### Examination Questions on Simple and Compound Interest

###### Amount = Principle + Interest

###### Simple Interest = (Principle x Rate of Interest X Time period)/100

###### 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?

- 15 years
- 12.5 years
- 10 years
- 7.5 years

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

- Rs. 700
- Rs. 750
- Rs. 800
- 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?

- Rs. 700
- Rs. 800
- Rs. 900
- Rs. 1000

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

- Rs. 285
- Rs. 280
- Rs. 275
- 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?

- 7
- 6
- 5
- 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?

- 5%
- 10%
- 15%
- 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?

- 6 years and 3 months
- 7 years and 9 months
- 8 years and 3 months
- 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?

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