Simple and Compound Interest

1. What sum of money, if put out at 4% will amount to Rs 560 in 3 years?

(a) Rs 400 (b) Rs 450 (c) Rs 480 (d) None of these

2. A certain sum of money amounts to Rs 768 in 4 years & to Rs 832 in 6 years. Then Rate percent is :

(a) 6% (b) 8% (c) 5% (d) 2%

3. In the above question, the sum is :

(a) Rs 600 (b) Rs 650 (c) Rs 620 (d) Rs 640

4. Rs 320 amount to Rs 384 at a certain rate in a certain time. Also Rs 625 amount to Rs 775 in the

same time at 1% higher rate. The higher rate is :

(a) 5% (b) 7% (c) 4% (d) None of these

5. In the above question, the time period is :

(a) 4 years (b) 3 years (c) 41/2 years (d) None of these

6. A man had Rs 1200, part of which he lent at 5% and the remaining at 4%.He got Rs 106 as interest

after 2 years. The amount lent at 5% is :

(a) Rs 700 (b) Rs 800 (c) Rs 500 (d) Rs 400

7. A sum of Rs 13,000 is divided into three parts such that the simple interests accrued on them for

two, three and four years respectively may he equal. Find the smallest part, if the rate of simple

Interest is 8% p.a. in all the cases.

(a)Rs3,600 (b)Rs2,400 (c)Rs3,000 (d)Rs4,500

8. Two equal sums are lent at the rates of 12% p.a. and 10% pa simple interest respectively. The former

is recovered a year earlier than the latter and the amount in each case is Rs 25,600. What was the

period of lending for which former sum was lent?

(a) 4 (b) 3 (c) 5 (d) 6

9. The CI on Rs. 1800 @ 4% for 2 years 9 months is nearly :

(a) Rs 150 (b) Rs 205 (c) Rs 300 (d) Rs 250

7
133
10. The difference between CI & SI on a sum of money for 3 years at 5% is 16 The sum is :

(a) Rs 16000 (b) Rs 17500 (c) Rs 17000 (d) Rs 18000

11. A man borrows a certain sum and pays back in 2 years in two equal installments. If compound

interest is reckoned at 4 percent and if he pays back annually Rs 676, what sum did he borrow?

(a) Rs 1200 (b) Rs 1250 (c) Rs 1275 (d) None of these

12. The SI on a sum of money is 4/9 of its principal and number of years is equal to the rate % p.a. Then

Rate % is :

(a) 62/3 % (b) 5% (c) 4/9 % (d) 9/4 %

13. A sum of money placed at CI doubles itself in 4 years. In how much time will it amount to eight

times itself?
…………………………………………………………………………………………………..
(a) 8 years (b) 10 years (c) 6 years (d) 12 years

14. Find the ratio in which a sum has to be divided into 3 parts so that the amounts accrued on the three

parts at simple interest after 2, 3 and 4 years respectively are the same. it is given that the rate of

interest is 5% per annum in each case.

(a) 120:115:110 (b)253:264:276 (c) 276:264:253 (d) 110:115:120

15. A certain sum invested at compound interest becomes Rs 34.560 in 8 years and Rs 24,000 in 6 years.

What is the amount after 5 years?

(a) Rs 15,000 (b) Rs 10000 (c) Rs 20,000 (d) None of these

16. The interest on a certain sum invested at a certain rate of compound interest is Rs 23,205 in four

years and Rs 10,500 in two years. Find the amount at the end of the first year

(a) Rs30,000 (b)Rs11,000 (c) Rs 55,000 (d) Cannot be determined

17. If the rate of interest is 20% p.a. find the difference in the interests accrued for one year on a sum of

Rs 1.00.000 in the cases when interest is compounded half yearly and when ii is compounded

quarterly.

(a) Rs664 (b)Rs 828.3 (c) Rs 784.2 (d) Rs 550.6

18. A certain sum of money doubles itself in l0 years when invested in a term deposit at simple interest

but due to inflation, the value of the rupee decreases by 1% every 2 years (that means after every 2

years the value of Rs 100 becomes Rs 99). Find the real rate of return on the sum at the end of 10

years

(a) 10.5% p.a. (b) 10% p.a. (c) 9.0% p.a. (d)9.5% p.a.

19. A sum of money when invested at compound interest for a certain period of lime becomes 1.331

times itself. What is the rate of interest if the sum was invested for three years?

(a) 10% p.a. (b) 8% p.a. (c) 9% p.a. (d) 11% p.a.

20. Mr Rao makes three deposits of equal amounts at intervals of one year. The bank pays simple

interest of 10% p.a. on the deposits. At the end of 3 years from the date of investing the first deposit

Mr Rao encashed all three deposits and got a total amount of Rs 2520. How much has he deposited

each time?

(a) Rs252 (b)Rs760 (c) 2.692 (d) Rs 700