Compound Interest and Simple Interest Questions
Compound Interest and Simple Interest Questions

Compound Interest and Simple Interest Questions

Compound Interest and Simple Interest Questions Bank Exams 2018. Welcome to the www.letsstudytogether.co online Quant section. If you are preparing for SBI Clerk, and SBI PO exams 2017-18, you will come across a section on Quantitative Aptitude Section. Here we are providing you with Quant quiz on “Compound Interest and Simple Interest ” based on the latest pattern for your daily practice.

This “Compound Interest and Simple Interest” is also important for other banking exams such as SBI PO, IBPS Clerk, SBI Clerk, IBPS RRB Officer, IBPS RRB Office Assistant, IBPS SO, SBI SO and other competitive exams.

SI and CI Questions For Bank Exam: Set-2

1. David invested Rs 1000 in a bank that offers simple interest at the rate of 12% per annum. John invested the same amount in another bank which offers compound interest at the rate of 10%. After how many years for the first time will John get more interest than David?

A.2yr

B. 4yr

C. 5yr

D. 6yr

E. None of these

Show Correct Answers

 Option – C 5 yr

2. The simple interest accrued on a certain amount is Rs.1800/- in three years at 20% p.a. What would be the compound interest on the same amount at the same rate of interest in two years?

A.Rs 1320

B. Rs 1440

C. Rs 1560

D. Rs 1680

E. None of these

Show Correct Answers

A.Rs 1320

Let p be the principal.

p (20 * 3)/100 = Rs.1800/-

p = Rs.1800 * 5/3 = Rs.3000/-.

Therefore the compound interest accrued in two years

= Rs.3000((1+20/100)2 – 1)

= Rs.3000 (1.44 – 1) = Rs.1320/-

3. Ramesh invested certain amount of money in a savings account which offers 10% compound interest per annum for two years. If Ramesh wanted a payment of Rs 400 at the end of first year and got Rs 550 at the end of second year then what is the approximate amount of money invested by Ramesh?

A.Rs 900

B. Rs 775

C. Rs 800

D. Rs 850

E. 820

Show Correct Answers

 E. 820

Option E

Let the amount invested by Ramesh is Rs P.

Hence according to the question, 1.1(1.1P – 400) = 550

=> 1.1P – 400 = 500

=> 1.1P = 900

P = 818.20= 820( Approx)

4. A certain sum of money is invested at 16% p.a. for three years on simple interest instead of 12% p.a. for the same time period, there by interest earned is more by Rs.1440/-. What is the amount invested?

A.Rs 10500

B. Rs 12000

C. Rs 13500

D. Rs 15000

E. None of these

Show Correct Answers

 B. Rs 12000

Option B

Let ‘p’ be the sum of money.

Given that,

p * (16) * 3/100 – p * (12) * 3/100 = Rs.1440/-

12p/(100) = Rs.1440/-

p = Rs.(1440 * 100)/12

p = 12000/-

5. A certain sum of money amounted to Rs 7200 at 5% in a time in which Rs 4800 amounted to Rs 6336 at rate of 8%. What is the sum in this case considering simple interest rate?

A.Rs 6500

B. Rs 6000

C. Rs 5600

D. Rs 6200

E. None of these

Show Correct Answers

B. Rs 6000

Let’s assume that the required time = T years

Hence in 2

nd case, (6336 – 4800) = (4800´8´T)/100

=> T = (1536´100)/(4800´8)

=> T = 4 years

Let’s suppose that the principal amount be Rs P in 1

st case.

Hence, P + (P´((5´4)/100)) = 7200

=> 1.2P = 7200

P = 6000

6. The amount obtained on Rs. 24000 at an interest 5% compounded annually for certain period of time is Rs. 27,783. Then find the time in years?

A. 2yr

B. 3yr

C. 4yr

D. 5yr

E. 1yr

Show Correct Answers

 B. 3yr

We know that, A = P (1+R/100)T

Rs. 27,783 = Rs. 24,000 (1+5/100)T

27,783/24,000 = (1+0.05)T

1.157625 = (1.05)T

(1.05)

3 = (1.05)T

T = 3 years

7. At simple interest , an amount of money invested becomes Rs. 17472 in 3 years and Rs. 21356 in 7 years. Find the money invested?

