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

A sum of Rs. 2,400 amounts to Rs. 3,264 in 4 years at a certain rate of simple interest. What will be the final amount received for the same period, if the rate of interest is increased by 1%?

  1. Rs. 3,260

  2. Rs. 3,310

  3. Rs. 3,360

  4. Rs. 3,460
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Original interest earned = 3264 - 2400 = 864. Rate = (864 * 100) / (2400 * 4) = 9%. New rate = 10%. New interest = (2400 * 10 * 4) / 100 = 960. New amount = 2400 + 960 = 3360.

Multiple choice

On a certain principal if the simple interest for two years is Rs. 1400 and compound interest for the two years is Rs. 1449, what is the rate of interest?

  1. 7 percent

  2. 3.5 percent

  3. 14 percent

  4. 10.5 percent
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest for 2 years = 1400, so SI for 1 year = 700. Compound interest for 2 years = 1449. The difference (1449 - 1400 = 49) is the interest on the first year's interest. Rate = (49 / 700) * 100 = 7%.

Multiple choice

Manisha invests an amount of Rs. 39,300 for 2 years at the rate of 4 pcpa. What approximate amount of compound interest will she obtain at the end of 2 years?

  1. Rs. 6675

  2. Rs. 6650

  3. Rs. 5288

  4. Rs. 3207

  5. Rs. 4650
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound interest for 2 years at 4% p.a. is calculated as P * ((1 + r/100)^n - 1). For P = 39,300, r = 4, n = 2: CI = 39,300 * ((1.04)^2 - 1) = 39,300 * (1.0816 - 1) = 39,300 * 0.0816 = 3206.88, which rounds to 3207.