Aptitude & Reasoning

Simple and Compound Interest Questions and Answers

Simple and Compound Interest MCQ

Simple Interest and Compound Interest Multiple Choice Questions and Answers:

Simple and Compound Interest Quiz

Question 1
A sum fetched a otal simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is the sum?
A
8529
B
8952
C
8259
D
8925
Question 2
What sum of money lent out at compound interest will amount to Rs. 968 in 2 years at 10% per annum, interest being charged annually?
A
Rs. 780
B
Rs. 800
C
Rs. 900
D
Rs. 825
Question 3
If the amounts for a fixed principal after 3 and 2 years at a certain rate of compound interest are in the ratio 21 : 20. The rate of interest is
A
5%
B
6%
C
4%
D
7%
Question 4
A man invested 1/3rd of the sum at 7%, 1/4th at 8% and the remaining at 10% for one year. If the annual interest is Rs. 408, then the investment is

Related: Quantitative Aptitude Questions for PCS Exam

A
Rs. 4,800
B
Rs. 8,400
C
Rs. 7,200
D
Rs. 5,000
Question 5
The present population of a town is 25000. It grows at the rate of 4%, 5% and 8% during the first year, second year and third year respectively. Find its population after 3 years.
A
29848
B
24984
C
29844
D
29484
Question 6
At what rate percent per annum will a sum of Rs. 3,600 become Rs. 4,500 in 10 years at simple interest?
A
5%
B
6.75%
C
10%
D
2.5%
Question 7
If the compound interest on a certain sum for 3 years at 20% per annum is Rs. 728, find the simple interest.
A
Rs. 620
B
Rs. 575
C
Rs. 675
D
Rs. 600
Question 8
At what rate percent per annum simple interest will a sum of money triple itself in 25 years?

Related: IBPS Reasoning Practice Questions

A
9.5
B
8
C
 10
D
8.5
Question 9
The difference in simple interest at 13% and 12% p.a. of a sum in one year is Rs. 110. Then the sum is
A
Rs. 11,000
B
Rs. 13,000
C
Rs. 10,000
D
Rs. 15,000
Question 10
What sum of money lent out at compound interest will amount to Rs. 968 in 2 years at 10% per annum, interest being charged annually?
A
Rs. 825
B
Rs. 800
C
Rs. 780
D
Rs. 900
Question 11
A certain sum lent out at simple Interest and the true discount on a certain sum for 1 year at 5% is Rs. 1 find the sum.
A
Rs. 400
B
Rs. 500
C
Rs. 450
D
Rs. 420
Question 12
A man borrows Rs. 4,000 at 8% per annum on compound interest. At the end of every year he pays Rs. 1,500 as part payment of loan and interest. How much does he still owe to the bank after 3 such annual pay-ments?
A
Rs. 2,000
B
Rs. 1,799
C
Rs. 234 13
D
Rs. 169.25
Question 13
A sum of money lent at compound interest amounts to Rs. 1210 in two years and to Rs. 1464.10 in 4 years. Find the rate of interest.
A
8%
B
12%
C
10%
D
15%
Question 14
Find the compound interest on Rs. 8000 for 3 year at 5% per annum.
A
Rs. 1381
B
Rs. 1451
C
Rs. 1151
D
Rs. 1261
Question 15
A sum of Rs. 1600 lent at simple interest at 12.5% per annum will become double in
A
9 1/4 years
B
8 years
C
7.5 years
D
6 years
Question 16
A sum of money doubles itself at compound interest in 15 years. It will become 8 times in
A
45 years
B
30 years
C
60 years
D
40 years
Question 17
The simple interest on a sum of money is 1 9 th of the principal and the number of years is equal to the rate percent per annum. The rate of interest per annum is __
A
3 1/3%
B
5%
C
2%
D
4%
Question 18
The difference in the interests received from two different banks on Rs. 1000 for 2 years is Rs. 20. Thus, the difference in their rates is
A
0.5%
B
1%
C
1.5%
D
2%
Question 19
Find the simple interest and the amount on Rs. 2400 for 3 years 5 months and 15 days at the rate of 9%.
A
3985
B
3147
C
3284
D
3451
Question 20
A tank contains 18,000 litres of water. If it decreases at the rate of 5% a day, what will be the quantity of water after 2 days
A
17,225 litres
B
18,200 litres
C
15,234 litres
D
16,245 litres
Question 21
At what rate percent per annum will a sum of Rs. 3,600 become Rs. 4,500 in 10 years at simple interest?
A
6.75%
B
10%
C
2.5%
D
5%
Question 22
Find out the capital required to earn a monthly interest of Rs. 600 at 6% simple interest.

