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Original Title: Simple Interest and Compound Interest Practice Questions

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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%

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

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

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

SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

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

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

SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

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

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

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

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

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

w w

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

Shortcut:

First year interest= w

100

=

25

41

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%

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

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

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

16 + 12 + 36 = 32000

= 5000

Sum invested in B =Rs.5000

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

SIMPLE INTEREST AND COMPOUND INTEREST PRACTICE QUESTIONS FOR BANK EXAMS

15

2 = (1 + )

100

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

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