Simple & Compound Interest Questions with Solutions
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal plus interest already earned. Questions test the formulas SI = PRT/100 and A = P(1 + R/100)^n, the difference between CI and SI over two or three years, interest compounded half-yearly or quarterly, instalments, and the time needed for money to double or triple. Useful shortcuts include the two-year CI minus SI difference, which equals P(R/100)^2, and the effective-rate method, which treats two years of compounding at R% as a single percentage change. Connecting interest to successive percentage change makes most compound interest questions much faster than expanding the formula. Practise the simple and compound interest questions below. Each comes with a full solution and a shortcut where one applies.
- Q1.
Rajan invests an amount of Rs 15860 in the names of his three sons Rohan, Sohan and Mohan in such a way that they get the same interest after two, three and four years respectively. If the rate of simple interest is 5%, then the ratio of the amounts invested for Rohan, Sohan and Mohan will be:
A. 10 : 15 : 20B. 22 : 23 : 24C. 6 : 4 : 3D. 2 : 3 : 4easyAsked in NIMCET 2026View solution › - Q2.
Hari invested an amount at simple interest and it became 60% more after eight years. If he invests Rs. 9600 at the same rate of simple interest, find the total interest he would get after four years.
A. Rs. 2520B. Rs. 2160C. Rs. 2880D. Rs. 2260easyAsked in NIMCET 2023View solution › - Q3.
The simple interest on ₹ 8,000 at 6% per annum for 3 years is
A. ₹ 1,240B. ₹ 1,440C. ₹ 1,528D. ₹ 480easyView solution › - Q4.
The compound interest on ₹ 10,000 at 10% per annum for 2 years, compounded annually, is
A. ₹ 2,000B. ₹ 2,100C. ₹ 2,200D. ₹ 12,100easyView solution › - Q5.
The difference between the compound interest and the simple interest on ₹ 5,000 for 2 years at 8% per annum (compounded annually) is
A. ₹ 24B. ₹ 32C. ₹ 40D. ₹ 64mediumView solution › - Q6.
A man's investment doubles in every 5 years. If he invested Rs. 5,000 in each of the years 1990, 1995, 2000 and 2005, then what was the total amount received by him in 2010?
A. Rs. 140000B. Rs. 30000C. Rs. 70000D. Rs. 150000easyAsked in NIMCET 2017View solution › - Q7.
A sum of money was divided into 2 parts in the ratio 2 : 5. The first part was invested for 2 years at the annual interest rate of 20% compounded annually. At what rate of simple interest per annum must the second part be invested for 2 years, so that the interest earned in both cases is the same?
A. 10.2%B. 9.6%C. 8.8%D. Cannot be determinedmediumAsked in NIMCET 2025View solution ›