You are on page 1of 11

SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

Qs.1.A sum of money amount to Rs.944 in 3 years at simple interest. If the rate
of interest be raised by 25% the sum amounts to 980 during the same period.
Find the sum and rate of interest.
a) Rs.900 , 7%
b) Rs.800, 6%
c) Rs.700, 5%
d) Rs.750, 8%
e) Rs.868, 6.3%
Ans:b
Let P be the principal, i. n
944 =
3
ri e
3
100

s p
= 944
100

kA
. . (1)
125 5
If the rate is increased by 25% new Rate=

a n 5
100
=
4

. b
980 =
3
100
4

w w = 980
3
80
(2)

From (1)&(2)
w 980
3
80
= 944
3
100

15 12
36 =
400
3 = 400 36 . (3)
Substitute (3) in (1)
400 36
= 944 = 944 144 = 800
100
3 800 = 400 36
= 6%

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

Shortcut:
25% of interest= Rs.980-Rs.944=Rs.36
100
100 % of interest= 36 = . 144
25
Hence the interest of 3 years =Rs.144
Then principal=Rs.944-Rs.144=Rs.800
3
Qs.2.A man deposits Rs.5600 in a bank at 3 % annual interest. After 6
4
months he withdraws Rs.3200 together with interest and after six months he
withdraws the remaining money. How much does he get as interest?
i. n
ri e
a) Rs.150
b) Rs.105
c)
d)
e)
Rs.45
Rs.65
None of these s p
Ans:a
kA
a
S.I for Rs.5600 for 6 months =n 1
5600 3
2
3
4
= . 105

b
100

.
Amount remaining after 6 months=Rs.5600-Rs.3200=Rs.2400

w 1
2400 3
3

w
2 4
Interest for next 6 months on the amount Rs2400= = . 45
100

wTotal Interest earned =Rs.105+Rs.45=Rs.150


Qs.3.A certain sum given on simple interest became double in 20 years. In how
,many years will it be four times?
a) 40
b) 25
c) 60
d) 80
e) None of these
Ans:c
Let P be the principal

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

20
2 = +
100
20
2=1+
100
=5
To become 4P,Let T be the time period in years

4 = +
100

i. n
5
4 = +
100

4=1+
5
100 ri e
= 60
s p
kA
Shortcut:
n
If principle doubles in T years at R % interest, then
T=100/R
a
20 =
100

, => R=5
. b
T=(3*100)/R
3 100
w w
If principle becomes four times in T years at R%, then

=
5
w
= 60

Qs.4.A man derives his income from an investment of Rs.2000 at a certain rate
of interest and Rs.1600 at 2% higher. The whole interest in 3 years is
Rs.960.Find the rate of interest
a) 8.5%
b) 8.33%
c) 8%
d) 8.66%
e) None of these
Ans:C

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

Interest on (Rs.2000+Rs.1600) with the rate of interest r and interest on


Rs.1600 with 2% for 3 yrs =Rs.960
36003 160023
Hence,960 = +
100 100

r=8
Qs.5.A sum of Rs.1550 was lent partly at 5% and partly at 8% simple interest.
The total interest received after 3 years was Rs.300. The ratio of money lent at
5% and 8% is
a)
b)
5:8
8:5 i. n
c)
d)
31:6
16:15 ri e
e) None of these
s p
Ans:d
Interest on Rs.1550 at 5% for 3 yrs=
kA
155035
= 232.50

a n100

Remaining interest =300-232.50=Rs.67.50 is equal to (8%-5%) of interest

67.50 =
33

. b
w
100
P=750

w w
Here P is the part of the principal lent at 8%
Hence rs.750 is being lent at 8% and remaining (1550-750)=Rs=800 at 5%
Required ratio= 800:750= 16:15
Qs.6.A sum of Rs.2600 lent in two parts so that the interest on the first part for
a period of 3 years at 5% is equal to second part for 6years at 4% .The second
part is equal to
a) Rs.1600
b) Rs.1300
c) Rs.1000
d) Rs.1200
e) None of these
Ans:c

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

Let X be the first part and second part be Y,the


35 64
=
100 100
8
=
5

8
= 2600 = 1600
8+5
= 2600 1600 = 1000

i. n
Qs.7.The S.I on certain sum of money for 3 years at 4% is Rs.303.60.Find the

ri e
C.I on the same sum for same period at same rate.
a) Rs.2530
b)
c)
Rs.350
Rs.315.90
s p
d)
e)
Rs.350.90
Rs.432
kA
Ans:c
a n
S.I=3030.60,R=4%,T=3
303.60100
. b
P=
4

w w
3 = . 2530

. = [(1 +

) 1)]

w = 2530 [(1 +
4 3
100
100

) 1]

26 3
= 2530 [( ) 1] = . 315.90
25

Qs.8.A sum of money put out at C.I amount to Rs.4050 in 1 year and in 3 years
to Rs.4723.92.Find the the original sum and rate of interest.
a) Rs.3450
b) Rs.3700

