INTEREST CALCULATIONS

SIMPLE INTEREST
Principal : The money borrowed or lent for a certain period is called Sum or
Principal
Interest : The extra money paid for the money borrowed is termed as
Interest.
Simple Interest :Interest paid on principle amount for certain period of time
is termed as simple interest.

Where P is Principal, T is Number of years, R is Rate of

Interest.
Simple Interest for D number of days, If P is Principle amount and R is Rate.

COMPOUND INTEREST
If P is Principal amount, R is Percentage Rate, n is number of years
When interest is compound annually :

If interest is compounded Half-yearly:

When interest is compounded quarterly:

When rate of interest are X % , Y %, Z % for 1st, 2nd and third year
respectively. Then amount will be :

When interest is compounded annually but time is in fraction such as

PRACTICE SET - 1
1.

Raj lends a sum of money to Shyam at an interest rate of 5% p.a. After

two years he charges an interest of 8% p.a. At the end of 5 years, Shyam
pays Rs.13400 to Raj, how much did he initially borrow?
(a) 8000
(b) 9000
(c) 10000
(d) 10500

2.

On SI, a given sum amounts to an interest equal to 9/25 of the sum. Find
the rate of interest if it is numerically equal to time
(a) 3%
(b) 4%
(c) 5%
(d) 6%

3.

A sum of money fetched an interest of Rs.3840 in 4 years at an interest

rate of 8%. Find the sum.
(a) 8000
(b) 9000
(c) 12000
(d) 10500

4.

How many years does it take for an amount of Rs.20000 to fetch an

interest of Rs.8400 at 7% interest?
(a) 6 years
(b) 4 years
(c) 5 years
(d) 5.5 years

5.

Ganesh lends an amount of Rs.15000 to Arun for 3 years and an amount

of Rs.25000 to Varun for 2 years at the same interest rate. The total
interest received by him is Rs.9500. Find the rate of interest.
(a) 3%
(b) 4%
(c) 10%
(d) 6%

6.

A sum of money amounts to Rs.49440 in 3 years and Rs.50400 in 5

years at the same interest rate. Find the rate of interest per annum.
(a) 3%
(b) 4%
(c) 5%
(d) 10%

7.

A lends a sum of Rs.15000 to B at an interest rate of 8%. B uses Rs.5000

and he lends the remaining amount to C. At what rate should B lend the
amount to C so that the interest received by B will be equal to the
interest payable by B to A?
(a) 13%
(b) 12%
(c) 10%
(d) 6%

8.

The difference between CI and SI on a sum of Rs.10000 for 2 years at 5%

interest is
(a) Rs.25
(b) Rs.20
(c) Rs.35
(d) Rs.40

9.

A finance company claims to lend money at SI, but includes the interest
every 6 months for calculating principal. If they charge at an interest of
8%, what is the effective rate of interest
(a) 8%
(b) 8.16%
(c) 9%
(d) 8.5%

1
0.

Raj and Shyam deposit an equal amount of money in a bank at SI. Raj
deposits for a time thrice as long as Shyam at two-thirds of Shyams
interest rate. Find the ratio of the interests received by Raj and Shyam.
(a) 2:1
(b) 3:2
(c) 3:5
(d) 5:3

1
1.

The least number of complete years in which a sum of money put out at
20% CI will be more than double is
(a) 4
(b) 3
(c) 2
(d) 1

1
2.

If the SI on a certain sum of money for 3 years at 10% interest is Rs.300,

find the CI on the same sum for the same time at the same rate of
interest.
(a) Rs.255
(b) Rs.300
(c) Rs.331
(d) Rs.400

1
3.

SI on Rs.3500 for 2 years at 9% interest is equal to the CI on a certain

sum of money for the same number of years at 10% p.a. Find the sum of
money.
(a) Rs.6300
(b) Rs.6000
(c) Rs.5500
(d) Rs.5800

1
4.

At what rate of CI will a sum of Rs.8000 amount to Rs.8820 in two years?

(a) 3%

1
5.

(b) 4%

(c) 5%

(d) 6%

An amount increases by 40% in 5 years at SI. By how much % does it

increase in 2 years at the same rate on CI?
(a) 16.64%
(b) 21%
(c) 15.5%
(d) 16.1%

1
6.

The rate of growth of population of a village has been compounding

annually at a constant rate of 5%. If the present population of the village
is 10000, find the population after 2 years?
(a)10221
(b)10331
(c)10050
(d) 11025

1
7.

Rs.100 doubled in 5 years when compounded annually. How many more

years will it take to get another Rs.200 compound interest?
(a) 10 years
(b) 5 years
(c) 5.5 years
(d) 8 years

1
8.

Rs. 5887 is divided between Shyam and Ram, such that Shyam's share
at the end of 9 years is equal to Ram's share at the end of 11 years,
compounded annually at the rate of 5%. Find the share of Shyam.
(a) 2088
(b) 2000
(c) 3087
(d) None of
these

1
9.

