Simple Interest, Compound Interest - Question Bank

1. If the simple interest on a sum for 2 years is Rs. 1000 and the compound interest on the same sum for 2 years is Rs. 1050, find the principal.
A) Rs. 10000
B) Rs. 12500
C) Rs. 15000
D) Rs. 20000
2. The difference between the compound interest and simple interest on Rs. 5000 for 2 years is Rs. 50. The rate of interest is:
A) 5%
B) 10%
C) 15%
D) 20%
3. A sum of money at compound interest becomes three times in 3 years. In 9 years it will be how many times itself?
A) 9 times
B) 12 times
C) 27 times
D) 81 times
4. If Rs. 64000 is invested at 5% per annum compound interest, the interest for the first year is Rs. 3200. What is the interest for the second year?
A) Rs. 3200
B) Rs. 3360
C) Rs. 3500
D) Rs. 3600
5. A sum of money doubles itself in 10 years at simple interest. In how many years will it become 4 times itself?
A) 15 years
B) 20 years
C) 25 years
D) 30 years
6. What is the difference between the compound interest and simple interest on Rs. 1000 for 3 years at 5% per annum?
A) Rs. 75.625
B) Rs. 76.25
C) Rs. 150
D) Rs. 155
7. A sum of money lent at simple interest amounts to Rs. 756 in 2 years and Rs. 1080 in 5 years. The rate of interest per annum is:
A) 10%
B) 15%
C) 20%
D) 25%
8. If the SI on a sum is Rs. 2500 for 5 years, what is the CI on the same sum for 2 years at the same rate?
A) Rs. 1000
B) Rs. 1020
C) Rs. 2000
D) Rs. 2020
9. A sum of money becomes double in 10 years at compound interest. What is the rate of interest?
A) 5%
B) 7.18%
C) 10%
D) 12.5%
10. What is the difference between the compound interest and simple interest on Rs. 5000 for 3 years at 10% per annum?
A) Rs. 1550
B) Rs. 155
C) Rs. 550
D) Rs. 55
11. A sum of money becomes Rs. 1320 in 2 years and Rs. 1440 in 3 years at simple interest. The rate of interest is:
A) 5%
B) 6%
C) 7.5%
D) 10%
12. If the SI on a sum of money is Rs. 300 for 2 years, and the CI on the same sum for 2 years is Rs. 315, find the principal.
A) Rs. 3000
B) Rs. 3500
C) Rs. 3750
D) Rs. 4000
13. A sum of money doubles in 4 years at simple interest. In how many years will it become 5 times?
A) 12 years
B) 14 years
C) 16 years
D) 18 years
14. What is the difference between the CI and SI on Rs. 2500 for 2 years at 4% per annum?
A) Rs. 10
B) Rs. 20
C) Rs. 40
D) Rs. 100
15. If Rs. 8000 amounts to Rs. 10000 in 3 years at simple interest, what is the amount after 6 years?
A) Rs. 12000
B) Rs. 12500
C) Rs. 13000
D) Rs. 14000
16. The simple interest on a certain sum for 3 years at a certain rate is Rs. 225. The compound interest on the same sum for 2 years at the same rate is Rs. 150. Find the rate of interest.
A) 5%
B) 10%
C) 12.5%
D) 15%
17. A sum of money placed at compound interest doubles itself in 5 years. It will be 8 times itself in:
A) 10 years
B) 15 years
C) 20 years
D) 25 years
18. What is the compound interest on Rs. 5000 for 2 years at 4% per annum, the interest being compounded semi-annually?
A) Rs. 400
B) Rs. 408
C) Rs. 410
D) Rs. 416
19. In how many years will a sum of Rs. 3000 become Rs. 3300 at 5% simple interest per annum?
A) 1 year
B) 1.5 years
C) 2 years
D) 2.5 years
20. The population of a town increases by 10% annually. If its present population is 24200, what was its population 2 years ago?
A) 20000
B) 21000
C) 22000
D) 23000
21. A sum of money triples itself in 8 years at simple interest. In how many years will it become 7 times itself?
A) 16 years
B) 20 years
C) 24 years
D) 28 years
22. If Rs. 1200 is invested at 10% per annum compound interest, the interest for the third year is:
A) Rs. 120
B) Rs. 132
C) Rs. 145.20
D) Rs. 157.30
23. A sum of money lent out at simple interest amounts to Rs. 720 in 2 years and to Rs. 1020 in a further period of 5 years. The sum is:
A) Rs. 600
B) Rs. 500
C) Rs. 700
D) Rs. 650
24. What is the annual rate of simple interest at which Rs. 5000 will become Rs. 6000 in 4 years?
A) 4%
B) 5%
C) 6%
D) 7%
25. If a sum of money becomes double in 7 years at compound interest, in how many years will it become 4 times?
A) 7 years
B) 14 years
C) 21 years
D) 28 years
26. The difference between the compound interest and simple interest on Rs. 10000 for 2 years at 5% per annum is:
A) Rs. 25
B) Rs. 50
C) Rs. 100
D) Rs. 250
27. A sum of money at compound interest doubles itself in 5 years. In how many years will it become 8 times itself?
A) 10 years
B) 15 years
C) 20 years
D) 25 years
28. If the Simple Interest on a sum for 2 years is Rs. 200 and the Compound Interest for the same period is Rs. 210, what is the rate of interest?
