Simple and Compound Interest Questions for CMAT 2022 – Download PDF

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Question 1: The present worth of Rs. 2809 due 2 yr hence at 6% per annum, is

a) Rs. 2100

b) Rs. 2600

c) Rs. 2400

d) Rs. 2500

e) None of these

Question 2: If a sum of money at simple interest doubles in 6 years, it will become 4 times in

a) 17 years

b) 15 years

c) 16 years

d) 18 years

e) None of these

Question 3: The compound interest on Rs.10240 at 6 1/4% per annum for 2 yr 73 days is

a) Rs. 1464.50

b) Rs. 1664.50

c) Rs. 1480

d) Rs. 1580.50

e) None of these

Instructions

Directions for the next five questions: Study the following table carefully to answer the questions.
Rate of interest (pcpa) offered by five companies on deposits under different schemes

<img “=”” alt=”” class=”img-responsive” src=”https://cracku.in/media/radpress/entry_images/5484.png “/>

Question 4: Company D offers compound interest under scheme II and Simple Interest under Scheme IV. Abhijt invested Rs. 25000 with this company under Scheme IV and after one year switched to Scheme II along with the interest for one more year. What is the total amount he will get at the end of two years?

a) Rs. 28939.25

b) Rs. 29838.75

c) Rs. 31748.25

d) Rs. 31738.75

e) None of these

Question 5: Company E offers compound interest under Scheme I and Company A offers simple interest under scheme IV. What will be the difference between the interest earned under Scheme I of company E and Scheme IV of company A respectively in two years on an amount of Rs. 1.2 lakh?

a) Rs 1428

b) Rs. 1328

c) Rs. 1528

d) Rs. 1548

e) None of these

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Question 6: Mr. X deposited an amount in Scheme II with company C for two years. After that he withdrew the amount and reinvested only the principal amount in scheme IV of Company B for two years. Total amount of simple interest accrued from the two schemes is Rs. 14800. What was the principal amount?

a) Rs. 48000

b) Rs. 42000

c) Rs. 40000

d) Can’t be determined

e) None of these

Question 7: Vinod borrows money from Shyam at compound interest compounded annually at 25% per annum. If Vinod repays the money with installments of Rs.625 each year for 4 years, then what is the amount he has borrowed from Shyam ?

a) Rs. 2500

b) Rs. 1476

c) Rs. 900

d) Rs. 644

e) Rs. 1820

Question 8: The compound interest on a certain sum of money for a period of 3 years at 10% per annum is Rs 331. Find the principal.

a) Rs 500

b) Rs 1500

c) Rs 1000

d) Rs 2000

e) None of the above

Question 9: Find the compound interest accrued over three years on a principal amount of 40000 at the rate of 20% per annum.

a) 29120

b) 18640

c) 32120

d) 24680

e) 36440

Question 10: What is the compound interest obtained on Rs. 1600 in two years at an interest rate of 12.5% p.a ?

a) Rs. 425

b) Rs. 400

c) Rs. 450

d) Rs. 430

e) Rs. 420

Question 11: The difference between the simple interest and compound interest on a sum of money borrowed for 2 years at 10% per annum is Rs 500. Find the sum of money borrowed.

a) Rs 55000

b) Rs 50000

c) Rs 45000

d) Rs 40000

e) None of the above

Question 12: The simple interest accrued in 2 years on a principal of Rs. 24000 is one-eighth of the principal. What is the rate of simple interest p.c.p.a. ?

a) 5

b) 4.5

c) 6.25

d) 7.25

e) None of these

Question 13: Find the compound interest accrued on a principal amount of Rs 45000 at the rate 20% per annum for two years.

a) 18600

b) 19100

c) 19800

d) 20500

e) 21600

Question 14: An amount of 20,000 is invested in a mutual fund named Funds-R-us that calculates compound interest semiannually at 8% pa. What will be the interest obtained in 1.5 years?

a) 2155.09

b) 2497.28

c) 2355.09

d) 2455.09

e) None of the above

Question 15: Find the rate of interest if the principal doubles itself after 4 years at simple interest.

a) 15% p.a

b) 20% p.a

c) 25% p.a

d) 50% p.a

e) None of these

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Question 16: Find the simple interest offered by the bank on the principal of Rs 20,000 at the rate of 10% per annum for the time period of 3 years.

a) 4000

b) 5000

c) 6000

d) 7000

e) None of these

Question 17: If the difference between the compound interest and simple interest on a sum is Rs. 240 accrued in two years at the rate of 10 percent per annual, then what is the principal amount?

a) 48000

b) 35000

c) 24000

d) 12000

e) 10000

Question 18: What will be the simple interest accrued on an amount of Rs. 25000 with a rate of 20% for 3 years?

