SIMPLE & COMPOUND INTEREST

1. A sum of Rs. 15,000 is lent at 16% per annum compound interest. What is the difference between
the compound interest for the second year and the third year?
(a) Rs. 544 (b) Rs. 445.44 (c) Rs. 454.88 (d) Rs. 548
2. A sum of Rs. x was borrowed and paid back in two equal yearly instalments, each of Rs. 35,280. If the
rate of interest was 5% compound annually, then the value of x is:
(a) 64,800 (b) 65,600 (c) 65,400 (d) 64,400
3. Rs. 60000 invested at a certain rate for a certain even number of years, compounded annually,
grows to Rs. 63,654. To how much amount would it grow if it is invested at the same rate for half
period?
(a) Rs. 61800 (b) Rs. 61809 (c) Rs. 61675 (d) Rs. 61827
4. If the rate of interest is 20% per annum, compounded yearly and the interest on a certain sum in the
second year is Rs. 250, then what will be the interest on the same sum in the fifth year?
(a) Rs. 518 (b) Rs. 400 (c) Rs. 360 (d) Rs. 432
5. A sum of Rs. 18000 is lent at 10% per annum compound interest, compounded annually. What is the
difference between the compound interest for 3rd year and 4th year?
(a) Rs. 220.60 (b) Rs. 217.80 (c) Rs. 221.80 (d) Rs. 215.40
6. A certain loan was returned in two equal half yearly instalments each of Rs. 6,760. If the rate of
interest was 8% per annum, compounded annually, how much was the interest paid on the loan?
(a) Rs. 750 (b) Rs. 810 (c) Rs. 790 (d) Rs. 770
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7. What is the compound interest on a sum of Rs. 8,100 for 1 years at 8% per annum, if the interest is
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compounded 5-monthly? (Nearest to Rs. 1)
(a) Rs. 837 (b) Rs. 873 (c) Rs. 842 (d) Rs. 824
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8. What is the compound interest on a sum of Rs. 4,096 at 15% per annum for 2 years. If the interest
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is compounded 10-monthly?
(a) Rs. 1,726 (b) Rs. 1,736 (c) Rs. 1,636 (d) Rs. 1,763
9. A certain amount invested at a certain rate, compounded annually, grows to an amount in five years,
which is a factor of 1.1881 more than to what it would have grown in three years. What is the rate
percentage?
(a) 8.1 (b) 8 (c) 9 (d) 9.2
10. The compound interest on a certain sum of money at 21% for 2 years is Rs. 11,602.5. Its simple
interest (in Rs. ) at the same rate and for the same period is:
(a) 10,750 (b) 16,000 (c) 12,500 (d) 10,500
11. A sum of Rs. 12,000 is invested for 15 months at 10% per annum compounded half yearly. What is
the percentage gain, at the end of 15 months, to the nearest decimal place:
(a) 13.0% (b) 13.1% (c) 12.8% (d) 12.9%

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12. Rs. 2,40,000 is taken as loan for three years compounded annually at 12.5% per annum. At the end
of first year, the interest is revised to 12% per annum. The total amount to be repaid at the end of
third year is:
(a) Rs. 3,38,688 (b) Rs. 3,34,800 (c) Rs. 3,42,648 (d) Rs. 3,26,400
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13. If the compound interest at 10% per annum, compounded half-yearly for 1 years is Rs. 2,522. The
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principal amount is:
(a) Rs. 18,500 (b) Rs. 20,000 (c) Rs. 15,400 (d) Rs. 16,000
14. A sum of Rs. 10,000 is invested for 17 months at 8% per annum compounded half-yearly. What is the
percentage gain at the end of 17 months, nearest to one decimal place?
(a) 12.0% (b) 12.2% (c) 12.4% (d) 11.8%
15. A sum of Rs. 900 is invested at compound interest (compounded annually) for 2 years. If the rate of
interest is 10% per annum, then what will be the amount?
(a) Rs. 1071 (b) Rs. 1089 (c) Rs. 1289 (d) Rs. 1121
16. A sum of money becomes Rs. 35,680 after 3 years and Rs. 53,520 after 6 years at a certain rate
percentage per annum, interest compounded yearly. What is the compound interest on the same
sum in the first case?
(Your answer should be nearest to an integer)
(a) Rs. 11,983 (b) Rs. 11,893 (c) Rs. 10,842 (d) Rs. 11,938
17. A and B together borrowed a sum of Rs. 51,750 at an interest rate of 7% per annum compound
interest in such a way that to settle the loan, A paid as much amount after three years as paid by B
after 4 years from the day of borrowing. The sum (in Rs. ) borrowed by A was:
(a) 24,860 (b) 25,650 (c) 26,750 (d) 25,000
18. A sum lent out at compound interest amounts to Rs. 1,250 in one year and to Rs. 1,458 in 3 years at
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a certain rate percentage per annum. What is the simple interest on the same sum for 5 years at
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the same rate of interest?
(a) Rs. 500 (b) Rs. 520 (c) Rs. 480 (d) Rs. 600
19. Surekha borrowed a sum of money and returned it in two equal annual instalments of Rs. 5547 each.
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If the rate of interest was 7 % per annum compounded yearly, then the total interest paid by her
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was:
(a) Rs. 1,144 (b) Rs. 1,134 (c) Rs. 1,096 (d) Rs. 1,126
20. What will be the compound interest on a sum of Rs. 31250, at 12% compound interest (interested
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compounded yearly). In 2 years?
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(a) 11048 (b) 11096 (c) 11068 (d) 11086

