Simple and Compound Interest aptitude questions
Simple and Compound Interest questions are part of the Quant section of placement aptitude tests. Separate principal, rate, and time before choosing simple or repeated growth. Below are 5 worked examples with the answer and the working; practise ten fresh ones or take a timed mock when you are ready.
Example 1. A sum of Rs 27000 earns Rs 16200 as simple interest in 4 years. What is the annual rate of interest?
- A. 17%
- B. 13%
- C. 12%
- D. 15% (answer)
R = SI * 100/(P * T) = 16200 * 100/(27000 * 4) = 15% per annum.
Example 2. Rs 14000 is invested at 5% per annum simple interest for 3 years. What is the interest earned?
- A. Rs 2100 (answer)
- B. Rs 16100
- C. Rs 210
- D. Rs 700
Simple interest = P * R * T/100 = 14000 * 5 * 3/100 = Rs 2100.
Example 3. Rs 60000 is invested at 20% per annum compound interest, compounded yearly. What is the interest for 2 years?
- A. Rs 26400 (answer)
- B. Rs 24000
- C. Rs 29040
- D. Rs 86400
Amount = P(1 + R/100)^2 = 60000 * (1.2)^2 = Rs 86400. Interest = Rs 86400 - Rs 60000 = Rs 26400.
Example 4. Rs 40000 is invested at 25% per annum compound interest, compounded yearly. What is the interest for 2 years?
- A. Rs 22500 (answer)
- B. Rs 20000
- C. Rs 62500
- D. Rs 24750
Amount = P(1 + R/100)^2 = 40000 * (1.25)^2 = Rs 62500. Interest = Rs 62500 - Rs 40000 = Rs 22500.
Example 5. Rs 14000 is invested at 8% per annum simple interest for 4 years. What is the interest earned?
- A. Rs 448
- B. Rs 18480
- C. Rs 4480 (answer)
- D. Rs 1120
Simple interest = P * R * T/100 = 14000 * 8 * 4/100 = Rs 4480.
More Quant practice elsewhere: IndiaBIX, GeeksforGeeks. See the 60-day aptitude plan.