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

Rihana took a loan of $Rs. 1200$ with simple interest for as many years as the rate of interest. If she paid $Rs. 432$ as interest at the end of the loan period. Find the time period she has take to return the loan.
  1. $3.6\ years$
  2. $6\ years$
  3. $18\ years$
  4. $Cannot\ be\ determined$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: I = (P * R * T) / 100. Given P = 1200, I = 432, and R = T. So, 432 = (1200 * T * T) / 100. 432 = 12 * T^2. T^2 = 36. T = 6.

Multiple choice

Choose the correct answer from the alternatives given. The simple interest on a sum of money is $\frac{1}{16}$ of the sum. If the number of years is numerically equal to the rate percent per annum, then the rate percent per annum is
  1. 3 $\frac{1}{3}$
  2. 6 $\frac{2}{3}$
  3. 2 $\frac{1}{2}$
  4. 7 $\frac{1}{2}$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest SI = (P * R * T) / 100. Given SI = P/16 and R = T, we have P/16 = (P * R^2) / 100. Thus, R^2 = 100 / 16 = 6.25. R = sqrt(6.25) = 2.5.

Multiple choice

Wasim borrowed some money at $6\%$ p.a simple interest for the first four years, $8\%$ p.a. for the next three years and $10\%$ p.a for a period beyond $7$ years. At the end of $12$ years, he earned Rs$5880$ as simple interest. How much money did he borrow?
  1. Rs. $6000$
  2. Rs. $8000$
  3. Rs. $9000$
  4. Rs. $10000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let P be the principal. Interest = (P * 6 * 4 / 100) + (P * 8 * 3 / 100) + (P * 10 * 5 / 100) = 5880. This simplifies to (0.24 + 0.24 + 0.50)P = 5880, so 0.98P = 5880, P = 6000.