Simple Interest and Compound Interest

SI and CI Practice Questions

SI and CI Practice Questions form a bulk of many competitive examination papers. The papers for banking and SSC exams may focus on the one or the other concept related to banking and commerce. SI and CI Practice Questions is one such topic. After finishing reading the topics on SI and CI, we will go through this section of SI and CI Practice Questions. The following section is prepared with an intention that it allows the candidate to flex their muscles and gain the necessary confidence an practice before actually appearing in an exam. Let us see more in the below section.

SI and CI Practice Questions

Simple Interest

Part A

Q1: 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?           [IGNOU 2003]

A) 3%               B) 4%                C) 5%                D) 6%                    E) None of these

Q2: A sum of Rs 12,500 amounts to Rs 15,500 in 4 years at the rate of simple interest. What is the rate of interest?               [Bank PO 2003]

Q3: A sum of Rs 1600 gives a simple interest of Rs 252 in 2 years and 4 months. The rate of interest per annum is:

A) 6%               B) 6(1/4) %                 C) 6(1/2)%                  D) 6(3/4)%

Q4: Reena took a loan of Rs 1200 with simple interest for as many years as the rate of the interest. If she paid rs 432 as interest at the end of the loan period, what was the rate of the interest?        [RBI 2003]

A) 3.6                     B) 6                  C) 18                      D) Cannot be determined                 E) None of these

Part B

Q5: A man took a loan from a bank at the rate of 12% p.a. simple interest. After 3 years he has to pay Rs 5400 interest only for the period. The principal amount borrowed by him was:  Rs               [SSC 2004]

A)  2000                B)  10000               C) 15000                D) 20000

Q6: What is the present worth of Rs 132 due in 2 years at 5% simple interest per annum?          [CBI 1997]

A)  112  Rs             B) 118.80  Rs            C) 120 Rs                    D) 122  Rs

Q7: A sum fetched a total simple interest of Rs 4016.25 at the rate of 9 p. c. p. a. (percent per annum) in 5 years. What is the sum?               [NABARD 2002]

A) 4462.50 rupees                   B) 8032.50 rupees                    C) 8900 rupees                  D) 8925 rupees              E) None of these.

Q8: The simple interest at x% for x years will be Rs x on a sum of:

A) x rupees                     B) [100/x]              C) Rs 100x                 D) Rs [100/x2]

SI and CI Practice Questions


Find Your Answers Here

Q1: B), Q2: D), Q3: D), Q4: B), Q5: C), Q6: C), Q7: D), Q8: B)

Some More Questions On Simple Interest

Q1: The price of a tv set worth Rs 20000 is to be paid in 20 instalments of Rs 1000 each. If the rate of interest be 6% per annum, and the first instalment be paid at the time of purchase, then the value of the last instalment covering the interest as well will be:              [Hotel Management]

A) 1050 rupees                   B) 2050 rupees                 C) 3000 rupees                D) None of these.

Q2: If the rate increases by 2%, the simple interest received on a sum of money increases by Rs 108. If the time period is increased by 2 years, the simple interest on the same sum increases by Rs. 180. The sum is:

A) 1800 rupees                       B) 3600 rupees               C) 5400 rupees                D) Data inadequate

Q3: Mr Thomas invested an amount of Rs 13900 divided into two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in two years be Rs 3508, what was the amount invested in Scheme B?                [RBI 2003]

A) 6400 rupees              B) 6500 rupees              C)  7200 rupees               D) 7500 rupees                 E) None of these

Q4: A sum of Rs 2600 is lent out in two parts in such a way that the interest on one part at 10% for 5 years is equal to that on another at 9% for 6 years. The sum lent out at 10% is:

A) 1150 rupees                  B) 1250 rupees               C) 1350 rupees              D) 1450 rupees

Find Your Answers Here

Q1: D), Q2: D), Q3: A), Q4: C)

Compound Interest

Q1: If the compound interest on a certain sum for 2 years at 10% per annum is Rs 525. The simple interest on the same sum for double the time at half the rate percent per annum is:                [CBI 1997]

A) 400 rupees.               B) 500 rupees.                    C)  600 rupees.                     D) 800 rupees.

Q2: The simple interest on a certain sum of money for three 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:      [SSC 2003]

A) 1550 rupees.             B) 1650 rupees.               C)  1750 rupees.             D) 2000 rupees.

Q3: There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs 12000 after 3 years at the same rate?             [SIDBI 2000]

A) 2160 rupees                    B) 3120 rupees                C) 3972 rupees              D) 6240 rupees                E) None of these

Q4: 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?            [RBI 2003]

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

Q5: The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 1. The sum is:                [SSC 2003]

A) Rs 625                  B) Rs 630               C) 640            D) 650

Find Your Answers Here

Q1: B), Q2: C), Q3: C), Q4: A), Q5: A)

Share with friends

Customize your course in 30 seconds

Which class are you in?
Get ready for all-new Live Classes!
Now learn Live with India's best teachers. Join courses with the best schedule and enjoy fun and interactive classes.
Ashhar Firdausi
IIT Roorkee
Dr. Nazma Shaik
Gaurav Tiwari
Get Started

One response to “CI with a Fractional Rate”

  1. Raj says:

    . Ajay invested half of his savings in a mutual fund that paid simple interest for 2 years and received Rs. 550 as interest. He invested the remaining in a fund that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest received Rs. 605 as interest. What was the value of his total savings before investing in these two bonds? how to solve this type of problems

Leave a Reply

Your email address will not be published. Required fields are marked *

Download the App

Watch lectures, practise questions and take tests on the go.

Customize your course in 30 seconds

No thanks.