Simple Interest and Compound Interest Question Sheet 2

Table Of Content

Practice Question

Answer Key

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Q.1 If Rs.2500 and Rs.1800 is deposited at 12% and 15% on simple interest per annum respectively, then find the difference between both the simple interest earned after 2 years.

a.Rs.50

b.Rs.30

c.Rs.60

d.Rs.70

Q.2 A sum invested at simple interest increases by 12% in 2 years. What will be the compound interest earned on Rs.37500 in 2 years at the same rate?

a.Rs.4225

b.Rs.4635

c.Rs.4245

d.Rs.4845

Q.3 The difference between the simple interest and compound interest after 2 years at the rate 15% per annum is Rs.270, then what is the principal?

a.Rs.6000

b.Rs.7500

c.Rs.9000

d.Rs.12000

Q.4 The difference between the simple and compound interest (which is compounded annually) on a certain sum after 3 years at a rate of 12.5% per annum is ₹625. What is the sum?

a.Rs.12500

b.Rs.8000

c.Rs.6400

d.Rs.12800

Q.5 The difference between the simple interest and compound interest, with interest being compounded annually, on a certain sum at 20% per annum for 3 years  is Rs. 1152.  Find the sum. 

a.Rs. 9,500

b.Rs. 9,000

c.Rs. 10,000 

d.Rs. 8,000

Q.6 On a certain sum of money, the difference between the compound interest for a year, payable half yearly, and the simple interest for a year is Rs.63. If the rate of interest in both the cases is 12%, then the sum is.

a.Rs.17500

b.Rs.35000

c.Rs.70000

d.Rs.63000

Q.7 A man deposited a certain amount in a fixed deposit at r% p.a., interest being compounded annually. If the interests accrued for the fourth and the fifth years are Rs. 17,280 and Rs. 20,736 respectively, what is the total interest accrued for the first three years?

a.Rs. 36,400

b.Rs. 14,400

c.Rs. 3,800

d.Rs. 38,016

Q.8 A person has left an amount of Rs.1,20,000 to be divided between his two sons of age 14 years and 12 years such that they get equal amounts when each attains 18 years of age. If the amount gets a simple interest of 5% per annum, then find the share of younger son.

a.Rs.48,800

b.Rs.57,600

c.Rs.62,400

d.Rs.84,400

Q.9 Amit invested his total savings of Rs.12400 partly in mutual fund at 20% p.a. compound interest for 2 years and partly in a Bank at 20% p.a. simple interest for 4 years. From both, he gets equal interests. How much did he invest in mutual fund?

a.Rs.6400

b.Rs.4500

c.Rs.6000

d.Rs.8000

Q.10 The difference between S.I. and C.I. for two years on a sum of Rs. 2,00,000 at 12% p.a. is Rs. x. On what sum is the difference between S.I. and C.I. for two years at 16% p.a. equal to Rs. x? 

a.Rs. 1,12,500

b.Rs. 1,05,000

c.Rs. 99,000

d.Rs. 90,000

Q.11 The difference between the simple and compound interest (compounded annually) on a certain sum for 2 years at 4% is Rs.1.40. Find the sum.

a.Rs.675

b.Rs.875

c.Rs.1,025

d.Rs.1,225

e.None of these

Q.12 ‘A’ deposited Rs.6000 in a bank at 5% per annum simple interest. ‘B’ deposited Rs.5000 at 8% p.a. compound interest. After 2 years, the difference between their interests received will be

a.Rs. 230

b.Rs. 232

c.Rs. 600

d.Rs. 832

Q.13 The difference between the simple and compound interest (compounded annually) on a sum of money for 2 years at 10% per annum is Rs.65. The sum of money is

a.Rs. 6500

b.Rs. 6665

c.Rs. 65055

d.Rs. 66550

Q.14 If the difference of the compound interest and the simple interest on a sum of money for 3 years is Rs.186. Find the sum of money, if the rate of interest in both cases is 10%.

a.Rs. 7000

b.Rs. 6000

c.Rs.8000

d.Rs. 5000

Q.15 A sum of Rs. 275 is due to be repaid in equal annual installments at the end of 4 years, at 25% p.a simple interest (the first instalment is paid at the end of the first year), find the value of each instalment.

a.Rs.68.75

b.Rs.100

c.Rs.137.5

d.Rs. 162.5

Q.16 At what rate will an amount get tripled after 25 years at simple interest?

a.8.75%

b.7.10%

c.7.25%

d.8.5%

e.8%

Q.17 If Ethel lends Rs.250 to Sam at the rate of .......... pcpa simple interest, then she will receive a sum of Rs.300 after 5 years.

a.4.00%

b.3.75%

c.4.25%

d.4.50%

e.3.50%

Q.18 The interest for the third year on a certain sum at a certain rate of simple interest is Rs. 2000. What is the sum of the interests accrued on it in the seventh, eighth and the ninth years?

a.Rs. 6000

b.Rs. 6300

c.Rs. 6450

d.Rs. 6600

Q.19 If in 4 years Rs.2520 amounts to Rs.3024, in what time at the same rate will Rs.520 amount to Rs.611 at simple interest?

a.3 yrs.

b.2.5 yrs.

c.3.5 yrs.

d.4 yrs.

Q.20 A sum of money becomes Rs.2916 in 2 years at 8% p.a. compound interest (compounded annually). The sum of money is:

a.Rs.2,000

b.Rs.2,500

c.Rs.3,000

d.Rs.3,500

e.Rs.4,000

Q.21 A sum of money is invested at 20% compound interest, compounded semi-annually. What will be the amount after 1.5 years if the sum invested is Rs.7,000?

a.Rs.7,700

b.Rs.7,913

c.Rs.8,319

d.Rs.8,931

e.Rs.9,317

Q.22 If the simple interest on a sum of money for 2 years at 5% per annum is Rs.50, then what will be the compound interest (compounded annually) on the same sum of money at the same rate of interest for the same amount of time?

a.Rs.41.25

b.Rs.45.75

c.Rs.51.25

d.Rs.57.5

e.None of these

Q.23 A sum amounts to Rs.64,500 and Rs.75,400 after 2 years and 7 years respectively, at simple interest. What will be the amount at the end of 12 years?

a.Rs.86,300

b.Rs.81,300

c.Rs.83,400

d.Rs.84,700

e.Rs.87,710

Q.24 A sum amounts to Rs.12,000 and Rs.16,000 after 12 years and 16 years respectively, at compound interest. What will be the amount at the end of 8 years?

a.Rs.8,000

b.Rs.8,500

c.Rs.9,000

d.Rs.9,500

e.Rs.9,870

Q.25 A sum of Rs.18,000 is divided into two unequal parts and invested at 12% and 8% rate of interest per annum, on simple interest. The total interest earned on the 2 parts in two years is Rs.3,360. What is the sum invested at 8%?

a.Rs.15,000

b.Rs.12,000

c.Rs.10,000

d.Rs.9,000

e.Rs.6,000

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Answers For Profit and Loss Questions for CAT

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