Simple & Compound Interest Shortcut Tricks Questions PDF Formulas

20 Most Questions pdf on Simple & Compound Interest :-

 Simple & Compound Interest Shortcut Tricks Questions PDF Formulas . This profit and loss aptitude questions has an answers too.

Simple & Compound Interest Shortcut Tricks Questions PDF Formulas:-

Simple & Compound Interest Shortcut Tricks Questions PDF Formulas  base question with answer we provide here u can also download pdf end of the post.

INTEREST

It is money paid by borrower for using the lender’s money for a specified period of time.
Denoted by I.

PRINCIPAL

The original sum borrowed. Denoted by P.

TIME

Time period for which the money is borrowed. Denoted by n

RATE OF INTEREST

Rate at which interest is calculated on the original sum. Denoted by r.

AMOUNT

Sum of Principal plus Interest. Denoted by A.

SIMPLE INTEREST

The interest calculated every year on original principal, i.e. the sum at the beginning of first year. Denoted by SI.
SI = Pnr
A=P+SI

COMPOUND INTEREST

The interest is added to the principal at the end of each period to arrive at the new principal for the next period.
OR
The amount at the end of year will become principal for the next year and so on.
Let P be principal borrowed at the beginning of period 1.
Amount at end of period n=1 is
A= P (1+r/100)
Then,
New Principal at the beginning of period 2 will be A i.e. P (1+r/100) = P*R where R=(1+r/100).

IMPORTANT FORMULA

Let Principal = Rs. P, Time = t yrs and Rate = r % per annum

Fast Method: Remember the following conclusion:

If a sum becomes x times in y years at CI then it will be (x)n times in ny years.

Thus, if a sum becomes 3 times in 3 years it will be (3)2 times in 2 x 3 = 6 years.

Example:  If a sum deposited at compound interest becomes double in 4 years when will it be 4 times at the same rate of interest?

Solution: Using the above conclusion, we say that the sum will be (2)2 times in  2 x 4 = 8 years.

Q1. Mr. Kuldeep invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B? 

  1.             a) Rs. 6400                   b) Rs. 6500                    c) Rs. 7200
  2.             d) Rs. 7500                   e) None of these

Q2. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?

  1.           a)5 years                    b) 4 years                     c) 4.5 years
  2.             d) 5 years                      e) None of these

Q3. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

  1. a) 3%                            b) 4%                           c) 5%
  2. d) 6%                           e) None of these

Q4. An automobile financier claims to be lending money at simple interest, but he includes the interest     every six  months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:

  1. a) 10%                          b) 10.25%                     c) 10.5%
  2. d) Data inadequate          e) None of these

Q5. Natasa lent Rs. 5000 to Gita for 2 years and Rs. 3000 to Sita for 4 years on simple interest at   the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:

  1. a) 5%                            b) 7%                           c) 7 1/8%
  2. d) 10%                          e) None of these

Q6. Rahul took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

  1. a) Rs. 2000                    b) Rs. 10,000                 c) Rs. 15,000
  2. d) Rs. 20,000                 e) None of these

Q7. What will be the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years?

  1. a) 1 : 3                          b) 1 : 4                          c) 2 : 3
  2. d) Data inadequate          e) None of these

Q8. sandeep borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6 ¼ pa for 2 years. Find his gain in the transaction per year.

  1. a) Rs. 112.50                 b) Rs. 125                     c) Rs. 150
  2. d) Rs. 150                     d) Rs. 167.50

Q9. On a sum of money, the simple interest for 2 years is Rs.660, while the compound interest is Rs.696.30, the rate of interest being the same in both the cases. The rate of interest is :

  1. a) 10%                         b) 10.5%                      c) 12%
  2. d) Data inadequate       e) None of these

Q10. Mr.Ram Singh invested an amount of Rs.13,900 divided in two different schemes A and B at  the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs.3508,  what was the amount invested in Scheme  B?

  1.          a) Rs.6400                   b) Rs.6500                   c) Rs.7200

           d) Rs.7500                   e) None of these

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