Simple and Compound Interest
Q1. Mr. Hamilton invested an amount of Rs. 13,900 divided in two different schemes A and
B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of
simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?
a) Rs. 6400
b) Rs. 6500
c) Rs. 7200
d) Rs. 7500
e) None of these
Q2. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5%
per annum of simple interest?
a) 3.5 years
b) 4 years
c) 4.5 years
d) 5 years
e) None of these
Q3. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What
is the rate of interest?
a) 3%
b) 4%
d) 6%
e) None of these
c) 5%
Q4. 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%
d) Data inadequate
b) 10.25%
c) 10.5%
e) None of these
Q5. Aastha lent Rs. 5000 to Bahubali for 2 years and Rs. 3000 to Chinky for 4 years on
simple interest at the same rate of interest and received Rs. 2200 in all from both of them as
interest. The rate of interest per annum is:
a) 5%
b) 7%
d) 10%
e) None of these
c) 7 1/8%
Q6. Aman took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had
to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
a) Rs. 2000
b) Rs. 10,000
d) Rs. 20,000
e) None of these
c) Rs. 15,000
Q7. What will be the ratio of simple interest earned by certain amount at the same rate of
interest for 6 years and that for 9 years?
a) 1 : 3
b) 1 : 4
c) 2 : 3
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d) Data inadequate
e) None of these
Q8. Akshay borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it
to another person at 6 ¼ pa for 2 years. Find his gain in the transaction per year.
a) Rs. 112.50
b) Rs. 125
d) Rs. 150
d) Rs. 167.50
c) Rs. 150
Q9. 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 :
a) 10%
b) 10.5%
d) Data inadequate
e) None of these
c) 12%
Q10. Mr.Devilal Singh invested an amount of Rs.13,900 divided in two different schemes A
and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of
simple interest earned in 2 years be Rs.3508, what was the amount invested in Scheme B?
a) Rs.6400
b) Rs.6500
d) Rs.7500
e) None of these
c) Rs.7200
Q11. What should be the least number of years in which the simple interest on Rs.2600 at
[6(2/3)]% will be an exact number of rupees?
a) 2
b) 3
c) 4
d) 5
e) None of these
Q12. An amount of Rs.1,00,000 is invested in two types of shares. The first yields an interest
of 9% p.a. and the second, 11% p.a. If the total interest at the end of one year is [9(3/4)]%,
then the amount invested in each share was :
a) Rs.52,500, Rs.47,500
b) Rs.62,500, Rs.37,500
c) Rs.72,500, Rs.27,500
d) Rs.82,500, Rs.17.500
e) None of these
Q13. If the simple interest on a certain sum for 15 months at [7 (1 / 2)]% per annum exceeds
the simple interest on the same sum for 8 moinths at [12 (1 / 2)]% per annum by
Rs.32.50, then the sum (in Rs.) is :
a) Rs.3000
b) Rs.3060
d) Rs.3250
e) None of these
c) Rs.3120
Q14. A sum of money trebles itself in 15 years 6 months. In how many years would it
double itself?
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a) 6 years 3 months
b) 7 years 9 months
d) 9 years 6 months
e) None of these
c) 8 years 3 months
Q15. Rambo took a loan of Rs. 1200 with simple interest for as many years as the rate of
interest. If he paid Rs. 432 as interest at the end of the loan period, what was the rate of
interest?
a) 3.6
d) Data inadequate
b) 6
c) 18
e) None of these
Q16. father left a will of Rs.35 lakhs between his two daughters aged 8.5 and 16 such that
they may get equal amounts when each of them reach the age of 21 years. The original
amount of Rs.35 lakhs has been instructed to be invested at 10% p.a. simple interest. How
much did the elder daughter get at the time of the will?
A)Rs.17.5 lakhs
B)Rs.21 lakhs
C) Rs.15 lakhs
D) Rs. 20 lakhs
17.What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound interest,
interest being compounded annually?
