LESSON: 7B

SIMPLE AND COMPOUND INTEREST

VIDEO LESSONS - BASIC CONCEPTS

VIDEO LESSONS – 7 B – SIMPLE & COMPOUND INTEREST – CONCEPTS:

(For all answers under Concept related questions please view the videos where
detailed explanation is available)

CONCEPT 1: What is Simple Interest?

 Interest is calculated throughout the period only on the principal – It is called
simple interest.
 There is no interest on interest.

 Formula for SI =
 N is always in years
 Amount = Principal + Interest
Example: Raju invested for 3 years Rs.4000 in a bank which gives 6% interest
per annum. What is the simple interest?

CONCEPT 2: To find amount: Example: If a person receives an amount of Rs.4400

from a bank, after a period of 2 years at simple interest 5% per annum then what is
the sum deposited?

CONCEPT 3: Difference in Interest rates: Example:

1. A sum was invested at a certain rate of simple interest for 2 years. If the sum were
invested at 3% more rate of interest, it would have fetched Rs.72 more. What is the
sum?
2. A sum of Rs.14000 is deposited in two banks giving two different rates for two
years. The depositor got interest of Rs.140 more in one bank at the end of two years.
What is the difference in rate of interest?

CONCEPT 4: Different Interest rates for different periods: Example:

1. A person deposited in bank A a certain amount at simple interest of 10% per
annum for 3 years. He invested the same amount in bank B at simple interest of
12% for 2 years. If the difference in interest got from the two banks is Rs.35 then
what is the sum deposited?
2. Shamita took a loan at simple interest rate of 6% per annum in the first year and it
increased by 1.5% per annum every year. If she pays Rs.1350 as interest at the end
of 3 years, what was her loan amount? ---Indian Bank Marketing Officer Exam
2010

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 81

CONCEPT 5: Amount becomes ‘n’ times the principal: Example:
1. A sum of Rs.7000 deposited in a bank triples itself in 10 years. Find the rate of
interest?
2. A person deposited a certain sum in simple interest in a bank. If the simple interest
given by the bank after 8 years is double the sum deposited, what is the rate of
interest?
3. A sum of money invested in simple interest doubles in 5 years. It will become 4
times in how many years?

CONCEPT 6: Amount at different periods: Example:

A sum of money deposited at simple interest in a bank amounts to Rs.928 in two
years and to Rs.1248 after a further period of 5 years. Find the sum and rate of
interest?

CONCEPT 7: Part of Amount invested in different rates: Example:

Some amount out of Rs.8000 was lent at 5% per annum and the remaining at 7% per
annum. If the total simple interest from the total amount of Rs.8000 in 5 years was
Rs.2300 then find the sum lent at 7% per annum?

CONCEPT 8: What is compound interest?

 Interest is added to the Principal every year
 The interval at which the interest is added to the Principal may change
 Principal is cumulative as interest on interest is calculated.
 If the mode is not specifically mentioned it will be assumed to be SI.
 If only compound Interest is mentioned but period is not mentioned, it will be
assumed the period is annual.
 Formula for finding the amount under compound interest:
Amount =
 If the period of compounding is half yearly the formula for finding the amount
is:
Amount =
Example:
Anita invested an amount of Rs.8000 in a fixed deposit scheme for 2 years at
compound interest rate 5% per annum. How much amount will Anita get on maturity
of the fixed deposit? --- [LIC AAO EXAM-24.04.2005]

CONCEPT 9: Working of Compound Interest (L1, L2 Concept): Example:

A sum of Rs.8000 is invested in a bank at 5% per annum at compound interest
(Compounded annually) for 2 years. Find the compound interest?

CONCEPT 10: To find ‘r’ when compound interest, principal and number of
years is given:
Example:
A sum of Rs.12000 is invested in compound interest (compounded annually) at
certain rate for 2 years. If the amount got after 2 years is Rs.13230 then what is the
rate of interest?

