Last Updated: 1 February 2023
The concepts of Money Lending, Money Borrowing, and Additional Money to be Paid or to Receive should be clear to everyone.
The chapter on Simple Interest and Compound Interest has all these important concepts and solves many real-life problems and helps us to handle carefully our hard earn money.
In this article, You will learn about many important concepts such as:
- Simple Interest
- Compound Interest, etc
Important Things To Keep In Mind While Solving SI And CI
- While calculating the Time Period between two dates, the day on which money is Borrowed is not counted for interest but the day on which money is Returned is counted
- Divide by 365 for converting Days into Years
- Amount= Principal + Interest
- Simple Interest= (PxRxT)/100
- Compound Interest= Final Amount – Original Principal
- Compound Interest can be compounded Annually, Half Yearly and Quarterly
Simple Interest And Compound Interest MCQs
1. What will be the Sum if Simple Interest is ₹x at x% for x years?
2. What is the Capital of a Money Lender if the Rate of interest falls from 13% p.a to 12½% p.a and his yearly income diminishes by ₹104?
3. Akshay lends a Sum of money for 10 years at 5% Simple Interest. Bobby lends double that Amount for 5 years at the same Rate of interest. Which statement is true?
a) Akshay and Bobby will get the same Amount as Interest
b) Akshay will get twice the Amount of Interest that Bobby would get
c) Bobby will get twice the Amount of Interest that Akshay would get
d) Akshay will get Thrice the Amount of Interest that Bobby would get
4. If ₹64 Amount to ₹83.20 in 2 years, what will ₹86 Amount to in 4 years at the same Rate percent per annum?
5. What is the Sum that Amounts to ₹840 in 5 Years at the rate of 8% per annum Simple Interest?
6. How much time will be required for a Sum of money to double itself at 61⁄4% per annum Simple Interest?
a) 12 Years
b) 6 Years
c) 16 Years
d) 24 Years
7. If a Sum of money is loaned at Simple Interest, then the
(i) Money gets doubled in 5 years if the rate of interest is 20% per annum
(ii) Money gets doubled in 5 years if the rate of interest is 162⁄3% per annum
(iii) Money becomes 4 times in 10 years if it gets doubled in 5 years
a) (i) and (ii) are correct
b) (ii) is correct
c) (i) is correct
d) (ii) and (iii) are correct
8. ₹800 Amounts to ₹920 in 3 years at Simple Interest. If the interest rate is increased by 3%, what would it amount to?
9. Dharmik borrowed ₹720 from Amal at 8% Simple Interest for 3 years and lent the same Sum to Kamal at 101⁄2% Simple Interest for 2 years. In the whole transaction of Dharmik what happened?
a) Gained ₹21.60
b) Lost ₹21.60
c) Neither Gained nor Lost
d) None of the above
10. Rahul lent ₹6,000 to Martin for 2 years and ₹1500 to Ali for 4 years and received altogether from both ₹900 as Simple Interest. What is the rate of interest?
a) 4.5% p.a
b) 7% p.a
c) 10% p.a
d) 5% p.a
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11. Simple Interest on a Sum at 121⁄2% per annum for 2 years is ₹256. What is the Compound Interest on the same Sum at the same Rate and for the same period?
12. What is the difference between Simple Interest and the Compound Interest on ₹600 for 1 year at 10% per annum that is reckoned half-yearly?
13. What is the Compound Interest on ₹540 at 162⁄3% per annum for 2 years?
14. Out of a Sum of ₹625, a part was lent at 5% and the other at 10% Simple Interest. If the interest in the first part after 2 years is equal to the interest in the second part after 4 years. What is the second Sum?
15. A Sum of ₹2,500 is lent out in two parts, one at 12% and another one at 121⁄2%. What is the money lent at 12% if the total Annual Income is ₹306?
16. Two equal Sums of money are deposited in two banks, each at 15% per annum for 31⁄2 years and 5 years. If the difference between their interest is ₹144. What is the Sum?
