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Relation Between Simple and Compound
Interest
 Question 1
The difference between simple and compound interests compounded annually on a
certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is
________.

A) 625
B) 630
C) 640
D) 650
 Question 2
If the difference between Simple Interest and Compound Interest on a certain sum
of money in 2 years at 20 % p.a. is Rs. 800, then find the sum.

A) Rs. 15000.
B) Rs. 35000.
C) Rs. 20000.
D) Rs. 2000.
 Question 3
The compound interest on a certain sum of money for 2 years is Rs. 52 and the
simple interest for the same time at the same rate is Rs. 50. Find the rate %.

A) 2%
B) 8%
C) 7%
D) 5%
 Question 4
The difference between Compound Interest and Simple Interest on a certain sum of
money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known
that the interest is compounded annually.

A) Rs. 45500
B) Rs. 15000
C) Rs. 20000
D) Rs. 30000
 Question 5
The difference between compound interest and simple interest on an amount of Rs.
15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

A) 8
B) 10
C) 12
D) Cannot be determined
 Question 6
The difference between the compound and simple interest on a certain sum at 12%
per annum for two years is Rs. 90. What will be the value of the amount at the end
of 3 years if compounded annually?

A) Rs. 8650.20
B) Rs. 8700
C) Rs. 8780.80
D) Rs. 7050
 Question 7
The difference between Compound Interest and Simple Interest on a certain sum of
money at 10 % per annum for 3 years is Rs. 1240. Find the principal if it is known
that the interest is compounded annually.

A) 30000
B) 35000
C) 40000
D) 45000
 Question 8
The difference between simple interest and compound on Rs. 1200 for one year at
10% per annum reckoned half-yearly is __________.

A) Rs. 2.50
B) Rs. 3
C) Rs. 3.75
D) Rs. 4
 Question 9
The 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 _________.

A) Rs. 400
B) Rs. 500
C) Rs. 600
D) Rs. 800
 Question 10
An automobile financier claims to be lending money at simple interest, but he
includes the interest every six months for calculating the principal. If he is charging
an interest of 10%, the effective rate of interest becomes __________.

A) 10%
B) 10.25%
C) 10.5%
D) Data inadequate
 Question 11
There is 60% increase in an amount in 6 years at simple interest. What will be the
compound interest of Rs. 12,000 after 3 years at the same rate?

A) Rs. 2160
B) Rs. 3120
C) Rs. 3972
D) Rs. 6240
 Question 12
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50,
what is the compound interest on the same sum at the same rate and for the same
time?

A) Rs. 51.25
B) Rs. 52
C) Rs. 54.25
D) Rs. 60
 Question 13
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. 1550
B) Rs. 1650
C) Rs. 1750
D) Rs. 2000
 Question 14
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%
 Question 15
Krish saved x% of his annual income of Rs. 10,00,000 and he made some
investments from these savings. He invested 50% of his savings in a bond that paid
simple interest for 2 years and received Rs. 10,000 as interest and the other 50% in a
bond that paid compound interest that is compounded annually for the same 2 years
at the same rate of interest and received Rs. 12,000 as interest. What percentage of
Krish’s annual income was invested in given bonds?

A) 3.5%
B) 6.5%
C) 2.5%
D) 5.5%
THANK YOU