82 Quantitative Aptitude | © B FIT Institute, Chennai - 42

 a)10% b) 11% c) 5% d) 6%
CONCEPT 11: Working of compound interest for more than 2 years (L1, L2
Concept): Example:
1. What will be the compound interest on a sum of Rs.25000 after 3 years at the rate
of 12% per annum? --- [SBI PO Exam 2003]
2. What will be the compound interest on a sum of Rs.18000 at 10% per annum
(compounded half yearly) for years?
a) 2700.25 b) 2600.75 c) 2682.40 d) 2837.25 e) 2685.25

CONCEPT 12: Difference between CI and SI for two years: Example:

The difference between compound interest and simple interest for the amount of
Rs.5000 in 2 years is Rs.32. Find the rate of Interest? --- [GIC AO Exam-2013]
a) 5% b) 8% c) 10% d) 12% e) 13%

CONCEPT 13: Difference between CI and SI for three years: Example:

What will be the approximate difference in the simple and compound interest
acquired on a sum of Rs.2600 at the rate of 15% per annum at the end of 3 years?
--- [United Bank of India-PO Exam-2010]
a) 167 b) 194 c) 202 d) 172 e) 184

CONCEPT 14: Ratio between CI and SI: Example:

1. Find the ratio between CI and SI for two years on a sum of Rs.7000 at 4% for 2
years?
2. Compound interest is Rs.1449 and simple interest is Rs.1400 for two years for a
given sum. Find the principal and rate of interest?
3. Simple interest on a certain sum for 4 years at 5.5% is Rs.1100. Find compound
interest for the same sum for 2 years at 7%

CONCEPT 15: Amount given for different periods: Example:

A sum of money becomes Rs.14049.28 after 3 years and Rs.17623.42 after 5 years
on compound interest. Find the rate percentage?
a) 10% b) 12% c) 15% d) 9%

CONCEPT 16: Amount grows to ‘n’ times the principal: Example:

1. A sum of money placed in compound interest doubles in 5 years. In how many
years it becomes 8 times itself?
2. A sum of Rs.8000 placed in a bank doubles itself in 5 years. After 20 years, what
will be the amount?

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 83

 QUESTIONS FROM VIDEO LESSONS – SIMPLE AND
COMPOUND INTEREST
1. Find the simple interest on Rs.15, 000 at the rate of 12% for 5 years.
a) Rs.8700 b) Rs.9000 c) Rs.7570 d) Rs.8500 e) Rs.7000
2. A sum of money invested in a bank at a simple interest of 5% for 7 years becomes
Rs.5400 on maturity. What is the principal amount invested?
a) Rs.6500 b) Rs.5000 c) Rs.4000 d) Rs.6000 e) Rs.5500
3. Find the simple interest on Rs.22, 000 for 3 years, if the rate of interest for each
year is 4%, 8% and 10% respectively.
a) Rs.4840 b) Rs.4300 c) Rs.5320 d) Rs.5300 e) Rs.5000
4. The simple interest accrued on an amount of Rs. 2500 at the end of six years is
Rs.1875. What would be the simple interest accrued on an amount of Rs.17500 at
the same rate and same period?
a) Rs.14575 b) Rs.13125 c) Rs.14895 d) Rs.14255 e) Rs.14550
5. A sum of money Rs.8000 invested in SI for 10years triples itself. What is the Rate
of Interest?
a) 10% b) 5% c) 25% d) 20% e) 15%
6. A businessman invested Rs.15, 000 in a bank in simple interest. It doubled itself in
6 years. In how many years it will become four times itself?
a) 12years b) 18years c) 24 years d) 15 years e) 36years
7. A sum of money lent out at simple interest amounts to Rs.1624 after 2 years and
to Rs.1960 after a period of 5 years. Find the sum and the rate%.
a) Rs.1100, 8% b) Rs.1400, 8% c) Rs.1250, 7%
d) Rs.1250, 8% e) Rs.1200, 10%
8. Rs.5000 amounts to Rs.5500 in five years at a certain rate of simple interest. If the
interest is 3% more than the previous rate, then in the same time period, the same
sum will amount to:
a) Rs.6250 b) Rs.5900 c) Rs.5700 d) Rs.6200 e) Rs.6000
9. Find the compound interest on Rs.16, 000 for 2 years at 5% per annum
(compounded annually).
a) Rs.2500 b) Rs.1300 c) Rs.1640 d) Rs.1500 e) Rs.2000
10. Mr. Suresh invested Rs.1, 00, 000 in a bank in a fixed deposit which fetches an
interest of 8% annum. If the interest is calculated for every six months what is the
interest which Mr. Suresh will earn at the end of one year?
a) Rs.7000 b) Rs.6000 c) Rs.8000 d) Rs.8160 e) Rs.8500
11. The difference between the compound interest and simple interest on a given
principal at 10% per annum for 2years is Rs.1500. Find the principal.
a) Rs.1, 50, 000 b) Rs.1, 00, 000 c) Rs.1, 15, 000
d) Rs.1, 25, 000 e) Rs.2, 50, 000
12. Find the difference between compound interest (compounded annually) and
simple interest of 8% for Rs.80, 000 for 3 years.
a) Rs.1660.62 b) Rs.1576.96 c) Rs.1450
d) Rs.1266 e) Rs.1500.76
13. For what rate % in C.I, a sum of money amounts to Rs.9680 at the end of second
year and Rs.10, 648 at the end of third year?
a) 9% b) 6% c) 8.8% d) 10% e) 7%

