MBA Wallah

Batch : PIONEER (CAT)

Subject : Quantitative Aptitude
DPP–15
Topic : Simple & Compound Interest (Basic to Moderate Level)

1. Ujjwala deposited 5000 for 6 years, ₹4500 for 8 6. Riddhi obtained a loan of Rs. 72000 from a bank to buy
years, and ₹6500 for 4 years with the same rate of a an iPhone. What payment (in Rs.) will he be required
simple interest. She received a total simple interest to make after two years and four months if the interest
of 4600. What is the rate of interest per annum? rate is 10% per year compounded annually?
(a) 8% (b) 6% (a) 90,024 (b) 75,752
(c) 5% (d) 7% (c) 85,040 (d) 86,350

1 7. A private bank offers two types of investment

2. Out of a certain sum of money, th was invested schemes: Scheme A with a simple interest rate of 12%
10
per annum, and Scheme B with a compound interest
1
at 8% p.a simple interest, th at 12% p.a simple rate of 10% per annum compounded annually. If a
4 person invests $10,000 in each scheme for 2 years,
interest, and the rest at 10% p.a. simple interest for how much more interest will he earn from Scheme A
one year. If at the end of the year the interest earned than Scheme B at the end of the period?
was Rs. 824, find the principal amount. (a) $160 (b) $120
(a) Rs. 4000 (b) Rs. 5000 (c) $200 (d) $300
(c) Rs. 6000 (d) Rs. 8000
8. An entrepreneur takes a loan of Rs 384000 from a
3. The amounts invested by Rachel, Sakshi, and bank, that is to be returned in three years at a rate of
Chandu were 10 : 5 : 2 correspondingly. Find the 15.25% p.a. compound interest. He returns Rs
ratio of their amounts after a year if the schemes 73360 and Rs 62303 after first and second year
gave compound interest at the rates of 10%, 5%, respectively. How much money will he have to
and 15% per annum, respectively. return after the third year to settle the loan?
(a) 13 : 15 : 25 (b) 16 : 6 : 5 (a) 401585 (b) 418588
(c) 220 : 105 : 46 (d) 121 : 23 : 11 (c) 425858 (d) 438505

4. The compound interest on a certain sum of money 9. Ms. Larry provided a part of $90000 to Ms. Adani,
one of her colleagues as a loan at 7% SI for 5 years.
2
invested at 14 % per annum for 2 years is Rs. She invested the remaining amount at 14% SI. Total
7 income from interest after 5 years was $10500.
960. The simple interest on the sum, at the same rate How much loan (in $) was provided to Ms. Adani?
and for the same time period is: (a) 150000 (b) 151500
(a) Rs. 900 (b) Rs. 880 (c) 155000 (d) 155500
(c) Rs. 896 (d) Rs. 920
10. Mr. Bezos invests a certain amount of money in
5. What is the time period required for an amount of savings account of a bank that pays 10% compound
Rs. 15,625,000 to earn an interest of Rs. 1,951,000 interest per annum for a period of two years. What
at a rate of 8% per annum, compounded semi– is the sum of money (in $) that Mr. Bezos should
annually? invest so that he receives $300 at the end of first
(a) 1 year (b) 1.5 years year, and $500 at the end of second year? [Round
(c) 2 years (d) 2.75 years off to the nearest integer]
(a) 680 (b) 686
(c) 690 (d) 696
 MBA Wallah

