Simple & Compound Interest Quiz-2
Dear Readers,
Maths is an important subject in CLAT,DULLB & Other Law Exams. In any of law exam, Maths carries weightage of 20 -25 % of questions. With focused practice good marks can be fetched from this section. These questions are very important in achieving your success in CLAT, DULLB and Other Law Exams..
Q1. If a sum of money at SI doubles in 6 years it will become 4 times in:
- 12 years
- 14 years
- 16 years
- 18 years
Solution
SI = P is 6 years
SI = 3P is 6 x 3 yrs = 18 yrs
Q2. Ravi Kumar borrows Rs 300 at SI of 5% and Rs 450 at SI of 6% at the same time & on the condition that the whole loan will be repaid when the total interest amounts to Rs 126. The loan will have to be repaid after how many years?
- 2
- 3
- 4
- 5
Solution
126 = 
= 42T T = 3
= 42T T = 3
Q3.A money lender finds that due to a fall in the rate of interest from 8% to 7.75 % his yearly income diminishes by Rs 60. His Capital is
- Rs. 26000
- Rs. 24000
- Rs. 23800
- Rs. 22400
Solution
: 60 = 
P = 24000
P = 24000 Q4.A loan was repaid in two annual instalments of Rs 121 each. If the rate of interest be 10% per annum compounded annually, the sum borrowed was
- Rs. 200
- Rs. 210
- Rs. 217.80
- Rs. 216
Solution
Amount remaining at end of 1st year =
Amount paid at the end of 2nd years = 121
Principal paid at End of 2nd years = P1
121 = 
= 110
= 110Amount remaining at end of 1st year = 110 + 121 = 231
Principal due at start of 1st year
231 = 
+ P0 P0 = 210
+ P0 P0 = 210 Q5.The different between CI & SI on a sum for 2 years at 10% per annum, when the interest is compounded annually is Rs 16. If the interest were compounded half yearly, the difference in two interests would be.
- Rs. 24.81
- Rs. 31.61
- Rs. 32.40
- Rs. 26.90
Solution
Difference between CI & SI at the end of 2 years is interest due of interest at the end of 1st year
Difference between CI & SI at the end of 2 years is interest due of interest at the end of 1st year
16 = 
; I = 160 160 = 
; I = 160 160 =
P = 1600
New CI = P(1 + r/2)2r – P
= 1600[(1+.05)4 – 1] = 344.81
New SI = Old SI = 
= 320
= 320 Difference = 24.81
Q6.A sum of Rs 12000 deposited at CI becomes double after 5 years After 20 years it will become
- Rs. 120000
- Rs. 192000
- Rs. 124000
- Rs. 96000
Solution
A = P(1+ r)1
2 = A/P = (1 + r)5 r = 21/5 – 1
A = P (1+ r)20 = 12000 (1 + 21/5 – 1)20
= 1200 x (2)4 = 192000
Q7. A sum of money placed a CI doubles itself in 5 years It w amount to eight times in
- 10 years
- 12 years
- 15 years
- 20 years
Solution
2 = A/P = (1 + r)5 r = 21/5 – 1
A/P = 8 = (1 + r)t
23 = 2t/5 t = 15
Q8. The difference between the CI & SI earned at the end of second year on a sum of money at 10% per annum is Rs 20. The sum is
- Rs. 4,000
- Rs. 2000
- Rs. 1500
- Can’t be determined
Solution
SI of 1st year 
SI1 = 200
SI1 = 200
SI1 = 
P = 2000
P = 2000 Q9. In how many years will a sum Rs 800 at 10% per annum compounded semi-annually become Rs 926.10?
Solution(b): 926.10 = 8000 
= (1.05)2t = 
T = 3/2 yrs.
Q10. sum of money at CI amounts to thrice itself in 3 years. In how many years will it be 9 times itself?
- 12
- 9
- 6
- 8
Solution
(c): 3P = P (1 + r)3; R (3)1/3 – 1
A = 9P = P(1 + 31/3 – 1)t
9 – 3t/3 t = 6
