SIMPLE AND COMPOUND INTEREST

Class Work
1. The difference between simple interest and compound interest on Rs.1200 for one year at
10% per annum reckoned half-yearly is
a) 2.50 b) 3 c) 3.75 d) 4
2. A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.
482 more, if the interest was payable half-yearly than if it was payable annually. The sum is
a) 10000 b) 20000 c) 40000 d) 50000
3. The simple interest on Rs.10 for 4 months at the rate of 3 paise per rupee per month is
a) 1.20 b) 1.60 c) 2.40 d) 3.60
4. If the compound interest on a sum for 2 years at 12.5 % per annum is Rs. 510, the simple
interest on the same sum at the same rate for the same period of time is:
a) 400 b) 450 c) 460 d) 480
5. What sum of money will accumulate to Rs.5300 at 8% rate of interest in 9 months?
a) 5000 b) 5400 c) 4500 d) 4000
6. The present worth of Rs.1404 due in two equal half-yearly instalments at 8% per annum
simple interest is:
a) 1325 b) 1300 c) 1350 d) 1500
7. Two equal sums of money were invested, one at 4% and the other at 4.5%. At the end of 7
years, the simple interest received from the latter exceeded to that received from the former
by 31.50. Each sum was:
a) 1200 b) 600 c) 750 d) 900
8. What is the difference between the compound interests on Rs. 5000 for 1 1/2 years at 4%
per annum compounded yearly and half-yearly?
a) 2.04 b) 3.06 c) 4.80 d) 8.30
9. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 % p.a. in 5 years. What
is the sum?
a) 4462.50 b) 8032.50 c) 8900 d) 8925
10. If the simple interest is 7% annual and compound interest is 6% annual, find the
difference between the interests after 4 years on a sum of Rs 2000.
a) 33.05 b) 32.5 c) 37.5 d) 35.05
11. The rate of compound interest at which a sum of Rs. 8000 amounts to Rs. 8820 in 2 years,
is:
a) 5% b) 4% c) 6% d) 7%
12. A certain sum of money at simple interest becomes Rs. 1062 in 2 years and Rs. 1183.50
in 3½ years. What is rate of interest per annum?
a) 7% b) 6% c) 9% d) 5%
13. If the simple interest on a sum at 4% per annum for 2 years is Rs. 80, then the compound
interest on the same sum for the same period is:
a) 86.80 b) 86.10 c) 88.65 d) 81.60
14. If the compound interest on a sum for a year at 12 % per annum is Rs. 255, the simple
interest on the same sum at the same rate for the same period of time is:
a) Rs 255 b) Rs 256 c) Rs 250 d) Rs 251
15. Paurush wants to invest some money in mutual funds; he requires 15000 to start with.
Paurush lends an amount of 62500 to his friend at a rate of 3%. How much time will it take to
earn an interest of 15000 from his friend?
a) 8 years b) 10 years c) 12 years d) 14 years
16. Avinash lent Rs.1200 to Bhanu for 4 years and Rs.200 to Chetan for 8 years and receives
all together Rs.180 from both as interest. Find the rate of interest.
a) 4% p.a b)2% p.a c)2.5% p.a d)3% p.a
17. A sum was put at simple interest at certain rate for 6years. Had it been put at 2% higher
rate it would have fetched Rs.36 more. The sum is:
a) Rs.600 b)Rs.210 c)Rs.220 d)Rs.2480
18. If an amount of Rs.25000 is deposited into a savings account at an annual interest rate of
5%, compounded quarterly, the value of the investment after a year can be calculated as
follows
a) Rs.26355.63 b) Rs.26273.63 c) Rs.25200.63 d) Rs.27546.63
19. Neha invested Rs 25000 in her uncles business who promised her to give interest at the
rate of 12% what will be the amount of interest will she have after 5 years ?
a) 10000 b) 15550 c) 14050 d) 15000
20. Jignesh gets an amount of Rs 30000 in a span of 4years and further to Rs 35000 in a span
of 6years at SI. Find the sum?
a) 20000 b) 25000 c) 25500 d) 15000
21. Nitin borrowed some money at the rate of 6 % p.a. for the first three years, 9% p.a. for the
next five years and 13% p.a. for the period beyond eight years If the total interest paid by him
at the end of eleven years is 8160, how much money did he borrow?
