CAT: :
Class Sheet Simple Interest and
Total Questions – 30 Compound Interest
SI-CI by Amit Goyal (Academic Head CL-Noida)
1. A sum of money compounded annually becomes Rs.625 in two years and Rs.675 in three years.
The rate of interest per annum is
a) 7% b) 8%
c) 6% d) 5%
2. Find the compound interest on Rs.30500 at 15% per annum for 2 years compounded annually?
a) Rs.9000 b) Rs.9800
c) Rs.8400 d) Rs.9836.25
3. The difference between CI and SI on a certain sum of money at 5% per annum for 2 years is Rs.2.50.
Find the sum?
a) Rs.300 b) Rs.1200
c) Rs.1000 d) Rs.800
4. A sum of money amounts to Rs.5120 after 6 years and to Rs.7290 after 9 years on compound
interest. Find the rate of interest
a) 15% b) 10%
c) 12.5% d) 16.66%
5. A sum of money amounts to Rs.6690 after 3 years and to Rs.10035 after 6 years on compound
interest. Find the sum
a) Rs.4460 b) Rs.3650
c) Rs.4535 d) Rs.2800
6. If the CI on a certain sum for 2 years at 6% be Rs.25.75, what would be the SI?
a) Rs.25 b) Rs.24
c) Rs.20 d) Rs.15
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7. The sum of money that will amount to Rs.5105 in 6 years at 4 4 per cent per annum at SI is.
a) Rs.3600 b) Rs.4500
c) Rs.4067.73 d) Rs.4400
8. Part of Rs.20,000 invested at the rate of 8% p.a. SI and remaining at the rate of 12% p.a. SI. If total
interest earned in 4 years is Rs.7600. Find the sum invested at higher rate of interest.
a) Rs.12500 b) Rs.7500
c) Rs.10,000 d) Rs.8000
9. ABC Bank of India offers two schemes:
i. Annual compounding at 21% p.a.
ii. Semi-annual compounding at 20% p.a.
Which one is a better scheme for depositors who want to deposit their money for 1 year?
a) Scheme i b) Scheme ii
c) Both are equal d) C.B.D.
10. Ajay takes a loan of Rs. 30,000 from a bank for 8 years at 6.5% rate of simple interest. He then
loans out Rs. 20,000 for 8 years at 7.5% rate of simple interest. He could loan out the balance only
at 5.5% for 8 years. In the entire transaction, did Ajay make or lose money and how much?
a) Gain 400 b) Gain 800
c) No gain, No loss d) Loss 400
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CAT: :
Class Sheet Simple Interest and
Total Questions – 30 Compound Interest
11. Mr. Mehra is planning for higher education expenses of his two sons aged 15 and 12. He plans to
divide Rs.15 Lakhs in two equal parts and invest in two different plans such that his sons may
have access to Rs.21 lakhs each when they reach the age of 21. He is looking for plan that will give
him simple interest per annum. The rates of interest of the plans for his younger son and elder son
should be.
a) 5% and 7.5% respectively
b) 8% and 12% respectively
c) 10% and 15% respectively
d) 15% and 22.5% respectively
e) 20% and 30% respectively
12. Rs.25000 is borrowed at CI at the rate of 3% for the first year, 4% for the second year and 5% for
the third year. Find the amount to be paid after 3 years?
a) Rs.27722 b) Rs.28119
c) Rs.30500 d) Rs.28000
13. What is the simple interest earned in 12 years on Rs.5560, if the rate of interest for first 3 years is
6% and for next 9 years is 3%?
a) Rs.2402 b) Rs.2596
c) Rs.2502 d) Rs.2604
14. A certain sum of money at simple interest amounts to Rs.1500 in 5 years and to Rs.1800 in 8
years. Find the principal.
a) Rs.1200 b) Rs.1000
c) Rs.1400 d) None of these
15. A man borrows Rs.6000 at 5% interest, on reducing balance, at the start of the year. If he repays
Rs.1200 at the end of each year, find the amount of loan outstanding in Rs, at the beginning of the
third year.
a)3162.75 b) 4125.00
c) 4155.00 d) 5100.00
e) 5355.00
16. A sum of Rs.10000 was lent partly at 8% and remaining at 12% p.a. simple interest. The total
interest received after four years was Rs.3800. How much money was lent at 8%?
a) Rs.6250 b) Rs.6000
c) Rs.4000 d) Rs.3750
17. A person invested Rs.2160 at a certain rate of interest and Rs.2560 at 1% higher and the total
interest from these investments in 3 years was Rs.926.4. Find the higher rate percent?
a) 7% b) 6%
c) 8% d) None of these
Directions for Questions 18 and 19: Shabnam is considering three alternatives to invest her surplus
cash for a week. She wishes to guarantee maximum returns on her investment. She has three options,
each of which can be utilized fully or partially in conjunction with others.
