Quantitative Aptitude

Simple and Compound Interest

3,394 Questions
All Simple interest and its inverse forms 768 Compound interest with annual compounding 742 Simple-interest growth and split sums 626 Difference between compound and simple interest 479 Half-yearly and quarterly compounding 252 Changing rates and fractional years 201 Installments (CI based) 190 Ratio of principal to interest 118 Population growth and depreciation 16

Simple and Compound Interest Questions

Multiple choice

Rs. 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the total interest on both the sum after 4 years is Rs. 480, the latter sum of money is :

  1. Rs. 450

  2. Rs. 750

  3. Rs. 600

  4. Rs. 550
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest from first sum = 500 * 0.12 * 4 = 240. Total interest = 480, so interest from second sum = 480 - 240 = 240. Let the second sum be P. 240 = P * 0.10 * 4 => 240 = 0.4P => P = 600.

Multiple choice

Rs. $1200$ amounts to Rs. $1632$ in $4$ years at a certain rate of simple interest. If the rate of interest is increased by $1\%$, it would amount to how much?
  1. Rs. $1635$
  2. Rs. $1644$
  3. Rs. $1670$
  4. Rs. $1680$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest for 4 years is 1632 - 1200 = 432. The rate is (432 * 100) / (1200 * 4) = 9%. Increasing the rate by 1% makes it 10%, so the new interest is (1200 * 10 * 4) / 100 = 480. The new amount is 1200 + 480 = 1680.