84 Quantitative Aptitude | © B FIT Institute, Chennai - 42

14. The present population of a town is 2, 00,000. If it increases at the rate of 5% per
annum, what will be its population after 2 years?
a) 2,28,000 b) 2,20,500 c) 2,40,000 d) 2,60,000 e) 2,50,000
15. The bacterium in a culture decreases by 10% in first 2 hours and grows by 4% in
next one hour. If the original count is 75,000, find the bacteria count at the end of 3
hours.
a) 63,000 b) 77000 c) 78180 d) 63180 e) 76000
16. In a factory, the production of steel rose to 5290 tonnes from 4000 tonnes in two
years. Find the rate of growth per annum.
a) 15% b) 12% c) 8% d) 10% e) 7%
17. The cost of a new bicycle is Rs.8500. If its value depreciates at the rate of
10%per annum, what will be its value after 2 years? Also find the total depreciation.
a) Rs.6885, Rs.1615 b) Rs.6250, Rs.2250 c) Rs.5500,
Rs.3000
d) Rs.6000, Rs.2500 e) Rs.7500, Rs.1000
18. A sum of money doubles in five years. In how many years the same sum for the
same rate % will become 16 times.
a) 15years b) 24years c) 18years d) 20years e) 21years
19. A sum of Rs.28000 deposited at a compound interest doubles in 6 years. Find
the sum after 18years.
a) Rs.96,000 b) Rs.2,20,000 c) Rs.84,000
d) Rs.2,24,000 e) Rs.2,00,000
20. For two years C.I for a given sum at 5% is Rs.410. Find the simple interest got for
the same sum in double the period and half of the rate.
a) Rs.400 b) Rs.600 c) Rs.550 d) Rs.480 e) Rs.500

