Simple Interest and Compound Interest

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Page 1
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Question 1: If the difference between Simple Interest

and Compound Interest at 10% p.a rate of interest for 3
years is Rs. 930, then find the Sum.
A) Rs 25,000
B) Rs 30,000
C) Rs 35,000
D) Rs 40,000
E) None of these
Question 2: On a certain rate of interest a sum of Rs
5000 becomes Rs 16,200 in certain years at compound
interest. In half of the time given, this sum will become?
A) Rs 10,000
B) Rs 5,600
C) Rs 9,000
D) Cannot be determined
E) None of these
Question 3: If a certain sum becomes double in 3 years
at certain rate of interest at C.I. Then in how many years
it will become 16 times?
A) 12 years
B) 24 years
C) 8 years
D) Cannot be determined
E) None of the above
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Question 4: Ram invests two sum of money A and B at
10% p.a. and 20% p.a respectively at CI for 2 years. IF
the total interest on both the sum is Rs 5350 then find
the sum invested in A if the total sum of A and B was Rs
20,000?
A) Rs 5,000
B) Rs 10,000
C) Rs 12,000
D) Rs 15,000
E) None of these
Question 5: The compound interest on a certain sum for
2 years at a certain rate of interest is Rs 1025 and
Simple Interest on the same sum, same time and same
rate of interest is Rs 1,000. Then find the C.I for same
sum in 3 years.
A) Rs 1575.25
B) Rs 1576.25
C) Rs 1576.75
D) Rs 1575.75
E) None of these
Question 6: A sum becomes triple in 6 years at S.I. The
same sum will become 19 times in how many years?
A) 50 years
B) 48 years
C) 54 years
D) 57 years
E) None of these
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Question 7: A sum of Rs 343 becomes 512 in 3 years at
C.I. Find the rate of interest.
A) 14 (2/7) %
B) 12.5 %
C) 8 (2/3) %
D) 16 (2/3) %
E) None of these
Question 8: Find the C.I on Rs 20,000 at 10% rate of
interest in 2 years if compounded half yearly.
(Approximately)
A) Rs 4210
B) Rs 4310
C) Rs 4410
D) Rs 4510
E) None of these
Question 9: A sum of Rs 6,000 was taken as a loan. This
is to be repaid in two equal annual installments. If the
rate of interest is 20% compounded annually then find
the value of each installment.
A) Rs 4400
B) Rs 2220
C) Rs 4320
D) Rs 4420
E) None of these
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Question 10: If the ratio of difference between CI and SI
for 3 years and 2 years is 31:10, then find the Rate of
Interest.
A) 11.11%
B) 10%
C) 20%
D) 25%
E) None of these
Question 11: What will be the difference between simple
and compound interest @ 10% per annum on the sum of
Rs 1000 after 4 years
A.Rs 62.10
B. Rs 63.10
C.Rs 64.10
D.Rs 65.10
Question 12: Find the compound interest on Rs.16,000

