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

Bharat borrowed Rs. 20,000, partly from a friend at 12% simple interest and the remaining from a bank at 15% simple interest. At the end of 2 years, he paid back an amount of Rs. 25,700. What is the amount that he borrowed from the bank?

  1. Rs. 15,000

  2. Rs. 10

  3. Rs. 8000

  4. Rs. 5000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let x be the amount borrowed from the bank at 15%. Then (20000 - x) was borrowed at 12%. Total interest = 25700 - 20000 = 5700. Interest = (x * 0.15 * 2) + ((20000 - x) * 0.12 * 2) = 5700. 0.3x + 4800 - 0.24x = 5700. 0.06x = 900. x = 15000.

Multiple choice

SBI lent 1 lakh to farmer Kishan Singh at 6% per annum, at simple interest for a period of 10 years. Meanwhile, the bank offered a discount in the rate of interest, according to the Govt. policy for farmers. Thus, the rate of interest is decreased to 4% p.a. In this way, Kishan Singh had to pay a total amount 1.48 lakh. After how many years did Kishan Singh got the discount in the rate of interest?

  1. 2 years

  2. 3 years

  3. 4 years

  4. 5 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 1,00,000. Interest = 48,000. Let t be the time at 6% and (10-t) be the time at 4%. (100000 * 0.06 * t) + (100000 * 0.04 * (10-t)) = 48000. 6000t + 40000 - 4000t = 48000. 2000t = 8000. t = 4 years.