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Simple & Compound Interest - Practice MCQs for CCAT

60 Questions Section A: Fundamentals Quantitative Aptitude

Simple & Compound Interest Question Bank for C-CAT

Topic-wise Simple & Compound Interest MCQs for CDAC C-CAT preparation with answers and explanations.

Q1.
Find the simple interest on ₹5000 at 8% per annum for 3 years.
A₹1200
B₹1000
C₹1400
D₹1600
Show Answer & Explanation

Correct Answer: A - ₹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%
B7%
C6%
D5%
Show Answer & Explanation

Correct Answer: D - 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₹220
C₹210
D₹230
Show Answer & Explanation

Correct Answer: C - ₹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)n. (1.1)n = 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₹25
D₹20
Show Answer & Explanation

Correct Answer: D - ₹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?
A12.5%
B10%
C15%
D20%
Show Answer & Explanation

Correct Answer: A - 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?
A10%
B8%
C11%
D12%
Show Answer & Explanation

Correct Answer: A - 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)4 approx 10680. CI approx 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₹1100
D₹1000
Show Answer & Explanation

Correct Answer: D - ₹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%
B7%
C6%
D8%
Show Answer & Explanation

Correct Answer: B - 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?
A20 years
B12 years
C15 years
D10 years
Show Answer & Explanation

Correct Answer: D - 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
B30 years
C25 years
D40 years
Show Answer & Explanation

Correct Answer: B - 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.
A5:4
B4:5
C1:1
D8:10
Show Answer & Explanation

Correct Answer: C - 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
B5 years
C4 years
D3 years
Show Answer & Explanation

Correct Answer: D - 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%
B11%
C10.5%
D10.25%
Show Answer & Explanation

Correct Answer: D - 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₹4500
C₹4460
D₹5000
Show Answer & Explanation

Correct Answer: C - ₹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₹6545
B₹5500
C₹6000
D₹5000
Show Answer & Explanation

Correct Answer: A - ₹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%
C5%
D4%
Show Answer & Explanation

Correct Answer: D - 4%

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

Q21.
Simple interest on ₹5000 at 8% for 3 years is:
A₹1000
B₹1200
C₹1500
D₹800
Show Answer & Explanation

Correct Answer: B - ₹1200

SI = 5000×8×3/100 = 1200.

Q22.
At what rate of simple interest does ₹1200 become ₹1500 in 5 years?
A4%
B5%
C6%
D10%
Show Answer & Explanation

Correct Answer: B - 5%

SI=300. R=300×100/(1200×5)=5%.

Q23.
Compound interest on ₹10000 at 10% for 2 years is:
A₹2500
B₹2000
C₹2100
D₹1800
Show Answer & Explanation

Correct Answer: C - ₹2100

A=10000(1.1)²=12100. CI=2100.

Q24.
Difference between CI and SI on ₹8000 for 2 years at 5% is:
A₹40
B₹20
C₹25
D₹30
Show Answer & Explanation

Correct Answer: B - ₹20

Diff=P(R/100)²=8000×(0.05)²=8000×0.0025=20.

Q25.
In how many years will ₹2000 amount to ₹2420 at 10% CI?
A3 years
B2 years
C4 years
D1 year
Show Answer & Explanation

Correct Answer: B - 2 years

2000(1.1)n=2420. (1.1)n=1.21=(1.1)². n=2.

Q26.
A sum doubles in 8 years at simple interest. The rate is:
A15%
B10%
C12.5%
D8%
Show Answer & Explanation

Correct Answer: C - 12.5%

SI=P, so P×R×8/100=P. R=100/8=12.5%.

Q27.
CI on a sum at 20% for 2 years is ₹4400. The sum is:
A₹8000
B₹10000
C₹12000
D₹15000
Show Answer & Explanation

Correct Answer: B - ₹10000

A=P(1.2)²=1.44P. CI=0.44P=4400. P=10000.

Q28.
SI on ₹6000 for 2 years at 10% per annum compounded annually exceeds SI by:
A₹100
B₹50
C₹60
D₹80
Show Answer & Explanation

Correct Answer: C - ₹60

CI=6000×0.21=1260. SI=6000×0.2=1200. Diff=60.

Q29.
At what rate does ₹1000 become ₹1331 in 3 years CI?
A10%
B11%
C12%
D15%
Show Answer & Explanation

Correct Answer: A - 10%

1000(1+R)³=1331. (1+R)³=1.331=1.1³. R=10%.

