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

Directions: You are given two quantities, Quantity I and Quantity II. Compare the two quantities and choose the correct option accordingly. Ms. Abrol lent a part of Rs. 2700 to Mr. A and the remaining to Mr. R for 2 years. The interest paid was the same. Quantity I. Amount lent to Mr. A, if he paid a simple interest of r% per annum Quantity II. Amount lent to Mr. R, if he paid a compound interest of 8% p.a.

  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
D Correct answer
Explanation

The problem states the interest paid is the same for both, but the interest rates (r% vs 8%) and the amounts are unknown. Without knowing r or the specific split of the 2700, the relationship between the two amounts cannot be determined.

Multiple choice

Mohan lent the sum of Rs. 525.75 at simple interest. At the end of 2 years and 8 months, the total amount was Rs. 600. Find the rate of interest per annum.

  1. 5.3%

  2. 9.2%

  3. 10%

  4. 16%

  5. 16.32%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = Amount - Principal = 600 - 525.75 = 74.25. Time = 2 years 8 months = 2 + 8/12 = 2 + 2/3 = 8/3 years. Rate = (SI * 100) / (P * T) = (74.25 * 100) / (525.75 * 8/3) = 7425 / 1402 = 5.296%, which is approximately 5.3%.

Multiple choice

Rajesh took a loan of Rs. 67,100 from his employer at 20% per annum under compound interest, compounded annually, and agreed to repay it in four equal annual instalments, an instalment being paid at the end of each year. Find the value (in Rs.) of each instalment.

  1. 25,920

  2. 13,420

  3. 10,416

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

Using the formula for equal annual installments for compound interest: P = X * [1 - (1+r)^-n] / r, where X is the installment. 67100 = X * [1 - (1.2)^-4] / 0.2. 67100 = X * [1 - 0.48225] / 0.2 = X * 2.58875. X = 67100 / 2.58875 = 25920.

Multiple choice

If Rs. 5,600 amounts to Rs. 6,678 in 3.5 years, what will Rs. 94,00 amount to in 5 1 4 years at the same rate percent per annum simple interest?

  1. Rs. 11,231.25

  2. Rs. 12,145.63

  3. Rs. 12,114.25

  4. Rs. 12,700

  5. Rs. 12,200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest I = P * R * T / 100. For the first case, 1078 = 5600 * R * 3.5 / 100, so R = 5.5%. For the second case, P = 9400, T = 5.25 years, R = 5.5%. Interest = 9400 * 5.5 * 5.25 / 100 = 2714.25. Amount = 9400 + 2714.25 = 12114.25.

Multiple choice

A milk man borrowed Rs. 3,500 from two money lenders. For one loan, he paid 5% p.a. and for the other, he paid 10% p.a. The total interest paid for two years was Rs. 500. How much did he borrow at 10% rate?

  1. Rs. 2000

  2. Rs. 1500

  3. Rs. 1650

  4. Rs. 1675
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be amount at 5% and (3500-x) at 10%. Interest = (x*5*2)/100 + ((3500-x)*10*2)/100 = 500. 0.1x + 700 - 0.2x = 500. 0.1x = 200, x = 2000. Amount at 10% = 3500 - 2000 = 1500.