a) 8000 b) 10000 c) 12000 d) Data inadequate
22. Mr.Thomas invested an amount of Rs.13900 divided in two different schemes A and B at
the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple
interest earned in 2 years be Rs.3508, what was the amount invested in scheme B?
a) 6400 b) 6500 c) 7200 d) 7500
23. A father left a will of 68000 to be divided between his two sons aged 10 years and 12
years such that they may get equal amount when each attains the age of 18 years. If the
money is reckoned at 10% p.a. Find how much each gets at the time of the will.
a) 30000, 38000 b) 28000, 40000 c) 32000, 36000 d) Cannot be determined
24. If there are three sum of money P,Q and R so that P is the simple interest of Q and Q is
the simple interest of R, rate r% and the time are same in each case, then the relation of P,Q
and R is given by
a) P2= QR b) Q2 = PR c) R2 = PQ d) PQR = 100
25. Out of a certain sum, 1/3rd is invested at 3%, 1/6th at 6% and the rest at 8%. If the simple
interest for 2 years from all these investments amounts to 600, find the original sum.
a) 4000 b) 5000 c) 6000 d) 7000
 Home Assignment
1. What is the interest earned on RS.1000 for 2 years at 10% per annum compound interest,
compounded annually? (in Rs.)
a) 210 b) 420 c) 315 d) 630
2. If Rs.2000 amounts to Rs.2200 in 2 years under simple interest, what is the rate of interest
per annum?
a) 15% b) 10% c) 5% d) 20%
3. If Rs.20000 amounts to Rs.24200 in 2 years under compound interest, compounded
annually, what is the rate of interest per annum?
a) 10% b) 20% c) 15% d) Cannot be determined
4. What is the interest earned in the first year on Rs.200 at 10% per annum compound
interest" interest compounded every 6 months?
a) Rs. 20 b) Rs. 20.50 c) Rs. 25 d) Rs. 23.20
5. The interest for the third year on a certain sum under a certain rate of simple interest is
Rs.2000, What is sum of the interests accrued on in the seventh, eighth and the ninth years?
a) Rs.6000 b) Rs.6300 c) Rs.6450 d) Rs.6600
6. A certain sum under' compound interest, compounded annually, amounts to Rs.5500 in
five years and RS.6050 in six years. What is the rate of interest?
a) 12.5% b) 15% c) 20% d) 10%
7. A certain sum doubles in 7 years under compound interest, compounded annually, In how
many years will the sum becomes four times itself?
a) 14 b) 21 c) 28 d) None of these
8. A certain sum doubles in 7 years under simple interest. In how many years will the sum
become four times itself?
a) 14 b) 21 c) 28 d) None of these
9. What is the present value of Rs.1500 due after 5 years at 10% p.a. simple interest?
a) Rs.1400 b) Rs.1200 c) Rs.1100 d) Rs.1000
10. A sum of money lent out at simple interest amounts to 720 after 2 years and to 1020 after
a further period of 5 years. Find the sum and the rate %.
a) 500, 10% b) 600, 10% c) 500, 12% d) 600, 12%
11. A sum was put at simple interest at a certain rate for 4 years. Had it been put at 2% higher
rate, it would have fetched 56 more. Find the sum.
a) 500 b) 600 c) 700 d) 800
12. In how many minimum number of complete years, the interest on 212.50 P at 3% per
annum will be in exact number of rupees?
a) 6 b) 8 c) 9 d) 7
13. A milk man borrowed 2500 from two money lenders. For one loan, he paid 5% p.a. and
for the other, he paid 7% p.a. The total interest paid for two years was 275. How much did he
borrow at 7% rate?
a) 600 b) 625 c) 650 d) 675
14. A certain amount earns simple interest of 1750 after 7 years. Had the interest been 2%
more, how much more interest would it have earned?
a) 35 b) 245 c) 350 d) Cannot be determined
15. What will be the ratio of simple interest earned by certain amount at the same rate of
interest for 6 years and that for 9 years?
a) 1:3 b) 1:4 c) 2:3 d) Data inadequate