A) 2400
B) 2592
C) 2678
D)2540
18. If a sum of money grows to 144/121 times when invested for two years in a scheme
where interest is compounded annually, how long will the same sum of money take to treble
if invested at the same rate of interest in a scheme where interest is computed using simple
interest method?
A) 9 years
B) 22 years
C) 18 years
D)33 years
19. 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) 7200
D)9600
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20. 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)5630.50
C)5788.125
D)5627.20
21. The difference between the compound interest and the simple interest on a certain sum at
12% p.a. for two years is Rs.90. What will be the value of the amount at the end of 3 years?
A) 9000
B) 6250
C) 8530.80
D)8780.80
22. Vijay invested Rs.50,000 partly at 10% and partly at 15%. His total income after a year
was Rs.7000. How much did he invest at the rate of 10%?
A) Rs.40,000
B)Rs.40,000
C)Rs.12,000
D)Rs.20,000
23. A sum of money invested for a certain number of years at 8% p.a. simple interest grows
to Rs.180. The same sum of money invested for the same number of years at 4% p.a. simple
interest grows to Rs.120 only. For how many years was the sum invested?
A) 25 years
B) 40 years
C) 33 years and 4 months
D)Cannot be determined
24. How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is
invested at 12.5% p.a simple interest?
A) 8 years
B) 64 years
C) 72 years
D)56 years
Q25. If the compound interest on a certain sum for 2 years at 4% p.a. is Rs. 102, the simple
interest at the same rate of interest for two years would be:
(a) Rs. 200
(b) Rs. 50
(c) Rs. 150
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(d) Rs. 100
Q26. On what sum does the difference between the compound interest and the simple interest
for 3 years at 10% is Rs. 31?
(a) Rs. 1500
(b) Rs. 1200
(c) Rs. 1100
(d) Rs. 1000
Q27. A sum of money at compound interest double itself in 15 years. It will become eight
times of itself in
(a) 45 years
(b) 48 years
(c) 54 years
(d) 60 years
Q28. If the amount is 2.25 times of the sum after 2 years at compound interest (compound
annually), the rate of interest per annum is:
(a) 25%
(b) 30%
(c) 45%
(d) 50%
Q29.At what percent per annum will Rs. 3000 amounts to Rs. 3993 in 3 years if the interest is
compounded annually?
(a) 9%
(b) 10%
(c) 11%
(d) 13%
Q30. In how many years will Rs. 2,000 amounts to Rs. 2,420 at 10% per annum amount
interest?
(a) 3 years
(b) 2 (1/2) years
(c) 2 years
(d) 1 (1/2) years
Q31. If the difference between the compound interest, compounded every six months, and the
simple interest on a certain sum of money at the rate of 12% per annum for one year is Rs.
36, the sum is:
(a) Rs. 10,000
(b) Rs. 12,000
(c) Rs. 15,000
(d) Rs. 9,000
Q32. A builder borrows Rs. 2550 to be paid back with compound interest at the rate of 4%
per annum by the end of 2 years in two equal yearly installments. How much will each
installment be?
(a) Rs. 1352
(b) Rs. 1377
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Simple and Compound Interest
(c) Rs. 1275
(d) Rs. 1283
Q33. The difference between the simple and compound interest on a certain sum of money at
5% rate of interest per annum for 2 years is Rs. 15. Then the sum is:
(a) Rs. 6,500
(b) Rs. 5,500
(c) Rs. 6,000
(d) Rs. 7,000
Q34. If the difference between the compound interest and simple interest on a sum of 5% rate
of interest per annum for three years is Rs. 36.60, then the sum is:
(a) Rs. 8000
(b) Rs. 8400
(c) Rs. 4400
(d) Rs. 4800
Q35. A sum of money doubles itself in 4 years compound interest. It will amount to 8 times
itself at the same rate of interest in:
(a) 18 years
(b) 12 years
(c) 16 years
(d) 24 years
Q36. A sum borrowed under compound interest doubles itself in 10 years. When will it
become fourfold of itself at the same rate of interest?
