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

Choose the appropriate option for the following statements. A.If a certain sum lent at C.I become Rs $500$ in $2$ years and Rs $700$ in $3$ years, then the rate interest is $40\%$. B. Distance=Speed$\times $Time.

  1. Both A and B are true

  2. Both A and B are false

  3. A is true and B is false

  4. A is false and B true
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under compound interest, the amount grows from Rs. 500 after 2 years to Rs. 700 after 3 years, so 700/500 = 1.4 and the annual rate is 40%. The relation distance = speed * time is also true, so both statements are true.