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SIMPLE INTEREST/ COMPOUND INTEREST

Max. Marks : 33
1.

2.

3.

4.

5.

6.

7.

8.

9.

No. of Qs. 33

Time : 20 min.

Find the compound interest on Rs 25625 for 12 months at

16% per annum, compounded quarterly.
(a) 29977.62
(b) 4352.62
(c) 4100
(d) 29725
The difference between compound interest and simple
interest on a certain amount of money at 5% per annum for
2 years is Rs 15. Find the sum :
(a) Rs 4500
(b) Rs 7500
(c) Rs 5000
(d) Rs 6000
The difference between the simple interest and the
compound interest compounded annually at the rate of 12%
per annum on Rs 5000 for two years will be :
(a) Rs 47.50
(b) Rs 63
(c) Rs 45
(d) Rs 72
Subash purchased a refrigerator on the terms that he is
required to pay Rs 1,500 cash down payment followed by
Rs 1,020 at the end of first year, Rs 1,003 at the end of second
year and Rs 990 at the end of third year. Interest is charged
at the rate of 10% per annum. Calculate the cash price :
(a) Rs 3,000
(b) Rs 2,000
(c) Rs 4,000
(d) Rs 5,000
At what rate per cent compound interest does a sum of
money becomes nine - fold in 2 years?
(a) 100%
(b) 200%
(c) 50%
(d) 400%
Some amount out of Rs 7000 was lent at 6 % per annum and
the remaining at 4 % per annum. If the total simple interest
from both the fractions in 5 yrs was Rs, 1600, find the sum
lent at 6 % per annum.
(a) 2000
(b) 16000
(c) 5400
(d) 3200
A sum of money doubles itself in 10 years at simple interest.
In how many years would it treble itself?
(a) 10
(b) 15
(c) 20
(d) 25
A sum of money lent out at simple interest amounts to Rs
720 after 2 years and to Rs 1,020 after a further period of 5
years. Find the sum and the rate %.
(a) Rs 500, 10%
(b) Rs 600, 10%
(c) Rs 500, 12%
(d) Rs 600, 12%
Simple interest on a certain sum is 16 over 25 of the sum.
Find the rate per cent and time, if both are equal.
(a) 8% and 8 years
(b) 6% and 6 years
(c) 10% and 10 years
(d) 12 % and 12 years

RESPONSE
GRID

1.
6.
11.
16.

a
a

b c d
b c d
b c d

b c d

2.
7.
12.

a
a
a

b c d
b c d
b c d

10.

11.

12.

13.

14.

15.

16.

Date : ........./......../................

In how many minimum number of complete years, the interest

on Rs 212.50 P at 3% per annum will be in exact number of
rupees?
(a) 6
(b) 8
(c) 9
(d) 7
What annual instalment will discharge a debt of Rs 4,200
due in 5 years at 10% simple interest?
(a) Rs 500 per year
(b) Rs 600 per year
(c) Rs 700 per year
(d) Rs 800 per year
A certain amount earns simple interest of Rs 1750 after 7
years Had the interest been 2% more, how much more interest
would it have earned?
(a) Rs 35
(b) Rs 245
(c) Rs 350
(d) Cannot be determined
The rates of simple interest in two banks A and B are in the
ratio 5 : 4. A person wants to deposit his total savings in two
banks in such a way that he received equal half-yearly
interest from both. He should deposit the savings in banks
A and B in the ratio.
(a) 2 : 5
(b) 4 : 5
(c) 5 : 2
(d) 5 : 4
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%
3
p.a. If the total interest at the end of one year is 9 % , then
4
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
A person invested in all Rs 2600 at 4%, 6% and 8% per
annum simple interest. At the end of the year, he got the
same interest in all the three cases. The money invested at
4% is :
(a) Rs 200
(b) Rs 600
(c) Rs 800
(d) Rs 1200
If Re.1 produces Rs 9 in 60 years at simple interest, the rate
% p.a. is
(a)

1
13 %
3

(b) 14%
(d) 12

(c) 15%

3.
8.
13.

a
a
a

b c d
b c d
b c d

4.
9.
14.

a
a
a

b c d
b c d
b c d

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1
%
2

5.
10.
15.

a
a
a

b c d
b c d
b c d

2
17.

18.

19.

20.

21.

22.

23.

24.

25.

