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NMAT Simple and Compound Interest — practice questions

Explore 24 free Simple and Compound Interest questions in NMAT Quantitative Aptitude. Open each question or exercise to read its content, reference answers and available explanation.

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Simple and Compound Interest questions and exercises with answers

Showing questions 1–24 of 24.

A sum of 10,000 is borrowed at 15% per annum. The simple interest for one year is:Read the answer and worked solution →The same 10,000 borrowed at 15% simple interest gives interest over two years of:Read the answer and worked solution →Heena borrows 20,000 at 8% compounded annually. The interest for the first year is:Read the answer and worked solution →Simple interest on 20,000 at 8% for two years would have been:Read the answer and worked solution →Starting with 100 rupees at 10% for three years, the simple interest earned is:Read the answer and worked solution →Starting with the same 100 at 10% for three years, the compound interest earned is:Read the answer and worked solution →Under simple interest the principal:Read the answer and worked solution →The compound amount after n years is found from the formula using the bracket:Read the answer and worked solution →Once the amount is known, compound interest is found as:Read the answer and worked solution →Compound interest on 12600 for two years at 10% per annum works out to:Read the answer and worked solution →The time period after which interest forms a new principal is called the:Read the answer and worked solution →When interest is compounded half yearly, the number of conversion periods in a year is:Read the answer and worked solution →For half yearly compounding, the rate used in each period is:Read the answer and worked solution →If interest is compounded quarterly, the quarterly rate is:Read the answer and worked solution →On 12000 at 10% per annum compounded half yearly, the interest for the first six months is:Read the answer and worked solution →A city of 20,000 people growing at 5% a year from 1997 reaches, by the end of 2000, about:Read the answer and worked solution →Catch the interest wordsRead the answer and worked solution →Pop the compound factsRead the answer and worked solution →Run the interest gatesRead the answer and worked solution →Slice the interest wordsRead the answer and worked solution →Simple or compoundRead the answer and worked solution →Sort by conversion periodRead the answer and worked solution →Type the numberRead the answer and worked solution →Interest bingoRead the answer and worked solution →

Worked practice questions

A sum of 10,000 is borrowed at 15% per annum. The simple interest for one year is:

  1. 1500
  2. 1200
  3. 1800
  4. 2100
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Correct answer: A. 1500

1. On 100 rupees the yearly interest is 15. 2. Multiply 10,000 by 15 and divide by 100. 3. The interest is 1500. _Source: syllabus Mathematics, Chapter 8, Comparing Quantities._

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The same 10,000 borrowed at 15% simple interest gives interest over two years of:

  1. 6000
  2. 3000
  3. 1500
  4. 4500
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Correct answer: B. 3000

1. One year gives 1500. 2. Simple interest repeats the same amount. 3. Two years give 3000. _Source: syllabus Mathematics, Chapter 8, Comparing Quantities._

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Heena borrows 20,000 at 8% compounded annually. The interest for the first year is:

  1. 2400
  2. 1600
  3. 1728
  4. 1200
Show answer and solution

Correct answer: B. 1600

1. Only the original sum earns in year one. 2. Eight per cent of 20,000 is the answer. 3. The interest is 1600. _Source: syllabus Mathematics, Chapter 8, Comparing Quantities._

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More Quantitative Aptitude topics

Quantitative AptitudeNumber SystemAlgebraRatio and ProportionTime, Speed and DistanceTime and WorkPercentagesSimple Interest