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

Each question below is followed by two Statements [I] and [II]. You have to determine whether the data given in the statements are sufficient for answering the question. You should use the data and your knowledge of Mathematics to choose between the possible answers. Find the amount invested by Jagriti? [I]. If jagriti invested half of the amount in Yes Bank at 5% p.a. for 3years and half the amount in Kotak Bank at 6% p.a. for 5 year, she got total Rs4500 as Simple Interest. [II] . Jagriti will get 2420 more if she will invest in a bank at 10% p.a. for 3 year at compound interest rather than 10% p.a. for 2 year in same bank at compound interest

  1. if the Statement [I] alone is sufficient to answer the question but the Statement [II] alone is not sufficient

  2. if the Statement [II] alone is sufficient to answer the question but the Statement [I] alone is not sufficient

  3. if both Statement [I] and [II] together are needed to answer the question

  4. if either the Statement [I] alone or Statement [II] alone is sufficient to answer the question

  5. if you cannot get the answer from the Statements [I] and [II] together but need even more data
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement [I]: P/2 * 0.05 * 3 + P/2 * 0.06 * 5 = 4500. This is one equation with one variable P, so it is sufficient. Statement [II]: P * (1.10^3 - 1) - P * (1.10^2 - 1) = 2420. This is also one equation with one variable P, so it is sufficient.

Multiple choice

Directions: This data sufficiency problem consists of a question and two statements labelled (1) and (2). You have to decide whether the data given in the statements is sufficient for answering the question. Find the amount at the end of the third year at compound interest. (1) At compound interest, the amount at the end of the first year is Rs. 2500 and the amount at the end of the second year is Rs. 3000. (2) The amount at the end of the second year is Rs. 3000 and the rate of interest is 20% compound interest.

  1. Statement (1) alone is sufficient, but statement (2) alone is not sufficient.

  2. Statement (2) alone is sufficient, but statement (1) alone is not sufficient.

  3. Both statements (1) and (2) together are sufficient, but neither of them alone is sufficient.

  4. Each statement alone is sufficient.

  5. Both statements (1) and (2) together are not sufficient.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement 1 gives amounts at end of year 1 and 2, allowing calculation of rate (r = (3000-2500)/2500 = 20%) and principal, thus finding the amount at year 3. Statement 2 gives the amount at year 2 and the rate, which is sufficient to calculate the amount at year 3. Both are independently sufficient.

Multiple choice

Directions: Following questions contains two statements as Statement I and Statement II. You have to determine which statement is/are necessary to answer the question and give answer. What is the principle? Statement I: The difference between the compound interest and simple interest at the end of 2 years is 625. Interest earned from simple interest is 2500 per annum. Statement II: The amount in simple interest triples in 8 years.

  1. The data in statement I alone is sufficient to answer the question, while the data in statement II alone is not sufficient to answer the question.

  2. The data in statement II alone is sufficient to answer the question, while the data in statement I alone is not sufficient to answer the question.

  3. The data either in statement I alone or the data in statement II alone is sufficient to answer the question.

  4. The data given in both statements I and II are not sufficient to answer the question.

  5. The data given in both statements I and II together are necessary to answer the question.
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice

In the given questions, two quantities are given, one as Quantity I and another as Quantity II. You have to determine relationship between two quantities and choose the appropriate option. Quantity 1: difference between the largest and the smallest sum. A sum of Rs. 1440 is lent out in three parts in such a way that the interests on first part at 2% for 3 years, second part at 3% for 4 years and third part at 4% for 5 years are equal. Quantity 2: 460

  1. Quantity I > Quantity II

  2. Quantity I < Quantity II

  3. Quantity I ≥ Quantity II

  4. Quantity I ≤ Quantity II

  5. Quantity I = Quantity II or No relation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let parts be P1, P2, P3. P1*0.02*3 = P2*0.03*4 = P3*0.04*5. 0.06P1 = 0.12P2 = 0.20P3. Ratio P1:P2:P3 = (1/0.06):(1/0.12):(1/0.20) = 100/6:100/12:100/20 = 50/3:25/3:5 = 50:25:15 = 10:5:3. Total parts = 18. P1 = 1440*(10/18) = 800. P2 = 1440*(5/18) = 400. P3 = 1440*(3/18) = 240. Difference = 800 - 240 = 560. Quantity I (560) > Quantity II (460).

Multiple choice

The following questions are accompanied by two statements I and II. You have to determine which statements(s) is/are sufficient/necessary to answer the questions. Calculate the rate of interest (i) An amount of Rs. 864 is obtained at the principal of Rs. 800 at SI. (ii) An amount of Rs. 176 is obtained after 19 years when Rs. 100 is submitted at SI.

  1. Statement I alone is sufficient to answer the question but statement II alone is not sufficient to answer the questions.