Sumit lent some money to Mohit at 5% per annum simple

interest. Mohit lent the entire amount to Birju on the same
1
day at 8 % per annum. In this transaction, after a year,,
2
Mohit earned a profit of Rs 350. Find the sum of money lent
by Sumit to Mohit.
(a) Rs 10,000
(b) Rs 9,000
(c) Rs 10,200
(d) None of these
The C.I. on a certain sum of money for the 4th year at 8%
p.a. is Rs 486. What was the compound interest for the third
year on the same sum at the same rate?
(a) Rs 450
(b) Rs 475
(c) Rs 456
(d) None of these
A sum of money doubles itself in 6 years at a certain rate of
compound interest. In how many years will be 16 times at
the same rate of interest?
(a) 18 years
(b) 24 years
(c) 30 years
(d) 12 years
1
A tree increases annually by th of its height. By how
8
1
much will it increase after 2 yearly, if it stands today 10ft
2
high?
(a) 3 ft
(b) 3.27 ft
(c) 3.44 ft
(d) 3.62 ft
The compound interest on a certain sum for 2 years is Rs 41
and the simple interest is Rs 40. Find the rate % p.a.
(a) 4%
(b) 5%
(c) 6%
(d) 8%
Aman borrows Rs 12,500 at 20% compound interest. At the
end of every year he pays Rs 2000 as part repayment. How
much does he still owe after three such instalments?
(a) Rs 12,000
(b) Rs 12,864
(c) Rs 15,560
(d) None of these
The difference between compound interest and simple
interest on a sum for 2 years at 10% per annum, when the
interest is compounded annually is Rs 16. If the interest
were compounded half-yearly, the difference in two interests
would be:
(a) Rs 24.81
(b) Rs 26.90
(c) Rs 31.61
(d) Rs 32.40
Rahul borrowed a certain sum from Dhawan at a certain rate
of simple interest for 2 years. He lent this sum to Ramesh at
the same rate of interest compounded annually for the same
period. At the end of two years, he received Rs 4200 as
compound interest but paid Rs 4000 only as simple interest.
Find the rate of interest.
(a) 12%
(b) 25%
(c) 35%
(d) 10%
The simple interest accrued on a sum of certain principal is
` 2000 in five years at the rate of 4% per annum. What
would be the compound interest accrued on same principal
at same rate in two years ?

RESPONSE
GRID

17.
22.
27.
32.

a
a
a
a

b c d
b c d
b c d
b c d

18.
23.
28.
33.

a
a
a
a

b c d
b c d
b c d
b c d

(a) ` 716
(c) ` 824
26.

27.

28.

29.

30.

31.

32.

33.

19.
24.
29.

(b) ` 724
(d) ` 816

1
th of the principal
16
and the number of years is equal to the rate per cent per
annum. The rate per cent annum is ________ .
1
1
(a) 6 %
(b) 6 %
3
4
1
1
(c) 6 %
(d) 4 %
5
5
If the compound interest accrued on an amount of ` 14500
in two years is ` 4676.25, what is the rate of interest p.c.p.a ?
(a) 11
(b) 9
(c) 15
(d) 18
The simple interest on a certain sum of money for 4 years at
4 per cent per annum exceeds the compound interest on the
same sum for 3 years at 5 per cent annum by ` 57. Find the
sum.
(a) 24000
(b) 25000
(c) 26000
(d) 3000
In what time will 6250 amount to ` 6632.55 at 4 p.c. compound
interest payable half-yearly?
3
3
(b)
(a)
5
2
5
3
(c)
(d)
2
4
A sum of ` 5000 was lent at 6% per annum and ` 6000 at 7%
per annum simple interest. After what time would the total
interest be ` 1080?
1
1
(a) 1 yr
(b) 1 yr
3
4

The simple interest on a sum of money is

1
1
(c) 1 yr
(d) 1 yr
6
2
A man buys a music system valued at ` 8000. He pays
` 3500 at once and the rest 18 months later, on which he is
charged simple interest at the rate of 8% per annum. Find
the total amount he pays for the music system.
(a) ` 9260
(b) ` 8540
(c) ` 8720
(d) ` 9410
Find the compound interest on ` 12450 for 9 months at 12%
per annum compounded quarterly.
(a) ` 1154.45
(b) ` 1125.18
(c) ` 1198.72
(d) 1164.32
A man gets a simple interest of ` 1000 on a certain principal
at the rate of 5% per annum in 4 yr. What compound interest
will the man get on twice the principal in 2yr at the same
rate?
(a) ` 1050
(b) ` 1005
(c) ` 11025
(d) None of these
a
a

b c d
b c d

b c d

20.
25.
30.

a
a

b c d
b c d

b c d

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21.
26.
31.

a
a

b c d
b c d

b c d

HINTS AND EXPLANATIONS

1.

(b)

Principal (P) = Rs 25625

7.