If a certain sum of money invested at a certain rate of compound

interest doubles in 6 years. In how many years will it become 8 times?
(a) 18 years
(b) 13 years
(c) 12 years
(d) 10 years

2
0.

If a certain sum of money invested at a certain rate of SI triples itself in 4

years, In how many years will it become 9 times?
(a) 18 years
(b) 16 years
(c) 12 years
(d) 10 years

PRACTICE SET - 2
1.

X has Rs 6820 with him and purchased a table of worth Rs.4320 and
deposited the rest in compound at the rate of 10%. After three years the
amount he will receive will be equal to the present value of Table after 3
years depreciating at y%. Then the value of Y?
(a) 8%
(b) 4%
(c) 16%
(d) 10%

2.

The difference between interest amounts of 3rd year and 2nd year is
Rs73.72 at 8% under C.I. What is the principal amount?
(a) Rs. 8400
(b) Rs. 6400
(c) Rs. 6450
(d) Rs. 6300

3.

A sum of amount becomes Rs.4335 in 5 years and Rs.4709 in 7 years.

Find out the rate of interest?
(a) 8%
(b) 11%
(c) 9%
(d) 5.5%

4.

The error made by a clerk in calculating simple interest for 5 months @

6% and compound interest for 6 months @ 5.5% calculated half yearly is
25.50. Find the sum

(a) 10200

(b) 10000

(c) 10500

(d) 11000

5.

The difference between the compound and simple interest on a certain

sum for 2 years at the rate of 9% per annum is Rs.56.7, What is the
sum?
(a) 70000
(b) 72000
(c) 80000
(d) 96000

6.

What is the minimum number of years required to Sum of money to get

doubled itself under CI at 10% p.a?
(a) 5
(b) 6
(c) 7
(d) 8

7.

A sum of money lent out at compound interest increases in value by

50% in 5 years. A person lend three different sum of money x,y,and z for
10,15,and 20 years respectively at the rate in such a way that he gets
back equals sums of money at the end. Find x:y:z.
(a) 4:6:9
(b) 6:9:4
(c) 2:4:9
(d) 9:6:4

8.

A person borrowed Rs 6800 under simple interest at 15% and lends Rs

1700 to another person every six months at 10% compounded half
yearly. Did he gain or loss?
(a) Gain
(b) Loss
(c) No Gain or
(d) None
Loss

9.

The amount Rs450 has to become Rs.1234.8 in 3 years, what is the rate
of interest?
(a) 36%
(b) 40%
(c) 25%
(d) 18%

1
0.

If the interest on Rs.3700 at 7% is less than the interest on Rs.4900 at

5% by Rs.119, find the time for the sums are lent?
(a) 8.5
(b) 8
(c) 7.5
(d) 7

1
1.

A person invests some amount at 10% SI. But at the end every year he
withdraws Rs 3000. If he has Rs3346.2 after withdrawing at the end of
fourth year, find out the sum?
(a) Rs.11000
(b) Rs.12000
(c) Rs.10000
(d) Rs.9000

1
2.

If CI is Rs1068.48 at 12% in 2 years then the simple interest at 13% will

be?
(a) 1500
(b) 1200
(c) 1100
(d) 1092

1
3.

The present worth of milk is Rs24. What will be the price After 4 years if
the inflation Rate is 11%?
(a) 35.14
(b) 39
(c) 41.65
(d) 50

1
4.

In a city the male population increases every year by 10% and female
population decreases by 10%. If population of male is 50% of the total
population of 1 Lakh, at the beginning, What will be total population
after 3 years?
(a) 105000
(b) 103000
(c) 103500
(d) 104000

1
5.

A man saves Rs 800 at the end of each year and lends the money at
15% compound interest. How much will it become at the end of 3 years?
(a) 2286.2
(b) 2200
(c) 2233.19
(d) 2500

1
6.

Find the compound interest on Rs.12000 at 12% per annum for 8

months, compounded quarterly?
(a) 981
(b) 990
(c) 974
(d) 900

1
7.

The population of a town is 5760 now and 4800 two years back. What
will be the population after 3 years?
(a) 9953
(b) 9500
(c) 10000
(d) 9843

1
8.

A sum of money becomes three times after six years and 5.16 times
after 9 years on compound interest. Then after 12 years sum will be?
(a) 6.22
(b) 8.9
(c) 7.02
(d) 5.64

1
9.

A person repaid his loan in three annual installments of Rs.5324 each. If

the rate of interest be 10% per annum compounded annually, the sum
borrowed was
(a) 16500
(b) 11000
(c) 13240
(d) 11500

2
0.

A sum of money under SI becomes 2.5 times in 4 years. In how many

years it will become 10 times?
(a) 16
(b) 20
(c) 24
(d) 28