A.Rs 14595

B. Rs13652

C. Rs 14559

D. Rs 15562

E. Rs. 16751

Show Correct Answers

 C. Rs 14559

Let P is the principal amount and R is the interest rate

Let the simple interest on the principal for 3 years be ‘x’ and for 7 years it will be ‘y’

x = P*R*3/100 and y = P*R*7/100

=> y = (7/3)x

Now, P+x = 17472 ………(i)

P+y = 21356

or, P+(7/3)x = 21356 ………(ii)

Operate [(7/3)*Eq.(i) – Eq.(ii)]

(7/3)*P + (7/3)*x – P – (7/3)x = (7/3)*17472 – 21356

or, 4P/3 = 19412

or, P = 14559

Hence, option c

Alternate solution

According to the question, it is given that,

P + (P * R * 3)/100 = 17472

or, P (1 + 3R/100) = 17472 …….(i)

and P + (P * R * 7)/100 = 21356

or, P (1 + 7R/100) = 21356 ……(ii)

Equation (ii) – (i) we get,

4PR/100 = 3884

or, P [3R/100] = 3/4 (3884)

or, P [3R/100] = 2913……….(iii)

Putting the value of equation (iii) in equation (i) we get,

P + 2913 = 17472

or, P = Rs. 14559

8. Mr. Raghunathan invested two different amounts in two different stocks, Stock P and Stock Q. Stock P assures return at 12% simple interest while stock Q assures return at 10% compound interest compound annually. After two years Mr. Raghunathan received Rs.3600 as interest from Stock P. If total amount invested in the two stocks was Rs. 35000, what was the interest received by him from Stock Q after two years?

A. Rs 4200

B. Rs 4500

C. Rs 4800

D. Rs 5400

E. Rs. 5600

Show Correct Answers

 A. Rs 4200

Let the money invested by Mr. Raghunathan in Stock P be P

Therefore, Money invested in Stock Q = Rs.(35000 –P)

Now, according to the question,

Return received from Stock P = 3600

=> (P *12*2)/100 = 3600

=> P = (3600*100)/12*2 = Rs.15000

Now, Money invested in Stock Q = Rs.(35000 – 15000) = Rs.20000

Therefore, return received from Company Q = 20000*[{1 + (10/100)}

2 – 1]

= 20000*{(121 – 100)/100}

= Rs. 4200

9. The compound interest on a sum in 2 years is Rs. 4080. If the simple interest on the same sum at same interest rate for same duration is Rs. 4000, find the value of rate of interest and sum.

A.Rate of Interest: 4%, Sum: Rs. 40000

B. Rate of Interest: 6%, Sum: Rs. 50000

Rate of Interest: 4%, Sum: Rs. 40000

D. Rate of Interest: 4%, Sum: Rs. 50000

E.Rate of Interest: 5%, Sum: Rs. 55000

Show Correct Answers

 D. Rate of Interest: 4%, Sum: Rs. 50000

The difference between the simple interest for 2 years and compound interest for 2 years is the interest on

the first year’s simple interest.

S.I. for two years = 4000

So, S.I. for one year = 4000/2 = Rs. 2000

C.I. for 2 years – S.I. for 2 years = 4080 – 4000 = Rs. 80 = Interest on the first year’s S.I.

Interest on Rs. 2000 for 1 year = Rs. 80

Or, [2000*(Rate of interest)*(1)]/100 = 80

or, Rate of interest = 4%

Let the sum be P

S.I. on P in two years = Rs. 4000

or, (P*4*2)/100 = 4000

or, P = Rs. 50000

10.A person invested two different amounts in two different plans. One of the plans returns 10% compound interest per annum (compounded annually) and the other plan returns 10% simple interest per annum. If the total compound interest earned in two years from the former plan is equal to the simple interest earned in fours in latter plan, what was the respective ratio of amounts invested in the two plans?

A. 4 : 3

B. 40 : 21

C. 40 : 13

D. 41 : 11

E. 33 : 4

Show Correct Answers

 B. 40 : 21

Let the amount invested in the scheme returning compound interest = P

Let the amount invested in the scheme returning simple interest = Q

According to question,

P*[(1+0.1)

2

– 1] = Q*(0.1)*4

=> P*(1.21 – 1) = Q*(0.4)

=> P/Q = (0.4)/(0.21) = 40:21

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