### Examination Questions on Simple and Compound Interest

###### Compound Interest = Principle(1 + r/100)n – Principle

r = rate of interest and n = time period

###### Click on the option you think is right and then check by clicking on the Show Answer button. You can change your option as many times as you like.

1. A sum of money becomes 3 times in 5 years. In how many years will the same sum become 6 times at the same rate of simple interest?

1. 15 years
2. 12.5 years
3. 10 years
4. 7.5 years

2. What is the compound interest on Rs. 1600 at 25% per annum for 2 years compounded annually?

1. Rs. 700
2. Rs. 750
3. Rs. 800
4. Rs. 900

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

1. Rs. 700
2. Rs. 800
3. Rs. 900
4. Rs. 1000

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

1. Rs. 285
2. Rs. 280
3. Rs. 275
4. Rs. 270

5. What is the least number of complete years in which a sum of money at 20% compound interest will be more than doubled?

1. 7
2. 6
3. 5
4. 4

6. A sum of money on compound interest amounts to Rs. 9,680 in 2 years and to Rs. 10,648 in 3 years. What is the rate of interest per annum?

1. 5%
2. 10%
3. 15%
4. 20%

7. A sum of money lent on simple interest trebles itself in 15 years and 6 months. In how many years will it be doubled?

1. 6 years and 3 months
2. 7 years and 9 months
3. 8 years and 3 months
4. 9 years and 6 months

8. 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?

1. Rs. 1,550/-
2. Rs. 1,650/-
3. Rs. 1,750/-
4. Rs. 2,000/-