Related: Islam Knowledge Quiz

A
Rs. 1.3 lakhs
B
Rs. 1.1 lakhs
C
Rs. 1.2 lakhs
D
Rs. 1 lakhs
Question 23
A sum was put at simple interest at a certain rate for 2 years. Had it been put at 3% higher rate, it would have fetched Rs. 72 more find the sum:
A
none of these
B
Rs. 1000
C
Rs. 1500
D
Rs. 1200
Question 24
The difference between the compound and the simple interest on a certain sum at 7½% per annum for 3 years is Rs. 110.70. Find the sum:
A
Rs. 6400
B
Rs. 1200
C
Rs. 320050
D
none of these
Question 25
The cost of a machine is estimated to be decreasing at the rate of 15% every year. If it costs Rs. 6,000 now, what will be the estimated value of the machine after 2 years?

Related: General Intelligence Questions for RRB

A
Rs. 3,225
B
Rs. 3,750
C
Rs. 5,000
D
Rs. 4,335
Question 26
The compound interest on 2500 at the rate of 6% p.a. after 2 years will be
A
309
B
320
C
None of these
D
318
Question 27
A man invested 1/3rd of the sum at 7%, 1/4th at 8% and the remaining at 10% for one year. If the annual interest is Rs. 408, then the investment is
A
Rs. 8,400
B
Rs. 7,200
C
Rs. 4,800
D
Rs. 5,000
Question 28
The difference in simple interest on a certain sum of money for 3 years and 5 years at 18% per annum is Rs. 2,160. Then the sum is
A
Rs. 4,500
B
Rs. 7,500
C
Rs. 6,000
D
Rs. 6,500
Question 29
If the amounts for a fixed principal after 3 and 2 years at a certain rate of compound interest are in the ratio  21 : 20. The rate of interest is
A
7%
B
4%
C
6%
D
5%
Question 30
At what rate percent per annum will a sum of Rs 2000 amount to Rs 2205 in 2 years, compounded annually?

Related: GK Question High Courts and Supreme Court of India

A
10%
B
15%
C
5%
D
None of these
Question 31
What annual instalment will discharge a depth of Rs. 2710 due in 4 years at 7% simple interest?
A
Rs. 1000
B
Rs. 500
C
Rs. 225
D
Rs. 150
Question 32
Ram borrowed Rs. 5,000 from Sanjay with simple interest. After 2 years, Sanjay got Rs. 1,000 more than what he had given to Ram. What was the percentage of interest per annum?
A
15
B
20
C
5
D
10
Question 33
A sum of Rs. 500/- was lent for two years at 2% compound interest. The interest for two years will be:
A
Rs. 50.20
B
Rs. 20.20
C
Rs. 20.00
D
Rs. 25.00
Question 34
A sum of money doubles itself at compound interest in 15 years. It will become 8 times in
A
40 years
B
30 years
C
60 years
D
45 years
Question 35
In what time will Rs 1000 amount to Rs 1331 at 10% per annum, compounded annually?­
A
1 ½  years
B
3 years
C
½  years
D
2/3 years
Question 36
A man borrows Rs. 4,000 from a bank at 7 1 2 % interest. At the end of every year, he pays Rs. 1,500 as part repayment of loan and interest. How much does he still owe to the Bank after 3 such annual payments?
A
Rs. 125
B
Rs. 123.25
C
Rs. 124.25
D
Rs. 25
Question 37
Sarvesh borrowed Rs. 5,000 from Arun with simple interest. After 2 years, Arun got Rs. 1,000 more than what he had given to Sarvesh. What was the percentage of interest per annum?

