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Simple and Compound Interest questions are a major type of questions asked in competitive exams. These questions carry a weightage of 1-2 questions (2-4 marks) in SSC exams and 1-2 questions in bank exams. To get a good rank in competitive exams, you should have a great practice of solving this type of questions as they are calculative and can cost you valuable seconds.

Here are some tips for solving Simple and Compound Interest questions: Clear the basic concepts, Use the appropriate formula as there are many different formulas, Practice with diverse examples to enhance calculation speed. Prioritize clarity and accuracy while solving, as mistakes can be costly and avoid get stuck in hefty calculations, instead use shortcuts and tricks.

So, we have attached 10 questions of Simple and Compound Interest for you to practice with. You should aim to solve these questions in less than half a minute for each.

<h2>Practice Questions on Simple and Compound Interest</h2>

You can also download the Simple and Compound Interest questions and answers pdf. Just click on the Download PDF button. So let&#39;s start with the very first question.

Q:1 A sum of Rs.1500 invested at a rate of 5% then find the total amount gained after 7 years.

1. Rs.2000

2. Rs.1300

3. Rs.1450

4. Rs.2025

(Difficulty: 2, Estimated Time: 15 Seconds) This was an easy one. Did get it right?

Q:2 Arush invested Rs. 25000 and Rs. 20000 at 12% and 16% per annum simple interest respectively for 2 years. Find the difference in simple interest obtained after 2 years from both schemes if the rates are interchanged for the 2nd year.

1. Rs. 1400

2. Rs. 1500

3. Rs. 2100

4. Rs. 2000

(Difficulty: 4, Estimated Time: 25 Seconds) It is not an easy one but I think now you&#39;re prepared for it.

Q:3 Danish invested a sum of Rs. 30000 in 2 parts at simple interest for 3 years and 4 years respectively. Rate of interest was 12% per annum for both parts. What is the sum invested for 4 years if total interest earned by him is Rs. 12780?

1. Rs. 17500

2. Rs. 13500

3. Rs. 15000

4. Rs. 16500

(Difficulty: 3, Estimated Time: 20 Seconds) This was not a simple one, don&#39;t get stuck in unnecessary calculations! 

Q:4 A man invested Rs. 9600 at the rate of 2R% per annum compounded semi-annually for 1 year and Rs. 4800 at the rate of 2R% per annum compounded annually for 2 years. If the man got Rs. 96 more interest on the amount invested for 2 years than the amount invested for 1 year, then find the value of R.

1. 5

2. 1

3. 15

4. 2

(Difficulty: 2, Estimated Time: 15 Seconds) Another piece of cake....Let&#39;s score more!

Q:5 Raman invests some amount of money in a simple interest scheme that offers 4% per annum interest for 1st year, 5% per annum interest for 2nd year, and 10 % per annum interest for 3rd year. If he gets Rs. 15708 at the end of 3 years then, what was the amount invested by him?

1. Rs. 14400

2. Rs. 13500

3. Rs. 13000

4. Rs. 13200

(Difficulty: 3, Estimated Time: 20 Seconds) We&#39;re halfway through. Have you got all your questions correct so far?

Q:6 A sum of money is invested at the rate of 20% per annum. If the difference of Compound interest and Simple interest for 3 years is Rs. 2240 then find the simple interest obtained by the same sum in 2 years at the rate of 15% per annum.

1. Rs. 5500

2. Rs. 5200

3. Rs. 5150

4. Rs. 5750

5. Rs. 2400

(Difficulty: 3, Estimated Time: 20 Seconds) Should we raise the level of questions?

Q:7 The rate at which a sum becomes four times of itself in 20 years at S.I. Now, if a amount of Rs 2270 is invested at this rate. What will be the S.I for the last quarter of second year?

