Simple Interest and Compound Interest Practice Test Sample Paper - 1 with Answer Key and Solution [Quantitative Aptitude]- Download in PDF

Here is solved questions of simple interest and compound interest (SI and CI) [quantitative aptitude] for SBI PO and IBPS exams. Questions regarding finding Simple Interest and Compound Interest are asked in almost all entrance examinations and candidates need to practice this section very hard to score good marks and hence good position in merit list. You can also download this question paper in PDF to save it for future references or take print out.

 

Simple Interest and Compound Interest [Quantitative Aptitude] Model Test Paper - 1

 

Maximum Marks: 10     /      Duration: 10 Mins

Q.1. The simple interest on Rs. 81000 at 8% for 7 years is-

A) 45560
B) 37840
C) 45360
D) 37540
E) None of these

Explanation (Show/Hide)

P = 81000
R = 8%
T = 7
SI = (P*R*T)/100
=> SI = 45360.

---

Q.2. At what rate percent per annum will a sum of money double in 20 years?

A) 5%
B) 6%
C) 9%
D) 11%
E) None of these

Explanation (Show/Hide)

Let Principle = x.
Amount after 20 years = 2x Simple Interest = 2x-x = x
T = 20 years
R = (SI * 100) / (P * T) = (x * 100) / (x * 20)
=> R = 5%.

---

Q.3. 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
E) None of these

Explanation (Show/Hide)

Let Principle = P, Rate = R.
For T = 6, SI₁ = (P * R * 6) / 100
For T = 9, SI₂ = (P * R * 9) / 100
SI₁ : SI₂ = 6 : 9 = 2 : 3

---

Q.4. A person invested in all Rs. 2600 at 4%, 6% and 8% per annum simple interest. At the end of the year, he got the same interest in all the three cases. The money invested at 4% is :

A) Rs. 200
B) Rs. 600
C) Rs. 800
D) Rs. 1200
E) None of these

Explanation (Show/Hide)

At rate of interest 4%, Let Principle = P₁, SI₁ = x, Time = 1 year
=> x = (P₁ * 4 * 1)/100 = 4P₁/100 ....Eq(1)
At rate of interest 6%, Let Principle = P₂, SI₂ = x, Time = 1 year
=> x = (P₂ * 6 * 1)/100 = 6P₂/100 ....Eq(2)
At rate of interest 8%, Let Principle = P₃, SI₃ = x, Time = 1 year
=> x = (P₃ * 8 * 1)/100 = 8P₃/100 ....Eq(3)
From Eq(1) and Eq(2) --- P₁/P₂ = 3/2
P₂ = (2/3) * P₁
From Eq (1) and Eq (3). P₁/P₃ = 8/4 = 2
=> P₃ = (1/2) * P₁
P₃ = 2600 - P₁ - P₂
Substituting values of P₂ and P₃ we get P₁ = 1200

---

Q.5. The difference between the simple interest received from two different sources on Rs. 1500 for 3 years is Rs. 13.50. The difference between their rates of interest is:

A) 0.1%
B) 0.2%
C) 0.3%
D) Data inadequate
E) None of these

Explanation (Show/Hide)

(1500 * R₁ * 3)/100 - (1500 * R₂ * 3)/100 = 13.50
=> R₁ - R₂ = 0.3%

---

Q.6. Versha invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound interest rate 5% per annum. How much amount will Versha get on maturity of the fixed deposit?

A) 8600
B) 8620
C) 8800
D) 8840
E) None of these

Explanation (Show/Hide)

Amount = P * (1 + R/100)^T
=> Amount = 8000 * (1 + 5/100)²
=> Amount = 8820

---

Q.7. 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
E) None of these

Explanation (Show/Hide)

SI = (1200 * 10 * 1)/ 100 = Rs. 120
CI = Amount - P = P * {1 + (R/2)/100}^2T - P
CI = Rs. 123.
Hence CI - SI = 123 - 120 = 3.

---

Q.8. The principle that amounts to 4913 in 3 years at 6 1/4% per annum compound interest compounded annually, is :

A) 3096
B) 4076
C) 4085
D) 4096
E) None of these

Explanation (Show/Hide)

Here A = 4913, T = 3, R = 6 1/4
P = A / (1 + R/100)^T
=> P = 4096.

---

Q.9. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?

A) Rs. 550
B) Rs. 551.25
C) 560
D) 560.75
E) None of these

Explanation (Show/Hide)

Given P = 1025, T = 2 years, R = 5.
Let Installment = X.
P = X / (1 + R/100) + X / (1 + R/100)²
=> X = 551.25

---

Q.10. The difference between compound interest and simple interest on an amount of Rs. 15000 for 2 years is Rs 96. What is the rate of interest per annum?

A) 8
B) 10
C) 12
D) Cannot be determined
E) None of these

Explanation (Show/Hide)

SI = (15000 * R * 2)/100
CI = 15000 (1 + R/100)² - 15000
CI - SI = 96
=> R = 8.

---

• Click for Formulae and Tricks on Simple Interest and Compound Interest.

• Click to Download this Question Papers in PDF.

• Click for More Quantitative Aptitude Question Papers.

• Click to Subscribe and Get Daily Update of Quantitative Aptitude Question Papers in your Inbox.

We have tried our best to present only  important questions with correct answer key to help you improve your Quantitative Aptitude. Any suggestion or update about any erroneous entry or answer is always appreciable. Please comment your score or any suggestion in comment section below or you can write to us at careerguide.co@gmail.com. We will be glad to help you.