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 85

 ON LINE TEST – LESSON 7B: SIMPLE AND COMPOUND
INTEREST
TEST 7.4 SIMPLE & COMPOUND INTEREST:
1. What is the difference between the compound interests on Rs.5000 for 18 months
at 4% per annum compounded yearly and half yearly?
a) Rs.2.04 b) Rs.3.06 c) Rs4.80 d) Rs8.30 e) 4.02
2. Find the compound interest on Rs.15,625 for 9 months at 16% per annum
compounded quarterly.
a) Rs.1851 b) Rs.1941 c) Rs.1951 d) Rs1961 e) Rs.1851
3. What will be the difference between simple and compound interest @10% per
annum on a sum of Rs.1000 after 4 years?
a) Rs.31 b) Rs32.10 c) Rs40.40 d) Rs.64.10 e) None of these
4. The compound interest on a certain sum for 2 years @ 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.1650 c) Rs.600 d) Rs.800 e) None of these
5. 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) Rs.625 b) Rs.630 c) Rs.640 d) Rs650 e) Rs.660
6. On a sum of money, the simple interest for two 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) 11% c) 12% d) 12 ½% e) 13%
7. A sum of money invested at compound interest amounts to Rs.800 in 3yrs and to
Rs.840 in 4 yrs. The rate of interest per annum is:
a) 2 ½% b) 4% c) 5% d) 6 2/3% e) 7%
8. A sum of money invested at a compound interest amounts to Rs.4624 in 2yrs and
to Rs.4193 in 3 yrs. The sum of money is:
a) Rs.4096 b) Rs.4260 c) Rs.4335 d) Rs.4360 e) Rs.4370
9. A sum of Rs.12000 deposited at a compound interest becomes double after 5yrs.
After 20 yrs it will become:
a) Rs.96000 b) Rs.120000 c) Rs.124000 d) Rs.192000 e) Rs.200000
10. If a sum on compound interest becomes three times in 4yrs, then with the same
interest rate, the sum will become 27 times in:
a) 8yrs b) 12 yrs c) 24 yrs d) 36 yrs e.48yrs
11. Find the compound interest for Rs.6000 at 4% rate, compounded annually, for 2
years.
a) Rs.489.60 b) Rs.409 c) Rs.509.80 d) Rs.400 e) None of these
12. A sum of money earning compound interest (compounded annually) doubles in 5
years. In how many years will the amount become 8 times itself?
a) 20 years b) 25 years c) 10 years d) 15 years e) None of these
13. Find the difference between compound interest (compounded annually) and
simple interest on a sum of Rs.15000/- for two years @ 8% per annum.
a) Rs.90 b) Rs.96 c) Rs.100 d) Rs.8 e) None of these
14. Find the exact difference between the simple interest and compound interest
(compounded annually) on Rs.4500/- for 3 years @ 10% per annum.
a) Rs.456 b) Rs.145.50 c) Rs.139.50 d) Rs.43 e) None of these

86 Quantitative Aptitude | © B FIT Institute, Chennai - 42

15. At what rate of interest compounded annually the sum of 4000 amounts to
Rs.5856.40 in 4 years?
a) 10% b) 5% c) 12% d) 8% e) None of these
16. Preethi borrowed two loans at simple interest, one for Rs.1500 at 4% per annum
and the other for Rs.1400 at 5% per annum for the same period. She paid Rs.780 as
total interest. Find the period for which she borrowed the money.
a) 3 years b) 6 years c) 3 ½ years d) 6 ½ years e) None of these
17. In Compound Interest, an amount becomes Rs.8820 in 4 years and Rs.9261 in 5
years. Find the rate of interest?
a) 5% b) 6% c) 12.5% d) 8% e) 9%

TEST 7.5 SIMPLE & COMPOUND INTEREST:

1. Amounts invested by Ram and Suresh are in the ratio of 4:7 respectively. If the
total amount invested by two persons together is Rs.49500, what is the amount
invested by Suresh?
a) Rs.31500 b) Rs.18000 c) Rs.31000
d) Rs.18500 e) None of these
2. Hari invested an amount of Rs 22400/- @ simple interest rate 12% p.a. How much
amount will he get after 7 years?
a) Rs.42216 b) Rs.42116 c) Rs.41116 d) Rs.41416 e) None of these
3. Present age of Saradha is five times the age of her son. Five years ago, her age
was 25 times the age of her son that time. What is Saradha’s present age?
a) 30 years b) 32 years c) 35 years d) 25 years e) None of these
4. In a town 80% of the population are adults of which the men and women are in the
ratio of 9:7 respectively. If the numbers of adult women is 4.2 lakhs what is the total
population of the village?
a) 12 lakhs b) 9.6 lakhs c) 9.8 lakhs d) 11.6 lakhs e) None of these
5. Vikram invested an amount of Rs.19845/- @ the rate of 6% p.a. for a certain
period. After how many years will he obtain a simple interest of Rs.9525.60 on the
given amount, at the given rate of interest?
a) 8 years b) 5 years c) 6 years
d) cannot be determined e) None of these
6. A sum of money is divided among A, B, C and D in the ratio of 4:5:7:11
respectively. If the share of C is Rs. 1351, then what is the total amount of money of
A and D together?
a) Rs 2123 b) Rs 2316 c) Rs 2565 d) Rs 2895 e) None of these
7) The ratio between the present ages of Ravi & Ram is 7:15 respectively. Two years
from now Ram’s age will become twice the age of Ravi. What was the difference
between their ages, five years ago?
a) 13 years b) 16 years c) 11 years d) 18 years e) None of these
8. A construction company borrowed Rs.8,50,000/- for 5 years at the interest rate of
1½ p.a. How much annual interest, company had to pay?
a) Rs 63750 b) Rs 127500 c) Rs 12750 d) Rs 25000 e) None of these
9. The ratio between the present ages of Ram and Balu is 3:2 respectively. Also the
ratio between the present ages of Balu and Guna is 5:2 respectively. What is the
ratio between the present ages of Ram & Guna respectively?
a) 4:15 b) 15:4 c) 9:5
d) cannot be determined e) None of these

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 87

10. What will be the simple interest accrued on a sum of Rs. 4050/- at a rate of 8%
p.a. in 2 years?
a) Rs 608 b) Rs 670 c) Rs 640 d) Rs 648 e) None of these

TEST 7.6 SIMPLE & COMPOUND INTEREST:

1. At what rate of simple interest a sum of money will double it-self in 12 years?
a) 6% b) 7% c) 8% d) 8.33% e) None
2. A sum of Rs. 600 invested under simple interest becomes Rs.960 after 5 years. If
the period is increased by 2 years, to what amount the principal will grow?
a) Rs. 1104 b) Rs. 1206 c) Rs. 1086 d) Rs. 1000 e) None
3. Rahul borrows under simple interest a sum of Rs.900 for a given number of years
which is the same as the rate of interest. If at the end of the period he pays Rs.576
as interest, what is the rate of interest?
a) 6% b) 7% c) 8% d) 9% e) 10%
4. A given sum of money is invested at the same simple interest for 4 years in bank A
and 5 years in Bank B. What will be the ratio of interest earned in Bank A and Bank
B?
a)1:2 b)2:3 c)3:4 d) 4:5 e) 5:6
5. Sukumar borrows a certain sum of money for a period of 6 years agreeing to pay
simple interest of 8%, 9% and 10% every two years. If at the end of 6 years, he pays
an interest of Rs. 648, what is the sum borrowed?
a) Rs.1200 b) Rs.1000 c) Rs. 900 d) Rs.800 e) None
6. Find the compound interest earned for a sum of Rs. 1200 invested for 2 years at
the rate of 10% (compounded annually)
a) Rs.242 b) Rs.252 c) Rs. 264 d) Rs.253 e) None
7. Find the compound interest earned for the same sum of Rs. 1200 invested for the
same period 2 years at the same rate of 10% (but compounded Semi-annually)
a) Rs. 250.50 b) Rs. 242.43 c) Rs.256.61 d) Rs. 258.61 e) None
8. Babu invests Rs.10000 at the simple interest rate of 8%. In how many years it will
become 4 times the principal?
a) 20 years b) 10 years c) 37.5 years
d) 40 years e) Cannot be determined
9. Find the difference between compound interest (compounded annually) and
simple interest of 10% for Rs.8000/- for 2 years.
a) Rs. 60 b) Rs.70 c) Rs.80 d) Rs.90 e) None
10. Find the difference between compound interest (Compounded annually) and
simple interest for a sum of 12000 at 8% for 2 years.
a) Rs.80.40 b) Rs.76.80 c) Rs. 90 d) Rs.96 e) None

