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. X invested certain amounts in schemes A and B. Scheme A offers simple interest at 12% p.a. and Scheme B offers compound interest at 10% p.a. Interest accrued on the amount invested in Scheme A in 2 years was Rs. 3600 and the total amount invested was Rs. 35,000. What was interest accrued on the amount invested in Scheme B?

  1. Rs. 4500

  2. Rs. 4200

  3. Rs. 4000

  4. Rs. 3000

  5. Rs. 3600
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Scheme A interest is 3600 at 12% for 2 years, so the principal is 3600 / (0.12 * 2) = 15000. The total investment is 35000, so Scheme B principal is 35000 - 15000 = 20000. Interest on 20000 at 10% compound interest for 2 years is 20000 * (1.1^2 - 1) = 20000 * 0.21 = 4200.

Multiple choice

A bank offers interest rate x% on the first Rs. 2,00,000 and y% on the rest of the savings. If an account holder earns interest of Rs. 30,000 from Rs. 4,00,000 and Rs. 60,000 from Rs. 10,00,000 of savings, find x.

  1. 20

  2. 15

  3. 12

  4. 10

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest = (200000 * x/100) + (remaining * y/100). For 4L: 2000x/100 + 200000y/100 = 30000 => 2000x + 200000y = 3000000 => 2x + 200y = 3000. For 10L: 2000x + 800000y = 6000000 => 2x + 800y = 6000. Subtracting equations: 600y = 3000, y = 5. Substituting y: 2x + 1000 = 3000, 2x = 2000, x = 10.

Multiple choice

Aniket deposited two parts of a sum of Rs. 25000 in different banks at the rates of 15% per annum and 18% per annum, respectively. In one year, he got Rs. 4050 as the total interest. What was the amount deposited at the rate of 18% per annum?

  1. Rs. 10000

  2. Rs. 18000

  3. Rs. 15000

  4. Rs. 12000

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let x be the amount at 18%. Then (25000 - x) is at 15%. 0.18x + 0.15(25000 - x) = 4050. 0.18x + 3750 - 0.15x = 4050. 0.03x = 300. x = 10000.

Multiple choice

A man invested Rs. 10,000 for a year. Out of it, Rs. 4,000 was invested at the rate of 5%, Rs. 3,500 at the rate of 4% and remaining at the rate of x%. At the end of the year, he got Rs. 500 as compound interest. Find the value of x.

  1. 6.2%

  2. 6.3%

  3. 6.4%

  4. 6.5%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a period of one year, simple interest and compound interest are the same. The interest earned from the first two investments is Rs. 200 and Rs. 140, totaling Rs. 340. Since the total interest is Rs. 500, the remaining Rs. 160 must come from the third investment of Rs. 2,500, which gives x = (160 / 2500) * 100 = 6.4%.

Multiple choice

Alex borrowed a certain amount of money from a moneylender on simple interest for two years at the rate of 10%. Jordan also borrowed the same amount of money for two years at the same rate from the same person, but compounded annually. When they returned their interests after two years, there was a difference of Rs. 631 between their interests. Calculate the amount of money borrowed.

  1. Rs. 43800

  2. Rs. 63100

  3. Rs. 63010

  4. Rs. 48300

  5. Rs. 61300
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest (SI) = P * 0.10 * 2 = 0.2P. Compound Interest (CI) = P(1 + 0.10)^2 - P = 1.21P - P = 0.21P. Difference = 0.21P - 0.2P = 0.01P. Given 0.01P = 631, P = 63100.

Multiple choice

Mr. Anil wants to invest a sum of money in a scheme at a certain rate of interest for two years. He has to decide whether to invest at simple interest or compound interest. The total compound interest on the amount would be Rs. 756, whereas the total simple interest would be Rs. 720. What will be the rate if the sum is invested in such a way that simple interest becomes Rs. 900 and the total number of years is equal to the rate per annum?

  1. 4

  2. 5

  3. 6

  4. 8

  5. 9
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice

Directions: You are given two quantities, Quantity I and Quantity II. Compare the two quantities and choose the correct option accordingly. Quantity I: Compound interest earned on a sum Rs. 8000 at 8% p.a. for 2 years Quantity II: Compound interest earned on a sum Rs. 7000 at 9% p.a. for 2 years

  1. Quantity I > Quantity II

  2. Quantity I < Quantity II

  3. Quantity I = Quantity II

  4. No relation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Quantity I: 8000 * (1.08^2 - 1) = 8000 * 0.1664 = 1331.2. Quantity II: 7000 * (1.09^2 - 1) = 7000 * 0.1881 = 1316.7. Quantity I > Quantity II.

Multiple choice

Directions: You are given two quantities, Quantity I and Quantity II. Compare the two quantities and choose the correct option accordingly. Two friends Mr. X and Mr. Y invested some money in securities for 2 years. Mr. X got a return of 13.5% on an amount Rs. 18,000 compounded annually. Mr. Y got a return of 8% on an amount Rs. 30,000 compounded annually. Quantity I: Interest of Mr. X Quantity II: Interest of Mr. Y

  1. Quantity I > Quantity II

  2. Quantity I < Quantity II

  3. Quantity I = Quantity II

  4. No relation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Quantity I: 18000 * (1.135^2 - 1) = 18000 * 0.288225 = 5188.05. Quantity II: 30000 * (1.08^2 - 1) = 30000 * 0.1664 = 4992. Quantity I > Quantity II.