SNAP Simple and Compound Interest Practice Questions With Solutions

Students of an MBA school have got together to constitute a fund where each student has contributed Rs. 10000. This group of 20 students laid down certain rules for investment where it was agreed that 50 percent of the fund would be invested in riskless government securities while the rest 50 percent would be invested in equities. At the end of the year the group realizes that the crash in the stock market has left them with zero return on equities but 1 percent dividend gain on the shares bought. The return on the riskless government
security has been 7.8 percent in the last year. If the gains are to be divided equally, the gain per student is

A man lends some money to his friend at 5% per annum of interest rate. After 2 years, the difference between the Simple and the compound interest on money is Rs. 50. What will be the value of the amount at the end of 3 years if compounded annually?

Rs. XYZ was deposited at simple interest at a specific rate for 3 years. Had it been deposited at 2% higher rate, it would have fetched Rs. 360 more. Find Rs. XYZ.

A man invests a certain amount at 6% per annum simple interest and another amount at 7% per annum simple interest. His income from the interest after 2 years was Rs. 348. The ratio of the first amount to the second is 4:5. Find the total amount invested.

At a simple interest, 800 becomes 956 in three years. If the interest rate, is increased by 3%, how much would 800 become in three years?

The simple interest accrued on a sum of certain principal in 8 years at the rate of 13% per year is Rs.6500. What would be the compound interest accrued on that principal at the rate of 8% per year in 2 years?

Ram got Rs. 1,500 as dividend from a company. What is the rate of interest given by the company?
(I) The dividend paid last year was 10%.
(II) Ram has 350 shares of Rs. 10 denomination.

In 4 years, Rs. 6000 amounts to Rs. 8000. In what time at the same rate will Rs. 525 amount to Rs. 700?

Which investment gives a better return, assuming the face value of shares to be Rs. 10?
A. 5% stock at 75, subject to 30% income tax
B. 4% stock at 90, tax free

In 4 years, the SI on a certain sum of money is $\frac{7}{25}$ of the principal. What is the annual rate of interest?