND COMPOUND INTEREST
15. If ₹18000 amounts to ₹ 22579.20 in 2 yrs compounded annually, then find the
rate of interest per annum?

A. 8% B. 10% C. 14% D. 12%

 SIMPLE AND COMPOUND INTEREST
16. What total will be amount to ₹ 51516 at compound interest in 2 years, the
rate of interest for 1st & 2nd year being 6% and 8% respectively?

A. ₹ 35000 B. ₹ 40000 C. ₹ 38000 D. ₹ 45000

 SIMPLE AND COMPOUND INTEREST
17. What is the difference between the compound interest on ₹ 5000 for 1.5 years
at 4% per annum compounded yearly and half-yearly?

A. ₹ 2.04 B. ₹ 3.06 C. ₹ 4.80 D. ₹ 8.30

 SIMPLE AND COMPOUND INTEREST
18. A bank offers 5% p.a. compound interest calculated on half-yearly basis. A
customer deposits ₹ 1600 each on 1st January and 1st July of a year. At the end of
the year, the amount he would have gained by way of interest is:

A. ₹ 120 B. ₹ 121 C. ₹ 122 D. ₹ 123

 SIMPLE AND COMPOUND INTEREST
19. The difference between the interest earned under compound interest, interest
being compounded annually and simple interest for two years on the same sum
at the same rate of interest is ₹ 25.60. Find the sum if the rate of interest is 8 %
p.a. ?

A. ₹ 2000 B. ₹ 2500 C. ₹ 3200 D. ₹ 4000

 SIMPLE AND COMPOUND INTEREST
20. The simple interest on a certain sum of money for 3 years at 8 % per annum is
half the compound interest on ₹ 8000 for 2 years at 10 % per annum. Find the sum
on which simple interest is calculated:

A. ₹ 3500 B. ₹ 3800 C. ₹ 4000 D. ₹ 3600

 SIMPLE AND COMPOUND INTEREST
21. The compound interest on a sum for 2 years is ₹ 832 and the simple interest on
the same sum for the same period is ₹ 800. The difference between the compound
and simple interest for 3 years will be ?

A. ₹ 48 B. ₹ 66.56 C. ₹ 98.56 D. None of these

 SIMPLE AND COMPOUND INTEREST
22. The principal that amounts to ₹ 4913 in 3 years at 6.25% per annum compound
interest compounded annually is:

A. ₹ 3096 B. ₹ 4076 C. ₹ 4085 D. ₹ 4096

 SIMPLE AND COMPOUND INTEREST
23. Kavitha borrowed ₹ 72000 from karuna and kalyani. Karuna charges 12% p.a.
and kalyani charges 7% p.a. compound interest. At the end of a year kavita paid ₹
6120 as interest. Find the sum borrowed from kalyani?

A. ₹ 48600 B. ₹ 50400 C. ₹ 49200 D. ₹ 51300

 SIMPLE AND COMPOUND INTEREST
24. A person invested a sum of ₹P for 2 years, which is compounded annually at
a rate of r% p a. Another person invested the same sum for same period at same
rate at simple interest. The difference in their amounts after 2 years is found to
be ₹4P. Find the rate of interest at which they have invested their sums?

A. 100% B. 150% C. 200% D. None of these

 SIMPLE AND COMPOUND INTEREST
25. A person deposited a sum of ₹ 10000 in a bank for a period of n1 years at a rate of
20% p.a. compounded annually. The same person deposited a sum of ₹ 11520 in
other bank for a period of n2 years at a rate of 25% p.a. simple interest. The amounts
received from the two banks are equal and the total amount is ₹ 34560. Find n1 and
n2?

A. n1=3, n2= 2 B. n1= 2, n2= 2 C. n1= 1, n2= 3 D. Can’t be determined

 SIMPLE AND COMPOUND INTEREST
26. A man borrowed ₹80000 at the rate of 10% p.a. , interest being compounded
annually. How much amount should he have repaid at the end of the first year, if by
repaying ₹55000 at the end of the second year he can clear the loan?

A. ₹ 38000 B. ₹ 33000 C. ₹ 45000 D. ₹ 50000

 SIMPLE AND COMPOUND INTEREST
27. Ramesh takes a loan of ₹ 20000 from Karan at a simple interest of 20%. He agrees
to clear the loan, along with the interest, in four equal installments, each at the end of
one year, for four years. But, Karan puts forward a condition that he will continue to
calculate the interest on the original amount lended till Ramesh completely pays off
his loan. What is the value of each installment?

A. ₹ 9000 B. ₹ 9500 C. ₹ 10000 D. None of these

 SIMPLE AND COMPOUND INTEREST
28. A sum of ₹ 13360 was borrowed at 8 3/4% per annum compound interest and paid
back in two years in two equal installments. What was the amount of each
installment?

A. ₹ 7500 B. ₹ 5769 C. ₹ 7569 D. ₹ 7009

 SIMPLE AND COMPOUND INTEREST
29. What will be compounded amount?

 I. ₹ 200 was borrowed for 192 months at 6% compounded annually.

II. ₹ 200 was borrowed for 16 years at 6%.

A.I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer
C. Either I or II alone sufficient to answer
D. Both I and II are not sufficient to answer
E. Both I and II are necessary to answer
 SIMPLE AND COMPOUND INTEREST
30. An amount of money was lent for 3 years. What will be the difference between
the simple and the compound interest on it at the same rate ?

I.  The rate of interest was 8 p.c.p.a.

II. The total amount of simple interest was ₹ 1200.

A.I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer
C. Either I or II alone sufficient to answer
D. Both I and II are not sufficient to answer
E. Both I and II are necessary to answer
 SIMPLE AND COMPOUND INTEREST
31. What will be the compound interest earned on an amount of ₹ 5000 in 2
years?

I. The simple interest on the same amount at the same rate of interest in 5 years is
₹ 2000.
II. The compound interest and the simple interest earned in one year is the same.
III. The amount become more than double on compound interest in 10 years.
A.I only
B. I and II only
C. II and III only
D. I and III only
E. None of these
 SIMPLE AND COMPOUND INTEREST
32. Mr. Gupta borrowed a sum of money on compound interest. What will be the
amount to be repaid if he is repaying the entire amount at the end of 2 years?

I. The rate of interest is 5 p.c.p.a.

II. Simple interest fetched on the same amount in one year is ₹ 600.
III. The amount borrowed is 10 times the simple interest in 2 years.

A.I only
B. III only
C. I or II only
D. II and Either I or III only
E. All I, II and III are required
 SIMPLE AND COMPOUND INTEREST
33. What is the compound interest earned at the end of 3 years?

I. Simple interest earned on that amount at the same rate and for the same period
is ₹ 4500.
II. The rate of interest is 10 p.c.p.a.
III. Compound interest for 3 years is more than the simple interest for that period
by ₹ 465.

A. I and II only
B. II and III only
C. I and III only
D. I and Either II or III only
E. Any two of the three
Any Doubts???

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