Simple & Compound Interest

J&K Bank Banking Associate · Quantitative Aptitude · 111 practice questions with answers and explanations: 55 Easy, 55 Medium, 1 Hard.

Sample questions

Sample Easy question 1

What is the simple interest on ₹2000 at 10% per annum for 4 years?

  1. 200
  2. 1600
  3. 820
  4. 800
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Answer: D. SI = P × R × T/100 = 2000 × 10 × 4/100 = ₹800.

Sample Easy question 2

A sum of ₹2000 earns a simple interest of ₹240 in 2 years. What is the rate of interest per annum?

  1. 12
  2. 7
  3. 8
  4. 6
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Answer: D. R = SI × 100/(P × T) = 240 × 100/(2000 × 2) = 6%.

Sample Easy question 3

What amount will ₹5000 become at 8% simple interest per annum after 3 years?

  1. 1200
  2. 6200
  3. 6700
  4. 5700
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Answer: B. Interest = 5000×8×3/100 = ₹1200; amount = 5000 + 1200 = ₹6200.

Sample Medium question 4

What is the difference between the compound interest and the simple interest on ₹20000 at 20% per annum for 2 years?

  1. 400
  2. 800
  3. 1600
  4. 4000
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Answer: B. For 2 years, CI − SI = P × (R/100)² = 20000 × (20/100)² = ₹800.

Sample Medium question 5

A sum of ₹2000 earns a simple interest of ₹360 in 3 years. What is the rate of interest per annum?

  1. 12
  2. 6
  3. 7
  4. 8
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Answer: B. R = SI × 100/(P × T) = 360 × 100/(2000 × 3) = 6%.

Sample Medium question 6

What amount will ₹10000 become at 5% simple interest per annum after 3 years?

  1. 11500
  2. 1500
  3. 12500
  4. 10500
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Answer: A. Interest = 10000×5×3/100 = ₹1500; amount = 10000 + 1500 = ₹11500.

Sample Hard question 7

Find the compound interest on Rs. 10,000 for 1.5 years at 10% per annum, compounded half-yearly.

  1. 1600
  2. 1576.25
  3. 1500
  4. 1550
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Answer: B. With 5% per half-year over 3 periods, amount = 10000 × 1.05³ ≈ 11576.25, so CI ≈ 1576.25.

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