Simple and Compound Interest MCQs with Answer - Exercise I


Ques 1 Simple and Compound

A man invested Rs. X and Rs. 2X at 15% simple interest and at 8% compound interest (compounding annually) for two years respectively. Difference between simple interest and compound interest received after two years is Rs.820. Find the value of X ?
  a) Rs.25000
  b) Rs.30600
  c) Rs.28600
  d) Rs.22200


a is the correct option
Simple interest for Rs. X at 15% for 2 years = X * 15 * 2 / 100 = 3X/10
Compound interest for Rs. 2X at 8% for 2 years = 2X * (1 + 8/100)2 - 2X = 88X/25
Difference between compound interest and simple interest = 88X/25 - 3X/10 = 44X/25 - 3X/10 = 13X/25
Given that the difference between compound interest and simple interest = 820
So, 13X/25 = 820
X = 25000
Therefore, the value of X is 25000.




Ques 2 Simple and Compound

If a sum of money Rs. 200000 amounts to Rs. 266200 in 3 years at compound interest. Find the rate of interest ?
  a) 20
  b) 30
  c) 40
  d) 10


d is the correct option
The formula for compound interest is:
A = P(1 + r/100)t A is the amount in the end
P is the principal amount
r is the interest rate
t is the time in years
In this case, A = Rs. 266200, P = Rs. 200000, and t = 3 years. So, we can find the interest rate as follows:
r = (A - P) / (P * t) * 100
= (266200 - 200000) / (200000 * 3) * 100
= 10%
Therefore, the answer is (d).




Ques 3 Simple and Compound

In how many years will a sum of money triple itself in 24% per annum?
  a) 6 years 9 mmonths
  b) 7 years 9 months
  c) 8 years 4 months
  d) 8 years 3 months


c is the correct option




Ques 4 Simple and Compound

The simple interest on a sum of a money at 8% per annum for 6 years is half the sum is:
  a) Rs. 4800
  b) Rs. 6000
  c) Rs. 8000
  d) Data inadequate


d is the correct option




Ques 5 Simple and Compound

A certain sum of money becomes three times of itself in 20 years at simple interest. In how many years does it become double of itself at the same rate of simple interest?
  a) 8 years
  b) 10 years
  c) 12 years
  d) 14 years


b is the correct option




Ques 6 Simple and Compound

Find the difference between CI and SI for 2 years on a Sum of Rs. 4000 at the rate of 8% p.a.
  a) 25.6
  b) 24
  c) 27
  d) 32.4


a is the correct option




Ques 7 Simple and Compound

A sum of Rs.12500 is invested on 1st January 2016 at 4% simple interest p.a. How much interest in RS. gets accrued on the end of the day on 1st July 2016?
  a) 240
  b) 230
  c) 220
  d) 250


d is the correct option




Ques 8 Simple and Compound

The difference between the interest under compound interest, interest being compounded annually and simple interest, for two years, for the same sum and at the same rate of interest is 112.5. Find the sum if the rate of interest is 15%p.a
  a) 3500
  b) 5000
  c) 7500
  d) 10000


B is the correct option