TEST 7.9 SIMPLE & COMPOUND INTEREST:

1. How much will be the compound interest to be paid on a principle amount of
Rs.53,000 after 2 years at the rate of 4 p.c.p.a? (SBI associates bank Clerk exam
2011)
a) 4324.8 b) 4432.8 c) 4342.8 d) 4234.8
2. At what rate of S.I will Rs.4800 amount to Rs.6480 in a span of 7 years? (SBI
assistant and Stenographer clerk grade exam 2012)
a) 5 b) 6 c) 3 d) 4

88 Quantitative Aptitude | © B FIT Institute, Chennai - 42

3. An amount of money at CI grows up to Rs.3840 in 4 years and up to Rs. 3936 in 5
years. Find the rate of interest. (SSC graduate level Tier –II exam 2012)
a) 2.5% b) 2% c) 2.05% d) 3.5%
4. The CI on Rs.30000 at 7% per annum for a certain time is Rs. 4347. The time is
(SSC level data entry operator and LDC exam 2012)
a) 3 yrs b) 4 yrs c) 2yrs d) 2.5 yrs
5. How much will a sum of Rs.7250 amount to in a span of 2 years, at 6 p.c.p.a rate
of CI(rounded off to the nearest integer)? (SBI assistant and Stenographer clerk
grade exam 2012)
a) Rs.8176 b) Rs.8146 c) Rs.8216 d) Rs.8190
6. The difference between the simple and CI on certain sum of money for 3 years at
5 % per annum is Rs.61. The sum is (West Bengal public service commission
exam 2012)
a) Rs.8000 b) Rs.9000 c) Rs.8500 d) Rs.9100
7. The difference between CI and SI on a sum of Rs.4,000 for 2 years at 5% p.a
payable yearly is (SSC graduate level Tier-1 exam 2012)
a) Rs.20 b) Rs.10 c) Rs.50 d) Rs.60
8. Shamita took a loan at SI rate of 6 p.c.p.a in the first year and the interest rate
increased by 1.5 p.c.p.a every year. If she pays Rs.8190 as interest at the end of 3
years, what was her loan amount?( Indian Bank rural marketing officer exam
2010)
a) Rs.36,000 b) 36800 c) 35400 d) 35000 e) None of the
above
9. If Rs.1 gives an interest of Rs.9 in 60 years at SI, The rate % per annum is (RRC
Kolkata group –D exam 2013)
a) 13 1/3 % b)12% c)15% d)18%
10. Santhosh invested a sum of Rs.10,000 at 10% CI for 3 years. How much amount
will he get after 3 years? (ADO exam 2009)
a) Rs.12310 b) Rs.13310 c) Rs.13210 d) Rs.13320
11. S.I and CI for a certain sum of money is Rs.600 and Rs.648 respectively for 2
years. What is the rate of interest? (DSSSB primary Teacher exam 2014)
a) 10% b) 9% c) 16% d) 9.5%
12. In how many years will Rs.4400 amount to Rs.5984 at 4 p.c.p.a at SI? (SBI
Clerical staff recruitment exam 2012)
a) 9 b) 6 c) 8 d) 7
13. What will be the CI accrued on an amount of Rs.10000 at the rate of 20 p.c.p.a in
2 years , if the interest is compounded half- yearly? (Andhra Bank PO exam 2009)
a) Rs.4400 b) Rs.4600 c) Rs.4641 d) Rs.4680
14. Rs.675 amounts to Rs.837 in 4 years, at .S.I. If interest rate is decreased by 2 %,
Then amount will be (ESIC Maharashtra Region MTS Exam2012)
a) Rs.729 b) 753 c) 763 d) 783
15. What would be the CI obtained on an amount of Rs. 20000 at the rate of 15
p.c.p.a after 4 years? (Indian Overseas Bank PO exam 2009)
a) Rs.14980.125
b) Rs.19680.125
c) Rs.16780.125
d) Rs.18980.125