17. In what time will the Simple Interest on ₹780 at 5% be equal to the Simple Interest on ₹600 at 61⁄2%?
b) After every 2 years
c) After every 21⁄2 years
d) After every year
18. A Sum of money becomes 8/5 of itself in 5 years at a certain rate of interest. What is the rate% per annum?
19. If S.I and C.I denote Simple Interest and Compound Interest respectively on the same sum at the same rate of interest for the same period. What is the relation between S.I and C.I?
a) C.I < S.I
b) C.I ≥ S.I
c) C.I = S.I
d) C.I ≤ S.I
20. If Compound Interest compounded annually on a Sum of money at a certain rate of interest for “n” years is equal to the Simple Interest on the same Sum at the same rate for the same period. What is “n”?
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21. Principal + Interest =?
b) Simple Interest
22. The basic difference between Simple Interest and Compound interest is that in Simple Interest the ______ remains the same throughout the loan period while in Compound Interest it varies.
23. What is the formula of Compound Interest?
a) C.I = P x R x T/100
b) C.I = 100/P x R x T
c) C.I = Original Amount – Final Amount
d) C.I = Final Amount – Original Amount
24. What is the Simple interest on $73,000 for 65 days at 63⁄4% per annum?
25. What is the Amount on ₹1625 for 2 years 8 months at 71⁄2% per annum?
26. What is the Simple Interest on ₹6240 at 62⁄3% per annum for the period from December 28, 2011 to May 22, 2012?
27. How many years will it take ₹1200 to Amount to ₹1726.50 at 93⁄4% per annum Simple Interest?
a) 31⁄2 Years
b) 41⁄2 Years
c) 51⁄2 Years
d) 61⁄2 Years
28. What is the time taken by the Simple Interest on a certain Sum of money at 71⁄2% per annum be 3/8 of itself?
a) 7 Years
b) 8 Years
c) 4 Years
d) 5 Years
29. At what Rate% per annum will ₹1620 Amount to ₹1962 in 3 years 2 months?
30. Simple Interest on a certain Sum is 4/9 of the Sum. What is the Rate% if both Time and Rate are numerically equal?
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31. What Sum will Amount to ₹5556 in 2 years 4 months at 63⁄4% per annum Simple Interest?
32. What Sum will Amount to ₹5916 in 3 years and to ₹6960 in 5 years at Simple Interest?
33. If the Simple Interest on a certain Sum for 15 months at 71⁄2% per annum exceeds the Simple Interest on the same Sum for 8 months at 121⁄2% per annum by ₹32.50. What is the Sum?
34. If we divide ₹8000 into two parts such that if one part is lent at 71⁄2% per annum for 2 years and the other part at 8% per annum for 3 years, the total interest received is ₹1416. How much is the First Part and the Second Part?
a) First Part:₹5300 Second Part:₹2700
b) First Part:₹5400 Second Part:₹2600
c) First Part:₹5500 Second Part:₹2500
d) First Part:₹5600 Second Part:₹2400
35. At what Rate% per annum, Simple Interest will a Sum treble itself in 15 years?
36. What is the Compound Interest on ₹5,000 at 6% per annum for 3 years Compounded annually?
37. What is the Compound Interest on ₹6500 fr 2 years Compounded annually, the rate of interest being 5% per annum during the first year and 6% per annum during the second year?
38. Mr. Andrew borrowed ₹21,600 for 3 years at 162⁄3% Compounded annually while Mr. Benson borrowed the same Amount at Simple Interest for the same period and at the same rate of interest. Who Pays more and how much?
a) Mr. Andrew Pays less than Mr. Benson
b) Mr. Andrew and Mr. Benson pay same: ₹1900
c) Mr. Benson Pays More: ₹1900
d) Mr. Andrew Pays More: ₹1900
39. What is the Compound Interest after “n” year?
40. If the Amount of ₹25,000 after 2 years Compounded Annually is ₹29,430. Rate is 8% per annum during the first year and 9% per annum during the second year. What is the Compound Interest after 2 years?
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41. A computer is bought for ₹1,80,400. What is the value after 2 years if its value depreciates at the rate of 10% per annum?
42. The population of a certain town was 45,56,525 in the year 2015. It increases at a rate of 8% every year. What was its population in the year 2013?
