Quantitative Techniques | Dr.

Vanita Sharma

PRACTICE SHEET-SIMPLE INTEREST

AND
COMPOUND INTEREST

1.1 Questions on Simple Interest (SI)

Ques 1. Calculate SI on Rs 20000 for 3.5 yrs at 6% rate of interest per annum. Ans
Rs 4200
Ques 2. An amount of Rs 2300 was borrowed at a SI of 12% p.a., the amount was
returned with interest after 3 years. Calculate the total amount including SI
which was repaid. Ans Rs 3128
Ques 3. A SI of Rs 3240 is received after 3 years on a certain principal amount at
the rate of 9 % p.a., how much SI will be obtained after 5.5 years from the same
principal amount at the rate of 7% p.a. Ans Rs 4620
Ques 4. Calculate simple interest and amount on Rs 50000 at the rate of 8% for 5
years. Ans Rs 70,000
Ques 5. A certain sum is borrowed from a money lender at 12% of simple interest.
If at the end of 5 years Rs 6000 is paid as interest to the lender then find the sum.
Ans Rs 10000
Ques 6. If Rs 40000 is paid after 5 years at 12% rate of simple interest. Find the
principal. Ans Rs 25000
Ques 7. A person deposited Rs 50000 with a money lender at 6% rate of simple
interest. After some time he receives interest Rs 15000. Find out the period for
which he deposited the money. Ans 5 years
Ques 8. Rs 30000 is invested in a company at simple interest rate of 10% per
annum. After how many years will the money amount to Rs 48000? Ans 6 years
Ques 9. Simple interest on some equals to 1/4 of itself in 4 years. Find the rate of
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interest. Ans 6 %
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Ques 10. A person borrowed a certain sum at 6% interest per annum and
immediately lent the same to another person at 10% interest per annum. He
gained Rs 1200 in 6 months. What is the sum the person borrowed? Ans Rs
60000
Ques 11. A lender lent Rs 100000 to two persons in two parts. The first man
borrowed at 6% and second person at 6.5% interest per annum. If the money
lender receives Rs 31000 as total interest after 5 years then determine what sum
was borrowed by each of the two persons? Ans Rs 60000 and Rs 40000
Ques 12. A man lent Rs 80000 for 3 years and Rs 60000 for 5 years at the same rate
of interest. He receives total interest of Rs 29700. What is the rate of interest?
Ans 5.5%

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 Quantitative Techniques | Dr. Vanita Sharma
Ques 13. Find simple interest on rupees 10000 for 7 years and 6 months at 6% rate
of interest per annum. Ans Rs 4500
Ques 14. Find simple interest on Rs 25000 for 15th March to 1st September @ 4%
per annum. Ans Rs 467.75
Ques 15. The simple interest on a sum equals to 1/ 4 of itself in 5 years. Find the
rate of interest. Ans 5%
Ques 16. After how many years Rs 3 lakh will amount to Rs 562800 at 14.6% rate
of interest. Ans 6 years
Ques 17. Rs 180000 is deposited for 7 years. It amounts to Rs 413100. Find the rate
of interest. Ans 8.5%
Ques 18. In what time will Rs 12500 amount to Rs 14000 at 6% per annum. Ans 2
years
Ques 19. What sum of money will yield Rs 17.8 as interest in 5 years at 2% per
annum? Ans Rs 178
Ques 20. Yogesh deposited a sum of Rs 100000 in a bank. After 2 years he
withdraws Rs 40000 and at the end of 5 years he receives an interest of Rs
75200. Find the rate of interest. Ans 4%
Ques 21. What time will be required for a sum of money to double at 10% simple
interest? Ans 10 years
Ques 22. Calculate interest on Rs 18000 for 8 months at the rate of 7.75% per
annum. Ans Rs 930
Ques 23. Calculate interest on Rs 100000 for 1.5 years at the rate of 5.5% per year.
Ans Rs 16500
Ques 24. Find simple interest on Rs 50000 for 180 days @ 6% per annum. Ans Rs
1479.45
Ques 25. What will be the amount of Rs 25000 in 5.5 years at rate of 6.5% per
annum. Ans Rs 36687.50
Ques 26. What sum should be invested at the rate of 6% per annum in order to earn
rupees 1000 per month if the rate of interest is 8% per annum. Ans Rs 75000
Ques 27. Vinay took a loan of Rs 50000 from Daivik. Part of the loan is at 16% per
annum and remaining at 12% per annum. After 5 years Vinay returns Rs 86000
to clear the debt. Calculate the loan taken at 12% interest per annum. Ans Rs
20000
Ques 28. At what percent rate of interest Rs 50000 will earn Rs 1500 in 5 years?
Ans 6%
Ques 29. At what percent rate of interest a sum will double itself in 6 years? Ans
12.5%
Ques 30. A certain sum at a certain rate of interest becomes Rs 2640 in 2 years and
Rs 3000 in 5 years. Find the principal and rate of interest. Ans P=Rs 450 and
R=40/9 %
Ques 31. A sum of money doubles itself in 8 years. How many times the amount
becomes after 40 years? Ans R=12.5%, 6 times
Ques 32. At 6% simple interest, a sum becomes Rs 13000 in 5 years. Find the
interest of the sum in 8 months at 4% per annum. Ans Rs 266.67
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 Quantitative Techniques | Dr. Vanita Sharma
Ques 33. A bank lent Rs 25000 to X at a certain rate of interest and Rs 20000 to Y
at 2% higher rate of interest than X. After 4 years the bank received total Rs
16900 as interest. Find the rate of interest of the sum lent to X and Y. Ans 9.5%
and 11.5%
Ques 34. The basic salary of an employee is Rs 7000. He contributes 10% of his
basic salary per month in Provident Fund. His employer also contributes 8%. If
the interest credited to the PF account is 8.5% per annum, find the amount of
interest after 1 year. Also find the amount. Ans Rs 16405.20.

