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: In the following question, we have two quantities given. Compare these quantities and answer accordingly with the following given options. (a) Quantity I > Quantity II (b) Quantity I < Quantity II (c) Quantity I ≥ Quantity II (d) Quantity I ≤ Quantity II (e) Quantity I = Quantity II or No relation Quantity I: A sum of Rs. 20000 amounts to Rs. 22000 at simple interest of 5%. The time period of simple interest. Quantity II: 1 year

  1. a

  2. b

  3. c

  4. d

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

Simple Interest = P * R * T / 100. 2000 = 20000 * 0.05 * T => 2000 = 1000 * T => T = 2 years. Quantity I (2 years) > Quantity II (1 year).

Multiple choice

Directions: In the following question, we have two quantities given. Compare these quantities and answer accordingly with the following given options. (a) Quantity I > Quantity II (b) Quantity I < Quantity II (c) Quantity I ≥ Quantity II (d) Quantity I ≤ Quantity II (e) Quantity I = Quantity II or No relation Quantity I: A sum of money amounts to Rs. 6500 at simple interest of R% for 3 years and the same sum of money amounts Rs. 7000 at simple interest of R% for 4 years. The principal sum of money. Quantity II: Rs. 4000

  1. a

  2. b

  3. c

  4. d

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

Simple Interest formula: A = P + (P*R*T)/100. 6500 = P + (P*R*3)/100 and 7000 = P + (P*R*4)/100. Subtracting: 500 = (P*R)/100. Substitute back: 6500 = P + 3*500 = P + 1500 -> P = 5000. Quantity I = 5000, Quantity II = 4000. So I > II.

Multiple choice

Deepanshu lent Rs. 8400 to Jaipal for 15 years and Rs. 5100 to Kareem for 14 years on simple interest at the same rate of interest and received Rs. 17,766 in all from both of them as interest. The rate of interest per annum is

  1. 9.5 percent

  2. 10 percent

  3. 10.5 percent

  4. 9 percent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest = (P1 * R * T1 / 100) + (P2 * R * T2 / 100). 17766 = (8400 * R * 15 / 100) + (5100 * R * 14 / 100). 17766 = 1260 * R + 714 * R. 17766 = 1974 * R. R = 17766 / 1974 = 9%.

Multiple choice

Lovepreet invested an amount of \$13,900, divided between HSBC and HDFC, at simple interest rate of 14% p.a. and 11% p.a., respectively. If the total amount of simple interest earned in 2 years be \$3,508, then what was the amount invested in HDFC bank?
  1. $6,100
  2. $6,200
  3. $6,300
  4. $6,400
  5. $6,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let H be the amount in HDFC and (13900 - H) be the amount in HSBC. The total interest is (H * 0.11 * 2) + ((13900 - H) * 0.14 * 2) = 3508. Solving this linear equation: 0.22H + 3892 - 0.28H = 3508, which simplifies to 0.06H = 384, so H = 6400.

Multiple choice

Rividha Enterprises gives an increasing dividend each year for holding its shares. If the dividend is compounded annually at the rate of 5%, 6% and 7% for 1st, 2nd and 3rd years, then what sum (principal) will amount to Rs. 5,87,945 at compound interest in 3 years?

  1. Rs. 5,03,694

  2. Rs. 4,94,694

  3. Rs. 4,93,794

  4. Rs. 4,93,694

  5. Na
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount = P * (1 + r1/100) * (1 + r2/100) * (1 + r3/100). 587945 = P * (1.05) * (1.06) * (1.07) = P * 1.19181. P = 587945 / 1.19181 = 493321. The closest option is 493694.