Related: Classification (Logical Reasoning) Questions for Practice

A
10
B
15
C
5
D
20
Question 38
If the compound interest on a certain sum of money for 2 ½ years at 5% per annum be Rs. 104.05, what would be the simple interest?
A
Rs. 125.75
B
Rs. 100
C
Rs. 225
D
Rs. 215.75
Question 39
Find the amount of Rs 12000 after 2 years compounded annually, the rate of interest being 5% p.a. during the first year and 6% p.a. during the second year, also find the compound interest.
A
Rs 1653
B
None of these
C
Rs 1356
D
Rs 1536
Question 40
The difference in the interests received from two different banks on Rs. 1000 for 2 years is Rs. 20. Thus, the difference in their rates is
A
1.5%
B
0.5%
C
2%
D
1%
Question 41
The simple interest on a certain sum of money for 4 years at 4 percnet per annum exceeds the compound interest on the same sum for 3 years at 5 percent per annum by Rs. 57. Find the sum.
A
Rs. 12,500
B
Rs. 24,000
C
Rs. 23,050
D
Rs. 26,700
Question 42
Mayank bought a Microwave for Rs 4000 on credit. The rate of interest for the first year is 5% and of second year is 15%. How much will it cost him if he pays the amount after two years?
A
Rs. 4240
B
Rs. 4620
C
Rs. 4950
D
Rs. 4830
Question 43
A certain sum of money at simple interest amounts to Rs. 1260 in 2 years and to Rs. 1350 in 5 years. The rate percent per annum is ___
A
3 years
B
2.5 years
C
2 years
D
3.5 years
Question 44
A certain sum lent out at simple Interest and the true discount on a certain sum for 1 year at 5% is Rs. 1 find the sum.

Related: Take Free Practice Aptitude Test

A
Rs. 450
B
Rs. 400
C
Rs. 500
D
Rs. 420
Question 45
Find the sum of money which increases 1/10 of itself every year and amounts to Rs. 450 in 5 years at S.I ___
A
Rs. 300
B
Rs. 350
C
Rs. 250
D
Rs. 400
Question 46
The value of mobile phone which was purchased 2 years ago depreciates at 12% p.a.. If its present value is Rs 9680, for how much was it purchased?

Related: General Science Sample paper

A
Rs 12500
B
Rs 12000
C
Rs 11500
D
Rs 10000
Question 47
A merchant borrowed Rs. 2500 from the money lenders. For one loan he paid 12% per annum and for the other 14% per annum. The total interest paid for one year was Rs. 326. How much did he borrow at each rate?
A
225 and 350
B
1200 and 1300
C
130 and 175
D
none of these
Question 48
Find the compound interest on Rs 6400 for 2 years, compounded annually at 7.5% per annum.
A
None of these
B
Rs 1000
C
Rs 1006
D
Rs 996
Question 49
A sum was put at simple interest at a certain rate for 2 years. Had it been put at 1% higher rate, it would have fetched Rs. 24 more. Find the sum.

Related: Railway Recruitment Exam Syllabus

A
Rs. 1600
B
Rs. 1200
C
Rs. 2400
D
Rs. 2000
Question 50
The simple interest on a certain sum of money for 4 years at 4 percent per annum exceeds the compound interest on the same sum for 3 years at 5 percent per annum by Rs. 57. Find the sum.

Related: SSC CHSL Reasoning Sample Paper

A
Rs. 12,500
B
Rs. 23,050
C
Rs. 24,000
D
Rs. 26,700
Question 51
S.I. on Rs. 1500 at 7% per annum for a certain time is Rs. 210. Find the time.

