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

Mr.Anita Sehgal borrowed some money from a bank at $20\%$ p.a simple interest for $2$ years She invested that money at $20\%$ per annum for $2$ years interest being compound yearly and she gained $Rs\ 800$. Find the money she borrowed from the bank.
  1. $Rs\ 20000$
  2. $Rs\ 13000$
  3. $Rs\ 16000$
  4. $Rs\ 18000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The simple interest paid is 40% of the borrowed amount, while the yearly compound interest earned is 44%. The gain is therefore 4% of the principal, so 0.04P = 800 and P = Rs. 20000, making option A correct.

Multiple choice

Anwar deposits a sum of Rs. $60,000$ in a bank for three years. The bank gives simple interest at $6\%$ per annum. How much interest will he get after three years? In addition, calculate the total amount that he will get after three years.
  1. $60,000$
  2. $70,800$
  3. $66,000$
  4. $63,500$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Here, (60000 * 6 * 3) / 100 = 10800. The total amount is Principal + Interest, which is 60000 + 10800 = 70800.

Multiple choice

Mahesh borrowed a certain sum for two years at simple interest from Bhim. Mahesh lent this sum to Vishnu at the same rate for two years compound interest. At the end of two years, Mahesh received Rs. $410$ as compound interest but paid Rs. $400$ as simple interest. Find the sum and rate of interest.
  1. $400,15\%$
  2. $5000,10\%$
  3. $4000,5\%$
  4. $7000,15\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest for 2 years = 400, so SI for 1 year = 200. Compound interest for 2 years = 410. The difference is the interest on the first year's interest: 410 - 400 = 10. Rate = (10 / 200) * 100 = 5%. Principal = 200 / 0.05 = 4000.