Simple and Compound Interest MCQs for Competitive Examination
Solve the following problems.
Q. 1
Simple interest on a certain sum of money for 3 years at 18% per annum is half the compound interest on Rs. 9000 for 2 years at 10% per annum. The sum placed on simple interest is
(A) Rs 3500
(B) Rs 875
(C) Rs 1750
(D) Rs 1400
Answer: (C) Rs 1750
Explanation: N/A
Q. 2
Simple interest on a certain sum of money for 3 years at 14% per annum is half the compound interest on Rs. 10000 for 2 years at 10% per annum. The sum placed on simple interest is
(A) Rs 5000
(B) Rs 1250
(C) Rs 2000
(D) Rs 2500
Answer: (D) Rs 2500
Explanation: N/A
Q. 3
At what rate of compound interest per annum will a sum of Rs 10000 become Rs 12321 in 2 years?
(A) 22%
(B) 11%
(C) 17%
(D) 15%
Answer: (B) 11%
Explanation: N/A
Q. 4
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 9% per annum is Rs 405. The sum is.
(A) Rs 50000
(B) Rs 100000
(C) Rs 200000
(D) Rs 250000
Answer: (A) Rs 50000
Explanation: N/A
Q. 5
On a certain Principal if the Simple interest for two years is Rs 4800 and Compound interest for the two years is Rs 5088, what is the rate of Interest?
(A) 6%
(B) 12%
(C) 18%
(D) 24%
Answer: (B) 12%
Explanation: N/A
Q. 6
The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 18% per annum is Rs 81. The sum is
(A) Rs 2500
(B) Rs 5000
(C) Rs 10000
(D) Rs 7500
Answer: (A) Rs 2500
Explanation: N/A
Q. 7
A bank offers 5% compound interest per half-year. A customer deposits Rs. 3200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
(A) Rs 976
(B) Rs 244
(C) Rs 488
(D) Rs 122
Answer: (C) Rs 488
Explanation: N/A
Q. 8
A bank offers 20% compound interest per half-year. A customer deposits Rs 6000 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is
(A) Rs 7680
(B) Rs 3840
(C) Rs 1920
(D) Rs 960
Answer: (B) Rs 3840
Explanation: N/A
Q. 9
The effective annual rate of interest corresponding to a nominal rate of 22% per annum payable half-yearly is
(A) 44%
(B) 23.21%
(C) 46.42%
(D) 22%
Answer: (B) 23.21%
Explanation: N/A
Q. 10
If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 16854, and Rs 17865.24 respectively, what is the rate of interest?
(A) 3%
(B) 12%
(C) 6%
(D) 10%
Answer: (C) 6%
Explanation: N/A
Q. 11
There is 40% increase in an amount in 10 years at simple interest. What will be the compound interest of Rs 25000 after 2 years at the same rate?
(A) Rs 4080
(B) Rs 5100
(C) Rs 3060
(D) Rs 2040
Answer: (D) Rs 2040
Explanation: N/A
Q. 12
If the amount received at the end of the 2nd and 3rd year at Compound Interest on a certain Principal is Rs 22472, and Rs 23820.32 respectively, what is the rate of interest?
(A) 3%
(B) 6%
(C) 12%
(D) 10%
Answer: (B) 6%
Explanation: N/A
Q. 13
Deepanshu lent Rs. 8400 to Jaipal for 15 years and Rs. 5100 to Kareem for 14 years on simple interest at the same rate of interest and received Rs. 17766 in all from both of them as interest. The rate of interest per annum is
(A) 9.5%
(B) 10%
(C) 9%
(D) 10.5%
Answer: (C) 9%
Explanation: N/A
Q. 14
A sum fetched a total simple interest of Rs. 8100 at the rate of 6% per year in 9 years. What is the sum?
(A) Rs 15000
(B) Rs 18000
(C) Rs 12000
(D) Rs 9000
Answer: (A) Rs 15000
Explanation: N/A
Q. 15
The effective annual rate of interest corresponding to a nominal rate of 19% per annum payable halfyearly is
(A) 38%
(B) 19.9%
(C) 39.81%
(D) 19%
Answer: (B) 19.9%
Explanation: N/A
Q. 16
A sum fetched a total simple interest of Rs. 9648 at the rate of 12% per year in 6 years. What is the sum?
(A) Rs 16080
(B) Rs 10720
(C) Rs 8040
(D) Rs 13400
Answer: (D) Rs 13400
Explanation: N/A
Q. 17
In 2015, the real rate of interest in a country was 6% and the inflation rate then was 3%. So the nominal rate of interest in 2015 was
(A) 3%
(B) 6%
(C) 9%
(D) 12%
Answer: (C) 9%
Explanation: N/A
Q. 18
There is 40% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 25000 after 3 years at the same rate? There is 40% increase in an amount in 5 years at simple interest. What will be the compound interest of Rs. 25000 after 3 years at the same rate?
(A) Rs 6492.8
(B) Rs 12985.6
(C) Rs 16232
(D) Rs 9739.2
Answer: (A) Rs 6492.8
Explanation: N/A
Q. 19
A bank offers 15% compound interest per half-year. A customer deposits Rs 7200 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by means of interest is
(A) Rs 6803
(B) Rs 3402
(C) Rs 1701
(D) Rs 850
Answer: (B) Rs 3402
Explanation: N/A
Q. 20
A bank offers 5% compound interest per half-year. A customer deposits Rs 4800 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest?
(A) Rs 732
(B) Rs 1464
(C) Rs 366
(D) Rs 183
Answer: (A) Rs 732
Explanation: N/A