Simple Interest and Compound Interest Question Sheet 3
- Jul 14
- 6 min read
Table Of Content
Practice Question
Answer Key
Q.1 Rajveer invests Rs.15,000 in two banks. He invests half of the sum of the money in a bank at compound interest and half in a bank at simple interest. The interest rate in both the banks is 5% p.a. How much interest (approx) will he make at the end of 3 years?
a.Rs.2307
b.Rs.3204
c.Rs.2355
d.Rs.6533
Q.2 If a certain amount of money is invested in Simple interest at 12% per annum and the same amount of money is invested in Compound interest at 10% per annum compounded annually, then till how many integral years, total interest earned from amount invested in Simple interest will be more than the total interest earned from the amount invested in Compound interest?
a.3 years
b.5 years
c.4 years
d.6 years
Q.3 If the compound interest for the fourth year is Rs.17280, when the rate of interest charged is 16.67% compounded annually, then find the compound interest for the seventh year.
a.Rs.24800
b.Rs.27440
c.Rs.25320
d.Rs.28800
Q.4 A man invested a total of Rs.210000 in three schemes A, B and C offering 4%, 6% and 5% simple interest respectively. He invested the amounts in such a way that after 1 year, the interest amount in scheme B is double of that from Scheme C and triple of that from scheme A. The difference between the amounts invested in scheme A and C (in Rs.) is .................... .
a.10000
b.12000
c.15000
d.8000
Q.5 A company publishes to its customers that at a certain compound interest rate, a sum of money deposited by anyone will become 8 times in 3 years. If the same amount is deposited at the same compound rate of interest, then in how many years will it become 16 times ?
a.4 years
b.3 years
c.3.5 years
d.4.5 years
Q.6 Rs.25,000 is borrowed at compound interest at the rate of 3% for first year, 4% for 2nd year and 5% for 3rd year. Find the amount to be paid after 3 years (in Rs.).
a.28,117
b.28,118
c.28,119
d.28,120
Q.7 Veeru invested Rs.10000 at 5% simple annual interest and exactly after two years, Joy invested Rs.8000 at 10% simple annual interest. How many years after Veeru’s investment, will their balances, i.e., principal plus accumulated interest, be equal?
a.8
b.12
c.10
d.14
Q.8 For the same principal amount, the compound interest for two years at 5% per annum exceeds the simple interest for three years at 3% per annum by Rs.1125. Then the principal amount in rupees is
a.60000
b.80000
c.75000
d.90000
Q.9 A sum of money is invested at compound interest compounded annually. The interests in two successive years were Rs.225 and Rs.238.50. Then find the rate of interest.
a.4%
b.5%
c.6%
d.7%
Q.10 A certain sum of money invested at compound interest becomes 1.44 times of itself in 2 years. If twice this sum were lent at simple interest at the same rate of interest, in how many years would it double itself?
a.4 years
b.3 years
c.5 years
d.4.5 years
Q.11 Dhawan invested a certain amount in three schemes A, B and C, with rate of interest as 10%, 12% and 15% p.a. respectively. If the total simple interest accrued in one year was equal to Rs.3200 and the amount invested in scheme C was 150% of the amount invested in scheme A and 240% of the amount invested in scheme B, then what was the amount invested in scheme A?
a.Rs.7000
b.Rs.8000
c.Rs.9000
d.Rs.10000
Q.12 Rohan invested Rs.10,000 in a bank which doubles itself in 3 years at r % of simple interest. In how many years will it become 4 times?
a.6
b.7
c.8
d.9
Q.13 Amala, Bina, and Gouri invest money in the ratio 3 : 4 : 5 in fixed deposits having respective annual interest rates in the ratio 6 : 5 : 4 . What is their total interest income (in Rs) after a year, if Bina's interest income exceeds Amala's by Rs.250?
a.Rs.7000
b.Rs.6000
c.Rs.6350
d.Rs.7250
Q.14 A person invested a total amount of Rs.15 lakh. A part of it was invested in a fixed deposit earning 6% annual interest, and the remaining amount was invested in two other deposits in the ratio 2 : 1, earning annual interest at the rates of 4% and 3%, respectively. If the total annual interest income is Rs 76000, then find the amount (in Rs lakh) invested in the fixed deposit.
