 # Quantitaitve Aptitude: Simple/Compound Interest Set 06

Simple Interest/Compound Interest Questions for IBPS PO, SBI PO, NIACL, NICL, LIC, Dena Bank PO PGDBF, BOI, Bank of Baroda and other competitive exams

1. Reena is borrowed a sum of RS. 6000 from Raveena  at the rate of 14% for 2 years. She then added some more money to the borrowed sum and lent it to Sameera at the rate of 18% of simple interest for the same time. If Reena gained Rs. 650 in the whole transaction , then what sum did he lend to Sameera?
A) Rs.6427.12
B) Rs.8015.41
C) Rs.6472.22
D) Rs.7541.2
E) Rs.6758.2
Option C
Solution:
Let the money lent to Sameera be Rs.x
Therefore ,
x*(18/100)*2 – 6000*(14/100)*2 = 650
=> x= 6472.22
2. The rate of interest on a sum of money is 4% per annum for the first  2 years , 6% per annum for the period next 4 years, 8% per annum for the period beyond 6 years.If the simple interest accrued by the sum for a total period of 9 years is Rs. 1680 ,what is the sum ?
A) Rs.3000
B) Rs.5000
C) Rs.4700
D) Rs.5500
E) Rs.7580
Option  A
Solution:
SI at the rate of 4% for 2 years ,
=( P* 4*2)/100  = 8P/100
SI at the rate of 6% for 4 years ,
(P*6*4)/100 = 24P/100
SI for the next 3 years
SI =  (P*8*3)/100 = 24P/100
Total SI = 8P/100 + 24P/100 + 24P/100
=>P = (1680*100 )/56 = 3000
3. The simple interest on a certain sum for 2 years at the rate of 5% per annum is Rs.160. What would be the difference of compound interest and simple interest for the same period and at the same rate of interest?
A) Rs.2
B) Rs.10
C) Rs.6
D) Rs.4
E) Rs.8
Option D
Solution:
For 2 years
SI = 5* 2= 10 % of the sum
CI = 5 + 5+ (5*5)/100 = 10.25% of the sum
required diff. = 10.25 – 10 = 0.25% of the sum
Therefore ,
the required diff. = (160/10) * 0.25 = Rs.4
4. What is the difference between   CI and SI ,if sum is Rs.10,000 for 3  years at the rate of 3%?
A) Rs.42
B) Rs.30
C) Rs.27.27
D) Rs.35
E) Rs.25
Option C
Solution:
Difference = [sum * r^2 (300 + r)]/(100)^3
= [10000 * 3 * 3 (300+3)]/(100)^3 = 27.27
5. Arjun lent out a sum of money at compound interest rate of  30% per annum for 2 years .It would fetch Rs. 500 more if interest is compounded half –yearly.
A)  Rs.8000
B)  Rs.8041.12
C) Rs.8145
D) Rs.8457.2
E) Rs.8333.33
Option E
Solution:
P[1+(15/100)]^4  – P[1 +(30/100)]^2 = 500
=> P = 8333.33
6. At what rate of % per annum will Rs.2304 amount  to Rs. 2500 in 2 years compounded annually.
A) 5.2%
B) 4.16%
C) 3.45%
D) 4.5%
E) 3.2%
Option B
Solution:
Shortcut::
2304 == 2500
576 == 625
Take square roots
24 == 25

