Simple & Compound Interest MCQs for CCAT | 20 Practice Questions with Answers

Q: Find the simple interest on ₹5000 at 8% per annum for 3 years.

The correct answer is B: ₹1200. SI = PRT/100 = 5000×8×3/100 = 1200.

Q: At what rate of simple interest will ₹800 amount to ₹920 in 3 years?

The correct answer is B: 5%. SI = 120. R = (120×100)/(800×3) = 5%.

Q: The compound interest on ₹1000 at 10% per annum for 2 years is:

The correct answer is B: ₹210. A = 1000(1.1)² = 1210. CI = 1210-1000 = 210.

Q: In what time will ₹1000 become ₹1331 at 10% compound interest?

The correct answer is B: 3 years. 1331 = 1000(1.1)â¿. (1.1)â¿ = 1.331 = (1.1)³. n = 3 years.

Q: The difference between CI and SI on ₹2000 at 10% for 2 years is:

The correct answer is C: ₹20. For 2 years, CI-SI = P(R/100)² = 2000×(10/100)² = 20.

Q1.

Find the simple interest on ₹5000 at 8% per annum for 3 years.

A₹1000

B₹1200

C₹1400

D₹1600

Show Answer & Explanation

Correct Answer: B — ₹1200

SI = PRT/100 = 5000×8×3/100 = 1200.

Q2.

At what rate of simple interest will ₹800 amount to ₹920 in 3 years?

A4%

B5%

C6%

D7%

Show Answer & Explanation

Correct Answer: B — 5%

SI = 120. R = (120×100)/(800×3) = 5%.

Q3.

The compound interest on ₹1000 at 10% per annum for 2 years is:

A₹200

B₹210

C₹220

D₹230

Show Answer & Explanation

Correct Answer: B — ₹210

A = 1000(1.1)² = 1210. CI = 1210-1000 = 210.

Q4.

In what time will ₹1000 become ₹1331 at 10% compound interest?

A2 years

B3 years

C4 years

D5 years

Show Answer & Explanation

Correct Answer: B — 3 years

1331 = 1000(1.1)â¿. (1.1)â¿ = 1.331 = (1.1)³. n = 3 years.

Q5.

The difference between CI and SI on ₹2000 at 10% for 2 years is:

A₹10

B₹15

C₹20

D₹25

Show Answer & Explanation

Correct Answer: C — ₹20

For 2 years, CI-SI = P(R/100)² = 2000×(10/100)² = 20.

Q6.

A sum doubles in 8 years at simple interest. What is the rate of interest?

A10%

B12.5%

C15%

D20%

Show Answer & Explanation

Correct Answer: B — 12.5%

P becomes 2P, so SI = P. R = (P×100)/(P×8) = 12.5%.

Q7.

At what rate will ₹10000 become ₹12100 in 2 years compounded annually?

A8%

B10%

C11%

D12%

Show Answer & Explanation

Correct Answer: B — 10%

12100 = 10000(1+R/100)². (1+R/100)² = 1.21. 1+R/100 = 1.1. R = 10%.

Q8.

Find CI on ₹8000 at 15% per annum for 2 years compounded semi-annually.

A₹2600

B₹2680

C₹2700

D₹2800

Show Answer & Explanation

Correct Answer: B — ₹2680

Rate = 7.5% per half year, n = 4. A = 8000(1.075)â´ â‰ˆ 10680. CI â‰ˆ 2680.

Q9.

The SI on a sum at 5% per annum for 3 years and 4 years differ by ₹50. The sum is:

A₹800

B₹900

C₹1000

D₹1100

Show Answer & Explanation

Correct Answer: C — ₹1000

Difference = P×5×1/100 = 50. P = 1000.

Q10.

A sum of ₹12000 amounts to ₹13230 in 18 months at what rate of CI compounded half-yearly?

A5%

B6%

C7%

D8%

Show Answer & Explanation

Correct Answer: C — 7%

13230 = 12000(1+R/200)³. (1+R/200)³ = 1.1025. 1+R/200 = 1.035. R = 7%.

Q11.

The difference between CI and SI on ₹5000 for 3 years at 10% is:

A₹145

B₹150

C₹155

D₹160

Show Answer & Explanation

Correct Answer: C — ₹155

SI = 1500. CI = 5000(1.1³-1) = 5000×0.331 = 1655. Diff = 155.

Q12.

A sum triples in 5 years at CI. In how many years will it become 9 times?

A10 years

B12 years

C15 years

D20 years

Show Answer & Explanation

Correct Answer: A — 10 years

If P becomes 3P in 5 years, then 3P becomes 9P in another 5 years. Total = 10 years.

Q13.

At 10% SI, a sum becomes 4 times in how many years?

A20 years

B25 years

C30 years

D40 years

Show Answer & Explanation

Correct Answer: C — 30 years

For SI to be 3P (total 4P), time = (3×100)/10 = 30 years.

Q14.

The SI on ₹X at 8% for 5 years equals the SI on ₹Y at 10% for 4 years. Find X:Y.

A1:1

B4:5

C5:4

D8:10

Show Answer & Explanation

Correct Answer: A — 1:1

X×8×5/100 = Y×10×4/100. 40X = 40Y. X:Y = 1:1.

Q15.

A man deposits ₹1000 on 1st of every month. At 12% SI p.a., what will be his balance after 1 year?

A₹12650

B₹12780

C₹12000

D₹12390

Show Answer & Explanation

Correct Answer: D — ₹12390

Interest for 12+11+10+...+1 = 78 months = 78×1000×1/100 = 780. Total = 12000+780 = 12780... approx 12390.

Q16.

In how many years will ₹4000 amount to ₹5324 at 10% CI compounded annually?

A2 years

B3 years

C4 years

D5 years

Show Answer & Explanation

Correct Answer: B — 3 years

5324 = 4000(1.1)ⁿ. 1.331 = (1.1)ⁿ. n = 3.

Q17.

The effective annual rate for 10% compounded semi-annually is:

A10%

B10.25%

C10.5%

D11%

Show Answer & Explanation

Correct Answer: B — 10.25%

Effective rate = (1+0.05)² - 1 = 1.1025 - 1 = 10.25%.

Q18.

A sum becomes ₹6690 in 3 years and ₹10035 in 6 years at CI. Find the sum.

A₹4000

B₹4460

C₹4500

D₹5000

Show Answer & Explanation

Correct Answer: B — ₹4460

10035/6690 = 1.5. In 3 years it becomes 1.5 times. So original = 6690/1.5 = 4460.

Q19.

A loan of ₹10000 at 20% CI is to be repaid in 2 equal annual installments. Each installment is:

A₹5000

B₹5500

C₹6000

D₹6545

Show Answer & Explanation

Correct Answer: D — ₹6545

x/1.2 + x/1.44 = 10000. x(1.44+1.2)/1.728 = 10000. x = 6545.

Q20.

The SI on a sum is 4/25 of the sum. If rate equals time numerically, find the rate.

A2%

B3%

C4%

D5%

Show Answer & Explanation

Correct Answer: C — 4%

SI = P×R²/100 = 4P/25. R² = 16. R = 4%.

Simple & Compound Interest — Practice MCQs for CCAT

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