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21. A certain sum becomes Rs. 13650 at 15% per annum simple interest after 2 years. What will be the
amount (in Rs. ) of the same sum after 1 year at the same rate of interest, if the interest is
compounded half yearly? (Nearest to a Rs. )
(a) 11000 (b) 12134 (c) 13625 (d) 10500
22. A man borrowed a certain sum and agrees to repay it by paying Rs. 4000 at the end of first year and
Rs. 7700 at the end of second year. If the rate of compound interest compounded annually is 10%
per annum, then find the sum (in Rs. ) borrowed.
(a) 11000 (b) 9000 (c) 11500 (d) 10000
23. A loan is to be returned in two equal yearly instalments. If the rate of interest is 10% per annum,
compounded annually and each instalment is Rs. 6534, then the total interest charged (in Rs. ) is:
(a) 1867 (b) 1642 (c) 1728 (d) 1579
24. A sum of Rs. 9500 amounts to Rs. 11495 in 2 years at a certain rate percent per annum, interest
compounded yearly. What is the simple interest (in Rs. ) on the same sum for the same time and
double the rate?
(a) 3990 (b) 3800 (c) 3420 (d) 4560
25. What is the difference between the compound interest (in Rs. ) compounded yearly and
compounded half yearly for 18 months at 20% per annum on a sum Rs. 12000?
(a) 165 (b) 121 (c) 145 (d) 132
26. Krishna invested a sum of Rs. 25,000 in two parts. He earned 11% per annum simple interest on part
1 and 10% per annum compound interest compounded annually on part 2. If the total interest
received by him after 2 years is Rs. 5,370, then find the sum invested on simple interest.
(a) Rs. 12,000 (b) Rs. 12,500 (c) Rs. 11,000 (d) Rs. 13,000
27. Find the compound interest (in Rs. ) on a sum of Rs. 7,500 for 4 years if the rate of interest is 20% per
annum for the first two years and 10% per annum for the next two years. (The interest is compounded
annually)
(a) 5,586 (b) 6,558 (c) 5,658 (d) 5,568
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28. What is the compound interest (in Rs. ) on a sum of Rs. 46,000 for 2 years at 15% per annum,
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interest being compounded annually (nearest to a Rs. ) ?
(a) 18,485 (b) 19,485 (c) 18,458` (d) 19,458
29. A man invested a total of Rs. 12,050 in two parts, one at 10% per annum simple interest for 2 years
and the other at the same rate at compound interest, interest being compounded annually, for the
same time. The amounts he received from both the parts are equal. The sum (in Rs. ) invested at the
compound interest is:
(a) 5,850 (b) 6,000 (c) 5,780 (d) 5,800
30. A mobile phone is available for Rs. 79,860 cash payment or by paying cash of Rs. 60,000 as down
payment and the remaining in three equal annual instalments. If the shopkeeper charges interest at
the rate of 10% per annum compounded annually, then the amount of each instalment (in Rs. ) will
be:
(a) 6,789 (b) 6,689 (c) 7,986 (d) 6,000

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 KEY
1 2 3 4 5 6 7 8 9 10
B B A D B D B B C D
11 12 13 14 15 16 17 18 19 20
A A D D B B C A B D
21 22 23 24 25 26 27 28 29 30
B D C B D A D A B C

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