11. A certain sum of money triples itself under simple (a) Rs. 816 (b) Rs. 489.6
interest in 10 years. A sum of Rs. 2,00,000 at the (c) Rs. 408 (d) Rs. 652.8
same rate of interest when compounded annually
will exceed Rs. 4,00,000 for the first time in the 17. The sum of simple interest received on Rs.1300 at
(a) 5th year (b) 3rd year 13% rate of interest in 9 years and the simple
(c) 6th year (d) 4th year interest received on Rs.2000 at 10% rate in 't' years
is Rs.3201. Find the value of 't'.
12. The compound interest earned is Rs 980 more than (a) 8.4 (b) 9.6
the simple interest on the same sum of money for a (c) 7.2 (d) 10.8
period of 2 years. Find the sum if the rate of interest
is 7% p.a. 18. Mr. Dhoni lent Rs.2400 each to Mr. Ajay and Mr.
(a) Rs 200000 (b) Rs 150000 Vijay. The difference between the simple interests
(c) Rs 160000 (d) Rs 156000 received from Mr. Ajay and Mr. Vijay after 4 years
is Rs.28.8. The difference between their rates of
13. Present age of P is 15 years, and he invested interest is:
Rs.4500 at 20% annual compound interest while Q (a) 0.8% (b) 0.6%
invested Rs.5824 at 25% annual compound interest. (c) 0.3% (d) 0.1%
When they both turn 18 years, the interest amount
received by both of them is the same, then how old 19. A certain sum amounts to Rs. 10080 in 2 years and
is Q at present? to Rs.10710 in 3 years, at a certain rate where
(a) 14 years (b) 16 years interest is compounded annually. How much will be
(c) 17 years (d) 12 years the simple interest on Rs.32000 at the same rate for
3 years?
14. Praveen invests Rs. 8000 in simple interest at the (a) Rs. 6000 (b) Rs. 5000
rate of 10% per annum for 4 years. If half of the (c) Rs. 6400 (d) Rs. 5400
amount is invested in the scheme of compound
interest, considering all the data half then what is 20. A certain sum of money is invested at simple
the difference between the simple interest and interest at 8% per annum for 4 years and the same
compound interest? sum of money is invested at simple interest at 15%
(a) Rs. 2790 (b) Rs. 2890 per annum for three years. If the difference between
(c) Rs. 2990 (d) Rs. 3300 simple interest is Rs. 910, then what is the sum of
money invested?
15. A woman invested Rs. 8800 in scheme A at 10% (a) Rs. 7000
per annum simple interest for 3 years and the same (b) Rs. 6000
amount at the same rate for the same time in scheme (c) Rs. 7500
B compounding annually. What will be the (d) Rs. 8000
difference between the interest earned from scheme
A and B after 3 years? 21. A sum of Rs. 23000 at a certain rate of interest in
(a) Rs. 272.8 (b) Rs. 264.2 simple interest for eight years amounts to Rs.
(c) Rs. 288.4 (d) Rs. 248.6 43240. If the same sum of money at the same rate
of interest compounded annually for two years, then
16. What is the sum of compound interest on Rs.5000 what is the interest earned after 2 years?
at 8% rate of interest for one–year when (a) Rs. 5348.6
compounded half–yearly and on sum of Rs.3000 at (b) Rs. 5338.3
2 (c) Rs. 5563.2
12% rate of interest for years compounded every
3 (d) Rs. 5526.8
4 months?
 MBA Wallah

22. If a certain sum of money will become 15 times of 27. In 2020, Eli places Rs. 20,000 in a 5–year deposit
itself in 42 years at a certain rate of simple interest, (Deposit A) that earns simple interest of 15% per
then the same sum of money at the same rate of annum. In 2023, she wants to place a 2–year deposit
simple interest will become 17 times of itself in (Deposit B) that will provide the same amount at
how many years? the end of 2025 as Deposit A. If Deposit B earns
(a) 48 years (b) 54 years simple interest at 30% per annum, what is the
(c) 50 years (d) 52 years principal (in Rs.) required for Deposit B?

23. Mahi makes a deposit in a bank at the rate of 20% 28. In a housing loan, the interest is compounded
1 quarterly, and the annual interest rate is 8%. If the
per annum for 1 years. If the maturity value of
2 total interest paid over the course of a 15–year loan
the money deposited in the bank is Rs.22627 when is $48,000, what is the approximate principal
compounded half yearly, then find the amount amount of the loan? [(1.02)60 ≈ 3.281]
deposited by Mahi. (a) $12013 (b) $15023
(a) Rs.13600 (b) Rs. 15600 (c) $18033 (d) $21043
(c) Rs.13000 (d) Rs.17000
29. Xavier makes a three–year investment of Rs. 5000
24. Vicky invested a total sum of Rs. 60300 in three in a XYZ scheme at a compound interest rate of 5%
different schemes of simple interest at 8%, 15% and p.a. At the completion of each year, a 10% tax on
21% per annum. At the end of one year, he got the interest generated is deducted. Xavier received how
same interest in all three schemes, then what is the much money at the completion of the third year?
sum of money he invested at a rate of interest of
15%? 30. A father decides to gift his son $10,000 on his 18th
(a) Rs. 14500 (b) Rs. 13800 birthday. The present age of his son is 1 year. If he
(c) Rs. 16400 (d) Rs. 16800 invests a certain sum today in an account that pays
6% compounded annually, how much should he
25. A certain amount is invested at 30% annual CI for invest today to achieve his goal? [(1.06)16 ≈ 2.54]
2.5 years and interest accrued at the end of 2.5 years (a) $3714 (b) $4,122
is Rs.11322, then what is that certain invested (c) $5,930 (d) $6,254
amount?
(a) Rs. 16000 (b) Rs. 12000
(c) Rs. 20000 (d) Rs. 24000

