Multiple choice questions (MCQ) on Simple and compound interest

1. A sum of money amounts to Rs. 1352 in two years at 4% per annum of compound interest. The sum is

a. Rs. 1200                   b. Rs. 1250                   c. Rs. 1280                   d. Rs. 1296

 

2. A person invested part of Rs. 45,000 at 4% and the rest at 6%. If his annual income from both is equal, then what is the average rate of interest?

a. 4.6%             b. 4.8%             c. 5.0%             d.5.2%

 

3. A sum of money lent at simple interest amounts to Rs. 880 in two years and to Rs. 920 in three years. The sum of money (in Rs.) is

a. 700               b. 760               c. 784               d. 800

 

4. The compound interest on a sum for 2 years is Rs 832 and the simple interest on the same sum at the same rate for the same period is Rs. 800. What is the rate of interest?

a. a. 6%            b. 8%               c. 10%              d. 12%

 

5. A person invested some amount at the rate of 12% simple interest and the remaining at 10%. He received yearly an interest of Rs. 130. Had he interchanged the amounts invested, he would have received an interest of Rs. 134. How much money did he invest at different rates?

a. Rs. 500 @ 10%, Rs. 800 @12%                     b. Rs. 700 @ 10%, Rs. 600 @12%

c. Rs. 800 @ 10%, Rs. 400 @12%                     d. Rs. 700 @ 10%, Rs. 500 @12%

 

6. The simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 4,000 for 2 years at 10% per annum. What is the sum placed on simple interest?

a. Rs 1,550                   b. Rs. 1,650                  c. Rs. 1,750                  d. Rs. 2,000

 

7. A certain sum at a simple interest amounts to Rs. 1350 in 5 years to Rs. 1620 in 8 years. What is the sum?

a. 700               b. 800               c. 900               d. 1000

 

8. The sum which amounts to Rs. 364.80 in 8 years at 3.5% simple interest per annum is:

a. Rs. 285                     b. Rs. 280                     c. Rs. 275                     d. Rs. 270

 

9. The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?

a. 0.25%           b. 0.5%             c. 1%                d. 2.5%

 

10. The compound interest on Rs. 36,000 lent at 10% per annum for 5/2 years, if the interest is compounded annually, is

a. Rs. 9,000                  b. Rs. 9,738                  c. Rs. 11,916                 d. Rs. 7,560

 

11. A man invests half his capital at the rate of 10% per annum, 1/3 at 9%and the rest at 12%per annum. The average rate of interest per annum, will he gets, is

a.9%           b. 4.5 %          c 5.5%          d. 4.5%