PlacementPrepWhat is the simple interest on Rs. 25,000 at 4% per annum for 3 years?
Solution
SI = P × R × T / 100 = 25000 × 4 × 3 / 100 = 3000.
Answer: (D) Rs. 3000
Quantitative Aptitude · Arithmetic
Simple and Compound Interest: placement practice questions
30 moderate questions in the pattern of campus placement tests. Pick an option to check your answer, then open the step-by-step solution.
What is the compound interest on Rs. 8000 at 10% per annum for 3 years, compounded annually?
Solution
Amount = 8000 × (1 + 10/100)3 = 10,648.
CI = 10,648 − 8000 = 2648.
Answer: (B) Rs. 2648
What is the difference between compound and simple interest on Rs. 5000 for 2 years at 10% per annum?
Solution
For 2 years, CI − SI = P × (R/100)² = 5000 × (10/100)² = 50.
Answer: (C) Rs. 50
A sum of Rs. 6000 becomes Rs. 7440 in 2 years at simple interest. What is the rate of interest per annum?
Solution
SI = 7440 − 6000 = 1440.
R = SI × 100 / (P × T) = 1440 × 100 / (6000 × 2) = 12%.
Answer: (B) 12%
In how many years will a sum of money become double itself at 12.5% simple interest?
Solution
It becomes 2 times, so interest = 1 × principal.
T = 1 × 100 / 12.5 = 8 years.
Answer: (A) 8 years
Find the compound interest on Rs. 20,000 for 1 year at 10% per annum, compounded half-yearly.
Solution
Half-yearly: rate 5% per half-year, 2 periods.
Amount = 20000 × (1.05)² = 22,050; CI = 2050.
Answer: (B) Rs. 2050
What is the simple interest on Rs. 8000 at 5% per annum for 5 years?
Solution
SI = P × R × T / 100 = 8000 × 5 × 5 / 100 = 2000.
Answer: (D) Rs. 2000
What is the compound interest on Rs. 8000 at 5% per annum for 2 years, compounded annually?
Solution
Amount = 8000 × (1 + 5/100)2 = 8820.
CI = 8820 − 8000 = 820.
Answer: (B) Rs. 820
What is the difference between compound and simple interest on Rs. 12,000 for 2 years at 10% per annum?
Solution
For 2 years, CI − SI = P × (R/100)² = 12000 × (10/100)² = 120.
Answer: (C) Rs. 120
A sum of Rs. 4000 becomes Rs. 4960 in 2 years at simple interest. What is the rate of interest per annum?
Solution
SI = 4960 − 4000 = 960.
R = SI × 100 / (P × T) = 960 × 100 / (4000 × 2) = 12%.
Answer: (A) 12%
In how many years will a sum of money become three times itself at 20% simple interest?
Solution
It becomes 3 times, so interest = 2 × principal.
T = 2 × 100 / 20 = 10 years.
Answer: (D) 10 years
Find the compound interest on Rs. 8000 for 1 year at 20% per annum, compounded half-yearly.
Solution
Half-yearly: rate 10% per half-year, 2 periods.
Amount = 8000 × (1.10)² = 9680; CI = 1680.
Answer: (C) Rs. 1680
What is the simple interest on Rs. 8000 at 4% per annum for 6 years?
Solution
SI = P × R × T / 100 = 8000 × 4 × 6 / 100 = 1920.
Answer: (C) Rs. 1920
What is the compound interest on Rs. 10,000 at 20% per annum for 3 years, compounded annually?
Solution
Amount = 10000 × (1 + 20/100)3 = 17,280.
CI = 17,280 − 10000 = 7280.
Answer: (D) Rs. 7280
What is the difference between compound and simple interest on Rs. 10,000 for 2 years at 12% per annum?
Solution
For 2 years, CI − SI = P × (R/100)² = 10000 × (12/100)² = 144.
Answer: (A) Rs. 144
A sum of Rs. 10,000 becomes Rs. 13,000 in 5 years at simple interest. What is the rate of interest per annum?
Solution
SI = 13000 − 10000 = 3000.
R = SI × 100 / (P × T) = 3000 × 100 / (10000 × 5) = 6%.
Answer: (D) 6%
In how many years will a sum of money become four times itself at 8% simple interest?
Solution
It becomes 4 times, so interest = 3 × principal.
T = 3 × 100 / 8 = 37.5 years.
Answer: (B) 37.5 years
Find the compound interest on Rs. 10,000 for 1 year at 20% per annum, compounded half-yearly.
Solution
Half-yearly: rate 10% per half-year, 2 periods.
Amount = 10000 × (1.10)² = 12,100; CI = 2100.
Answer: (A) Rs. 2100
What is the simple interest on Rs. 15,000 at 12% per annum for 3 years?
Solution
SI = P × R × T / 100 = 15000 × 12 × 3 / 100 = 5400.
Answer: (B) Rs. 5400
What is the compound interest on Rs. 16,000 at 5% per annum for 3 years, compounded annually?
Solution
Amount = 16000 × (1 + 5/100)3 = 18,522.
CI = 18,522 − 16000 = 2522.
Answer: (A) Rs. 2522
What is the difference between compound and simple interest on Rs. 12,000 for 2 years at 5% per annum?
Solution
For 2 years, CI − SI = P × (R/100)² = 12000 × (5/100)² = 30.
Answer: (B) Rs. 30
A sum of Rs. 10,000 becomes Rs. 14,000 in 5 years at simple interest. What is the rate of interest per annum?
Solution
SI = 14000 − 10000 = 4000.
R = SI × 100 / (P × T) = 4000 × 100 / (10000 × 5) = 8%.
Answer: (C) 8%
In how many years will a sum of money become double itself at 4% simple interest?
Solution
It becomes 2 times, so interest = 1 × principal.
T = 1 × 100 / 4 = 25 years.
Answer: (D) 25 years
What is the simple interest on Rs. 12,000 at 5% per annum for 5 years?
Solution
SI = P × R × T / 100 = 12000 × 5 × 5 / 100 = 3000.
Answer: (C) Rs. 3000
What is the compound interest on Rs. 20,000 at 10% per annum for 3 years, compounded annually?
Solution
Amount = 20000 × (1 + 10/100)3 = 26,620.
CI = 26,620 − 20000 = 6620.
Answer: (B) Rs. 6620
What is the difference between compound and simple interest on Rs. 20,000 for 2 years at 5% per annum?
Solution
For 2 years, CI − SI = P × (R/100)² = 20000 × (5/100)² = 50.
Answer: (A) Rs. 50
A sum of Rs. 4000 becomes Rs. 4640 in 4 years at simple interest. What is the rate of interest per annum?
Solution
SI = 4640 − 4000 = 640.
R = SI × 100 / (P × T) = 640 × 100 / (4000 × 4) = 4%.
Answer: (A) 4%
In how many years will a sum of money become four times itself at 10% simple interest?
Solution
It becomes 4 times, so interest = 3 × principal.
T = 3 × 100 / 10 = 30 years.
Answer: (B) 30 years
Find the compound interest on Rs. 20,000 for 1 year at 20% per annum, compounded half-yearly.
Solution
Half-yearly: rate 10% per half-year, 2 periods.
Amount = 20000 × (1.10)² = 24,200; CI = 4200.
Answer: (D) Rs. 4200
What is the simple interest on Rs. 5000 at 5% per annum for 5 years?
Solution
SI = P × R × T / 100 = 5000 × 5 × 5 / 100 = 1250.
Answer: (A) Rs. 1250
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