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 89

16. The S.I accrued on a sum of money at the end of 4 years is one – fifth of its
principal. What is the rate of interest per annum? (Air Force common admission
test 2013)
a) 4% b) 6% c) 5% d) 8%
17. What will be the CI on a sum of Rs. 7200 at 5 p.c.p.a in 2 years?( SBI Clerical
staff recruitment exam 2012)
a) Rs.841 b) 738 c) 793 d) 694
18. What will be the difference between the interest accrued on a sum of Rs.4500 at
12% per annum for 2 years and that on a sum of Rs. 5600 at 9% per annum for 2
years. (Corporation Bank SO exam 2014)
a) Rs.75 b) Rs.72 c) Rs.69 d) Rs.76
19. The simple interest accrued on a certain principal at a rate of 9% p.c)p.a in 5
years is Rs.14400. What would be the CI accrued on the same principal in 2 years at
the rate of 4 p.c.p.a? (Rajasthan Gramin bank office assistant clerk exam 2012)
a) Rs.2614.60 b) Rs.2641.60
c) Rs.2611.20 d) Rs.2624.20
20. SI on a certain sum at 7 p.c.p.a for 4 years is Rs.3584. What will be the CI on the
same principal at 4 p.c.p.a in 2years (IBPS bank clerk exam 2013)
a) Rs.1054.48 b) Rs.1044.48
c) Rs.1044.84 d) Rs.1064.84

TEST 7.11 SIMPLE & COMPOUND INTEREST:

1. Faizal borrowed two loans – one for Rs. 1600 at simple interest of 8% and the
other for Rs. 1800 @ 6%. If he paid Rs. 1416 as total interest, find the period for
which he borrowed the money.
a) 4 years b) 5 years c) 6 years d) 7 years e) 8 years
2. Find the principal sum which gives an amount of Rs. 5600 for 3 years at 4% simple
interest.
a) Rs.4000 b) Rs.4500 c) Rs.5000 d) Rs.4250 e) Rs.4750
3. Find the simple interest got on a sum of Rs. 3500 at 6% on a period of 3 years and
4 months.
a) Rs.700 b) Rs.720 c) Rs.750 d) Rs.800 e) Rs.900
4. Two loans of Rs.1400 and Rs.1500 were lent at 5% and 4% rate respectively. If
both the loans gave an interest of Rs.1040, find the period for which they were lent.
a) 6 years b) 8 years c) 5 years d) 7½ years e) None of these
5. At what rate of SI a sum of Rs.264 yields an interest of Rs.1056, where the interest
and the period are the same.
a) 20% b) 25% c) 10% d) 15% e) 5%
6. What is the difference between CI and SI for 2 years on a sum of Rs. 15,000 at 8%
p.a.?
a) Rs.150 b) Rs.96 c) Rs.89.90 d) Rs.30 e) Rs.80
7. Difference between CI and SI for one year on a certain sum is Rs.500 at 10%. If
interest is calculated every 6 months, find the sum deposited.
a) Rs.150000 b) Rs.50000 c) Rs.100000 d) Rs.200000 e) None of these
8. A sum of money yields an interest of Rs.630 for 2 years, when compounded
annually at 10%. Find the SI for the same sum at half the rate and double the period.
a) Rs.400 b) Rs.1200 c) Rs.780 d) Rs.920 e) None of these