1. 85.125

2. 90

3. 95.50

4. 88.75

(Difficulty: 2, Estimated Time: 15 Seconds) This is a common question! You might have done it in 10 seconds

Q:8 Jordan invested Rs 24,000 on Simple Interest in a scheme at the rate of 20%. The amount obtained at the end of 3 years was again invested semi-annually at the same rate on simple interest for 2 years. Find the total interest that Jordan received at the end of 5 years.

1. Rs. 29,760

2. Rs. 23,760

3. Rs. 39,760

4. Rs. 30,760

(Difficulty: 3, Estimated Time: 20 Seconds) The time is ticking. Hurry up!

Q:9 Due to the Covid-19 issue, the government started a scheme for lower-wage workers having income below Rs.10000 per month at a simple interest of 15% per annum. If Subhash, a lower-wage worker, invested Rs. 6000 in this scheme for a duration of 1 year 146 days, then find how much amount he will get in the end.

1. Rs. 7120

2. Rs. 7540

3. Rs. 7260

4. Rs. 6960

(Difficulty: 4, Estimated Time: 25 Seconds) Practice and get fast with your calculations!

Q:10 A person invests an equal amount of Rs.10,500 each in two schemes A and B  at compound interest. In scheme A, he invests the money for 2 years at a rate of 10% per annum and in scheme B, he invests for 3 years at a rate of 20% per annum. What is the sum of interest obtained from both the schemes?

1. Rs. 8949

2. Rs. 9489

3. Rs. 7489

4. Rs. 9849

(Difficulty: 3, Estimated Time: 20 Seconds) Did you guess them all correctly?

<h2>Answer Key</h2>

Let&#39;s check out your score in this test.

<table border="0" cellpadding="1" cellspacing="1">
	<tbody>
		<tr>
			<td>1. (4)</td>
			<td>2. (1)</td>
			<td>3. (4)</td>
			<td>4. (2)</td>
			<td>5. (4)</td>
		</tr>
		<tr>
			<td>6. (5)</td>
			<td>7. (1)</td>
			<td>8. (1)</td>
			<td>9. (3)</td>
			<td>10. (4)</td>
		</tr>
	</tbody>
</table>

Comment below your score, considering each question has 1 mark only. If you scored 8 to 10, congratulations! You are one step closer to selection. If you have scored 5 to 8 marks, then you are doing well, keep it up. If you have scored less than 5 marks then you need to work a little harder on this subject. But don&#39;t worry, we are here to help you master the subject.

Let&#39;s check the answers and solutions and try to find out what went wrong. 
 

<h2>Answers and Solutions</h2>

Q:1 The correct answer is option 3 i.e. Rs.2025

SI = (P × R × T)/100

= 1500 × 5 × 7 /100

= 15 × 5 × 7

= 525

Hence, Total gains = P + SI

= 1500 + 525

= Rs. 2025

 

Q:2 The correct answer is option 1 i.e. Rs. 1400.

In both schemes the interest is simple interest, so we can add the interest rate for both years to get the resultant interest rate.

Interest rate for both years combined = 12 + 16

⇒ 28%

As the interest rate is constant for both schemes, the interest difference would depend on the principals.

Simple interest = (Principal × rate of interest × time)/100

⇒ (5000 ×  28)/100

⇒ Rs 1400

 

Q:3  The correct answer is option 4 i.e. Rs. 16500

Suppose Danish invested Rs. X and Rs. (30000 – X) for 3 and 4 years respectively.

Rate = 12% per annum

Total interest = Rs. 12780

So, [X × 12 × 3]/100 + [(30000 – X) × 12 × 4]/100 = 12780

9X/25 + 14400 – 12X/25 = 12780

3X/25 = 1620

X = 13500

Hence, Sum invested for 4 years = 30000 – 13500 = Rs. 16500

 

Q:4 The correct answer is option 2 i.e. 1

Principle = Rs. 9600

Cumulative Interest rate for the rate of 2R% per annum compounded semi-annually for 1 year

= R + R + (R × R)/100 = 2R + (R/10)2

Principle = Rs. 4800

Cumulative Interest rate for the rate of 2R% per annum compounded annually for 2 years

= 2R + 2R + (2R × 2R)/100 = 4R + (2R/10)2

ATQ,

4800 × (4R + (2R/10)2) – 9600 × (2R + (R/10)2) = 96

2R + (2R2/100) – 2R - (R/10)2 = 1/100

(R/10)2 = 1/100

R = 1

 

Q:5 The correct answer is option 4 i.e. Rs. 13200.

