Simple and Compound Interest Questions

Multiple choice
  1. Rs. 210

  2. Rs. 280

  3. Rs. 750

  4. Rs. 840

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest for 3 years = P × 5% × 3 = 0.15P. Simple Interest for 4 years = P × 5% × 4 = 0.20P. The difference is 0.20P - 0.15P = 0.05P, which equals Rs. 42. Therefore, P = 42 / 0.05 = Rs. 840. The key insight is that the difference in interest for consecutive years at simple interest is just the interest for one year.

Multiple choice
  1. 700 and 500

  2. 800 and 400

  3. 600 and 600

  4. 300 and 900

  5. 1000 and 200

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let parts be x and (1200 - x). SI1 = x×6×2/100 = 12x/100. SI2 = (1200-x)×8×3/100 = 24(1200-x)/100. Setting equal: 12x = 24(1200-x), 12x = 28800 - 24x, 36x = 28800, x = 800. So parts are 800 and 400.

Multiple choice
  1. Rs. 1786.95

  2. Rs. 1748.55

  3. Rs. 1756.85

  4. Rs. 1726.25

  5. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Using SI = P x R x T, where P is principal, R is rate (9%), and T is time (5 years): 4275 = P x 0.09 x 5, so P = 4275/0.45 = Rs. 9500. For compound interest: Amount = P(1 + r)^n = 9500(1 + 0.09)^2 = 9500 x 1.09 x 1.09 = Rs. 11286.95. CI = Amount - Principal = 11286.95 - 9500 = Rs. 1786.95. The key is finding principal from simple interest first, then applying compound interest formula.

Multiple choice
  1. 12000 Rs.

  2. 11230 Rs.

  3. 12230 Rs.

  4. 13230 Rs.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let A's share be x, then B's share is (25230-x). A invests for 13 years (40-27), B for 15 years (40-25). With 5% CI, future values must equal: x(1.05)^13 = (25230-x)(1.05)^15. Simplifying: x = (25230-x)(1.05)^2 = (25230-x)(1.1025). Solving: x = 13230. A receives Rs. 13230.