(c)

16
Rate (r) = 16% = % = 4%
4
Time = 12 months = 4 quarters
4

26
A = 25625 1 +
= 25625
100

25

25625

\ R=

26 26 26 26

= ` 29977.62
25 25 25 25

\ T=
8.

(b)

(d)

1500 10000
100
=
P = D
= ` 6000
R
25

Required difference

5000 12 2
12
- 5000 100

100
28 28
= 5000

- 1 - 1200
25 25

= 50001 +

9.

(a)

10.

(b)

11.

(c)

5.

(b)

Hence, CP = 1500 + 927.27 + 828.92 + 743.80

= 3999.99 or ` 4000.
If a certain sum becomes m times in t years, the rate of

12.

(d)

13.

(b)

We need to know the S.I., principal and time to find the rate.
Since the principal is not given, so data is inadequate.
Let the savings be X and Y and the rates of simple interest be
5x and 4x respectively.
Then, X 5x

14.

(b)

1 1
1 1
X 4

= Y 4x
or = ,
2 100 Y 5
2 100

i.e., X : Y = 4 : 5.
Let the sum invested at 9% be ` x and that invested at 11%
be ` (100000 x).
Then,

x 9 1 (100000 - x) 11 1

100
100

39 1

= 100000

4 100

9x + 1100000 - 11x 39000

=
= 9750
100
4
2x = (1100000 975000) = 125000 x = 62500.
\ Sum invested at 9% = ` 62500.
Sum invested at 11% = ` (100000 62500) = ` 37500.
Let the parts be x, y and [2600 (x + y)]. Then,

Thus,

\ x = 16000 14000 = ` 2000

n(n - 1)
ra

2
100 Y

10a 5(5 - 1)

100
2
4200 = a [5 + 1] 6a = 4200 a = ` 700

1/ t
In this case , r = 100 (9) - 1 = 100 (3 1) =200%
(a) Suppose ` x was lent at 6 % per annum.

x 6 5 (7000 - x) 4 5
+
= 1600
100
100
3x
7000 - x
or,
+
= 1600
10
5
3x + 14, 000 - 2x
or,
= 16000
10

Thus in 8 years, the interest is Rs 51.

Shortcut method :
If borrowed amount be Rs M and it is to be paid in equal
instalments, then

4200 = 5a +

1/ t
compound interest r is equal to 100 (m) - 1

6.

3
51
1= `
100
8

where Y = no. of instalments per annum

a = annual instalment
Here, M = 4200, y = 1, r = 10, n = 5, a = ?

10

Then, 1020 = x 1 +

100
1020 100
or x =
= ` 927.27
110

10

100
1003 20 20
or y =
= ` 828.92
22 22
990 20 20 20
= ` 743.80
and z =
22 22 22

Interest for one year = ` 212.50

M = na +

Cash down payment = ` 1500

Let ` x becomes ` 1020 at the end of first year.

Similarly, 1003 = y1 +

120 100
= 10%
600 2
PR R
40
16
1600
P=
R2 =
R=
= 8%
100
25
25
5

Also, time = 8 years

784 - 625
- 1200 = ` 72
625

(c)

300
2 = ` 120
5

\ R=

= 5000

4.

S.I. for 5 years = ` (1020 720) = ` 300

\ Principal = ` (720 120) = ` 600

Now, P = 600, T = 2, S.I. = 120

R
D=
P
100
2

3.

2P 100
= 20 years
P 10

SI. for 2 years = `

(d)

P 100
= 10%
P 10

Now, S.I. in II case = 3P P = ` 2P

4

C.I. = A P = 29977.62 25625 = ` 4352.62

2.

S.I. in I case = 2P P = ` P

15.

(d)

x 4 1 y 6 1 [2600 - (x + y)] 8 1
=
=
100
100
100

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4
\

y 4 2
2
= = or y = x.
x 6 3
3

6 6
6

2000 + 2000 + 2000

5 5
5

2600 - x 8

(7800 - 5x) 8
x 4 1
3
So,
4x =
=
3
100
100

23.

(a)

100

\ ` 16 is S.I. on `
16 = `% 160.
10

7800 8
52x = (7800 8) x =
= 1200.
52

16.

(c)

17.

(a)

So, S.I. on principal for 1 year at 10% is ` 160

\ Money invested at 4% = ` 1200.

Here S.I. = ` 9, P = ` 1

\R =

100 160
\ Principal = `
= ` 1600.
10 1

9 100
= 15%
1 60

Amount for 2 years compounded half yearly

We have,

19.

(b)

1600 10 2
= ` 320.
100

S.I. = `

If x be the interest of third year, then 108% of x= 486

\ x = 486

100
= 450
108

24.

P becomes 2P in 6 years at r% p.a. 2P = P 1 +

100

(d)

\ (C.I.) (S.I.) = ` (344.81 320) = ` 24.81.

