Simple and Compound Interest MCQs for Competitive Examination
Solve the following problems.
Q. 21
If simple interest on Rs 300 increases by Rs 15, when the rate increases by 4% per annum. Find the time?
(A) 1(1/4) years
(B) 1 year
(C) 2(1/4) years
(D) 2 years
Answer: (A) 1(1/4) years
Explanation: N/A
Q. 22
If the simple interest on Rs 625 increases by Rs 25. When the time increases by 2 years. Find the rate per cent per annum?
(A) 2%
(B) 3%
(C) 1%
(D) 0.5%
Answer: (A) 2%
Explanation: N/A
Q. 23
At what rate of interest per annum will a sum double itself in 8 years?
(A) 12(1/2)%
(B) 5%
(C) 6%
(D) 10(1/2)%
Answer: (A) 12(1/2)%
Explanation: N/A
Q. 24
The difference in simple interest on a certain sum at 5 % for 4 years and 6% for 3 years is Rs 20. Find the sum?
(A) 1000
(B) 1200
(C) 800
(D) 900
Answer: (A) 1000
Explanation: N/A
Q. 25
At a simple interest Rs 850 becomes Rs 1250 in 5 years. If the interest rate is increased by 5%. How much would Rs 850 become in 4 years?
(A) Rs 1340
(B) Rs 1430
(C) Rs 1340.50
(D) None of the above
Answer: (A) Rs 1340
Explanation: N/A
Q. 26
A sum of Rs 15000 is invested partly at 12% per annum and the remaining at 10% per annum simple interest. If the total interest at the end of 2 years is Rs 3344. How much money was invested at 10% per annum?
(A) Rs 6200
(B) Rs 6600
(C) Rs 6400
(D) Rs 6500
Answer: (C) Rs 6400
Explanation: N/A
Q. 27
What is the compound interest of a sum of Rs 4096 at 15% p.a. for 2(1/2) years, if the interest is compounded 10 monthly.
(A) Rs 1726
(B) Rs 1736
(C) Rs 1636
(D) Rs 1763
Answer: (B) Rs 1736
Explanation: Total time = 2 years 6 months = 30 months; Time(N) = 3-/10 = 3
Also, Rate of Interest = (15 * 10)/12 = 25/2
Q. 28
A sum of money becomes 3 times in 10 years at the rate of compound interest (compounded annually). In how many years will it becomes 81 times?
(A) 40 years
(B) 50 years
(C) 35 years
(D) 30 years
Answer: (A) 40 years
Explanation: N/A
Q. 29
A sum amounts of Rs 8028 in 3 years and to Rs 12, 042 in 6 years at a certain rate per cent per annum, when the interest is compounded yearly. The sum is
(A) Rs 5, 352
(B) Rs 5, 235
(C) Rs 5, 325
(D) Rs 5, 253
Answer: (A) Rs 5, 352
Explanation: N/A
Q. 30
What is the difference between the compound interest, when interest is compounded 5 monthly and the simple interest on a sum of Rs 12, 000 for 1(1/4) year at 12% per annum?
(A) Rs 90
(B) Rs 91.50
(C) Rs 93
(D) Rs 92.50
Answer: (B) Rs 91.50
Explanation: N/A
Q. 31
Rs 2, 40, 000 is taken as loan for three years compounded annually at 12.5% p.a. At the end of the first year, the interest is revised to 12% p.a. The total amount to be repaid at the end of third year is
(A) Rs 3, 26, 400
(B) Rs 3, 34, 800
(C) Rs 3, 38, 688
(D) Rs 3, 42, 648
Answer: (C) Rs 3, 38, 688
Explanation: N/A
Q. 32
What is the rate of interest if the simple interest earned on a certain sum for the 3 years is Rs 6, 000 and compound interest earned for 2 years is Rs 4, 160?
(A) 9%
(B) 8%
(C) 12%
(D) 6%
Answer: (B) 8%
Explanation: N/A
Q. 33
In how many months will Rs 8, 000 yield Rs 2, 648 as compound interest at 20% per annum compounded semi-annually
(A) 18
(B) 24
(C) 12
(D) 30
Answer: (A) 18
Explanation: N/A
Q. 34
A sum of money is paid back in two annual instalments of Rs 17, 640 each, allowing 5% compound interest compounded annually. The sum borrows was
(A) Rs 32, 800
(B) Rs 32, 200
(C) Rs 32, 000
(D) Rs 32, 400
Answer: (A) Rs 32, 800
Explanation: N/A
Q. 35
Rs 260200 is divided between Ram and Shyam so that the amount that Ram receives in 4 years is the same as that Shyam receives in 6 years. If the interest is compounded annually at the rate of 4% per annum, then Ram’s share is
(A) Rs 125000
(B) Rs 135200
(C) Rs 152000
(D) Rs 108200
Answer: (B) Rs 135200
Explanation: N/A
Q. 36
The least number of years in which a sum of money on 19% p.a. compound interest will be more than double is
(A) 3 years
(B) 4 years
(C) 5 years
(D) 2 years
Answer: (B) 4 years
Explanation: N/A
Q. 37
The simple interest on Rs 36000 for the period from 5th January 2013 to 31st May 2013 at 9.5% per annum is
(A) Rs 1, 338
(B) Rs 1, 425
(C) Rs 1, 400
(D) Rs 1, 368
Answer: (D) Rs 1, 368
Explanation: N/A
Q. 38
An investor invested his saving in the stock market. The value of his investments increased by 12% and 9% in the first year and the second year respectively. If the value of his investment after two years became Rs 97, 664 then how much had he invested?
(A) Rs 81000
(B) Rs 75000
(C) Rs 80000
(D) Rs 72000
Answer: (C) Rs 80000
Explanation: Let the investment = Rs x
According to the question, x(1 + 12/100)(1 + 9/100) = 97, 664
Solving, x = 80, 000
Q. 39
Ramesh borrowed a sum at 5 per annum simple interest from Rahul. He returns the amount after 5 years. Rahul returns 2% of the total amount received. How much did Ramesh borrowed if he received Rs 5?
(A) Rs 250
(B) Rs 200
(C) Rs 150
(D) Rs 175
Answer: (B) Rs 200
Explanation: N/A
Q. 40
The simple interest on a sum of money is (8/25) of the sum. If the number of years is numerically half the rate per cent per annum, then the rate per cent per annum is
(A) 5%
(B) 6%
(C) 8%
(D) 4%
Answer: (C) 8%
Explanation: N/A