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

If Rohan opens a bank account with Rs. 20,000 and his bank compounds the interest quarterly at an interest rate of 8% per annum, how much money does he have at the end of the year? (Assume that he does not deposit or withdraw any money from the account.)

  1. Rs. 21,948.69

  2. Rs. 24,649.65

  3. Rs. 21,648.64

  4. Rs. 25,648.64

  5. Rs. 25,555.64
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = 20000, r = 0.08, n = 4 (quarterly), and t = 1. A = 20000(1 + 0.08/4)^4 = 20000(1.02)^4 = 20000 * 1.08243216 = 21648.64.

Multiple choice

Priyanka deposits Rs. 5000 compounded half yearly in a bank that pays compound interest at the rate of 5% per year. Find the amount that Priyanka has in her account after 3 years.

  1. Rs. 5700

  2. Rs. 5795

  3. Rs. 5790

  4. Rs. 5860

  5. Rs. 5850
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Principal = 5000, Rate = 5% per annum = 2.5% per half-year, Time = 3 years = 6 half-years. Amount = 5000 * (1 + 0.025)^6 = 5000 * (1.025)^6 = 5000 * 1.15969 = 5798.45. The closest option is 5795.

Multiple choice

Ritesh deposited Rs. 8000 in State Bank of India. He had to pay 10% of the interest of the first year as his college fees, after which Rs. 900 of the interest amount was left. Find the rate percentage at which the interest was paid.

  1. 13.5%

  2. 12.5%

  3. 11.5%

  4. 10.5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest for the first year = 8000 * r / 100 = 80r. Fees = 10% of 80r = 8r. Remaining interest = 80r - 8r = 72r. Given 72r = 900, r = 900 / 72 = 12.5%.

Multiple choice

Nishit deposited a certain sum of money in the post office at 10% p.a. for 4 years and deposited an equal amount in a fixed deposit in the bank for 5.5 years at 11% p.a. If the difference in the interests from the two sources is Rs. 563.75, then find the sum deposited.

  1. Rs. 2250

  2. Rs. 2450

  3. Rs. 2550

  4. Rs. 2750
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let the sum be P. Interest 1 = P * 0.10 * 4 = 0.4P. Interest 2 = P * 0.11 * 5.5 = 0.605P. Difference = 0.605P - 0.4P = 0.205P. 0.205P = 563.75. P = 563.75 / 0.205 = 2750.

Multiple choice

Out of Rs. 7000, some amount was lent at 6% per annum and the remaining was lent at 4% per annum. Calculate the sum lent at 6% per annum, if the total simple interest from both the fractions in 5 years was Rs. 1600.

  1. Rs. 2000

  2. Rs. 3000

  3. Rs. 2500

  4. Rs. 5000

  5. Rs. 5500
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let x be the amount at 6%. Then (7000-x) is at 4%. Interest = (x * 6 * 5)/100 + ((7000-x) * 4 * 5)/100 = 1600. 30x + 140000 - 20x = 160000. 10x = 20000, so x = 2000.

Multiple choice

Divide Rs. 6000 into two parts so that simple interest on the first part for 2 years at 6% p.a. may be equal to the simple interest on the second part for 3 years at 8% p.a.

  1. Rs.4000, Rs.2000

  2. Rs.3500, Rs.2500

  3. Rs.3800, Rs.2200

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

PATLIPUTRA: Vowels (A, I, U, A) at positions 2, 4, 6, 9. Consonants (P, T, L, P, T, R) at 1, 3, 5, 7, 8, 10. Vowel arrangements = 4! / 2! (for A) = 12. Consonant arrangements = 6! / (2! * 2!) (for P, T) = 720 / 4 = 180. Total = 12 * 180 = 2160.