SIMPLE AND COMPOUND INTEREST

1) Equal sums of money are lent at 5% p.a and 6% p.a for 2 years &3 years respectively.
If one of them earns Rs.240 more interest than the other find the sum lent?
1) Rs: 3000
2) Rs: 2500
3) Rs: 2000
4) Rs: 4000
2) A machine costing Rs.5000/- depreciates @ 20%p.a. Its value after 3 years will be.
1) Rs: 2800
2) Rs: 2560
3) Rs: 2900
4) Rs: 2520
3) A sum of money is borrowed at 5%p.a. C.I. If it is paid back in two equal annual
installments of Rs.8820 each find the sum borrowed.
1) Rs: 16400
2) Rs: 17000
3) Rs: 15600
4) Rs:
16000
4) A man borrows Rs.1000@ 10% p.a. S.I for 3 years and lends it immediately at C.I for
the same period at the same rate of interest. How much does he gain?
1) Rs: 20
2)Rs: 21
3)Rs: 31
4) Rs.25
5) The C.I. on a certain sum of money for 2 years is Rs. 408 and S.I. on the same sum, for
the same period is Rs.400. Find the sum and the rate of interest.
1) 1,000, 5%
2) 5,000, 4%
3) 8,000, 4%
4) 5,000,
5%
6) A certain sum of money triples in 16 years at a certain rate of interest. In how many
years will the sum becomes six times itself.
1) 32yrs
2) 38yrs
3) 40yrs
4) 24yrs
7. A 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?
1)
Rs. 17.5 lakhs
2)Rs. 21 lakhs
3)Rs. 15 lakhs
4)Rs. 20 lakhs
8. What will Rs.1500 amount to in three years if it is invested in 20% p.a. compound
interest, interest being compounded annually?
1)
2400
2) 2592
3) 2678
4) 2540
9. 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?
1)
9 years
2) 22 years
3) 18 years
4)
33 years
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SIMPLE AND COMPOUND INTEREST

10. 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?
`1) 6000
2) 6400
3) 7200
4)
9600
11. 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.
1)
5624.32
2) 5630.50
3)5788.125
4) 5627.20
12. 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?
1)
9000
2) 6250
3)
8530.8
4)8780.80
13. 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%?
1)
Rs.40,000
2)
Rs.40,000
3)Rs.12,000
4)Rs.20,000
14. 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?
1)
25 years (2)40 years
3) 33 years and 4 months
4)Cannot be
determined
15. 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?
1)
8 years
2) 64 years
3)72 years
4) 56 years
15. 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.
1)
2088
2)
2000
3)
3087
4) None of these
16. 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?
1)
Rs.5500
2)
Rs.11000 3)
Rs.22000
4) Rs.2750
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SIMPLE AND COMPOUND INTEREST

17. Rs.100 doubled in 5 years when compounded annually. How many more years will it
take to get another Rs.200 compound interest?
1)
10 years
2) 5 years 3) 7.5 years
4) 15 years 5) 8 years
18. A man borrows a sum of Rs 50,000 for two years at 20% p.a. compound interest,
interest being compounded annually. If he repays Rs 24,000 at the end of the second
year and clears the debt, how much did he pay at the end of the first year?
1) Rs 30.000
2) Rs 32,000
3) Rs 40.000
4) Rs
37,500
19. A sum of Rs 50,000 is split into two parts, one part being lent at simple interest and
other part being lent at compound interest, interest being compounded annually. At the
end of two years, the total interest earned on the sum is Rs 12.216. Find the sum lent at
compound interest, if both the parts are lent at an interest rate of 12% p.a.
1) Rs 30.000
2) Rs 15,000
3) Rs 20,000
4) Rs
35,000
20. A sum of Rs 32,000 yields an interest of Rs 5,632 at compound interest, compounded
annually for two years. The rates of interest for the two years being different. Find the
rate of interest for the second year, if the rate of interest for the first year is 5% p.a.
1) 15% p.a.
2) 12% p.a.
3) 12.5% p.a.
4) 24% p.a.
21. A sum of Rs 13,000 is divided into three parts such that the simple interests accrued
on them for two, three and four years respectively may be equal. Find the smallest part,
if the rate of simple interest is 8% p.a. in all the cases.
1) Rs 3,600

2) Rs 2,400

3) Rs 3,000

4) Rs 4,500

22. Two equal sums are lent at the rates of 12% p.a. and 10% p.a. simple interest
respectively. The former is recovered a year earlier than the latter and the amount in
each case is Rs 25,600. What was the period of lending for which former sum was lent?
1) 4

2) 3

3) 5

4) 6

23. A man borrowed Rs 4,00,000 to buy a house. He pays compound interest at 6% p.a.,
interest being compounded annually. He lets out the house and receives rent at Rs 3,000
per month, rent payable at the end of the year. He uses this money to clear the loan.
After two years of such repayment, how much does he still have to pay to clear the debt?
1) Rs 3,16,000
3,75,280
3

2) Rs 3,24,000

3) Rs 3,25,000

4) Rs

SIMPLE AND COMPOUND INTEREST

24. A sum of Rs 100 is lent at simple interest of 3% p.a. for the first month. 9% p.a. for
the second month, 27% p.a. for the third month and so on. What is the total amount of
interest earned at the end of one year approximately?1) Rs 7,97,160
7,91,160

3) Rs 65,930

2) Rs

4) Rs 66,430

25. The difference in compound interest accrued on Rs 20,000 for one year at 6% p.a.
when interest is compounded yearly and when it is compounded half- yearly is
1) Rs 32

2) Rs 15

3) Rs 18

4) Rs 21

26. The compound interest payable on a sum of Rs 32,000 at the end of two years is
Rs.6,720. If the rate of interest for the first year is 10% p.a. and interest is compounded
annually, then find the rate of interest for the second year.
1) 15%

2) 12%

3) 10%

4) 8%

27. If the simple interest on a sum of money at 10% p.a. for four years is Rs 2,400, then
the compound inter-est on the same sum for the same period at the same rate, when
interest is compounded annually is
1) Rs 2847.60

2) Rs 7248.80

3) Rs 2784.60

4) Rs

4284.70
28. A certain sum yields a simple interest of Rs 21,600 in two years. Had it been invested
at compound interest and at the same rate, it would have fetched Rs 1,296 more interest
for the same period. Find the amount accrued after three years under compound
interest, if it is compounded annually.
1) Rs 1,26,443.50

2) Rs 1,14,192

3) Rs 12,300

4) Rs

1.36,442.50
29. Mansi borrows a sum of Rs 72.000 at 10% compound interest p.a., compounding
done annually. At the end of the first year, she repays some money and repays the
remaining amount of Rs 34,320 at the end of the second year to clear the entire loan.
What is the amount she repaid at the end of the first year?
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SIMPLE AND COMPOUND INTEREST

1) Rs 44,880

2) Rs 48,000

3) Rs 52.080

4) Rs

40,800
30. An amount of Rs 41,000 is divided into three parts and each part is lent at the
interest rates of 6% p.a., 10% p.a.and 2% p.a., respectively under simple inter-est for 6
years, 3 years and 3 years respectively. The interest obtained in all the cases is equal.
What is the sum lent at 10% p.a.?
1) Rs 5,000

2) Rs 6,000

3) Rs 30,000

4) None of these