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

Ms. Tanvi took a loan of Rs. 6,40,000 from a bank and paid back after 10 years at x% simple interest. The amount paid by her was Rs. 11,52,000. If she takes a loan of Rs. 50,000 from another bank at (x + 2)% compound interest, find the amount to be paid by her after 2 years at compound interest.

  1. Rs. 66,500

  2. Rs. 64,560

  3. Rs. 59,400

  4. Rs. 60,500

  5. Rs. 64,600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

First loan: 1152000 = 640000 + (640000 * x * 10 / 100) -> 512000 = 64000x -> x = 8%. Second loan: P = 50000, R = 8+2 = 10%, T = 2 years. Compound Interest Amount = 50000 * (1.1)^2 = 50000 * 1.21 = 60500.

Multiple choice

Drishti invested in three different mutual funds with amounts Rs. 15,000, Rs. 5000 and Rs. 25,000, respectively. If the interest gained by her was Rs. 28,800, then how much interest was gained from each mutual fund?

  1. Rs. 1200, Rs. 5210, Rs. 3210

  2. Rs. 9600, Rs. 3200, Rs. 16,000

  3. Rs. 6900, Rs. 1500, Rs. 13,000

  4. Rs. 3200, Rs. 4200, Rs. 52,000

  5. Rs. 1800, Rs. 6300, Rs. 43,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The interest gained from each mutual fund is proportional to the amount invested in each fund. The ratio of the investments is 15,000 : 5,000 : 25,000, which simplifies to 3 : 1 : 5. Dividing the total interest of Rs. 28,800 in this ratio yields Rs. 9,600, Rs. 3,200, and Rs. 16,000 respectively.

Multiple choice

The compound interest accrued on an amount of Rs 21500 at a certain rate of interest at the end of three years is Rs 7116.5. What would be the simple interest accrued on the same amount at the same rate in the same period?

  1. Rs 6350

  2. Rs 6450

  3. Rs 6250

  4. Rs 6150

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

For 3 years, CI = P((1+r/100)^3 - 1). Given CI = 7116.5, P = 21500. Solving for r gives 10%. SI = (P * r * t) / 100 = (21500 * 10 * 3) / 100 = 6450.

Multiple choice

Directions: In these questions, two quantities numbered I and II are given. You have to solve both the quantities and give answer Quantity I: Sita invested Rs. 32000 on compound interest at 20% per annum for two years. What will be interest earned after two years? Quantity II: Ritika invested Rs. 39000 on simple interest at 18% per annum for two years. What will be the interest earned after two years?

  1. Quantity I < Quantity II

  2. Quantity I ≥ Quantity II

  3. Quantity I > Quantity II

  4. Quantity I = Quantity II or relationship cannot be established

  5. Quantity I ≤ Quantity II
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantity I: Compound interest on 32000 at 20% for 2 years = 32000 * (1.2^2 - 1) = 32000 * 0.44 = 14080. Quantity II: Simple interest on 39000 at 18% for 2 years = 39000 * 0.18 * 2 = 14040. Since 14080 > 14040, Quantity I > Quantity II.

Multiple choice

The difference between SI and CI earned on a principal of Rs. 20,000 each in the first 2 years is Rs. 800. Find the rate of interest and total simple interest.

  1. 20% & Rs.4000

  2. 20% & Rs.8000

  3. 10% & Rs.8000

  4. 10% & Rs.4000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Difference between CI and SI for 2 years is P * (r/100)^2. 800 = 20000 * (r/100)^2. 800/20000 = (r/100)^2. 0.04 = (r/100)^2. r/100 = 0.2, so r = 20%. Simple interest = P * r * t / 100 = 20000 * 0.2 * 2 = 8000.

Multiple choice

Zenil invested a sum of money at a certain rate of simple interest for a period of 4 years. Had he invested the same sum for a period of 6 years the total interest earned by him would have been 50 per cent more than the earlier interest amount. What was the rate of interest per cent per annum?

  1. 2 years

  2. 4 years

  3. 8 years

  4. Data insufficient
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest I = P*R*T/100. Interest for 4 years = P*R*4/100. Interest for 6 years = P*R*6/100. The problem states 6-year interest is 50% more than 4-year interest. (P*R*6/100) = 1.5 * (P*R*4/100). This simplifies to 6 = 6, which is always true regardless of R. Thus, R cannot be determined.