Q30.
A sum trebles in 20 years at SI. In how many years will it become 5 times?
A50 years
B40 years
C60 years
D30 years
Show Answer & Explanation

Correct Answer: B - 40 years

Trebles: SI=2P in 20 years. Rate=10%. 5 times: SI=4P. T=4P×100/(P×10)=40 years.

Q31.
The CI on a certain sum for 2 years at 10% is ₹420. The SI is:
A₹410
B₹380
C₹400
D₹390
Show Answer & Explanation

Correct Answer: C - ₹400

CI-SI=P(R/100)²=P×0.01. CI=P×0.21=420, P=2000. SI=2000×0.2=400.

Q32.
₹2000 invested at 15% SI. In how many years interest equals the principal?
A6.67 years
B7 years
C5 years
D8 years
Show Answer & Explanation

Correct Answer: A - 6.67 years

2000×15×T/100=2000. T=100/15=6.67 years.

Q33.
Amount after 3 years at 10% CI on ₹8000:
A₹10400
B₹10648
C₹11000
D₹10800
Show Answer & Explanation

Correct Answer: B - ₹10648

A=8000(1.1)³=8000×1.331=10648.

Q34.
The difference between CI compounded half-yearly and SI on ₹10000 at 10% for 1 year:
A₹75
B₹50
C₹25
D₹100
Show Answer & Explanation

Correct Answer: C - ₹25

CI half-yearly: 10000(1.05)²=11025. CI=1025. SI=1000. Diff=25.

Q35.
A certain sum gives ₹600 as SI and ₹630 as CI for 2 years. The rate is:
A5%
B10%
C15%
D20%
Show Answer & Explanation

Correct Answer: B - 10%

Diff=30=SI for 1st year × R/100. SI per year=300. 300×R/100=30. R=10%.

Q36.
If P=₹5000, R=10%, T=2 years, find CI - SI:
A₹50
B₹100
C₹75
D₹25
Show Answer & Explanation

Correct Answer: A - ₹50

CI-SI=P(R/100)²=5000×0.01=50.

Q37.
A sum of ₹8000 is deposited at compound interest for 3 years at 5%. Amount is:
A₹9300
B₹9200
C₹9000
D₹9261
Show Answer & Explanation

Correct Answer: D - ₹9261

A=8000(1.05)³=8000×1.157625=9261.

Q38.
At 8% SI, in how many years will ₹4000 yield interest of ₹1280?
A5 years
B3 years
C4 years
D6 years
Show Answer & Explanation

Correct Answer: C - 4 years

T=1280×100/(4000×8)=4 years.

Q39.
Population of a town is 50000. It increases at 10% per year. Population after 2 years:
A60500
B55000
C61000
D62000
Show Answer & Explanation

Correct Answer: A - 60500

P=50000(1.1)²=50000×1.21=60500.

Q40.
The effective rate of interest for 10% compounded semi-annually is:
A11%
B10%
C10.5%
D10.25%
Show Answer & Explanation

Correct Answer: D - 10.25%

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

Q41.
A sum amounts to ₹6050 in 2 years and ₹6655 in 3 years at CI. Rate is:
A8%
B12%
C10%
D15%
Show Answer & Explanation

Correct Answer: C - 10%

3rd year interest=6655-6050=605. Rate=605/6050×100=10%.

Q42.
If a sum doubles in 5 years at CI, in how many years will it become 8 times?
A15 years
B20 years
C10 years
D25 years
Show Answer & Explanation

Correct Answer: A - 15 years

Doubles in 5 years. 8=2³. So 8 times in 5×3=15 years.

Q43.
Simple interest at 12% for 3 years and 4 months on ₹2400 is:
A₹960
B₹864
C₹1080
D₹720
Show Answer & Explanation

Correct Answer: A - ₹960

Time=3+4/12=10/3 years. SI=2400×12×10/(100×3)=960.

Q44.
The ratio of SI to CI on ₹P for 2 years at R% per annum:
A200:(200+R)
B100:(100+R)
C2R:(2R+R²/100)
DR:(R+100)
Show Answer & Explanation

Correct Answer: A - 200:(200+R)

SI=2PR/100. CI=P[(1+R/100)²-1]=P[2R/100+R²/10000]. Ratio=2PR/100:P(2R/100+R²/10000)=200:200+R.

Q45.
₹16000 invested at 5% CI compounded annually. Interest for 3rd year:
A₹840
B₹882
C₹800
D₹900
Show Answer & Explanation

Correct Answer: B - ₹882

Amount after 2 years=16000×1.1025=17640. Amount after 3 years=17640×1.05=18522. 3rd year interest=882.

