Q.1 If the principal is ₹1000, the rate of interest is 10% per annum, and the time is 1 year, what is the simple interest?
₹100
₹110
₹120
₹90
Explanation - Simple Interest = (P × R × T) / 100 = (1000 × 10 × 1) / 100 = ₹100.
Correct answer is: ₹100
Q.2 On a sum of ₹5000, the simple interest at 12% per annum for 2 years will be?
₹1000
₹1200
₹1100
₹1500
Explanation - SI = (P × R × T) / 100 = (5000 × 12 × 2) / 100 = ₹1200.
Correct answer is: ₹1200
Q.3 The principal is ₹2000 and the rate is 5% per annum. Find the simple interest for 4 years.
₹300
₹400
₹500
₹600
Explanation - SI = (2000 × 5 × 4) / 100 = ₹400.
Correct answer is: ₹400
Q.4 Find the amount when the principal is ₹1500, rate is 8% per annum, and time is 2 years under simple interest.
₹1740
₹1800
₹1700
₹1600
Explanation - SI = (1500 × 8 × 2) / 100 = ₹240; Amount = P + SI = 1500 + 240 = ₹1740.
Correct answer is: ₹1740
Q.5 What will be the simple interest on ₹2500 at 9% per annum for 3 years?
₹675
₹600
₹700
₹750
Explanation - SI = (2500 × 9 × 3) / 100 = ₹675.
Correct answer is: ₹675
Q.6 If ₹4000 amounts to ₹4600 in 3 years, what is the simple interest rate per annum?
5%
4%
6%
8%
Explanation - SI = 4600 − 4000 = ₹600. Rate = (SI × 100) / (P × T) = (600 × 100) / (4000 × 3) = 5%.
Correct answer is: 5%
Q.7 A sum of money doubles in 10 years at simple interest. The rate of interest per annum is?
5%
8%
10%
12%
Explanation - If money doubles, SI = P in 10 years. Rate = (SI × 100) / (P × T) = (P × 100) / (P × 10) = 10%.
Correct answer is: 10%
Q.8 Find the compound interest on ₹1000 at 10% per annum for 2 years, compounded annually.
₹200
₹210
₹220
₹205
Explanation - Amount = P(1 + R/100)^T = 1000(1.1)^2 = 1210. CI = 1210 − 1000 = ₹210.
Correct answer is: ₹210
Q.9 The compound interest on ₹2000 for 2 years at 5% per annum is?
₹205
₹210
₹200
₹220
Explanation - Amount = 2000(1.05)^2 = 2205. CI = 2205 − 2000 = ₹205.
Correct answer is: ₹205
Q.10 If ₹8000 becomes ₹9261 in 2 years compounded annually, find the rate of interest.
6%
7.5%
7%
8%
Explanation - Amount = P(1 + R/100)^2 ⇒ 9261 = 8000(1 + R/100)^2 ⇒ (1 + R/100)^2 = 1.1576 ⇒ R = 7.5%.
Correct answer is: 7.5%
Q.11 At what rate will a sum of ₹5000 yield ₹1325 as simple interest in 5 years?
5%
6%
5.3%
5.5%
Explanation - Rate = (SI × 100) / (P × T) = (1325 × 100) / (5000 × 5) = 5.3%.
Correct answer is: 5.3%
Q.12 If ₹10,000 is invested at 10% compounded annually, find the amount after 3 years.
₹13,100
₹13,310
₹13,200
₹13,500
Explanation - Amount = 10000(1.1)^3 = 13310.
Correct answer is: ₹13,310
Q.13 A sum of ₹4000 becomes ₹4840 in 2 years at compound interest. Find the rate of interest.
8%
9%
10%
11%
Explanation - 4840 = 4000(1 + R/100)^2 ⇒ (1 + R/100)^2 = 1.21 ⇒ 1 + R/100 = 1.1 ⇒ R = 10%.
Correct answer is: 10%
Q.14 Find the simple interest on ₹7500 for 4 years at 12% per annum.
₹3600
₹3200
₹3400
₹3500
Explanation - SI = (7500 × 12 × 4) / 100 = ₹3600.
Correct answer is: ₹3600
Q.15 ₹5000 is lent at 10% per annum compound interest. Find the compound interest for 2 years.
₹1000
₹1050
₹1100
₹1200
Explanation - Amount = 5000(1.1)^2 = 6050. CI = 6050 − 5000 = ₹1050.
Correct answer is: ₹1050
Q.16 Find the amount on ₹6400 at 5% compounded annually for 3 years.
₹7400
₹7408
₹7450
₹7500
Explanation - Amount = 6400(1.05)^3 = 7408.
Correct answer is: ₹7408
Q.17 What will ₹4000 amount to in 2 years at 6% simple interest?
₹4480
₹4500
₹4460
₹4600
Explanation - SI = (4000 × 6 × 2) / 100 = ₹480. Amount = 4000 + 480 = ₹4480.
Correct answer is: ₹4480
Q.18 If a sum becomes ₹1210 in 2 years at compound interest and the principal is ₹1000, find the rate.
9%
10%
11%
12%
Explanation - Amount = P(1 + R/100)^2 ⇒ 1210 = 1000(1 + R/100)^2 ⇒ R = 10%.
Correct answer is: 10%
Q.19 How long will it take for ₹2500 to yield ₹500 as SI at 10% per annum?
2 years
3 years
4 years
5 years
Explanation - Time = (SI × 100) / (P × R) = (500 × 100) / (2500 × 10) = 2 years.
Correct answer is: 2 years
Q.20 ₹10,000 is invested at 8% compound interest per annum. Find the amount after 2 years.
₹11,600
₹11,664
₹11,800
₹11,700
Explanation - Amount = 10000(1.08)^2 = 11664.
Correct answer is: ₹11,664
Q.21 If ₹7500 earns ₹1500 as SI in 4 years, what is the rate of interest?
4%
5%
6%
7%
Explanation - Rate = (SI × 100) / (P × T) = (1500 × 100) / (7500 × 4) = 5%.
Correct answer is: 5%
Q.22 At what rate will ₹2000 produce ₹400 as simple interest in 5 years?
4%
5%
6%
7%
Explanation - Rate = (400 × 100) / (2000 × 5) = 4%.
Correct answer is: 4%
Q.23 Find the CI on ₹5000 at 4% compounded annually for 3 years.
₹624
₹620
₹630
₹640
Explanation - Amount = 5000(1.04)^3 = 5624. CI = 5624 − 5000 = ₹624.
Correct answer is: ₹624
Q.24 A sum becomes ₹2916 in 2 years at 8% compounded annually. Find the principal.
₹2500
₹2600
₹2800
₹2700
Explanation - P = Amount / (1 + R/100)^T = 2916 / (1.08^2) = ₹2500.
Correct answer is: ₹2500