a) Rs. 19000

b) Rs. 16000

c) Rs. 17000

d) Rs. 18000

e) Rs. 15000

Question 19: If the amount Rs. 102300 is distributed among 33 children. What would be the difference in the amount that each child would have got had the number of children been 100?

a) 2385

b) 2077

c) 2763

d) 2173

e) 1984

Question 20: Mr. sharma deposits an amount of Rs. 50000 to obtain a simple interest at the rate of 12 p.c.p.a. for 4 years. What total amount will Mr. Sharma get at the end of 4 years?

a) 75000

b) 74000

c) 73000

d) 72000

e) 71000

Question 21: What amount of simple interest can be obtained on an amount of Rs. 30000 at the rate of 40% for 3 years?

a) 32000

b) 33000

c) 34000

d) 35000

e) 36000

Question 22: If the total amount, with simple interest incurred for 2 years on an amount of 15000 is Rs. 21000. What will be the rate of interest?

a) 10

b) 20

c) 30

d) 40

e) 50

Question 23: What is the ratio of the simple interest and compound interest on Rs. 2000 which is lent at an interest rate of 10% for two years?

a) 10:11

b) 4:5

c) 19:20

d) 20:21

e) 100:121

Question 24: What is the difference between compound interest and simple interest on an amount of Rs. 5000 with a rate of 40% for 2 years?

a) 1000

b) 2000

c) 300

d) 800

e) 1200

Question 25: What will be the simple interest on a principal amount of 15000 with a rate of 10% for 3 years?

a) 5000

b) 4500

c) 4000

d) 5500

e) 6000

Question 26: What will be simple interest on an amount of Rs. 1200 with 20% annual rate for 3 years?

a) 700

b) 720

c) 800

d) 850

e) 870

Question 27: Simple interest on a certain sum at 10% rate is 200 for 2 years. What will be the compound interest on the sum with a rate of 10% for 2 years?

a) 220

b) 210

c) 250

d) 300

e) 330

Question 28: What will be the simple interest on a principal amount of 10000 with an annual rate of 20% for a duration of 2 years?

a) 6000

b) 3000

c) 4000

d) 8000

e) 2000

Question 29: What is the amount to be paid at the end of 10 years on a sum of Rs 25000 borrowed at 8% p.a.?

a) Rs 45000

b) Rs 20000

c) Rs 30000

d) Rs 35000

e) Rs 40000

Question 30: What is the simple interest on a sum of Rs 30000 borrowed for 2 years at 5% p.a.?

a) Rs 2500

b) Rs 4000

c) Rs 2000

d) Rs 3000

e) None of the above

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Answers & Solutions:

1) Answer (D)

PW= Rs. ${2809/(1+6/100)^2 }$ = Rs. (2809×50/53×50/53) = Rs. 2500

2) Answer (D)

Let the sum be x. Then, S.I. =x.
∴ Rate = ((100×x)/(x×6))%=50/3%
Now, sum = x, S.I. = 3x, Rate = 50/3 %.
Time= (100×3x)/(x×50/3) = 18 years.

3) Answer (A)

P = Rs. 10240, R=25/4%, T = 2 years 73 days

A=$[10240\times(1+25/(4\times100))^2\times(1+73/365\times25/(4\times100))]$

= Rs. $[10240\times17/16\times17/16\times(1+1/80)]$ = Rs.$(10240\times17/16 \times17/16\times81/80)$ = Rs.11704.50

CI = Rs. (11704.50-10240) = Rs. 1464.50

4) Answer (B)

Interest for the first year = 25000 × 1x 9.5/100 = 2375

Hence amount obtained = 25000+2375 = 27375.

This amount is invested again on compound interest,

So interest obtained = 27375 × 1×9/100 = Rs. 2463.75

Hence the total amount = 27375+2463.75 = Rs. 29838. 75

5) Answer (A)

Scheme I of company E
CI = 120000 [(1+ 9/100)^2- 1]
= 120000 [((109×109)/(100×100)-1)]
= 120000 × 1881/10000 = Rs. 22572

Scheme IV of company A
SI = (120000×2×10)/100 = Rs. 24000
Difference = 24000 – 22572 = Rs. 1428

6) Answer (C)

Let principal amount be Rs. x.
(x×9×2)/100 + (x×9.5×2)/100 = 14800
or (0.18+0.19) = 14800
X = 14800/0.37 = Rs. 40000

7) Answer (B)

The formula for installments is :
P = $\frac{x}{1 + r/100} + \frac{x}{(1 + r/100)^2} + \frac{x}{(1 + r/100)^3}……\frac{x}{(1 + r/100)^n}$
thus, P = $\frac{625}{1 + 25/100} + \frac{625}{(1 + 25/100)^2} + \frac{625}{(1 + 25/100)^3} + \frac{625}{(1 + 25/100)^4}$
= 500 + 400 + 320 + 256
= Rs. 1476