90 Quantitative Aptitude | © B FIT Institute, Chennai - 42

9. Find the ratio between compound interest and simple interest on a sum of Rs.5000
at 4% for 2 years.
a) 41: 40 b) 2: 1 c) 51: 50 d) 5: 4 e) None of these
10. A sum of money doubles in 6 years under CI In how many years, will it become 8
times itself?
a) 24 years b) 16 years c) 12 years d) 18 years e) 10 years
11. The sum of Rs.20, 000 triples in 6 years under CI What will be the amount after
24 years?
a) Rs.4,86,000 b) Rs.3,24,000 c) Rs.16,20,000
d) Rs.18,40,000 e) Rs.24,20,000
12. As what rate of interest compounded annually the sum of Rs.4000 amounts to
Rs.5856.40 in 4 years?
a) 12% b) 8% c) 6% d) 10% e) None of these
13. A sum of Rs.6000 becomes Rs.7260 for a certain period @ 10% compounded
annually. Find the period for which it was deposited.
a) 2 years b) 3 years c) 4 years d) 5 years e) 6 years
14. In CI a sum amounts to Rs.8820 in 2 years and Rs.9261 in 3 years. Find the rate
%.
a) 10% b) 5% c) 2.5% d) 12.5% e) 6%
15. Find the CI for Rs.6000 at 4% compounded annually for 2 years.
a) Rs.400 b) Rs.603 c) Rs.489.60 d) Rs.509 e) Rs.592.40
16. Find CI for one year on a sum of Rs.8000 at 12% p.a. when interest is calculated
for every 6 months.
a) Rs.988.80 b) Rs.880.80 c) Rs.888.60 d) Rs.899.80 e) Rs.968

17. Find the difference between CI and SI on a sum of Rs. 7200 at 7% for 3 years.
a) 174 b) 188 c) 108 d) 194 e) 116
18. The population of Pali is 46305. If it was increasing at the rate of 5% per annum,
what was its population before 2 years?
a) 41000 b) 43500 c) 43000 d) 42000 e) 42500
19. Vivek bought a motorcycle and sold it after 2 years for Rs.41,972 (lessening the
depreciation value at 4% per annum). What was the purchase price of the
motorcycle?
a) Rs.45542 b) Rs.46500 c) Rs.45250 d) Rs.46700 e) Rs.45175

© B FIT Institute, Chennai – 42 | Quantitative Aptitude 91

 ANSWER
VIDEO LESSONS:
Question No. 1 2 3 4 5 6 7 8 9 10
Answer B C A B D B B A C D
Question No. 11 12 13 14 15 16 17 18 19 20
Answer A B D B D A A D D A

TEST 7.4 SIMPLE & COMPOUND INTEREST:

Test 7.4 1 2 3 4 5 6 7 8 9 10
Answer A C D E A B C E D B
Test 7.4 11 12 13 14 15 16 17
Answer A D B C A B A

TEST 7.5 SIMPLE & COMPOUND INTEREST:

Test 7.5 1 2 3 4 5 6 7 8 9 10
Answer A E A A A D B A B D

TEST 7.6 SIMPLE & COMPOUND INTEREST:

Test 7.6 1 2 3 4 5 6 7 8 9 10
Answer D A C D A B D C C C

TEST 7.9 SIMPLE & COMPOUND INTEREST:

Test 7.9 1 2 3 4 5 6 7 8 9 10
Answer A A A C B A B D C B
Test 7.9 11 12 13 14 15 16 17 18 19 20
Answer C A C D A C B B C B

TEST 7.11 SIMPLE & COMPOUND INTEREST:

Test 7.11 1 2 3 4 5 6 7 8 9 10
Answer C C A B A B D E C D
Test 7.11 11 12 13 14 15 16 17 18 19
Answer C D A B C A C D A

92 Quantitative Aptitude | © B FIT Institute, Chennai - 42