26. Three friends Sudama, Peyush and Aryan won a

lottery of Rs 15,400 and they wish to split the
amount among themselves in such a way that, after
1, 2, and 3 years, respectively, the simple interest
on each share at 5% per year remains the same.
Differences in Sudama and Aryan’s share will be:
 MBA Wallah

Answer Key
1. (c) 16. (d)
2. (d) 17. (a)
3. (c) 18. (c)
4. (c) 19. (a)
5. (b) 20. (a)
6. (a) 21. (b)
7. (d) 22. (a)
8. (b) 23. (d)
9. (a) 24. (d)
10. (b) 25. (b)
11. (d) 26. (5600)
12. (a) 27. (21875)
13. (b) 28. (d)
14. (a) 29. (6082)
15. (a) 30. (a)
 MBA Wallah

Hints & Solutions

1. (c) P = Rs. 3136
Let the rate of interest be r% per annum. 100 × 2
SI 3136 ×
=
Therefore, 7 × 100
 r   r  = Rs. 896
4600
=  5000 × 6 ×  +  4500 × 8 × 
 100   100  Hence, the correct answer is option (c).
 r 
+  6500 × 4 ×  5. (b)
 100 
A = P + SI
=> 4600 = 300r + 360r + 260r
A = 15625000 + 1951000
=> 4600 = 920r
A = 17576000
=> r = 5%
n
Hence, option (c) is correct. Let time period = years
2
2. (d) 8
Rate of interest = R = 8% p.a. = = 4% semi–
Let the principal be ‘100a’ rupees. 10% of 100a is 2
invested at 8%, 25% of 100a at 12%, and the rest annually
65% of 100a at 10%(all for 1 year) Principal = P = 15625000 and Amount = A
Total interest = 17576000
n
= 10a × 8% + 25a × 12% + 65a × 10% = 824   R 
A P 1 + 
= 
⇒ a = 80   100  
Principal = 100a = 100 × 80 = ₹ 8000. ⇒ 17576000 = 15625000(1 + 0.04)n
Hence, option (d) is the correct answer. ⇒ 17576000 = 15625000 (1 + 0.04)n
n
17576000  104 
3. (c) ⇒ = 
According to the question, 15625000  100 
3 n
  10     5    15    26   26 
10 × 1 + 100   : 5 × 1 + 100   :  2 × 1 +  ⇒  =  
        100    25   25 
 11   21   23  ⇒n=3
= 10 ×  :  5 ×  :  2 ×  3
 10   20   20  ∴ Time period = = 1.5 years.
= 220 : 105 : 46 2
Hence, the correct answer is option (c). Hence, the correct answer is option (b).

4. (c) 6. (a)
T Principal amount is Rs. 72,000.
 R 
CI =
P 1 +  −P Rate of interest is 10% p.a
 100 
 1
 2  Time=  2 +  years.
100   3
960 =
P  1 +  − 1
 7 × 100   2
R   R/3 

So, A =+
P 1  1 + 
 8  2   100   100 
960 P   − 1
= 2
 7    10   10/3 
⇒
= A 72000 1 +  1 + 
15P  100   100 
960 =
49
 MBA Wallah

