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 money, if invested at a rate of 12% compounded annually for a period of two years, yields Rs. 684 less when it is invested for the same time period at a simple interest of 15%. Find the amount.

  1. Rs. 15,000

  2. Rs. 12,500

  3. Rs. 13,000

  4. Rs. 14,000

  5. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let sum be P. CI for 2 years at 12% = P * (1.12^2 - 1) = 0.2544P. SI for 2 years at 15% = P * 0.15 * 2 = 0.3P. Difference = 0.3P - 0.2544P = 0.0456P = 684. P = 684 / 0.0456 = 15000.

Multiple choice

Sum of Rs. 4687 is divided into 2 parts in such a way that interest on one part at 6% for 9 years is equal to that on another at 5% for 2 years more than the first part. Then, amount lent at 5% is

  1. Rs. 2367

  2. Rs. 2322

  3. Rs. 2546

  4. Rs. 2365

  5. Rs. 2584
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let x be the first part, 4687-x be the second. Interest: x * 0.06 * 9 = (4687-x) * 0.05 * 11. 0.54x = 0.55 * (4687-x). 0.54x = 2577.85 - 0.55x. 1.09x = 2577.85. x = 2365. The other part is 4687 - 2365 = 2322.

Multiple choice

Sameer borrowed 17500 Rs. from Divyaraj on compound interest annually at the rate of 20% per annum, if he paid 5000 Rs. at the end of every year to Divyaraj then find how much amount Sameer have to pay at the end of fourth year for complete his debt?

  1. (a) 14168

  2. (b) 14648

  3. (c) 14848

  4. (d) 14448

  5. (e) 14248
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Year 1: 17500 * 1.2 - 5000 = 16000. Year 2: 16000 * 1.2 - 5000 = 14200. Year 3: 14200 * 1.2 - 5000 = 12040. Year 4: 12040 * 1.2 = 14448.

Multiple choice

The difference between the compound interest and simple interest on Rs. x at 7% per annum for 2 years is Rs. 24.50. What is the value of x?

  1. 5,400

  2. 4,800

  3. 5,000

  4. 6,000

  5. 7,200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between compound interest (CI) and simple interest (SI) for 2 years is given by the formula D = P * (r/100)^2. Plugging in the values, 24.50 = x * (7/100)^2, which simplifies to 24.50 = x * (49/10000). Solving for x gives x = (24.50 * 10000) / 49 = 5000.

Multiple choice

A sum of Rs. 60,000 amounts to Rs. 72,600 in 2 years at x% per annum interest compounded yearly. If the sum of Rs. 60,000 is invested at simple interest at y% per annum for 3 years, then the simple interest would have been Rs. 1800 more than earlier compound interest. Now, x is what percent of y?

  1. 120%

  2. 125%

  3. 95%

  4. 115%

  5. 110%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest on 60,000 for 2 years is 72,600 - 60,000 = 12,600. 60,000(1 + x/100)^2 = 72,600 implies (1 + x/100)^2 = 1.21, so x = 10. Simple interest for 3 years at y% is 60,000 * 3 * y / 100 = 1800y. Given 1800y = 12,600 + 1800 = 14,400, so y = 8. x is 10, y is 8. 10/8 = 1.25 or 125%.

Multiple choice

The difference between the compound interest and simple interest for two years is Rs. 892.8 at the rate of 12% per annum. If the same principle is invested at the rate of 10% per annum on compound interest for 3 years, then what is the compound interest in this case?

  1. Rs. 23,044

  2. Rs. 20,245

  3. Rs. 20,453

  4. Rs. 20,522

  5. Rs. 20,455
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For 2 years, CI-SI = P * (r/100)^2. 892.8 = P * (12/100)^2. 892.8 = P * 0.0144. P = 892.8 / 0.0144 = 62000. CI for 3 years at 10% = P * ((1+0.1)^3 - 1) = 62000 * (1.331 - 1) = 62000 * 0.331 = 20522.

Multiple choice

The compound interest on an amount of money for 2 years at certain rate of interest is Rs. 2020 and simple interest on the same amount over same time period and rate of interest is Rs. 2000. What is CI for same amount in 3 years?

  1. Rs. 3060.40

  2. Rs. 3061.40

  3. Rs. 3062.40

  4. Rs. 3063.40

  5. Rs. 3064.40
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For 2 years, SI = 2000, so SI per year = 1000. CI = 2020, so the extra 20 is the interest on the first year's interest. Rate = (20/1000) * 100 = 2%. Principal P: 1000 = P * 0.02 * 1, so P = 50,000. CI for 3 years = 50000 * ((1.02)^3 - 1) = 50000 * (1.061208 - 1) = 50000 * 0.061208 = 3060.40.