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Simple Interest / Compound Interest - Quantitative Aptitude Questions with Answers

Questions

Important Formulas

P = Principal

R = Rate of Interest

N = Number of years

SI(Simple Interest) = P x N x R/100

CI(Compound Interest) = P(1 + R/100)n

1 Find the simple interest of Rs.14000 at 10% per annum for 3 months ?
A 300
B 350
C 380
D 400

Answer: Option [B]

The formula to calculate simple interest is :

SI=(P x T x R)/100

In the given question Principal(P)=Rs. 14000, Time(T)=(3/12)yr. and Rate of interest(R)=10%

So, SI=(14000 x 1/4 x 10)/100

=SI= Rs. 350

2 In what time will a sum double itself at 7% per annum simple interest ?
A 14.28 Yr
B 13 Yr
C 12.5 Yr
D 11 Yr

Answer: Option [A]

Let the initial amount be Rs. 100

It will be double. That means Rs. 200

The simple will be Rs. (200-100)= Rs. 100

We can calculate the time from the formula given below :

T=(SIx100)/(PxR)

T=(100x100)/(100x7)

T=14.28 Yr

3 At what rate will a sum increase by 40% in 2 Yr at SI ?
A 18%
B 20%
C 22%
D 25%

Answer: Option [B]

Let the initial amount be Rs.100

After 2 Yrs. the sum will be Rs.140

Calculated SI is Rs.40

Now we can calculate the rate of interest from the formula given below :

R=(SIx100)/(PxT)

R=(40x100)/(100x2)

R=20%

4 What would be the compound interest accrued on an amount of ₹ 16500 @ 14% per annum at the end of 2 years?
A ₹ 4120.50
B ₹ 4943.40
C ₹ 5200.54
D ₹ 6928.11

Answer: Option [B]

P = ₹ 16500

R% = 14% per annum

n = 3years

A = p(1+R/100)n

A = 16500(1+14/100)2

A = ₹ (16500 x 114/100 x 114/100)

A = ₹ 21443.4

CI = ₹ (A - P)

CI = ₹ (21443.40-16500.00)

CI = ₹ 4943.40

5 The simple interest obtained on an amount of ₹ 45000 at the end of 4 yr is ₹ 15300. What would be the approximate compound interest obtained on the same amount at the same rate of interest in the same period?
A ₹ 18244
B ₹ 19500
C ₹ 17363
D ₹ 18566

Answer: Option [C]

SI = ₹ 15300

P = ₹ 45000

T = 4 yrs.

R% = (SIx100/PxT)

R% = (15300x100/45000x4)

R% = 8.5% per annum

Now we can calculate the Compound interest from above data.

CI(compound interest) = A-P

Now we calculate A = P(1+R/100)n

A = 45000(1+8.5/100)4

A = ₹ 62363

CI = A - P

CI = ₹ (62363 - 45000)

₹ 17363

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