2 8. (b)
 11   10 
⇒ A 72000   × 1 +
=  Money took = Rs 384000
 10   3 × 100 
Amount after first year
 121 31 
⇒ A 72000 
= ×   15.25 
 100 30  = 384000 × 1 + 
 100 
⇒ A = 90,024
= 442560
Hence, option (a) is correct.
Amount paid after first year = 73360, amount
remaining = 442560 – 73360 = 369200
7. (d)
Amount to be paid after second year
To solve this question, we need to calculate the
 15.25 
interest earned from each scheme and then find the = 369200 × 1 + 
 100 
difference between the two.
Scheme A: Simple Interest = 425503
The formula for calculating simple interest is: Amount paid after second year = 62303, amount
Simple Interest = Principal × Rate × Time remaining = 425503 – 62303 = 363200
In this case, the Principal is $10,000, the Rate is Amount to paid after third year
12% per annum (0.12 as a decimal), and Time is 2  15.25 
= 363200 × 1 + 
years.  100 
Simple Interest = $10,000 × 0.12 × 2 = Rs 418588
Simple Interest = $2,400 Hence, option (b) is correct.
Scheme B: Compound Interest
The formula for calculating compound interest is: 9. (a)
Amount = Principal × (1 + Rate)Time Let x be the sum that she lent to his colleague.
In this case, the Principal is $10,000, the Rate is Therefore,
10% per annum (0.10 as a decimal), and Time is 2 ( x × 7 × 5) + ( 90000 − x ) × 14 × 5 =
10500
years. 100 100
Amount = $10,000 × (1 + 0.10)2 35x + 70(90000 – x) = 1050000
Amount = $10,000 × (1.10)2 – 35x = – 5250000
Amount = $10,000 × 1.21 x = $150000
Amount = $12,100
Now, to find the compound interest earned, we 10. (b)
subtract the principal from the final amount: Let, the amount that was invested by Mr. Bezos in
Compound Interest = Amount – Principal the bank is 'C'.
Compound Interest = $12,100 – $10,000 1.1(1.1C – 300) = 500
Compound Interest = $2,100 500
⇒ 1.1C – 300 =
1.1
Now we need to find the difference between the
 500 
interest earned from Scheme B and Scheme A: => =
1.1C   + 300
 1.1 
Difference = Compound Interest (Scheme A) –
Simple Interest (Scheme B) That is, C ≈ 686
Difference = $2,400 – $2,100 Option (b) is correct.
Difference = $300
The person will earn $300 less in Scheme B than in 11. (d)
Scheme A at the end of the period. It is given in the question that the sum of money
triples itself in 10 years. Let us take P = 1, A = 3,
SI = 3 – 1 = 2
 MBA Wallah

P × 10 × r 1 × 10 × r 14. (a)
=SI = ⇒2 = ⇒ r 20%
100 100 P = Rs. 8000
The amount when compounded annually R = 10%
n T= 4 years
 r 
A P 1 +
=  For simple interest,
 100 
PRT ( 8000 × 10 × 4 )
Therefore, the sum doubles itself when S.I.
= = = Rs. 3200
100 100
compounded annually.
n
For compound interest,
 r  T
⇒ 1 +  >2   R 
 100  A P 1 + 
= 
n   100  
 20 
⇒ 1 +  >2 2
 100    5 
⇒ A= 4000 × 1 +  
1.2n > 2   100  
i.e., when n = 4, the amount doubles itself when  21   21 
= 4000 ×   ×   = Rs.4410
compounded annually.  20   20 
Compound Interest = 4410 – 4000 = Rs. 410
12. (a) Hence, the difference in CI and SI = 3200 – 410
Formula for 2 year difference of CI and SI = Rs. 2790
2
 R 
(CI – SI) for 2 years = P  
 100  15. (a)
2 Simple interest earned from scheme A
 7 
980 = P   3
 100  = 8800 × 10 × = 88 × 30 = Rs.2640
100
P=
( 980 × 10000 ) Compound interest earned from scheme B
49  3 
10 
P = 20 × 10000 = 8800 × 1 +  − 1
P = 200000  100  
331
= 8800 × = Rs.2912.8
13. (b) 1000
Let at present Q is 'x' years younger to become 18 Required difference
years old. = Rs. 2912.8 – 2640 = Rs. 272.8
Interest amount received by P when he turns 18
years = 4500 × [(1.2)3 – 1] = Rs.3276 16. (d)
Interest amount received by Q when he turns 18 Cl on Rs. P at R% per annum for t years when
years = 5824 × [(1.25)x –1] = 3276 compounded n–monthly
9  12 
(1.25)x − 1 =  R  n
t×