Option A: Invest in a public sector bank. It promises a return of +0.10%
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CAT: :
Class Sheet Simple Interest and
Total Questions – 30 Compound Interest
Option B: Invest in mutual funds of ABC Ltd. A rise in stock market will result in a return of +5% while
a fall will entail a return of -3%.
Option C: Invest in mutual funds of CBA Ltd. A rise in stock market will result in a return of -2.5%,
while a fall will entail a return of +2%.
18. The maximum guaranteed return to Shabnam is.
a) 0.25% b) 0.10%
c) 0.20% d) 0.15%
e) 0.30%
19. What strategy will maximize the guaranteed return to Shabnam?
a) 100% in option A
b) 36% in option B and 64% in option C
c) 64% in option B and 36% in option C
d) 1/3 in each of the three options
e) 30% in option A, 32% in option B and 38% in option C
20. If the rate of interest is 5.88%, then the ratio of C.I. in 76th year to C.I. in 77th year for the same
principal is
a) 17 : 18 b) 8 : 9
c) 18 : 19 d) Data Insufficient
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21. What sum of money invested at 30% per annum in 1 years compounded half yearly, shall become
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Rs.12167?
a) Rs.8200 b) Rs.8100
c) Rs.8500 d) Rs.8000
22. Mr. Mishra invested Rs.25000 in two fixed deposits X and Y offering Compound Interest at 6% per
annum and 8% per annum respectively. If the total amount of interest accrued in two years through
both fixed deposits is Rs.3518, the amount invested in scheme X.
a) Rs.12000 b) Rs.13500
c) Rs.15000 d) C.B.D.
23. Two friends Abdul and Binoy invested equal sums of money for 2 years at 12.5% per annum. Abdul
invested at C.I. whereas Binoy invested at S.I. Abdul gets Rs.28 more money than what Binoy got.
How much money did each invest?
a) Rs.1240 b) Rs.1600
c) Rs.1792 d) Rs.1884
24. Three years ago, your close friend had won a lottery of Rs.1 crore. He purchased a flat for Rs.40
lakhs, a car for Rs.20 lakhs and shares worth Rs.10 lakhs. He put the remaining money in a bank
deposit that pays compound interest at the rate of 12% per annum. If today he sells off the flat,
the car and the shares at certain percentage of their original value and withdraws his entire money
from bank, the total gain in his assets is 5%. The closest approximate percentage of the original
value at which he sold off the three items is.
a) 60% b) 75%
c) 90% d) 105%
25. The compound interest on a sum of money for 2 years is Rs.216 and simple interest on the same
sum at the same rate and for the same time is Rs.180. Find the rate of interest?
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CAT: :
Class Sheet Simple Interest and
Total Questions – 30 Compound Interest
a) 33.33% b) 40%
c) 30% d) None of these
26. What is the ratio of simple interest on a certain sum of money for 2 years and compound interest
on the same sum of money for 2 years at a rate of 15% per annum?
a) 4 : 5 b) 40 : 43
c) 15 : 16 d) 20 : 23
27. What was the total compound interest on a sum after 3 years?
i. The interest after one year was Rs.300 and the principal was Rs.2400.
ii. The difference between CI and SI for 2 years is Rs.26 given that sum is Rs.2200.
Which among the following statements is/are necessary to answer the question?
a) Only i b) Only ii
c) Either i or ii d) Both i and ii
28. Which among the following scheme yields more interest if the amount invested in each of them is
same?
i. Scheme 1: Investment at 30% per annum in SI for 2 years
ii. Scheme 2: Investment at 26% per annum in CI for 2 years compounded annually.
iii. Scheme 3: Investment at 16% per annum in CI for 2 years compounded semi-annually.
a) Scheme i b) Scheme ii
c) Scheme iii d) All are same
29. Vikas invests Rs.3000 in SI at the rate of 5% p.a. How much more should he invest at the rate of
8% p.a. so that he earns a total of 6% p.a.
a) Rs.1000 b) Rs.1200
c) Rs.1500 d) Rs.2000
30. To start a new enterprise, Mr. Yogesh has borrowed a total of Rs. 60,000 from two money lenders
with the interest being compounded annually, to be repaid at the end of two years. Mr. Yogesh repaid
Rs. 38,800 more to the first money lender compared to the second money lender at the end of two
years. The first money lender charged an interest rate, which was 10% more than what was charged by
the second money lender. If Mr. Yogesh had instead borrowed Rs. 30,000 from each at their respective
initial rates for two years, he would have paid Rs. 7,500 more to the first money lender compared to
the second. Then money borrowed by Mr. Yogesh from first money lender is?
a) 20,000 b) 35,000 c) 40,000 d) 42,000