  2. Statement II alone is sufficient to answer the question but statement I alone is not sufficient to answer the question.

  3. Both the statements taken together are necessary to answer the questions, but neither of the statements alone is sufficient to answer the question.

  4. Either statement I or statement II by itself is sufficient to answer the question.

  5. Statements I and II taken together are not sufficient to answer the question.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement I: SI = 864 - 800 = 64. P=800, SI=64. Rate = (64*100)/(800*T). T is unknown, so I is insufficient. Statement II: SI = 176, P=100, T=19. Rate = (176*100)/(100*19) = 176/19. This is sufficient.

Multiple choice

Ms. Debjani after her MBA graduation wants to have start-up of her own. For this, she uses Rs. 8,00,000 of her own savings and borrows Rs. 12,00,000 from a public sector bank under MUDRA Scheme. As per the agreement with the bank, she is supposed to repay the principal of this loan equally over the period of the loan which is 25 years. Two years after taking the first loan, she borrowed an additional loan of Rs. 8,00,000 to finance expansion of her start-up. If Ms Debjani clears all her loans in 25 years from the date of taking the first loan, how much total interest she has to pay on her initial borrowing? Assume simple interest rate at 8 per cent per annum.

  1. Rs. 12,48,000

  2. Rs. 12,84,000

  3. Rs. 14,20,000

  4. Rs. 12,96,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The initial loan of 12,00,000 is repaid over 25 years, meaning 48,000 is paid back annually. The interest is calculated on the remaining principal each year. For the first 2 years, interest is on 12,00,000 (96,000 per year). After 2 years, the principal is 11,04,000, and interest is calculated on the remaining balance until the end of the term. Summing these annual interest payments results in 12,48,000.

Multiple choice

Mr. and Mrs. Clare invested \$24,000 in money market and index funds such that they earned the same amount of simple interest per annum from both investments. How many dollars did Mr. and Mrs. Clare invest in index funds? (1) Money market paid 6% simple interest, and index funds paid 12% simple interest per annum. (2) Mr. and Mrs. Clare invested less than \$12,000 in money market.

  1. Statement (1) ALONE is sufficient, but statement (2) ALONE is not sufficient.

  2. Statement (2) ALONE is sufficient, but statement (1) ALONE is not sufficient.

  3. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

  4. EACH statement ALONE is sufficient.

  5. Statements (1) and (2) TOGETHER are NOT sufficient.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let M be money market and I be index funds. M + I = 24000. Interest: 0.06M = 0.12I, so M = 2I. Substituting: 2I + I = 24000 => 3I = 24000 => I = 8000. Statement 1 gives the rates, which is sufficient. Statement 2 is not needed.

Multiple choice

Mr. James deposited a certain amount of money in a savings plan, which gives 9.5% fixed annual rate. If Mr. James has never withdrawn any money and interest has been reinvested, how much is the investment now worth? (1) The investment value of Mr. James has increased by 22%. (2) If one year ago, an amount of $900 was withdrawn, today the investment would be worth 6% less than it is actually now worth.

  1. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.

  2. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.

  3. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

  4. EACH statement ALONE is sufficient.

  5. Statements (1) and (2) TOGETHER are NOT sufficient.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement (1) tells us the total growth, but not the initial amount or time. Statement (2) provides a specific scenario involving a withdrawal and a change in value, which allows for setting up an equation to solve for the principal amount. Therefore, statement (2) is sufficient.

Multiple choice

Directions: Question is based on the hypothetical situation given below. On 1st September, 2020, 20 students of Modern College started their partnership firm in the name of 'Be Safe' for selling sanitisers on digital mode. Since they were good friends, they did not have any explicit agreement in place. All of them agreed to invest Rs. 15,000 each as capital. The books were closed on 31st March, 2021, on which date the following information was provided by the firm. PARTICULARS AMOUNT (Rs.) Sale of sanitisers 1,20,000 Cost of goods sold 50,000 Total remuneration to partners 2,000 per month Rent to a partner 1,000 per month Manager's commission 5,000 Closing stock as on March 31, 2021 9,000 6% fixed deposit (made on 31.3.2021) 20,000 On 01st December, 2020, one of the partners of the firm introduced additional capital of Rs. 30,000 and also advanced a loan of Rs. 40,000 to the firm. Calculate the amount of interest that partner will receive for the current accounting period.

  1. Rs. 4,200

  2. Rs. 1,400

  3. Rs. 1,575

  4. Rs. 800
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The partner advanced a loan of 40,000. In the absence of an agreement, interest on a partner's loan is provided at 6% per annum. The loan was given on 1st December, and the books closed on 31st March (4 months). Interest = 40,000 * 6% * (4/12) = 40,000 * 0.06 * (1/3) = 800.