16
 12  
x  9    
1.25
=   +1 P  1 + n 
= − 1
 16   100  
1.25 = 1.5625 = 1.252
x   
 
 
x=2  
Present age of Q = 18 – 2 = 16 years
Then, total CI
 MBA Wallah

 1×
12   2 12
×  and
 8  6    12  3 4  3
 12    12    r 
     10710 =P × 1 +  ...(2)
   100 
=5000 1 + 6  − 1 +3000 1 + 4  − 1
 100    100   From equation (1) and (2),
     
      1008 1
  =
    1071 1 + r
2 2 100
 4    4  
= 5000 ×  1 + − 1  + 3000 ×  1 + − 1  112 1
  100     100   =
    119 1 + r
51 100
= ( 5000 + 3000 ) ×
625 112r
112 + = 119
= Rs.652.8 100
700
=r = 6.25%
17. (a) 112
time Now,
SI principal × rate ×
We know,=
100 3
SI= 32000 × 6.25 ×
SI on Rs. 1300 at 13% rate of interest in 9 years 100
9 SI = 80 × 75
= 1300 × 13 × = Rs.1521
100 SI = Rs. 6000
SI on Rs.2000 at 10% rate in 't' years
t 20. (a)
= 2000 × 10 × = 200t
100 Let the sum of money is Rs. P.
Now, 200t + 1521 = 3201 According to the question,
⇒ 200t = 1680 ( P × 15 × 3) − ( P × 8 × 4 ) =
910
⇒ t = 8.4 100 100
45P 32P
⇒ − = 910
18. (c) 100 100
Let rate of interest for Mr. Ajay = x% and for Mr. => 13P = 91000
Vijay = y% => P = Rs. 7000
Therefore,
 4   4  21. (b)
 2400 × x ×  −  2400 × y × =28.8
Let R% be the rate of interest.
 100   100 
[Assuming x > y] ( 23000 × R × 8)
43240 – 23000 =
288 100
⇒ 96 ( x − y ) =
10 20240
⇒R=
⇒ (x – y) = 0.3% 1840
Difference between their rates of interest = 0.3% => R = 11%
 2 
11 
19. (a) So, CI= 23000 × 1 +  − 1
 100  
Let the sum is Rs. P.
According to the condition, => CI = Rs. 5338.3
2
 r 
10080 =P × 1 +  ...(1)
 100 
 MBA Wallah

22. (a) Putting values of X, Y and Z in equation (1), we get

Let principal = Rs. P, and rate = R%, time = 42 k k k
+ + = 60300
years 8 15 21

15P − P =
( P × R × 42 ) (105k + 56k + 40k ) =
⇒ 60300
100 840
42R => 201k = 60300 × 840
⇒ 14 =
100 => k = 252000
100 So, investment at 15% rate of interest
⇒ R = 14 ×
42 k 252000
= = = Rs. 16800
100 15 15
⇒R= %
3
 100  25. (b)
P× ×T
Let the certain amount be Rs. 100x
 3 
Now, 17P − P =
100 Interest for the first year = 30% of 100x = 30x
=> 16 × 3 = T Interest for the second year = (30% of 100x) + (30%
=>T = 48 years of 30x) = 30x + 9x
Interest for the next half year = (15% of 100x) +
23. (d) [15% of (30x + 30x)] + [15% of 9x]
Let the amount deposited by Mahi = Rs. P = 15x + 9x + 1.35x
1 3 Interest amount at the end of 2.5 years
1 years = years = 30x + (30x + 9x) + (15x + 9x + 1.35x) = 11322
2 2
Then, maturity value of money when compounded => 94.35x = 11322
half yearly x = 120
2×time Hence, invested amount = 100x = Rs. 12000
 rate 
= sum × 1 + 
 200  26. (5600)
2×3/2
 20  Let the share of Sudama, Peyush and Aryan be x, y
Now, 22627 =P × 1 + 
 200  and z.
 10   10   10  x × 5 ×1 y × 5 × 2 z × 5 × 3
P = 22627 ×   ×   ×   = =
100 100 100
 11   11   11 
x = 2y = 3z = k (say)
P = 17000
k k
x:y:z=k: : =6:3:2
24. (d) 2 3
Let Rs. X, Rs. Y and Rs. Z is invested in three The difference in Sudama and Aryan’s share
different schemes of simple interest at 8%, 15% and 4
= Rs. × 15400
21% per annum respectively. 11
According to the question, = Rs. 4 × 1400
X + Y + Z = 60300 –––(1) = Rs. 5600
( X × 8 × 1) ( Y × 15 × 1) ( Z × 21× 1)
And, = = 27. (21875)
100 100 100
Let P be the principal placed as a 2–year deposit
=> 8X = 15Y = 21Z
(Deposit B) for simple interest at the rate of 30%.
Let 8X = 15Y= 21Z = k
Given that Deposit A and Deposit B provide the
k k k
So,=X = ,Y and Z = same amount at the end of 2025.
8 15 21
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20000 × 5 × 15 P × 2 × 30 29. (6082)