Let the money borrowed be ` x and the rate of interest charged
= r%
Time = 2 years
Now, 4000 =

\ 1 +
=2
100
r

24 = 1 +

100

64

= 1 +

100

Again, x 1 +

24

\ P becomes 16 P in 24 years
20.

(c)

Increment =

1
100 = 12 1 %
2
8
5/ 2

5/ 2

(d)

R S.I.
2 100
2 100
R 40
R=
= 5%
41 40 =
40
2 100

Balance

3

20

= ` 12500 1 +
100

20
20

2000
1
+

+ 2000 1 +
+ 2000
100
100

P 4 5
100
\ P = 10000

26. (a)
\

\ Increment in height = 13.44 10 = 3.44 ft

For T = 2 years,

6 6 6

= ` 12500
5 5 5

xr 2
2xr
+
= 4200
10000 100

4
Now, CI = 10000 1 +
- 1 = 10000 0.0816 = 816
100

Let the rate of interest = r %

times = r years

Now,

C. I. S. I. =

22.

r
= x + 4200
100

2000 =

1/ 2

(b)

....... (i)

25. (d)

1 1
= 10 1 + 1 +
8 8

1 10 81 17
9
= 10 1 +
= 13.44ft
=
64
16
8 28
21.

xr2
r x = 200000
100

20r + 4000 = 4200 [from (i)]

r = 10%

25

\ H = 10 1 +

100 2

1
= 10 1 +
8

4
5
= ` 1944.81.
100

\ C.I. = ` (1944.81 1600) = ` 24.81.

350
100% of x =
100 = ` 10,000
3.5
(a)

= ` 1600 1 +

1
(8 - 5)% of x = ` 350
2

18.

= ` [21600 (2880 + 2400 + 2000)] = ` 14320.

For first year, S.I. = C.I.
Now, ` 10 is S.I. on ` 100.

S S r r
=
16
100

100
or, r2 =
16
27. (c)

r=

25
1
=6 %
4
4

r
C. I. 1 +
- 1
100

r
4676.25 = 14500 1 + 100 - 1

4676.25
r
4676.25
r

= 1 +
+ 1 = 1 +
-1

14500 100
14500
100

4676.25 14500
r
= 1 +

14500
100

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5
r
100

19176.25
r
= 1+

14500
100

115
r
r
115
13225
r
= 1+
=
-1
= 1+

100
100
100 100
10000
100

1.3225 = 1 +

31.

1080 = (300x + 420x) = 720x

x=

(b)

Cost of the music system = `8000

Money paid at once = ` 3500
Money left = ` (8000 3500) = ` 4500

r
115 - 100
r
115
=
=

r = 15%
100
100
100 100
Let the sum be ` x.

1
18
yr = 1 yr
12
2

28. (a)

Time =

Rate = 8% per annum

5
x44
Then,
- 57 = x 1 +
- 1
100
100

or,

SI =

{ }

4x
1261
- 57 = x
25
8000

4 1261
or, x = 57
25 8000

32.

Money to be paid at the end = ` (4500 + 540) = ` 5040

Cost of music system = ` (3500 + 5040) = ` 8540

(a)

P = ` 12450, n = 9 months =
R = 12% per annum

A = P 1 + 4
100

57 8000
= ` 24000
19
t

29. (b)

6632.55 51
=
625000 50

663255 51
or,
=
625000 50

(c)

132651 51 51
= =
125000 50 50

Hence, the time is

30.

33.

or,

4n

9
yr,
12

4
12 12

= ` 12450 1 + 4

100

3
3

103
= ` 12450 1 +

=
`
12450

100
100

6632.55 = 6250 1 +

100
or,

PTR
3
1
= ` 4500 8
= `540
100
2
100

1280 - 1261
or, x
= 57
8000
\ x=

1080 3
1
= = 1 yr
720 2
2

t=3

t 3
=
2 2

PTR

100

Let the time be x years. Then, SI =

I1 = 5000 x 6
= ` 300x
100

(d)

= ` 13604.45
CI = ` (13604.45 12450) = ` 1154.45
SI = ` 1000, R = 5% per annum, T = 4 yr

100 SI
100 1000
P=
= `
= ` 5000
TR
45

2P = ` 10000
Now, P = ` 10000, n = 2 yr, R = 5% per annum
n
2

R
5

1
+
=
`
10000
1
+

A=P

100
100

105 105

= ` 10000

= ` 11025

100 100
Compound Interest = Amout Principal
= ` (11025 10000) = ` 1025

I2 = 6000 x 7
= ` 420x
100

I = I1 + I2

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