A) 5%
B) 10%
C) 15%
D) 20%
29. In what time will Rs. 1000 amount to Rs. 1331 at 10% per annum compounded annually?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
30. A sum of money becomes Rs. 15000 in 5 years and Rs. 17500 in 10 years at Simple Interest. What is the Principal?
A) Rs. 12500
B) Rs. 10000
C) Rs. 11000
D) Rs. 13000
31. If a sum doubles itself in 10 years at Simple Interest, in how many years will it triple itself?
A) 15 years
B) 20 years
C) 25 years
D) 30 years
32. What is the difference between CI and SI for 3 years on a sum of money at R% p.a.?
A) P * (R/100)^2 * (3 + R/100)
B) P * (R/100)^3
C) P * (R/100)^2
D) P * R * T / 100
33. If the difference between CI and SI for 2 years on a sum of money at R% p.a. is Rs. X, what is the formula for the Principal (P)?
A) P = X * (100/R)^2
B) P = X * (R/100)^2
C) P = X * (100/R)
D) P = X / (100/R)^2
34. What is the difference between Compound Interest (CI) and Simple Interest (SI) for 2 years?
A) CI - SI = P * (R/100)^2
B) CI - SI = P * R * T / 100
C) CI - SI = P * (R/100)
D) CI - SI = 0
35. If P = Rs. 10000, R = 8% p.a., and T = 1 year, compounded quarterly, what is the Compound Interest (CI)?
A) Rs. 800
B) Rs. 824
C) Rs. 810
D) Rs. 832
36. When interest is compounded quarterly, the rate of interest per quarter is:
A) R/4
B) R/2
C) 4R
D) R
37. If P = Rs. 20000, R = 10% p.a., and T = 1 year, compounded half-yearly, what is the Amount (A)?
A) Rs. 22000
B) Rs. 21000
C) Rs. 20100
D) Rs. 23000
38. If interest is compounded half-yearly for a period of T years at a rate R% per annum, how many compounding periods are there?
A) T
B) 2T
C) T/2
D) 4T
39. When interest is compounded half-yearly, the rate of interest is:
A) Doubled
B) Halved
C) Remains the same
D) Tripled
40. What is the formula for calculating Compound Interest (CI)?
A) CI = P * R * T / 100
B) CI = A - P
C) CI = P * (1 + R/100)^T
D) CI = P + A
41. If P = Rs. 8000, R = 5% p.a., and T = 2 years, calculate the Compound Interest (CI) compounded annually.
A) Rs. 800
B) Rs. 820
C) Rs. 1600
D) Rs. 1640
42. What does 'R' represent in the compound interest formula A = P * (1 + R/100)^T?
A) Time Period
B) Principal Amount
C) Rate of Interest per annum
D) Total Amount
43. What is the formula for calculating the Amount (A) in Compound Interest, compounded annually?
A) A = P * (1 + R/100)^T
B) A = P * (1 - R/100)^T
C) A = P + (P * R * T / 100)
D) A = P / (1 + R/100)^T
44. In compound interest, interest is calculated on:
A) Only the principal amount
B) The principal amount and the accumulated interest of previous periods
C) A fixed portion of the principal
D) The total amount at the end of the term
45. Calculate the Amount (A) if P = Rs. 10000, R = 10% p.a., and T = 3 years (Simple Interest).
A) Rs. 13000
B) Rs. 10000
C) Rs. 3000
D) Rs. 11000
46. If the Principal (P) is Rs. 5000, the Rate (R) is 5% per annum, and the Time (T) is 2 years, what is the Simple Interest (SI)?
A) Rs. 500
B) Rs. 1000
C) Rs. 250
D) Rs. 5000
47. What is the formula for calculating the Amount (A) in Simple Interest?
A) A = P * R * T
B) A = SI / (P * R * T)
C) A = P + SI
D) A = P - SI
48. If a sum of money is invested at a certain rate of simple interest, the interest earned each year is:
A) Increasing
B) Decreasing
C) Constant
D) Fluctuating
49. In the formula for Simple Interest, SI = (P * R * T) / 100, what does 'P' represent?
A) Rate of Interest
B) Time Period
C) Principal Amount
D) Simple Interest
50. What is the formula for calculating Simple Interest (SI)?
A) SI = (P * R * T) / 100
B) SI = P * (1 + R/100)^T
C) SI = A - P
D) SI = P * R * T