at 20% per annum for 9 months, compounded quarterly
A. Rs 2520
B. Rs 2521
C. Rs 2522
D. Rs 2523
Question 13: Find the compound interest on Rs. 7500 at
4% per annum for 2 years, compounded annually.
A. Rs. 610
B. Rs. 612
C. Rs. 614
D. Rs. 616
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Question 14: The difference between simple and
compound interests compounded annually on a certain
sum of money for 2 years at 4% per annum is Rs 1. Find
the sum
A. Rs 600
B. Rs 625
C. Rs 650
D. Rs 675
Question 15: The present worth of Rs.169 due in 2 years
at 4% per annum compound interest is
A.Rs 155.25
B.Rs 156.25
C.Rs 157.25
D.Rs 158.25
Question 16: Simple interest on a certain sum of money
for 3 years at 8% per annum is half the compound
interest on Rs. 4000 for 2 years at 10% per annum. The
sum placed on simple interest is
A. Rs 1650
B. Rs 1750
C. Rs 1850
D. Rs 1950
Question 17: In what time will Rs.1000 become Rs.1331
at 10% per annum compounded annually
A.2 Years
B.3 Years
C.4 Years
D.5 Years
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Question 18: The difference between compound interest
compounded every 6 months and simple interest after 2
years is 248.10. The rate of interest is 10 percent. Find
the sum
A) 12000
B) 14000
C) 16000
D) 18000
E) None of these
Question 19: A person earns an interest of 240 on
investing certain amount at Simple interest for 2 years
at 5 percent amount. If the rate of interest is
compounded annually then how much more interest
will be gain by the person at same rate of interest and on
the same sum.
A) 6
B) 8
C) 12
D) 10
E) None of these
Question 20: Find the least number of years in which the
sum put at 25% rate of interest will be more than
doubled.
A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) None of these
Question 21: A sum of rupees 4420 is to be divided
between rakesh and prakash in such a way that after 5
years and 7 years respectively the amount they get is
equal. The rate of interest is 10 percent. Find the share
of rakesh and prakash
A) 2000, 2420
B) 2420, 2000
C) 2480, 2420
D) 2210, 2210
E) None of these
Question 22: The simple interest on a certain sum of
money for 4 years at 15 percent per annum is 600. Find
the compound interest in the same sum at 10 percent
interest for 2 years
A) 220
B) 200
C) 210
D) 120
E) None of these
Question 23: Find the effective annual rate of 10 percent
per annum compounded half- yearly-
A) 10.5
B) 10.25
C) 11.25
D) 11.50
E) None of these
Question 24: A sum of rupees 3200 is compounded
annually at the rate of 25 paise per rupee per annum.
Find the compound interest payable after 2 years.
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A) 1200
B) 1600
C) 1800
D) 2000
E) None of these
Question 25: A sum of 3000 becomes 3600 in 3 years at
15 percent per annum. What will be the sum at the same
rate after 9 years.
A) 5124
B) 5184
C) 5186
D) 5192
E) None of these
Question 26: Priya saves an amount of 500 every year
and then lent that amount at an interest of 10 percent
compounded annually. Find the amount after 3 years.
A) 1820.5
B) 1840.5
C) 1920.5
D) 1940.5
E) None of these
Question 27: A man borrows 10000 rupees at 20 %
compound interest for 3 years. If every year he pays
2000 rupees as repayment. How much amount is still
left to be paid by the man?
A) 5000
B) 7000
C) 9000
D) 10000
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E) None of these
Question 28: A part of 70000 is lent out at 10% annum.
The rest of the amount is lent out at 5% per annum after
one year. The ratio of interest after 3 years from the
time when first amount was lent out is 1:2. Find the
second part that was lent out at 5%.
A.40000
B.50000
C.60000
D.48000
E.55000
Question 29: There is 50% increase in an amount in 5
years at simple interest. What will be the compound
interest of Rs. 12,000 after 3 years at the same rate?
A.Rs. 2255
B.Rs. 2792
C.Rs. 3580
D.Rs. 3972
E. None of these
Question 30: Karthik lends a certain amount to Vignesh
on simple interest for two years at 20%. Vignesh gives
this entire amount to Kamal on compound interest for
two years at the same rate annually. Find the percentage
earning of Vignesh at the end of two years on the entire
amount.
A.3%
B.3(1/7)%
C.4%
D.5(6/7)%
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E.None of these
Question 31: A man borrows 3000 rupees at 10%
compound interest. At the end every year he pays
rupees 1000 back. How much amount should he pay at
the end of the fourth Year to clear all his debt?
A.Rs. 680.5
B.Rs. 651.3
C.Rs. 751.3
D.Rs. 790.3
E.None of these
Question 32: Rahul saves an amount of 800 every year
and then lent that amount at an interest of 10 percent
compounded annually. Find the amount after 3 years.
A.Rs. 1822.8
B.Rs. 2252
C.Rs. 2550.50
D.Rs. 2912.8
E.None of these
Question 33: Find the compound interest at the rate of
8% for 3 years on that principal which in 3 years at
therate of 10% per annum gives 300 as simple interest.
A.180.515
B.220.25
C.259.712
D.289.624
E.312.51
Question 34: The difference between the total simple
interest and the total compound interest compounded
annually at the same rate of interest on a sum of money
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at the end of two years is Rs. 450. What is definitely the

