Mathematical Ability Test

[Topic: Simple and Compound Interest] – MA4

Test Mathematics
Test Code MA4
Topic Simple & Compound Interest
No. of Questions 20
Maximum Marks 20
Competitive score 16
Time allowed 15 minutes
Answers with explanations are provided in this file for self-
evaluation. Do send us your score after completing the test.

1. The amount which will yield Rs.600 as simple interest at 12% p.a. in 1 year is
a. Rs.4,000
b. Rs.5,000
c. Rs.6,000
d. Rs.8,000

2. In how many years will the sum of money double itself at 10% p.a. simple
interest?
a. 4 years
b. 5 years
c. 8 years
d. 10 years

3. The sum which will amount to Rs.1212 in 3 years and 4 months at 6% S.I. p.a. is
a. Rs.990
b. Rs.1,000
c. Rs.1,010
d. Rs.1,050

4. The interest on a certain deposit at 4.5% p.a. is Rs.202.50 in one year. The
additional interest in one year on the same deposit at 5% p.a. is
a. 20.50
b. 21
c. 22.50
d. 2.50

5. The sum of Rs.3,600 is divided into two parts so that the interest on first part for
3 years at 5% may be equal to the interest on the second part for 4 years at 6 ¼
%. The two parts are
a. 2250, 1350
b. 2500, 1100
c. 3000, 600
d. 2600, 1000

6. Out of a certain sum, 1/3rd is invested at 3%, 1/6th at 6% and the rest at 8%. If
the S.I on all these for 2 years amount to Rs.600, the original sum is
a. Rs.3,500
b. Rs.4,000
c. Rs.4,500
d. Rs.5,000

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 Mathematical Ability Test
[Topic: Simple and Compound Interest] – MA4

7. The rate at which a sum becomes four times of itself in 15 years at S.I. will be
a. 15%
b. 17 ½%
c. 20%
d. 25%

8. The rate of S.I. on a sum of money is 6% p.a. for first 3 years, 8% p.a. for the
next five years and 10% p.a. for the period beyond 8 years. If the S.I. amounts
to Rs.1560 in 10 years, the sum is
a. Rs.1,500
b. Rs.2,000
c. Rs.3,000
d. Rs.5,000

9. The time in which Rs.500 gives Rs.50 as S.I at 5% p.a. is

a. 2 years
b. 2 ½ years
c. 3 years
d. 4 years

10. The period in which a sum invested at 5% p.a. S.I to increase its value by 40%is
a. 5 years
b. 6 years
c. 7 years
d. 8 years

11. The compound interest on Rs.2000 at 10% p.a. for 3 years is

a. Rs.331
b. Rs.662
c. Rs.666
d. Rs.699

12. The compound interest on Rs.1000 in one year at 5% p.a. when the interest is
calculated half yearly is
a. Rs.50.20
b. Rs.50.62
c. Rs.50.82
d. Rs.55.62

13. The amount of Rs.7500 at 4% p.a. C.I for 2 years is

a. Rs.7,800
b. Rs.8,100
c. Rs.8,112
d. Rs.8,082

14. At what rate percent C.I. does a sum becomes four fold in 2 years?
a. 150%
b. 100%
c. 200%
d. 250%

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 Mathematical Ability Test
[Topic: Simple and Compound Interest] – MA4

15. A sum of money put out at C.I amount in 2 years to Rs.6720 and in 3 years to
Rs.7560. The rate percent is
a. 12.5%
b. 15%
c. 15.5%
d. 18%

16. The difference between C.I and S.I on a certain sum at 10% p.a. for 2 years is
Rs.52. The sum is
a. Rs.5,200
b. Rs.5,020
c. Rs.5,832
d. Rs.5,020.25

17. If the C.I. on a certain amount for 3 years at 10% p.a. is Rs.331, then the S.I.
will be
a. Rs.200
b. Rs.300
c. Rs.500
d. Rs.306

18. An amount deposited at C.I. earns an interest of Rs.600 in 7th year and interest of
660 in 8th year. The rate of interest is
a. 5%
b. 10%
c. 18%
d. 12%

19. Two customers borrowed the same amount at same rate of interest one on C.I
and the other at S.I. After 2 years interest payable by one was Rs.200 and the
other Rs.210. The principal lent was
a. Rs.400
b. Rs.600
c. Rs.500
d. Rs.1000

20. The present worth of Rs.1749.60 due in 2 years at 8% p.a. C.I. is

a. Rs.1,200
b. Rs.1,400
c. Rs.1,500
d. Rs.1,650

ANSWERS ON NEXT PAGE [Attempt the above questions within a

duration of 15 minutes and then check your answers]

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 Mathematical Ability Test
[Topic: Simple and Compound Interest] – MA4

Q.No Answer Hints / Explanations

1 b Looking at the options, we need to look for a number 10% of which is
less than 600. Only a and b satisfy that. In ‘b’, 10% is 500 and 1% is
50. Hence ‘b’
2 d One method is to say P+pnr/100 = 2P and solving for n.
100p+10pn = 200p
n=10
Other method is to take an example (p=100). At 10%, SI =10 for one
year. From observation, it takes 10 years for 100 to double to 200.
Therefore answer is ‘d’
3 c Option ‘b’ is quick and easy to test first. 1% is 10 and 6% is 60. 3 yrs
and SI is 180. 4 months SI would be 20 and amount in this case is
1200. Therefore P has to be slightly more than 1000. Hence answer is
‘c’
4 c If 4.5% is 202.5, 1% is 45. 5% is then 225 and difference is 22.5.
Hence ‘c’
5 a Let one part be x and 3600-x.
X*3*5/100 = (3600-x)*6.25*4/100
Hence ’a’
6 d Let the sum be X
(X*3*2)/300 + (X*6*2)/600 + (X*2*8)/200 = 600
X = 5000. Hence “d”
7 c P+p*15*r/100 = 4p
100p + 15pr = 400p
R=300/15=20
Hence ‘c’
8 b Let the sum be 100. The interest for 10 years adds upt0 78 which if
you notice is a factor of 1560. Therefore the sum is 100*20 =2000.
Hence ‘b’
9 a 10% of 500 is 50 and 5% is 25. Hence ‘a’
10 d If the sum is 100 and r=5, then it takes 8 years for the sum to become
140. Hence ‘d’
11 b 200+220+242 = 662. Hence ‘b’
12 b CI computed half yearly means the rate is halved. Therefore
25+25.625 = 50.625 Hence ‘b’
13 c Year 1 interest = 300
Year 2 interest = 312 Hence ‘c’

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 Mathematical Ability Test
[Topic: Simple and Compound Interest] – MA4

Q.No Answer Hints / Explanations

14 b Take 100 as an example. Year 1 (on substituting answer options) we
get 200 as amount on substituting b. 100% interest on 200 becomes
400 and hence four fold. ‘b’
15 a Difference between the 2 amounts is 840 which is 1/8th or 12.5%.
Hence ‘a’
16 a If the sum is 100, difference is 1. If the difference is 52, sum is 5200.
Hence ‘a’
17 b The CI is 33.1 if sum is 100. In this case, therefore sum is 1000 and
hence answer is 300.
18 b Difference in amounts at the end of 7th and 8th year is the interest
earned. Hence 10%
19 d Logic remains same as the previous question
20 b Assume the present value to be 100 and compute CI. This turns out to
be 116.64. 1749.6 is 14 times 116.64 and hence the sum is also 14
times 100. Therefore ‘b’

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