(a) 15 years
(b) 20 years
(c) 24 years
(d) 40 years
Q37. A sum of money invested at compound interest doubles itself in 6 years. At the same
rate of interest it will amount to eight times of itself in:
(a) 12 years
(b) 15 years
(c) 18 years
(d) 10 years
Q38. A sum of money invested at compound interest amounts in 3 years to Rs. 2,400 and in 4
years to Rs. 2,520. The difference rate per annum is:
(a) 5%
(b) 6%
(c) 10%
(d) 12%
Q39. A sum becomes Rs. 4500 after two years and Rs. 6750 after four years at same
compound interest. The sum is:
(a) Rs. 4000
(b) Rs. 2500
(c) Rs. 3000
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Simple and Compound Interest
(d) Rs. 3050
Q.40.A man borrowed Rs.16000 from two persons. He paid 6% interest per annum to one
and 10% interest per annum to the other. In the first year he paid a total interest of Rs.1120.
How much did he borrow at each rate?
a.
b.
c.
d.
Rs.12500 : Rs.3500
Rs.11000 : Rs.5000
Rs.12000 : Rs.4000
Rs.10000 : Rs.6000
Q.41.A certain sum of money amounts to Rs.1680 in 3 years and to Rs.1800 in 5 years. Find
the sum and rate of simple interest.
a. Rs.1200 : 4%
b. Rs.1500 : 4%
c. Rs.1800 : 5%
d. Rs.1600 : 5%
Q.42.A sum of money at compound interest amounts to Rs.650 at the end of the first year and
Rs.676 at the end of the second year. The sum of money is,
a.
b.
c.
d.
Rs.1300
Rs.650
Rs.1250
Rs.625
Q.43.A sum of money placed at compound interest doubles itself in 5 years. In how many
years it would be 8 times of itself at the same rate of interest?
a.
b.
c.
d.
10 years
15 years
20 years
7 years
Q.44.The compound interest on Rs.2000 in 2 years, if the rate of interest is 4% per annum for
the first year and 3% per annum for the second year, will be,
a. Rs.143.40
b. Rs.141.40
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c. Rs.140.40
d. Rs.142.40
Q.45.An amount of money at compound interest grows up to Rs.3840 in 4 years and up to
Rs.3936 in 5 years. Find the rate of interest.
a.
b.
c.
d.
2%
2.05%
3.5%
2.5%
46. A sum of money becomes 7/6 of itself in 3 years at a certain rate of simple interest. The
rate per annum is:
a) 50/9% b) 59/9% c) 18% d) 25%
47. The simple interest on a certain sum at 5% per annum for 3 years and 4 years differ by Rs
42. The sum is:
a) Rs 210 b) Rs 280 c) Rs 750 d) Rs 840
48. The difference between the simple interest received from two different sources on Rs
1500 for 3 years is Rs 13.50. The difference between their rates of interest is:
a) 0.1% b) 0.2% c) 0.3% d) 0.4%
49. A sum of Rs 10,000 is lent partly at 8% and remaining at 10% per annum. If the yearly
interest on the average is 9.2%, the two parts are:
a) Rs 4000, Rs 6000 b) Rs 4500, Rs 5500 c) Rs 5000, Rs 5000 d) Rs 5500, Rs 4500
50. A sum of Rs 1600 gives a simple interest of Rs 252 in 2 years and 3 months. The rate of
innterest per annum is:
a) 11/2% b) 8% c) 7% d) 6%
51. A sum of Rs 400 amounts to Rs 480 in 4 years. What will it amount to if the rate of
interest is increased is increased by 2%?