rate of interest per cent per annum?
A.8400
B.4800
C.7800
D.Data inadequate
E.None of these
Question 35: The CI on Rs.6000 for 3 years at 8% for
first year, 7% for second year, 6% for the third year will
be
A.Rs.1430
B.Rs.1530
C.Rs.1250
D.Rs.1350
E.None of these
Question 36: Venkat and Vidhya have to clear their
respective loans by paying 2 equal annual instalments of
Rs.30000 each. Venkat pays at 10% pa of SI and
Vidhyapays at 10% CI pa. What is the difference in their
payments ?
A.200
B.300
C.400
D.500
E.None of these
Question 37: The difference between interest received
by Vivek and Vimal is Rs.405 on Rs.4500 for 3 years.
What is the difference in rate of interest ?
A.1.5%
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B.2%
C.3%
D.2.7%
E.None of these
Question 38: Sachin had ₹ 23,000. He invested some
amount in scheme A at SI at 20% and the remaining
amount in scheme B at CI at 10%. If Sahil got the same
amount from both of them at the end of one year, how
much (in ₹) did he invest in scheme B ?
A. 10000
B. 11000
C. 11500
D. 12000
E. 13000
Question 39: Pankaj borrowed a total amount of
Rs.32500 from his three friends Raj, Akash and Suresh.
All of his friends apply different rates of interest in such
a way that Raj applies 12%, Akash applies 16% and
Suresh applies 18% interest rate respectively and total
he gives Rs.5090 as interest. If the amount that Pankaj
had taken from Raj is 18/25 of the amount taken from
Suresh, then find that what amount Pankaj has taken
from Akash?
A. Rs. 13000
B. Rs. 12000
C. Rs. 11000
D. Rs. 10000
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E. None of these
Question 40: Mr. Bede wins Rs. 120000 on Kaun Banega
Crorepati. He has to pay 25% as gift tax to the
government. He places remaining money in fixed deposit
@ 10% compounded annually. However, he has to pay
20% tax on the interest. How much money does Mr. Bede
has after 4 years?
A. Rs. 122444
B. Rs. 112880
C. Rs. 116440
D. Rs. 118660
E. None of these
Question 41: A person closes his account in an investment
scheme by withdrawing Rs 10000. One year ago, he had
withdrawn Rs 6000. Two years ago he had withdrawn Rs
5000. Three years ago he had not withdrawn any money.
How much money had he deposited approximately at the
time of opening the account 4 years ago, if the annual rate
of compound interest is 10%.
A. Rs. 15470
B. Rs. 16680
C. Rs. 14250
D. Rs. 15200
E. None of these
Question42: A lent an amount of Rs. 1100 to B. This is to
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be paid back to A in two instalments. If the rate of

interest, which A charges to B, be 20% compounded
annually, then what is the value of each instalment ?
A. Rs. 730
B. Rs. 780
C. Rs. 750
D. Rs. 720
E. None of these
Question 43: The simple interest accrued on an amount

of Rs. 18,500 at the end of three years is Rs. 7770. What
would be the compound interest accrued on the same
amount at the same rate in the same period?
A. Rs. 8908.56
B. Rs. 8218.27
C. Rs. 7754.82
D. Rs. 9537.47
E. None of these
Question 44: Shantanu borrowed Rs. 2.5 lakh from a bank

to purchase one car. If the rate of interest be 6% per
annum compounded annually, what payment he willhave
to make after 2 years 6 months?
A. Rs. 189,325
B. Rs. 186,325
C. Rs. 389,325
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D. Rs. 289,325
E. None of these
Question 45: A certain amount of money is lent out at

compound interest at the rate of 20% per annum for two
years, compounded annually. It would give Rs. 482 more
if the amount is compounded half yearly. Find the
principle.
A. Rs. 30000
B. Rs. 10000
C. Rs. 15000
D. Rs. 25000
E. None of these
Question 46: A man gave 50% of his savings of Rs 67,280

to his wife and divided the remaining sum between his
two sons A and B of 14 and 12 years of age respectively.
He divided it in such a way that each of his sons, when
they attain the age of 18 years, would receive the same
amount at 5% compound interest per annum. The share
of B was
A. 16500
B. 15000
C. 15020
D. 16000
E. None of these
Question 47: Aditya and Bhushan invested 10000 each in

scheme A and scheme B respectively for 3 years. Scheme
A offers Simple interest @ 12% per annum and
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scheme B offers compound interest @ 10%. After 3 years,

who will have larger amount and by how much?
A.Aditya, 280
B. Bhushan, 280
C. Adiya, 290
D. Bhushan, 290
E. None of these
Question 48: A sum of Rs. 9960 was borrowed at 15/2%

per annum compound interest and paid back in two
years in two equal annual installments. What was the
amount of each installment?
A. Rs. 5,345
B. Rs. 5547
C. Rs. 5847
D. Rs. 5397
E. None of these
Question 49: Shivani has some amount of money ans she
invested the money in two schemes A and B in the ratio of
2 : 5 for 2 years, scheme A offers 30% pa compound
interest and scheme B offers 15% pa Simple interest.
Difference between the interest earned from both the
schemes is Rs.1080. How much was invested in scheme
B?
A. Rs. 45000
B. Rs. 36000
C. Rs. 40000
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D. Rs. 50000
E. None of these
Question 50: Reet invested an amount of Rs A for 2 years
at 12% compound interest and received some amount of
interest. Sonali invested Rs (A + 1500) for 3 years at 8%
simple interest and received same amount of interest as
Reet received. Find the amount that is invested by Reet.
A. Rs 20000
B. Rs 25000
C. Rs 30000
D. Rs 27500
E. Rs 22500
and simple interest on a sum for two years at 8% per
annum, where the interest is compounded annually is
Rs.16. if the interest were compounded half yearly , the
difference in two interests would be nearly
A. 24.64
B. 26.64
C. 28
D.18
E. 14
Question 52: The difference between the simple interest