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

c) Rs.3750
d) Rs 4530
e) None of these
Ans:c
3
4723.92 = [(1 + ) ].(1)
100

1
4050 = [(1 + ) ]..(2)
100

Divide (1) by (2)


i. n
ri e
2
4723.92
= (1 + )
4050 100
472392
= (1 +
2
)
s p
405000
2 4 9 9 27 27
100

kA 2
2 25 81 10 10

a
2 9 27
n
= (1 +


100
)

. b
5 9 10
= (1 +
100
)

w w 27
= (1 +

)

= 8% w 25 100

Putting the value of R in eqn (2) we get


8
4050 = (1 + )
100
= . 3750
Qs.9.Find the C.I of on Rs 10000 in 9 months at 4% per annum interest
payable quarterly.
a) Rs.303.01
b) Rs.301.03
c) Rs.300.13

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

d) Rs.374.33
e) None of these
Ans:a
P=10000
T=9months=3/4 yr=3 quarters
R=4/4=1% quarterly
1 3

i. n
. = 10000 [(1 + ) 1)] = . 303.01
100

ri e
Qs.10.Some money was lent on 4% C.I. If the difference in interest of second
and first year is Rs.88,find out the sum.
a)
b)
Rs.50000
Rs.60000
s p
c)
d)
Rs.65000
Rs.55000
kA
e) None of these

a n
Ans:d

. b
For finding the answer via direct method, calculate first year interest and

88,solve for principal P


w w
second year interest using the C.I formula. Then equate their difference to

Shortcut:
First year interest= w
100
=
25
41

Second year interest= Interest on sum+ interest on interest


41 4
= + )= + 2
100 25 100 25 25

Rs.88= + =
25 252 25 252
= 88 625 = . 55000

Qs.11.The compound interest on a sum of money for 2 years is Rs.410 and the
simple interest on the same sum for same period at same rate is Rs.400. Find
the rate of interest.
a) 4%

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

b) 3%
c) 5%
d) 6%
e) None of these
Ans:c
1
. = [(1 + ) 1)]
100

) 2 1)]..(1)

i. n
410 = [(1 +
100

ri e
. =
100
2

Solving (1)&(2) you will get R=5%


400 =
100
(2)

s p
Shortcut:
kA
a n
Difference between simple interest and compound interest for a period of 2
years on same sum at same rate is given by the formula

. b
= (
2
100
)

410 400 = (
10 =
2
w w
.(1)

100
)
2

1002

w
2
. =

100
400 =
100
400100 200100
= =
2
Substituting value of P in (1)

2
10 =
1002
200 100 2

10 = = 2
1002

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

10
= = 5%
2

Qs.12.David invested certain amount in 3 different schemes A,B and C with the
rate of interest 10% p.a,12% p.a and 15% p.a(simple interest) respectively. If
total accrued in one year was Rs.3200 and the amount invested in C was
150% of the amount invested in A and 240% of the amount invested in

i. n
scheme B, what was the amount invested in scheme B?
a) Rs.5000
b)
c)
Rs.6500
Rs.8000 ri e
d)
e)
Cannot be determined
None of these
s p
Ans:a
kA
a
10 1 12 1 15 1
n
Let x,y and z be the amounts invested in A,B and C respectively. Then

100
. +
100 b
+
100
= 3200

Now,z is 240% of y=
w w
10 + 12 + 15 = 320000..(1)
240
=
12

w 100 5

=
12
5
..(2)
150
And =
100
3 2 24 8
= , = = = .(3)
2 3 15 5

From (1),(2) and (3)


16 + 12 + 36 = 32000
= 5000
Sum invested in B =Rs.5000

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

Qs.13. A sum of money amounts to Rs.6690 after 3years and to Rs.10035 after
6 years on C.I. Find the sum
a) Rs.4400
b) Rs.6400
c) Rs.4460
d) Rs.6640
e) None of these
Ans:c

6690 = (1 +

100
3
) .(1)
i. n
10035 = (1 +
6
) .(2)
ri e
p
100

10035
(2)/(1)

A
3
s
6690
= (1 +

n k
100
)

b a
Substituting this in (1), we get
10035

w. 6690 =
6690
6690

w w = 6690
10035
= 4460

Qs.14.A sum of money doubles itself at C.I in 15 years. In how many years will
it become 8 times.?
a) 30 years
b) 25 years
c) 35 years
d) 45 years
e) 60 years
Ans:d
15
2 = (1 + )
100

For more bank exam preparation materials visit www.bankAspire.in


SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

15
2 = (1 + )
100

Let in n years sum becomes 8 times, then



8 = (1 + )
100

8 = (1 + )
100

23 = (1 + )

i. n
100
15
[(1 + ) ]3=(1 + )
100 100

ri e
15 3 =
= 45
Thus required time =45 years
s p
the same sum at same rate for the same period is:
kA
Qs.15.If the C.I interest on a sum at 12.5% p.a. for 2 years is Rs.510.The S.I on

a)
b)
Rs.450
Rs.390
an
c) Rs.478
. b
d)
e)
Ans:d
Rs.480
None of these

w w
. = [(1 +
w

100
) 1)]

12.5 2 9 2
510 = [(1 + ) 1)] = [( ) 1] = 510
100 8
= 1920
1920 12.5 2
. = = = . 480
100 100

For more bank exam preparation materials visit www.bankAspire.in