a) Rs 484 b) Rs 560 c) Rs 512 d) None of the these
52. The simple interest on a sum of money is 4/9 of the principal and the number of years is
equal to the rate percent per annum. The rate per annum is:
a) 5% b) 20/3% c) 6% d) 36/5 %
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Simple and Compound Interest
53. A sum of Rs 1550 was lent partly at 5% and partly at 8% simple interest. The total
interest received after 3 years is Rs 300. The ratio of money lent at 5% to that at 8% is:
a) 5: 8 b) 8:5 c) 31: 6 d) 16:15
54. a sum of Rs 1750 is divided into two parts such that the interests on the first part at 8%
simple interest per annum and that on the other part at 6% simple interest per annum are
equal. The interest on each part (In Rupees) is
a) 60 b) 65 c) 70 d) 40
55. The simple interest on a sum after 4 years is 1/5 of the sum. The rate of interest per
annum is
a) 4% b) 5% c) 6% d) 8%
Simple Interest:
56. A lent Rs 5000 to B for 2 years and Rs 3000 to C for 4 years on simple interest at the
same rate of interest and received Rs 2200 in all from both as interest per annum is:
a) 7% b) 5% c) 57/8% d) 10%
57. A money lender finds that due to a fall in the annual rate of interest 8% to 31/4%, his
yearly income diminishes by Rs 61.50. His capital is
a) Rs 22400 b) Rs 23800 c) Rs 24600 d) Rs 26000
58. If the annual rate of simple interest increases from 10% to 25/2%, a man’s yearly income
increases by rs 1250. His principal (in Rupees) is:
a) 50,000 b) 45000 c) 60,000 d) 65000
59. A person borrows some money for 5 years and loan amount : total interest amount = 5:2.
The ratio loan amount: interest rate is equal to:
a) 2: 25 b) 2:1 c) 5:2 d) 25:2
60. An old article is available for Rs 12000 at cash payment or is available for Rs Rs 7000
cash payment and a monthly installment of Rs 630 for 8 months. The rate percent per annum
is
a) 1.2 percent b) 3 percent c) 3.25% d) 3.3%
61. A sum of Rs 1500 is lent out in two parts in such a way that the simple interest on one
part at 10% per annum for 5 years is equal to that on another part at 12.5% per annum for 4
years. The sum lent out at 12.5% is:
a) Rs 500 b) Rs 1000 c) Rs 750 d) Rs 1250
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62. A person invests money in three different schemes for 6 years, 10 years and 12 years at
10%, 12% and 15% simple interest respectively. At the completion of each scheme, he gets
the same interest, the ratio of his investment is:
a) 6:3:2 b) 2:3:2 c) 3:4:6 d) 3:4:2
63. Simple interest on Rs 500 for 4 years at 6.25% per annum is equal to the simple interest
on Rs 400 at 5% per annum for a certain period of time. The period of time is:
a) 4 years b) 5 years c) 25/4 years d) 26/3 years
64. A person invests Rs 1200 as fixed deposit at a bank at the rate of 10% per annum simple
interest. but due to some pressing needs he has to withdraw the entire money after 3 years, for
which the bank allowed him a lower rate of interest. if he gets Rs 3320 less than what he gets
Rs 3320 less than what he would have got at the end of 5 years, the rate of interest allowed by
the bank is:
a) 68/9% b) 67/9% c) 71/9% d) 79/9%
65. In how many years will a sum of money double itself at 12% per annum?
a) 8 years 6 months b) 6 years 9 months c) 8 years 4months d) 7 years 6 months
66. Find the simple interest on Rs 7000 at 50/3 % for 9 months
a) Rs. 1075 b) Rs. 975 c) Rs. 875 d) Rs. 775
67. Find the simple interest on the Rs. 2000 at 25/4% per annum for the period from 4th Feb
2005 to 18th April 2005
a)Rs 25 b) Rs 30 c) Rs 35 d) Rs 40
68. Sachin borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends
money to Rahul at 25/4% p.a. for 2 years. Find the gain of one year by Sachin.a 110.50 b)
a)111.50 c) 112.50 d)113.50
69. If A lends Rs. 3500 to B at 10% p.a. and B lends the same sum to C at 11.5% p.a., then
the gain of B (in Rs.) in a period of 3 years isa) Rs. 154.50 b) Rs. 155.50 c) Rs. 156.50 d) Rs. 157.50
70. Sahil took a loan for 6 years at the rate of 5% per annum on Simple Interest, If the total
interest paid was Rs. 1230, the principal was
a)4100 b) 4200 c)4300 d)4400
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