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

Jog places Rs. $2000$ in a bank account for a period of two years and $4$ months at a simple annual interest rate of $3.5\%$. How much is in the amount at the end of the time period?
  1. $2000$
  2. $1500$
  3. $2161$
  4. $1620$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 2000, Rate = 3.5%, Time = 2 years 4 months = 2 + 4/12 = 7/3 years. Simple Interest = P * R * T / 100 = 2000 * 3.5 * (7/3) / 100 = 20 * 3.5 * 2.333 = 163.33. Amount = 2000 + 163.33 = 2163.33. The closest option is 2161.

Multiple choice

A person lent some amount at $11\%$ p.a. simple interest, and after $4$ years he interest amounted to Rs. $1200$ less than the amount lent. What is the amount that person lent?
  1. $1717.17$
  2. $2142.85$
  3. $3237.47$
  4. $4347.16$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the principal amount lent be P. The simple interest after 4 years at 11% per annum is 0.44P. Since the interest is Rs. 1200 less than the principal, we set up the equation P - 0.44P = 1200, which simplifies to 0.56P = 1200. Solving for P gives approximately Rs. 2142.85.