8) Answer (C)

Let the principal be P.
So, amount = $P(1+10/100)^3$
Interest = $P(1+10/100)^3 – P$ = 331
From the options, if P = 1000,
$P(1.1)^3$ – P = 331
So, the principal is Rs 1000

9) Answer (A)

Compound Interest = $P(1 + \frac{r}{100})^n – P$
=> CI = $40000 *(1 + 0.2)^3$ – 40000
= (40000 * 1.728) – 40000
= 40000 * 0.728
= 728 * 40
= 29120

10) Answer (A)

The amount received after two years at a compounded rate of 12.5 % p.a is $1600*(1+12.5\%)^2 = 1600*\frac{112.5}{100}*\frac{112.5}{100} =2025$
So, the interest obtained on the principal equals 2025-1600 = Rs. 425

11) Answer (B)

Let the amount borrowed by P.

Simple Interest for the first year = P*1*10/100 = P/10

Simple interest for the second year = P/10

Total simple interest = P/5

Compound interest for the first year = P*1*10/100 = P/10

Principal for the second year = P + CI for first year = P + P/10 = 11P/10

CI for second year = 11P/10 * 1 * 10/100 = 11P/100

Total CI = P/10 + 11P/100 = 21P/100

Difference between CI and SI for the two years = 21P/100 – P/5 = P/100 = 500

=> Sum borrowed = 500*100 = Rs 50,000

12) Answer (C)

Let the rate be r.

SI = Prt/100 = P/8

r * 2 / 100 = 1/8

r = 50/ 8 = 6.25

13) Answer (C)

CI = $P(1+(\frac{r}{100})^n – P$
=> CI = $45000(1.2)^2 – 45000$ = 45000*0.44 = 19800

14) Answer (B)

The interest rate is 8% pa. So, semi annual interest is 4%. The amount after 1.5 years (3 time periods) is
20,000 x (1 + $ \frac {4}{100}) ^ {3}$ = 22,497.28
So, the interest = 22,497.28 – 20,000 = 2497.28 rupees

15) Answer (C)

SI = P*R*T/100
Let principal be x
If the principal doubles itself after 4 years, then SI = 2x-x = x
x = x*r*4/100
r = 25% p.a

16) Answer (C)

SI = P*R*T/100 = 20000*10*3/100 = Rs 6000

17) Answer (C)

As we know that, when difference in the compound interest and simple interest for 2 years with a rate equals to r% on a sum is x, then sum will be = $ x \times (\frac{100}{r})^{2} $
So sum = $ 240 \times (\frac{100}{10})^{2} $ = $ 240 \times 100 $ = 24000

18) Answer (E)

Simple Interest will be = $\frac{25000 \times 20 \times 3}{100}$ = Rs. 15000

19) Answer (B)

Amount received by each child = $\frac{102300}{33} = 3100$
If there were 100 children then the amount received by each child = 102300/100 = 1023
Hence the required difference = 3100 – 1023 = 2077
Thus option B is correct.

20) Answer (B)

Simple Interest = (50000)($\frac{12}{100}$)(4) = 24000
Total amount = 50000+24000 = 74000

21) Answer (E)

Simple interest = $(30000 \times \frac{40}{100} \times 3) = 36000$

22) Answer (B)

Simple interest = 6000 = $ 15000 \times \frac{r}{100} \times 2$ (Where r is the rate of interest)
Hence, r=20%

23) Answer (D)

The simple interest on Rs. 2000 for two years at 10% p.a is 2000*10%*2=Rs. 400
The compound interest on Rs. 2000 for two years at 10% p.a is 2000*(100%+10%)*(100%+10%) – 2000 = 2000*1.1*1.1 – 2000 = Rs. 420
Hence, the ratio is 400:420 = 20:21

24) Answer (D)

compound interest = 5000 – 5000(140/100)(140/100) = 4800
simple interest = 4000
Difference = 800

25) Answer (B)

Simple Interest = PRT/100
P=15000
R=10%
T=3 years
So simple interest will be = 4500

26) Answer (B)

Simple Interest = 1200*(20/100)*3 = 720

27) Answer (B)

Principal amount = 200*100/10*2= 1000
Compound Interest = 1000-1000*(110/100)*(110/100) = 210

28) Answer (C)

Simple interest will be = 10000*(20/100)*2 = 4000

29) Answer (A)

A = P + SI = P + PTR/100 = 25000 + 25000*10*8/100 = 45000
So, amount to be paid = Rs 45000

30) Answer (D)

SI = PTR/100 = 30000 * 2 * 5/100 = Rs 3000

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