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

Jigneshbhai has two sisters Shantiben and Kantiben. He gives a certain amount to both of them. Shantiben deposits her amount in Bank A at the rate of 13.5% per annum for 4 years and Kantiben deposits her share in Bank B at the rate of 14.5% per annum for 3 years. Find the total money they have at the end of 4 years, if interests earned by them are Rs. 11,988 and Rs. 13,920, respectively.

  1. Rs. 82,408

  2. Rs. 86,308

  3. Rs. 80,162

  4. Rs. 80,108

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

Interest = (P * R * T) / 100. For Shantiben: 11988 = (P1 * 13.5 * 4) / 100 => P1 = 22200. For Kantiben: 13920 = (P2 * 14.5 * 3) / 100 => P2 = 32000. Total money = (P1 + 11988) + (P2 + 13920) = 34188 + 45920 = 80108.

Multiple choice

In a particular investment scheme, the compound rate of interest is 25% per annum. But if a person withdraws past invested amount, the interest is calculated for the remaining period and on the remaining amount. If the person deposits Rs. P in the scheme and withdraws 36% of the amount at the end of every two years, then what will be the principal at the beginning of the 23rd year?

  1. Rs. 1.2P

  2. Rs. 0.64P

  3. Rs. 1.5P

  4. Rs. P

  5. Rs. 1.625P
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Over two years, the amount becomes P x 1.25^2 = 1.5625P. Withdrawing 36% leaves 64%, so the amount at the start of each two-year period remains 1.5625P x 0.64 = P. Therefore, it is still P at the beginning of the 23rd year.

Multiple choice

In a particular bank, returns on deposits are paid at simple interest. But if the amount is not withdrawn for 5 years, then at the end of 5 years, the investor is also paid a bonus which is one fourth of the total interest accrued. If a person deposits Rs. P and withdraws an amount equal to P at the end of every five years, then what is the interest earned in the 50-year period? Take the rate of interest at 16% per annum.

  1. 20P

  2. 10P

  3. 25P

  4. 50P

  5. 15P
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The interest is 16% per annum. In 5 years, simple interest on P is 0.16 * 5 * P = 0.8P. Bonus is 1/4 of interest = 0.2P. Total gain every 5 years = 0.8P + 0.2P = P. Over 50 years, there are 10 such periods, so total interest is 10 * P = 10P.