20000 + P+
=
100 100 Amount at end of 1st year = 5000 × 1.05 = 5250
8 Interest = 5250 – 5000 = 250
35000= 1.6P= P ×
5 Tax of 1st year = 10% of (250) = 25
P = 21875 Amount received at end of 1st year = 5250 – 25 =
Rs 5225
28. (d) Amount at end of 2nd year = 5225 × 1.05 =
We know that the total interest paid over the 15– 5846.25
year loan is $48,000. Let's denote the principal Interest = 5846.25 – 5225 = 261.25
amount as P. Then, the Amount (final balance) will Tax of 2nd year = 10% of (261.25) = 26.12
be P + $48,000. Amount received at end of 2nd year = 5846.25 –
The annual interest rate is 8% (0.08 as a decimal), 26.12 = Rs 5820.13
and the loan duration is 15 years. Amount at end of 3rd year = 5820.13 × 1.05 =
Using the compound interest formula, we get: 6111.14
( 4×15) Interest = 6111.14 – 5820.13 = 291.01
  0.08  
Amount =P × 1 +   Tax of 3rd year = 10% of (291.01) = 29.1
  4 
Amount received at end of 3rd year = 6111.14 –
Since the total interest paid is $48,000, we can 29.1 = Rs 6082.04
rewrite the equation as: = Rs. 6082 (approx.)
( 4×15)
  0.08  
P + $48,000 =P × 1 +  
  4  30. (a)
P + $48,000 = P × (1 + 0.02)(60) To solve this question, we need to find out how
Now we need to isolate P to find its value. Divide much the father should invest today to have
both sides of the equation by (1.02)60: $10,000 when his son turns 18 years old. The
account pays 6% interest compounded annually.
( P + $48,000 ) = P
The son is currently 1 year old, so there are 17 years
(1.02 )60 left until he turns 18.
Subtract P from both sides: We can use the compound interest formula to find
$48,000 = P × ((1.02)60 – 1) out the required initial investment:
Now, divide both sides by ((1.02)60 – 1): Amount = Principal × (1 + Rate)Time
$48,000 Where:
P=
(1.02 )60 − 1 • Amount is the final balance ($10,000)
Given that, the value of X: • Principal is the initial investment (which we
X = (1.02)60 ≈ 3.281 want to find)
Now, calculate the value of P: • Rate is the annual interest rate (6% or 0.06 as a
$48,000 decimal)
P=
3.281 − 1 • Time is the number of years until the son's 18th
$48,000 birthday (17 years)
P=
2.281 We can rewrite the formula to solve for the
P ≈ $21043 Principal:
Amount
Principal =
(1 + Rate )Time
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Now, we can plug in the values to calculate the [Since, (1.06)16 ≈ 2.54, so, (1.06)17 ≈ 2.54 × 1.06 =
initial investment: 2.6924]
$10,000 Principal ≈ $3714
Principal =
(1 + 0.06 )17 So, the father should invest approximately $3714
today to have $10,000 on his son's 18th birthday.
$10,000
Principal =
(1.06 )17
$10,000
Principal =
2.6924

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