a.8
b.9
c.10
d.11
Q.15 Rohit invested some amount at the rate of 6 pcpa and at the end of 3 years he got Rs. 8730 simple interest. If rate of interest is double and the amount is half then how much simple interest he will get after 2 years?
a.Rs.6200
b.Rs.5860
c.Rs.5900
d.Rs.5820
Q.16 A man borrowed a certain sum under compound interest compounded annually, from a bank. The compound interest for the second year and the third year are Rs. 3,840 and Rs. 4,608 respectively. Find the sum.
a.Rs. 14,000
b.Rs. 18,000
c.Rs. 16,000
d.Rs. 20,000
Q.17 Ajay borrowed Rs. 75,000 from two compound interest, compounded annually. One bank charges interest at the rate of 15% per year and the other bank at 20% per year. If at the end of the year, Ajay paid Rs.12,000 as the total interest to the two banks, how much did he borrow from the second bank?
a.Rs. 20,000
b.Rs. 15,000
c.Rs. 55,000
d.Rs. 69,000
Q.18 Arjun borrowed some money from Bharath at 8% p.a. annum simple interest and twice that amount from Charan at 9% p.a. simple interest. He then added some more money of his own and lent the entire amount to Dheeraj at 10% p.a. simple interest. At the end of the year Arjun gained Rs. 1,400. If Arjun lent Rs. 40,000 to Dheeraj, then how much did Arjun borrow from Bharath?
a.Rs. 25,000
b.Rs. 15,000
c.Rs. 20,000
d.Rs. 10,000
Q.19 A banker lends Rs.4,000 at simple interest to Alex. The rate of interest for the first year is x%, for the second year it is (x + 2)%, for the third year it is (x + 4)% and so on. At the end of the fifth year, if the total simple interest accrued is Rs.3000, then the rate % for the fourth year will be?
a.11
b.17
c.13
d.15
Q.20 Meghana borrowed Rs. 60,000 from two persons under compound interest, compounded annually. The first person charged interest at the rate of 7% p.a. and the second person at 11% p.a. If at the end of the year, Meghana paid Rs. 5,700 as the total interest to the two persons, how much did she borrow from the first person?
a.Rs. 22,500
b.Rs. 37,500
c.Rs. 6,600
d.Rs. 30,000
Q.21 A man invests certain amount in Scheme A on Simple Interest for 2 years at certain rate of interest. He invests Rs.35000 more than Scheme A in Scheme B on Simple Interest for 5 years at twice the rate of interest. The interest received from Scheme B is 10 times of interest from Scheme A. Find the amount that he invests in Scheme B.
a.Rs.65000
b.Rs.70000
c.Rs.35000
d.Rs.40000
Q.22 Preeti deposited three different sums of money in three different banks in the ratio of 4 : 7 : 10, which gives a simple interest of 6%, 8%, and 10% p.a., respectively for 3 years each. If the total interest obtained by her is Rs.21600, then find the total amount deposited by her in all the banks together.
a.Rs.48000
b.Rs.58000
c.Rs.64000
d.Rs.84000
Q.23 The simple interest earned on an amount of Rs.28000 at rate of (a + 2)% per annum for 3 years is equal to the simple interest earned on an amount of Rs.24000 at the rate of 7% per annum for 4 years. Find the simple interest earned on Rs.32000 at rate of 8% per annum after 'a' years.
a.Rs.14320
b.Rs.14640
c.Rs.15360
d.Rs.15420
Q.24 A sum of money is given at 5% interest rate for 4 years earns Rs.100 more interest than if same sum of money is given at 6% for 3 years. What is sum of money given on simple interest (in Rs.)?
a.6000
b.7000
c.5000
d.8000
Q.25 The price of a car depreciates at the rate of 20% and 15% in two consecutive years. If the depreciated price of the car after 2 years is Rs. 3,43,400. What was the original price of the car?
a.Rs.5,00,000
b.Rs.5,50,500
c.Rs. 5,05,000
d.Rs. 5,50,000
Answers For Simple and Compound Interest Questions for CAT
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
A | C | B | A | A | C | B | D | C | C |
11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
B | D | D | B | D | C | B | D | B | A |
21 | 22 | 23 | 24 | 25 | |||||
B | D | C | C | C |
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