Since the investment is done in a simple interest scheme, the rates will be simply added to calculate the cumulative rate.

So,

Cumulative rate for 3 years = 4 + 5 + 10 = 19%

Now, suppose the amount invested = Rs. x

So,

⇒ x + (x × 19/100) = 15708

⇒ 1.19x = 15708

⇒ x = 13200

Hence, the amount invested = Rs. 13200

 

Q:6 The correct answer is option 5 i.e. Rs. 5250

Formula used:

Difference = 3 × (PR2/1002) + P(R/100)3        ------ (1)

Where, P = principal, R = Rate

Difference = difference between SI and CI when time is 3 years

Calculations :

Using equation (1), we get

⇒ 2240 = 3 × (P × 400)/(10000) + P × (8000/1000000)

⇒ 2240 = 3P/25 + P/125

⇒ 2240 = 16P/125

⇒ P = 17500

Simple interest when time is 2 years and rate is 15% p.a.

⇒ SI = PRT/100

⇒ SI = (17500 × 2 × 15)/100 = 5250

 

Q:7 The correct answer is option 1 i.e. 85.125 

To find the rate of interest, let the initial amount be x. If this becomes 4x in 20 years, S.I = 4x - x = 3x

S.I = P × R × T ⇒ 3x = (x)(R/100)(20) ⇒ R = 15%

S.I for 2 years = 2270 × 0.15 × 2 = 681

Now, for last quarter of 2nd year = 681/8 = 85.125 

 

Q:8 The correct answer is option 1 i.e. Rs. 29,760

S.I = (P × R × T)/100

Where P = Principal, R = Rate, T = Time.

S.I at the end of three years = (24000 × 20 × 3)/100 = 1440000/100 =Rs. 14400 
For the next two years amount = 24,000 + 14400 = Rs. 38,400

S.I for the next two years = (38,400 × 20 × 2 × 2)/2 × 100 = 15,360

Total interest received by Jordan at the end of 5 years = 15,360 + 14,400 = Rs. 29,760

 

Q:9 The correct answer is Option 3 i.e. Rs. 7260.

Total time duration for which Subhash has invested = 1 year 146 days

⇒ 1 + 146/365

⇒ 1 + 2/5 = 7/5 years

Now, simple interest = (principal × rate of interest × time)/100 

⇒ SI = (6000 × 15 × 7/5)/100 = Rs. 1260

Amount = Principal + simple interest = (6000 + 1260) = Rs. 7260

Therefore, Subhash will get an amount of Rs. 7260 at the end

 

Q:10 The correct answer is option 4 i.e. Rs. 9849.

Under Compound Interest

Amount = Principle(1 + Rate/100)n

Interest = Amount - Principle

Scheme I. 

Amount = 10,500(1 + 10/100)2 = 10,500 (11/10)2 = Rs. 12,705

Interest = (12,705 - 10,500) = Rs. 2,205

Scheme II. 

Amount = 10,500(1 + 20/100)3 = 10,500 (12/10)3 = Rs. 18,144

Interest = (18,144 - 10,500) = Rs. 7644

Hence the total sum of interest obtained from both the schemes = 7644 + 2205 = Rs. 9849

So, this is it for today. We will meet again with another new topic. Till then, you can practice the questions again by downloading the PDF of Simple and Compound Interest.

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Practice Questions on Simple and Compound Interest!

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Simple and Compound Interest Questions PDF with detailed solutions

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