Related: CAT MBA Syllabus

A
2 years
B
3 years
C
2.8 years
D
1.5 years
Question 52
Simple interest on a certain amount is 9/16 of the principal. If the number representing the rate of interest in percent and time in years be equal, then time, for which the principal is lent out, is:
A
6 ½ years
B
7 ½ years
C
7 years
D
5 ½ years
Question 53
The difference in simple interest on a certain sum of money for 3 years and 5 years at 18% per annum is Rs. 2,160. Then the sum is
A
Rs. 6,000
B
Rs. 6,500
C
Rs. 4,500
D
Rs. 7,500
Question 54
At what rate percent per annum will a sum of Rs. 4000 yield compound interest of Rs. 410 in 2 years:
A
3%
B
51%
C
4%
D
6%
Question 55
Calculate the amount on Rs. 4480 at 8% per annum for 3 years.
A
6000
B
5555.20
C
5600
D
5842.90
Question 56
Find the compound interest on Rs. 12000 for 3 years at 10% per annum compounded annually.
A
3672
B
3772
C
3872
D
3972
Question 57
Find compound interest on Rs. 5,000 at 10% per annum for 3 years
A
Rs. 1,648
B
Rs. 1,667
C
Rs. 1,655
D
Rs. 1,659
Question 58
A tank contains 18,000 litres of water. If it decreases at the rate of 5% a day, what will be the quantity of water after 2 days

Related: questions on Sports and games with answers

A
15,234 litres
B
16,245 litres
C
17,225 litres
D
18,200 litres
Question 59
The difference between compound interest and simple interest on certain sum of money in 2 years at 4% per annum is Rs. 50. Find the sum
A
Rs. 25,670
B
Rs. 31,250
C
Rs. 35,400
D
Rs. 30,550
Question 60
A sum doubles in 20 years at simple interest. How much is the rate per annum?
A
5%
B
18%
C
12%
D
4%
Question 61
The difference between the compound interest and the simple interest on a certain sum at 10% per annum for two years is Rs. 60. Find the sum.
A
Rs. 7,000
B
Rs. 6,200
C
Rs. 6,000
D
Rs. 6,400
Question 62
The difference in simple interest at 13% and 12% p.a. of a sum in one year is Rs. 110. Then the sum is

Related: Sentence correction Sample Question Papers for CAT

A
Rs. 13,000
B
Rs. 11,000
C
Rs. 15,000
D
Rs. 10,000
Question 63
Find the rate of interest when Rs. 640 amounts to Rs. 841 and 60 paise for the period 2 year 7 month and 15 days at a simple rate of interest.
A
15%
B
10%
C
18%
D
12%
Question 64
Abhinav man invested 1/3 of his capital at 7%, 1/4 at 8% and the remainder at 10%. If his annual income is Rs. 561, the capital is ___
A
Rs. 6400
B
Rs. 6600
C
Rs. 6200
D
Rs. 5600
Question 65
Mr. Yogendra gave some money at simple interest and at the end of 10 years, got back twice the sum. The rate percent per annum is:
A
5%
B
2%
C
4%
D
10%
There are 65 questions to complete.

How does simple interest work?
Simple interest is calculated only on the original principal amount/quantity.

How does compounding interest work?
Compound Interest is calculated each period based on the original principal as well as any interest accrued in previous periods.

simple vs compounding interest infographic

Simple vs Compounding Interest Info-graphic

About the author

Vishal Arora

Leave a Comment

3 Comments

  • I am Ekramun Nahar Ani .My id 201-11-998. My comment is this chapter is Mathematics of Finance. I learn this lesson and some math korlam .After it is very easy topic in Business Mathematics. Then I learnt Compound interest ,Simple interest etc. Now I korlam Simple and compound interst quiz korasi. My Score is 58%. Thak you sir .