Q46.
Find the present value of ₹1210 due 2 years hence at 10% CI:
A₹1000
B₹1100
C₹900
D₹1050
Show Answer & Explanation

Correct Answer: A - ₹1000

PV=1210/(1.1)²=1210/1.21=1000.

Q47.
A machine depreciates at 10% per year. If present value is ₹50000, value after 3 years:
A₹38000
B₹35000
C₹40000
D₹36450
Show Answer & Explanation

Correct Answer: D - ₹36450

V=50000(0.9)³=50000×0.729=36450.

Q48.
What sum at 5% CI amounts to ₹16200 in 2 years?
A₹14693.88
B₹15000
C₹14500
D₹14000
Show Answer & Explanation

Correct Answer: A - ₹14693.88

P=16200/(1.05)²=16200/1.1025≈14693.88.

Q49.
Interest earned on ₹20000 for 1.5 years at 10% CI compounded half-yearly:
A₹3200
B₹3000
C₹3100
D₹3152.50
Show Answer & Explanation

Correct Answer: D - ₹3152.50

A=20000(1.05)³=20000×1.157625=23152.50. CI=3152.50.

Q50.
If SI on a sum for 4 years at 5% is ₹800, find the sum:
A₹5000
B₹3500
C₹4000
D₹3000
Show Answer & Explanation

Correct Answer: C - ₹4000

P=800×100/(5×4)=4000.

Q51.
At what annual rate will Rs. 8000 become Rs. 9680 in 3 years at simple interest?
A6%
B7%
C8%
D9%
Show Answer & Explanation

Correct Answer: B - 7%

SI=1680. Rate = SI x100/(P x T)=1680x100/(8000x3)=7%.

Q52.
The compound interest on Rs. 10000 for 2 years at 10% per annum is:
ARs. 2000
BRs. 2100
CRs. 2200
DRs. 2210
Show Answer & Explanation

Correct Answer: B - Rs. 2100

Amount = 10000(1.1)2 = 12100. CI=2100.

Q53.
Difference between compound interest and simple interest on a sum for 2 years at 8% is Rs. 64. Sum is:
ARs. 8000
BRs. 9000
CRs. 10000
DRs. 12000
Show Answer & Explanation

Correct Answer: C - Rs. 10000

Difference for 2 years = P(R/100)2 = P(0.08)2 = 64, so P=10000.

Q54.
A sum doubles in 8 years at simple interest. In how many years will it triple?
A12 years
B14 years
C16 years
D20 years
Show Answer & Explanation

Correct Answer: C - 16 years

Doubling means 100% interest in 8 years. Tripling needs 200% interest, so 16 years.

Q55.
Rs. 5000 is compounded half-yearly at 12% per annum for 1 year. Amount is:
ARs. 5600
BRs. 5618
CRs. 5620
DRs. 5636
Show Answer & Explanation

Correct Answer: B - Rs. 5618

Half-yearly rate=6%, periods=2. Amount=5000(1.06)2=5618.

Q56.
If simple interest on a sum for 5 years at 6% is Rs. 1500, principal is:
ARs. 4000
BRs. 5000
CRs. 6000
DRs. 7500
Show Answer & Explanation

Correct Answer: B - Rs. 5000

P = SI x 100/(R x T)=1500x100/(6x5)=5000.

Q57.
A sum amounts to Rs. 13310 in 3 years at 10% compound interest. Principal is:
ARs. 9000
BRs. 10000
CRs. 11000
DRs. 12000
Show Answer & Explanation

Correct Answer: B - Rs. 10000

P = 13310/(1.1)3 = 10000.

Q58.
At simple interest, a sum becomes Rs. 6900 in 3 years and Rs. 7500 in 5 years. Principal is:
ARs. 5700
BRs. 6000
CRs. 6300
DRs. 6500
Show Answer & Explanation

Correct Answer: B - Rs. 6000

Interest for 2 years = 600, so yearly interest=300. Principal=6900-900=6000.

Q59.
If rate is 5% per annum compounded annually, money grows by what percent in 2 years?
A10%
B10.25%
C11%
D12.5%
Show Answer & Explanation

Correct Answer: B - 10.25%

Growth factor=(1.05)2=1.1025, so increase is 10.25%.

Q60.
A sum at simple interest becomes 4/3 of itself in 4 years. Rate percent is:
A6.25%
B7.5%
C8.33%
D10%
Show Answer & Explanation

Correct Answer: C - 8.33%

Interest = 1/3 of principal in 4 years. Rate = (1/3)/4 x 100 = 8.33%.

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