1.2 Questions on Compound Interest.

Ques 1. Find the compound interest on Rs 10000 at 5.5% per annum for 5 years.
Ans Rs 3069.6
Ques 2. An amount of Rs 15,000 is invested at 8% per annum compounded
annually. a) Calculate amount after three years. b) Compound interest in three
years, c) Interest in the third year. Ans a) Rs 18895.68, b) Rs 3895.68, c) Rs 1399
Ques 3. A sum of Rs 12,000 becomes 17,280 at 20% compound interest per
annum. Find the period. Ans 2 years
Ques 4. The simple interest and compound interest for two years on the same
principal at the same rate are Rs 3000 and Rs 3120, respectively. Find the
principal amount and rate of interest. Ans P=Rs 18750 and R=8%
Ques 5. Find the total amount of Rs 10,000 at 9% per annum for three years,
compounded half yearly. Ans Rs 13022.6
Ques 6. A sum of Rs 6,55,000 is invested in a FD given 10% per annum
compound interest. Find the interest of the fifth year. Ans Rs 95898.60
Ques 7. The amount of Rs 1,44,000 invested at 10% per annum for three years
equals to the amount of sum of money at 20% per annum for two years
compounded annually. Find the latter sum. Ans Rs 133100
Ques 8. A woman left Rs 15,24,600 for her son and daughter who are 16 and 15
years old. The sum is to be divided and put into an investment giving 10% per
annum compound interest such that both will get the same amount when each of
them are 18 years old. Find the sum of son and daughter. Ans Son’s share is Rs
798600 and daughter’s share is Rs 726000
Ques 9. A person estimates that after three years he needs Rs 50 Lac for his new
business. He decides to put some money in an investment giving 7% per annum
compounded interest to meet his requirement. How much money should he
invest at present? Ans Rs 4081489

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 Quantitative Techniques | Dr. Vanita Sharma
Ques 10. Find the compound interest on Rs 25,000 at 5% per annum at the
end of 2.5 years if interest is calculated half yearly. Ans Rs 3285
Ques 11. If the difference between simple interest and compound interest is
of Rs 200 at 4% for two years on certain principal then find the principal. Ans
Rs 1,25,000
Ques 12. A certain principal doubled in six years. What is the rate of
compound interest? Ans R=12.3%
Ques 13. What sum will amount to Rs 21,490 in five years at 12% compound
interest, payable half yearly? Ans Rs12000
Ques 14. Compound interest on a certain sum of money for two years is Rs
1000 and the simple interest for the same period is Rs 950. Find the sum and
rate of interest. Ans Rs 4510.92
Ques 15. A certain money invested on compound interest amounts to Rs
12,100 in two years and Rs 13,310 in three years. Find the sum invested. Ans
Rs 10000
Ques 16. An amount of Rs 10,000 is deposited in a bank at the rate of 12%
per annum. Find the amount after 20 years. Ans Rs 96380
Ques 17. A person deposits Rs 20,000 in a bank which pays an interest of 4%
per annum compounded continuously. How much amount will be accumulated
in his account after five years? Ans Rs 24430
Ques 18. If interest is compounded continuously then at what rate the
principal would triple itself in eight years? Ans 13.73%
Ques 19. A person deposited Rs 10,000 in a bank at 5% interest compounded
annually. After five years the rate of interest was 6% and after four years the
rate of interest was 7%. Find the amount after 12 years. Ans Rs 19738.78
Ques 20. A person deposited Rs 100000 in a bank for three years offering
interest at the rate of 6% compounded half yearly during first year, at the rate of
12% compounded quarterly during second year and at 10% compounded
continuously during third year. Find the amount. Ans Rs 131941.74