# Simple interest and Compound interest Questions

by Amit Prabhu | Updated on 08 August 2023

## Simple interest and Compound interest Questions With Answers

A) Rs.650

B) Rs.700

C) Rs.698

D) Rs.690

A) 6%

B) 8%

C) 7%

D)  4%

A) Rs.121

B) Rs.120

C) Rs.123

D) Rs.122

A) Rs.2.04

B) Rs.3.06

C) Rs.8.30

D) Rs.4.80

### Q5) At what rate percent per annum will a sum of money double in 8 years.

A) 12.5%

B) 13.5%

C) 11.5%

D) 14.5%

#### Solution :

Let principal = P, Then, S.I.= P and Time = 8 years
We know that S.I. = PTR/100
Rate = [(100 x P)/ (P x 8)]% = 12.5% per annum

### Q6) A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

A) Rs. 650

B) Rs. 690

C) Rs. 698

D) Rs. 700

#### Solution :

S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698.

### Q7) What is the rate of simple interest?  I. The total interest earned was Rs. 4000.  II. The sum was invested for 4 years.

A) Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question.

B) Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question.

C) Statement I or in Statement II alone are sufficient to answer the question.

D) Statements I and II together are not sufficient to answer the question.

#### Solution :

We know that, R = (100* S.I)/(P*T).
Now, I gives, S.I. = Rs. 4000.
II gives, T = 4 years.
But, P is unknown. So, we cannot find R.
So, given data is insufficient to get R.

### Q8) Find compound interest on Rs. 8000 at 15% per annum for 2 years 4 months, compounded annually

A) 2109

B) 3109

C) 4109

D) 6109

#### Solution :

Time = 2 years 4 months = 2(4/12) years = 2(1/3) years.
Amount = Rs'. [8000 X (1+(15/100))^2 X (1+((1/3)*15)/100)]
= Rs. [8000 * (23/20) * (23/20) * (21/20)]
= Rs. 11109. .
:. C.I. = Rs. (11109 - 8000) = Rs. 3109.

### Q9) Find the compound interest on Rs. 7500 at 4% per annum for 2 years, compounded annually.

A) Rs. 610

B) Rs. 612

C) Rs. 614

D) Rs. 616

#### Solution :

Amount=[7500×(1+4/100)2]=(7500×26/25×26/25)=8112

### Q10) The simple interest on a sum of money for 3 years at 6²/3 % per annum is \$ 6750. What will be the compound interest on the same sum at the same rate for the same period, compounded annually?

A) 8125

B) 6655

C) 4496

D) 7210

#### Solution :

Given, SI = \$ 6750, R = 203% p.a. and T = 3 years.
sum = 100 × SI / R × T
= \$ (100 × 6750 × ³/20 × 1/3 ) = \$ 33750.
Now, P = \$ 33750, R = 203% p.a. and T = 3 years.
Therefore, amount after 3 years
= \$ {33750 × (1 + (20/3 × 100)}³ [using A = P (1 + R/100)]
= \$ (33750 × 16/15 × 16/15 × 16/15) = \$ 40960
Thus, amount = \$ 40960
Hence, compound interest = \$ (40960 - 33750) = \$ 7210

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