43. What is the Amount when Interest is Compounded Half-Yearly?
44. What is the Compound Interest on ₹1,25,000 at 12% per annum for 11⁄2 years, compounded half-yearly?
45. What is the Compound Interest on ₹1,60,000 at 10% per annum for 2 years Compounded half-yearly?
46. What is the Amount when interest is Compounded Quarterly?
47. What is the Compound Interest on ₹20,000 at 12% per annum for 6 months Compounded Quarterly?
48. Amount – Principal =?
a) Compound Interest
b) Simple Interest
c) Simple Interest %
49. What is the Compound Interest on ₹1,28,000 for 9 months at 10% per annum Compounded Quarterly?
50. Daniel started a shop by investing ₹50,000 and gained 4% during the first year, 5% during the second year, and 10% during the third year. What will be his Capital Amount at the end of 3 years?
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51. A car is purchased for ₹3,48,000 and its value depreciates at 10% per annum during the first year and at 20% per annum during the second year. What will be its value after 2 years?
52. A mango tree of height 125 cm was planted 3 years ago. If it increases at the rate if 20% per annum, what is its present height?
a) 216 cm
b) 261 cm
c) 195 cm
d) 185 cm
53. If the Principal Amount equals ₹8600 and Time taken from 18th October 2016 to 13th March 2017 at 8% per annum. What is the Simple Interest?
54. Ashish lent ₹10,500 to Sunidhi at 7% per annum Simple Interest. After 5 years Sunidhi discharged the debt by giving a Bracelet and ₹13,000 in cash. What is the value of the Bracelet?
55. At what Rate% per annum will the Simple Interest on ₹6720 be ₹1911 in 3 years 3 months?
56. What Sum will yield ₹406 as Simple Interest in 1 year 2 months at 61⁄4% per annum?
57. What Sum of money lent at 121⁄2% per annum will produce the same interest in 4 years as ₹8560 produces in 5 years at 12% per annum?
58. At what Rate% of Simple Interest will a Sum of money double itself in 12 years?
59. William lends ₹2500 to James and a certain Sum to Oliver at the same time at 7% per annum Simple Interest. If after 4 years, William altogether receives ₹1120 as interest from James and Oliver. What is the Sum lent to Oliver?
60. A Sum of money invested at 6% p.a Simple Interest for a certain period of time yields ₹960 as interest. What will be the Sum if it had been invested for 5 years more, it would have yielded ₹2160 as interest?
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61. A person lent out ₹16,000 on Simple Interest and the same Sum on Compound Interest for 2 years at 121⁄2%per annum. What is the ratio of the Amount received by him as interest after 2 years?
a) 21 : 17
b) 16 : 17
c) 14 : 17
d) 17: 16
62. Karim took a loan of ₹25,000 from Corporation Bank at 12% per annum compounded annually. How much amount will he pay at the end of 3 years?
63. What is the Amount on ₹2500 for 2 years compounded annually where the rate of interest is 6% during the first year and 8% during the second year?
64. Naveen and Praveen borrowed ₹42,000 and ₹55,000 for 31⁄2 years at the same rate of interest. If Praveen has to pay ₹3640 more than Naveen, what is the rate of interest?
a) 6% p.a
b) 7% p.a
c) 8% p.a
d) 9% p.a
65. Two equal Sums of money were lent at Simple Interest at 11% p.a for 31⁄2 years and 41⁄2 years. If the difference in interest for two periods was ₹412.50. What is the Sum?
66. What is the Time required for a Sum of money lent at 81⁄3% Simple Interest becomes 4 times of itself?
a) 14 Years
b) 26 Years
c) 42 Years
d) 36 Years
67. The present population of a village is 1,76,400. If the population increases at the rate of 5% per annum what will be its population after 2 years?
68. Two years ago the population of a town was 10,000. During the first year, it increased at the rate of 5% per annum and during the second year, it increased at the rate of 6% per annum. What is the present population?
69. Ramesh borrowed ₹16,000 at 71⁄2% per annum Simple Interest and lent it to Mahesh on the same day at the same rate but Compounded Annually. How much does he gain at the end of 2 years?
70. If we are to divide a Sum of ₹13,500 into two parts such that if one part is lent as 81⁄3% per annum for 2 years 9 months and the other at 71⁄2% per annum for 1 year 8 months. What are the two parts if the total interest received is ₹2375?
a) ₹6,500 and ₹7,000
b) ₹6,600 and ₹6,900
c) ₹6,300 and ₹7,200
d) ₹6,700 and ₹6,800
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