QUANTITATIVE ABILITY HANDOUT
(Simple Interest and Compound Interest)
Ref: QAHO1001905
Directions for questions 1 to 20: Solve the following questions.
1. At what rate of simple interest, will a sum of `32,000
yield an interest of `15,360 in six years?
2. A certain sum lent at simple interest amounts to
`34,800 in five years and to `41,280 in eight years.
Find the sum as well as the rate of interest.
3. In how much time will a sum of money become
fifteen times itself at 21% p.a. simple interest?
4. A sum becomes three times of itself in eight years at
a certain rate of simple interest. In how many years
will the sum become nine times of itself at the same
rate of interest?
5. Arun lent `3000 in two parts. He lent each part for a
year. He lent `1200 at 6% p.a. and the remaining at
10% p.a., both at simple interest. Find the effective
rate of interest at which he lent the entire sum.
6. Anil lent a total of `50,000 to two persons at simple
interest, the rates of interest being 12% p.a. and
9% p.a. The interest received from the first person in
four years is equal to the interest received from the
second person in three years. How much amount
was lent to the second person?
7. A total of ` p is lent out to three people at simple
interest at the rates of 10% p.a., 20% p.a and
14% p.a., for 6 years, 5 years and 2 years
respectively. If the amount received from each of
them is `6400, find the value of p.
8. Find the compound interest obtained on a sum of
`32,000 at 25% p.a for 4 years (in `).
9. The compound interest on `18,000 at 4% p.a. for a
certain period is `1468.8. Find the time period.
10. A sum was lent at a certain rate of compound
interest. It amounted to `15,600 at the end of
4 years and to `18,720 at the end of 8 years.
Find the sum (in `).
ADDITIONAL QUESTIONS FOR PRACTICE
Directions for questions 1 to 10: Solve the following questions.
1. Raju borrowed `15000 from Mahesh at the rate of
15% per annum under simple interest for 3 years.
Raju lent some part of money at 20% per annum at
simple interest for 3 years and the remaining
part at 12% p.a. at simple interest for 3 years.
If the interest received by Raju on the money lent is
equal to the interest payable, find the sum he lent at
20% simple interest.
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11. The compound interest on a certain sum for the
third year and the fourth year is `3630 and
`3993 respectively. What is the rate of interest per
annum?
12. If compound interest for the third year is `1000 on a
certain sum at the rate of 10% p.a., what is the
compound interest for the 7th year?
13. Saritha invested `50,000 for 3 years, interest being
compounded annually. If the rate of interest is
8%, 10% and 12% for the 1st year, 2nd year and
3rd year respectively, find the interest earned by
Saritha.
14. A sum of money triples at compound interest
in 7 years. In how many years will it become
27 times itself?
15. What would be the interest earned, if a person
invests `2000 at 40% p.a. for one year,
(a) when interest is compounded half yearly?
(b) when interest is compounded quarterly?
16. Find the effective annual rate of interest if the rate of
interest is 12% p.a., and the interest is compounded
once every 4 months.
17. Find the difference between the simple interest
and compound interest on `500 at 10% p.a. for
2 years.
18. An amount of `2400 is due after 6 years under
simple interest at 10% p.a. Find its present value.
19. Shyam borrowed `18000 at 15% p.a, compounded
annually. He repaid `10700 at the end of the
1st year. What is the amount he should pay at the end
of the 2nd year to completely discharge the loan?
20. Amar borrows `2100 at the rate of 10% p.a.
compounded annually and has to repay it in two
equal annual instalments in 2 years. What is the
value of each instalment?
2. Given, the difference between simple interest for
2 years and compound interest for 2 years on
the same sum and at the same rate of interest
compounded annually is `120. The difference
between simple interest for 3 years and compound
interest for 3 years on the same sum and at
the same rate of interest is `366. Find the rate
of interest.
QAHO1001905/1
3. Janardhan deposited a certain sum of money in a
fixed deposit account at k% p.a. interest being
compounded annually. If the interest accrued for
the 3rd and the 4th years is `5000 and
`6250 respectively, what is the total interest accrued
for the first two years?
4. A person borrowed a sum of `53680 at 15% per
annum compound interest, compounded every
4 months. Another person borrowed an equal sum
at the same rate of interest under simple interest.
What is the difference between their amounts at the
end of the first year?
5. If the difference between simple interest for
2 years at 5% p.a. on a certain sum and compound
interest for 2 years at 6.25% p.a. on the same sum
compounded annually is `37, find the sum.
6. Find the sum of the present values of the payments
received at 10% p.a. under compound interest,
interest being compounded annually if `7700 and
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`7260 are received at the end of the 1 st year and
2nd year respectively.
7. Saketh borrowed a sum of `96,000 at 5% p.a.
interest, compounded annually. At the end of the
first year, he repaid a certain amount and he repaid
the balance amount of `63,000 at the end of the
second year. What amount did he repay at the end
of the first year?
8. A sum of money yields an interest of `2,016 for the
second year and an interest of `2,257.92 for the
third year at a certain rate of interest, compounded
annually. What is the initial sum?
9. What will be the compound interest accrued on an
initial amount of `12,000 at 20% p.a. for the second
year if the interest is compounded half-yearly?
10. The value of an electronic device depreciates at the
rate of 5% per annum. If its present value is
`32490, what was its value two years ago?
QAHO1001905/2