# Simple Interest & Compound Interest Exam Quiz

**1. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:**

A) Rs. 720

B) Rs. 698

C) Rs. 678

D) Rs. 696

E) none of these

**2. 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) Rs. 8045

B) Rs. 8925

C) Rs. 8900

D) Rs. 8032.45

E) none of these

**3. A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest.**

**The rate of interest per annum is:**

A) 12 %

B) 13 %

C) 8 %

D) 12.5 %

**4. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6.25% p.a. for 2 years.**

**Find his gain in the transaction per year.**

A) Rs. 112.50

B) Rs. 175

C) Rs. 150

D) Rs. 125.50

**5. A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period.**

**The principal amount borrowed by him was**:

A) Rs. 12000

B) Rs.15000

C) Rs. 12500

D) Rs. 22000

**6.How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?**

A)3 year

B)4 year

C)5 year

D)6 year

**7. Bhavika took a loan of Rs. 1200 with simple interest for as many years as the rate of interest.**

**If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest?**

A)3.6

B) 5

C) 6

D)25

**8. A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:**

A) 5 %

B) 7%

C)10 %

D) 12%

9.

**A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st July of a year.****At the end of the year, the amount he would have gained by way of interest is:**

A)123

B) 122

C)121

D)120

**10.The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:**

A)2.5

B) 2

C) 3

D) 4

E) none of these

**11.At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?**

A)8 %

B) 9%

C) 6 %

D) 8.5 %

E) none of these

**12.The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum reckoned half-yearly is:**

A)Rs. 3

B) Rs. 4

C) Rs. 3.5

D) Rs. 7.5

E) none of these

**13.The least number of complete years in which a sum of money put out at 20% compound interest will be more than doubled is:**

A) 4

B) 5

C) 6

D) 2.5

E) none of these

**14.What will be the compound interest on a sum of Rs. 25,000 after 3 years at the rate of 12 p.c.p.a.?**

A) Rs.10123.20

B) Rs. 9000

C) Rs. 12000

D) Rs. 10163.34

E) none of these

**15.Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4000 for 2 years at 10% per annum.**

**The sum placed on simple interest is:**

A)Rs. 1650

B)Rs. 2000

C)Rs. 1750

D) Rs.1550

E) none of these

**Answers with Explanation:**

Anwers:

1.B

2.B

3.A

4.A

5.B

6.B

7.C

8.C

9.C

10.B

11.C

12.A

13.A

14.A

15.C