Interest
Practice Questions - Simple Interest and Compound Interest
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Q1) A person invests Rs 5000 at 8% per annum for 3 years. Find the interest that he earns? 1) Rs 400 2) Rs 1600 3) Rs 2400 4) Rs 1200 Solution:  Hence, option 4. Q2) A person invests Rs 4800 at 6% per annum for 8 months. Find the interest that he earns? 1) Rs 2304 2) Rs 192 3) Rs 240 4) None of these Solution:  Hence, option 2. Q3) A sum of money invested at simple interest amounts to Rs. 276 in 3 years and to Rs. 288 in 4 years. Find the sum? 1) Rs 250 2) Rs 264 3) Rs 240 4) None of these Solution: SI for 1 year = (288 - 276) = Rs 12 SI for 3 years = Rs 36 So, sum of money is Rs (276 - 36) = Rs 240 Hence, option 3. Q4) Find the rate of interest per annum at which a sum of money amounts to Rs. 312 in 4 years and to Rs. 338 in 6 years? 1) 5% 2) 4.5% 3) 6% 4) None of these Solution: SI for 2 years = (338 - 312) = Rs 26 SI for 1 year = Rs 13 SI for 4 years = Rs 52 So, sum of money invested is Rs (312 - 52) = Rs 260 Rate of interest = 13 × 100/260 = 5% per annum Hence, option 1. Q5) Find the rate of interest per annum at which a sum of Rs. 15000 amounts to Rs. 17400 in 4 years? 1) 16% 2) 8% 3) 12% 4) 4% Solution: SI = 17400 - 15000 = Rs 2400  Hence, option 4. Q6) Find the compound interest on Rs 5000 invested at 10% p.a. for 3 years? 1) Rs 1050 2) Rs 1500 3) Rs 1655 4) Rs 1000 Solution: A = 5000×(1.1)3 = 6655 C.I. = A - P = 6655 - 5000 = 1655. Hence, option 3. |
