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

The difference between compound interest and simple interest accrued on an amount at the end of three years at the rate of 18% is Rs. 654.5. What is the amount (in Rs.)?

  1. 7163.30

  2. 6733.50

  3. 6352.40

  4. 5654.30

  5. 6339.52
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between CI and SI for 3 years is given by P * (r/100)^2 * (3 + r/100). Plugging in 654.5 = P * (0.18)^2 * (3.18), we get 654.5 = P * 0.0324 * 3.18, which simplifies to P = 654.5 / 0.103032. This results in approximately 6352.40.

Multiple choice

Vijender deposited a certain amount of money in bank for 7 years. He got 5% p.a. interest for first 2 years, 8% p.a. for the next 3 years and 10% p.a. for the remaining period. If he got a total of Rs. 4860 as simple interest, then what was the amount deposited by him?

  1. Rs. 13,880

  2. Rs. 10,500

  3. Rs. 11,000

  4. Rs. 9,000

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

Simple Interest = P * (R1*T1 + R2*T2 + R3*T3) / 100. 4860 = P * (5*2 + 8*3 + 10*2) / 100. 4860 = P * (10 + 24 + 20) / 100 = P * 54 / 100. P = 486000 / 54 = 9000.

Multiple choice

A principal amount is invested at a certain rate for 2 years. If the rate of interest is increased by 1%, then the difference in simple interest is Rs. 24. Find the principal amount.

  1. Rs. 1200

  2. Rs. 1050

  3. Rs. 1000

  4. Rs. 9600
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest formula is I = (P * R * T) / 100. The difference in interest when the rate increases by 1% is (P * (R+1) * 2) / 100 - (P * R * 2) / 100 = 24. This simplifies to (P * 2) / 100 = 24, so P = 2400 / 2 = 1200.