on a certain sum at the rate of 10%per annum for 2
years and compound interest which is compounded
every 6 months is Rs.124.05. what is the principal sum
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A. 8000
B. 6000
C. 12000
D.34000
E. 24000
Question 53: Reena took a loan of Rs. 1200 with simple
interest for as many years as the rate of interest. If she
paid Rs. 432 as interest at the end of the loan period,
what was the rate of interest?
A.4
B.6
C.18
D.10
E.12
Question 54: The compound interest on a sum of money
for 2 years is rs.832 and the simple interest on the same
sum for the same period is rs.800 .the difference
between the compound interest and simple interest for
3 years
A. 50
B. 66.56
C. 98.56
D.102
E. 80
Question 55: On a sum of money, the simple interest for
2 years is Rs. 660,while the compound interest is
Rs.696.30,the rate of interest being the same in both the
cases. The rate of interest is
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A.10
B. 11
C. 12
D. 13
E. 15
Question 56: The population of a town was 3600 three
years back. It is 4800 right now. What will be the
population three years down the line, if the rate of
growth of population has been constant over the years
and has been compounding annually?
A.6000
B.6400
C.6600
D.7000
E.7500
Question 57: A man invests Rs.5000 for 3 years at 5%
p.a. compound interest reckoned yearly. Income tax at
the rate of 20% on the interest earned is deducted at the
end of each year. Find the amount at the end of the third
year
A.5624.32
B.5500
C.5456.33
D.5000
E.5200
Question 58: he compound interest on a certain sum for
2 years at 10% per annum is Rs. 525. The simple
interest on the same sum for double the time at half the
rate percent per annum is
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A.400
B.500
C.600
D.700
E.800
Question 59: Rs. 5887 is divided between Shyam and
Ram, such that Shyam's share at the end of 9 years is
equal to Ram's share at the end of 11 years,
compounded annually at the rate of 5%. Find the share
of Shyam.
A.3000
B.4000
C.3087
D.5000
E.4200
Question 60: Divide Rs. 1301 between A and B, so that
the amount of A after 7 years is equal to the amount of B
after 9 years, the interest being compounded at 4% per
annum.
A.625
B.600
C.525
D.500
E.580
sum placed on simple interest is:
A.1700
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B.1600
C.1750
D.1650
E.1800
Question 62: If you deposit $4000 into an account paying
6% annual interest compounded quarterly, how much
money will be in the account after 5 years ?
A.5600
B.6200
C.5887.42
D.6245.50
E. none of these
Question 63: Shawn invested one half of his savings in a
bond that paid simple interest for 2 years and received
Rs.550 as interest. He invested the remaining in a bond
that paid compound interest, interest being
compounded annually, for the same 2 years at the same
rate of interest and received Rs.605 as interest. What
was the value of his total savings before investing in
these two bonds?
A.2700
B.2680
C.2890
D.2750
E.1200
Question 64: A five-year promissory note with a face
value of $3500, bearing interest at 11% compounded
semiannually, was sold 21 months after its issue date to
yield the buyer 10% compounded quarterly. What
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amount was paid for the note

A.4336.93
B.4250
C.4500
D.4480.50
E.3790.80
Question 65: A chartered bank offers a five-year
Escalator Guaranteed Investment Certificate. In
successive years it pays annual interest rates of 4%,
4.5%, 5%, 5.5%, and 6%, respectively, compounded at
the end of each year. The bank also offers regular five-
year GICs paying a fixed rate of 5% compounded
annually. Calculate and compare the maturity values of
$1000 invested in each type of GIC. (Note that 5% is the
average of the five successive one-year rates paid on the
Escalator GIC.)
A.1276.28
B.1200
C.1378.90
D.1090.50
E.1490
Question 66: At a certain rate of interest the compound
interest of 3 years and simple interest of 5 years for
certain sum of money is respectively Rs. 1513.2 and Rs.
2400. Find the common rate of interest per annum ?
A.5%
B.4%
C.6%
D.7%
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E.8%
Question 67: On a certain sum of money, after 2 years
the simple interest and compound interest obtained are
Rs 800 and Rs 960 respectively. What is the sum of
money invested?
A) Rs 1420
B) Rs 1325
C) Rs 1000
D) Rs 1405
E) Rs 1375
Question 68: Rs 6000 becomes Rs 7200 in 3 years at a
certain rate of compound interest. What will be the
amount received after 9 years?
A) Rs 11,498
B) Rs 10,352
C) Rs 9,368
D) Rs 10,368
E) None of these
Question 69: A man borrows Rs 4000 at 8% compound
interest for 3 years. At the end of each year he paid Rs
500. How much amount should he pay at the end of 3rd
year to clear the debt?
A) Rs 4254.5
B) Rs 3465.2
C) Rs 3485.2
D) Rs 4345.4
E) Rs 3915.6
Question 70: A sum of money is lent for 2 years at 20%
p.a. compound interest. It yields Rs 482 more when
Page 23
compounded semi-annually than compounded annually.