diff. = 1
= (1/24) * 100 = 4.16%
7. The ratio of the amount for 2 years under compound interest annually and for 1 year under simple interest is 5:4 when the rate of interest is same then find  the rate of interest?
A) 20%
B) 25%
C) 60%
D) 30%
E) 40%
Option B
Solution:
rate /100 = 5/4 -1
rate = 25%
8. Anu borrowed Rs.800 at rate of interest 10% . He repaid Rs.400 at the end of first year.What is the amount required to repay at the end of second year to discharge his loan which was calculated at compound interest?
A) Rs.650
B) Rs.528
C) Rs.490
D) Rs.780
E) Rs.472
Option B
Solution:
Amount paid at the end of 1 year  = 800[1 + 10/100] = 880
Amount left as principal for the second year = 880-400 = 480
Amount to be paid after 2nd year = 480 [1 + 10/100] = Rs.528
9. Sahil has lent some money to Anita at 6% per annum and Sheetal at 8% per annum. At the end of the year he has gain the overall interest at 7% per annum.In what ratio has he lent the money to Anita and Sheetal?
A) 3:8
B) 1:2
C) 2:5
D) 1:1
E)  4:5
Option D
Solution:
6……………..8
………7
1     :        1
10. What is the ratio of the simple interest earned by certain amount for 4 years and 8 years at the same rate of interest?
A) 3:2
B) 2:1
C) 1:2
D) 4:3
E) 3:5
Option C
Solution:
ratio = 4PR / 8PR = 1 : 2

## 29 Thoughts to “Quantitaitve Aptitude: Simple/Compound Interest Set 06”

1. anurag agarwal

Dear sir
Please explain the logic of question 7

1. cActi

P[1 +(r/100)]^2 / P[1 + (r/100)]^1 = 4/5
1 + (r/100) = 4/5
r/100 = 1/4
r=25%

1. Pooja?

6th me 24 kse aya

1. Oliver Queen

i’m also thinking the same

1. cActi

2304………… 2500
1156…………1250
576…………625
24…………..25
diff.
25-24=1
Therefore,
(1/24)*100= 25/6= 4.16%.

2. Oliver Queen

when we’re taking ratio to fir square kaise le lia,? ye logic samjh nahi hai, mtlab
jab hm log ratio niklte to both side ko same value de divide karte h na ki square lenege
576:625 ye value same digit se divide nhi hogi

3. Shubhra

Yes

But shortcut is being used here, we can do like this

Shortcut::
2304 == 2500
576 == 625
Take square roots
24 == 25
diff. = 1
= (1/24) * 100 = 4.16%

2. cActi

2304………… 2500
1156…………1250
576…………625
24…………..25
diff.
25-24=1
Therefore,
(1/24)*100= 25/6= 4.16%

1. Pooja?

Got it thanks

3. vikas

..

1. vikas

2304………… 2500
48 (root) 50 (root)
2/48=4.16

2. Oliver Queen

1st mein 6472.22 kaise aa rha?
pura solve kariye khud se

1. cActi

x(18/100)*2 – 6000*(14/100)*2 = 650
0.36x – 1680 = 650
0.36x= 2330
x = 2330/0.36
x= 6472.22

1. Oliver Queen

thanks, got it, galti kr rha tha main

3. Pablo Escobar

Isn’t it compounded??? But in question it’s si

1. Shubhra

yes take SI
SI and CI for 1st year are same na
so u can take any, it wont affect answer

2. thinker

Logic is simple first year simple and compound interest are equal.and second if rate is equal we earn money more than on the first years simple interest.

2. _/_

ty

3. vikas

9/10

4. Saheba

Amount paid at the end of 2 year = (800*10*2)/100 + 800 = 960
Amount left as principal for the second year = 560
Amount to be paid after 2nd year = (560*10)/100 +560 = Rs.616

1. ครђ

will count for 1 year = (800*10*1)/100+800 = 880

1. Saheba

why 1 year?? we are to find out Amount paid at the end of 2 year, right?

1. Shubhra

400 Rs is paid after a year

so 1st we will find for 1 year which is 880 the

880-400 = 480 is principal for 2nd year

5. jaga

thank u.

6. ครђ

Thanks Banya Ma’am :))

7. Jellyfish

10/10 ty az

8. ~lonely~hanker~nitrous oxide~

tq mam

9. kumkum ahuja

ty az:)

10. final thoughts on amy anderssen videos

I couldn’t refrain from commenting. Exceptionally well written!