Multiple choice

Direction: The question below consists of a question and two statements numbered I and II are given below it. You have to decide whether the data provided in the statements are sufficient to answer the question. Read both the statements and give answer. What is the rate of interest? I. Simple interest accured on an amount of Rs.215000 in two years is less than the compound interest for the same period by Rs.250 II. Simple interest accured in 10 years is equal to the principal.

  1. Data in Statement I along are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question.

  2. Data in Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question.

  3. Data in Statement I alone or in statement II alone are sufficient to answer the question.

  4. Data in both the statements I and II are not sufficient to answer the question.

  5. Data in both the Statements I and II together are necessary to answer the question.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement I: CI - SI = P(R/100)^2. 250 = 215000 * (R/100)^2. This allows solving for R. Statement II: SI = P*R*T/100. P = P*R*10/100. This simplifies to 1 = R/10, so R = 10%. Both statements are independently sufficient.

Multiple choice

Directions: In the following question, a given questions is followed by information in three statements. You have to decide the data in which statement (s) is sufficient to answer the question and mark your answer accordingly. Find the rate of interest? Statement I - The simple interest accrued of Rs. 22500at the end of four years is Rs. 10800. Statement II - The compound interest accrued on the Rs. 22500 at certain time at certain rate is Rs. 5724

  1. Only Statement I alone.

  2. Only Statement II alone.

  3. Both Statements I and II together.

  4. Neither Statement I nor II is sufficient.

  5. Either Statement I or II.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I provides simple interest, principal, and time, which allows for the calculation of the rate. Statement II provides compound interest, principal, and an unspecified time, making it insufficient on its own. Since only Statement I is sufficient, option A is correct.

Multiple choice

Sherlock invested some money in a scheme that follows the rule of simple interest. What was the time period for which he invested his money, if the rate of interest was 10%? 1. The interest he received was 1 10 of the principal. 2. He received $1,000 as interest.

  1. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.

  2. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.

  3. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

  4. EACH statement ALONE is sufficient.

  5. Statements (1) and (2) TOGETHER are NOT sufficient.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement 1: Interest = 1/10 of Principal. Since Interest = (P*R*T)/100, 0.1P = (P*10*T)/100. 0.1 = 0.1T, so T = 1 year. This is sufficient. Statement 2: Interest = 1000. We don't know the principal, so we cannot find T. Thus, only (1) is sufficient.

Multiple choice

Victoria and her younger brother came to know about a scheme from their friends. Both of them used to get some pocket money every month. When they heard about the scheme, they counted up the money they both had together. They had \$2,500. According to the scheme, if they invested the money they had at the rate of 12%, they would earn an interest of \$2,100 in 7 years at simple rate of interest, but the company changed the scheme. According to the new scheme, the new rate of interest was 10% less than double the earlier rate. Now what is the increase in the interest they would have earned?
  1. $350
  2. $370
  3. $410
  4. $435
  5. $465
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice

Directions: The problem contains a question and two statements giving certain data. You have to select the correct answer from (1) to (5), depending on the sufficiency of the data given in the statements to answer the question. Mark your answer as What is the total interest p.a. per rupee after one year? (A) 40% of the sum is deposited at 20% p.a. simple interest. (B) Remaining 60% of the sum is deposited at 12% p.a. compound interest

  1. if statement (A) alone is sufficient to answer the question and statement (B) alone is not sufficient to answer the question

  2. if statement (B) atone is sufficient to answer the question and statement (A) alone is not sufficient to answer the question

  3. if statements (A) and (B) together are sufficient to answer the question, but neither statement alone is sufficient

  4. if each statement alone is sufficient to answer the question

  5. if both statements (A) and (B) together are not sufficient to answer the question and additional data specific to the problem is needed
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement (A) gives the interest on 40% of the sum. Statement (B) gives the interest on the remaining 60%. Together, they provide the total interest for the whole sum. Neither is sufficient alone because they only cover parts of the total sum.

Multiple choice

Given below are two statements: Statement I: A savings account at Bank A pays 6.2% interest, compounded annually. Bank B's savings account pays 6% compounded semi-annually. Bank B is paying less total interest each year. Statement II: A sum of money at a certain rate of compound interest doubles in 3 years. In 9 years, it will be P times original principal. Then P = 9. In the light of the above statements, choose the correct answer from the options given below.

  1. Both Statement I and Statement II are true.

  2. Both Statement I and Statement II are false.

  3. Statement I is true but Statement II is false.

  4. Statement I is false but Statement II is true.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement I: Bank A effective rate = 6.2%. Bank B effective rate = (1 + 0.06/2)^2 - 1 = 1.03^2 - 1 = 0.0609 or 6.09%. 6.2% > 6.09%, so Bank B pays less. Statement I is true. Statement II: A(1+r)^3 = 2A, so (1+r)^3 = 2. In 9 years, A(1+r)^9 = A((1+r)^3)^3 = A(2^3) = 8A. So P = 8, not 9. Statement II is false.