What is the sum lent?
A) Rs 25,600
B) Rs 20,000
C) Rs 26,040
D) Rs 40,500
E) None of these
Question 71: The compound interest obtained after 1st
and 2nd year is Rs 160 and Rs 172.8 respectively on a
certain sum of money invested for 2 years. What is the
rate of interest?
A) 10%
B) 8%
C) 8.5%
D) 9%
E) 9.2%
Question 72: A sum of money becomes Rs 35,280 after 2
years and Rs 37,044 after 3 years when lent on
compound interest. Find the principal amount.
A) Rs 32,000
B) Rs 28,000
C) Rs 31,500
D) Rs 32,500
E) None of these
earned after 3 years at 5% p.a. and simple interest
earned after 4 years at 4% p.a. is Rs 76. Find the
principal amount.
A) Rs 32,000
Page 24
B) Rs 28,000
C) Rs 31,500
D) Rs 32,500
E) None of these
Question 74: A sum of money is lent at simple interest
and compound interest. The ratio between the
difference of compound interest and simple interest of 3
years and 2 years is 35 : 11. What is the rate of interest
per annum?
A) 20 3/4%
B) 17 2/5%
C) 18 2/11%
D) 22 1/5%
E) 24 5/6%
Question 75: A sum of money borrowed at 5%
compound interest is to paid in two annual installments
of Rs 882 each. What is the sum borrowed?
A) Rs 1650
B) Rs 2340
C) Rs 2630
D) Rs 1640
E) Rs 2640
Question 76: Rs 3903 is to be divided in a way that A’s
share at the end of 7 years is equal to the B’s share at the
end of 9 years. If the rate of interest is 4% compounded
annually, find A’s share.
A) Rs 2475
B) Rs 1875
C) Rs 2175
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D) Rs 1935
E) Rs 2028
Question 77: The compound interest earned by Sunil on
a certain amount at the end of two years at the rate of
8% p.a. was Rs.2828.80. Find the total amount that Sunil
got back at the end of two years in the form of principal
plus interest earned ?
A.18890.20
B.19828.80
C.20149
D.21788.90
E.23339.90
sum placed on simple interest is
A.1350
B.1680
C.1750
D.1850
E.2050
Question 79: The compound interest on a certain sum
for 2 years at 10% per annum is Rs. 1155. The simple
interest on the same sum for double the time at half the
rate percent per annum is ?
A.1100
B.1200
C.1090
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D.1800
E.1300
Question 80: A certain sum is to be divided between A
and B so that after 5 years the amount received by A is
equal to the amount received by B after 7 years. The rate
of interest is 10%, interest compounded annually. Find
the ratio of amounts invested by them.
A.121:110
B.121:100
C.123.100
D.Can’t be determine
E.None of these
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Simple Interest and Compound Interest

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Simple Interest and Compound Interest

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ambitiousbaba.

com Online Test Series

Question 1: If the difference between Simple Interest

Question 12: Find the compound interest on Rs.16,000

at the end of two years is Rs. 450. What is definitely the

Question42: A lent an amount of Rs. 1100 to B. This is to

be paid back to A in two instalments. If the rate of

Question 43: The simple interest accrued on an amount

Question 44: Shantanu borrowed Rs. 2.5 lakh from a bank

Question 45: A certain amount of money is lent out at

Question 46: A man gave 50% of his savings of Rs 67,280

Question 47: Aditya and Bhushan invested 10000 each in

scheme B offers compound interest @ 10%. After 3 years,

Question 48: A sum of Rs. 9960 was borrowed at 15/2%

Question 52: The difference between the simple interest

amount was paid for the note

compounded semi-annually than compounded annually.

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