Quantitative Aptitude

Simple and Compound Interest questions with solutions

Interest questions are a favourite in bank exams because they connect to banking itself. Most questions use 2 or 3 years, where short formulas avoid long calculation.

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Prepared by the CBTAdda content team · Updated 28 October 2026 · How we check our content

How to solve simple and compound interest questions

Simple interest: SI = P × R × T / 100.
Compound amount: A = P(1 + R/100)ᵀ. For 10% over 2 years, multiply by 1.21.
Difference between CI and SI: for 2 years it is P(R/100)²; for 3 years it is P(R/100)²(3 + R/100).

Common trap: Read whether the question asks for the interest or the amount. Options always include both.

12 practice questions

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₹18,000 is invested at 20% per annum compounded annually. What is the amount after 2 years?
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Answer: (A) ₹25,920. Amount = P(1 + R/100)² = 18000 × 1.2² = ₹25,920.
What is the difference between compound interest and simple interest on ₹23,000 at 5% per annum for 2 years?
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Answer: (A) ₹57.50. For 2 years, CI − SI = P × (R/100)² = 23000 × (5/100)² = ₹57.50.
Find the simple interest on ₹13,500 at 10% per annum for 2 years.
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Answer: (A) ₹2,700. SI = P × R × T ÷ 100 = 13500 × 10 × 2 ÷ 100 = ₹2,700.
₹14,000 is invested at 20% per annum compounded annually. What is the amount after 2 years?
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Answer: (D) ₹20,160. Amount = P(1 + R/100)² = 14000 × 1.2² = ₹20,160.
₹17,000 is invested at 5% per annum compounded annually. What is the amount after 2 years?
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Answer: (B) ₹18,743. Amount = P(1 + R/100)² = 17000 × 1.05² = ₹18,743.
Find the simple interest on ₹17,000 at 8% per annum for 5 years.
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Answer: (D) ₹6,800. SI = P × R × T ÷ 100 = 17000 × 8 × 5 ÷ 100 = ₹6,800.
₹15,000 is invested at 10% per annum compounded annually. What is the amount after 2 years?
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Answer: (C) ₹18,150. Amount = P(1 + R/100)² = 15000 × 1.1² = ₹18,150.
Find the simple interest on ₹3,000 at 10% per annum for 6 years.
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Answer: (D) ₹1,800. SI = P × R × T ÷ 100 = 3000 × 10 × 6 ÷ 100 = ₹1,800.
What is the difference between compound interest and simple interest on ₹27,000 at 20% per annum for 2 years?
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Answer: (C) ₹1,080.00. For 2 years, CI − SI = P × (R/100)² = 27000 × (20/100)² = ₹1,080.00.
What is the difference between compound interest and simple interest on ₹12,000 at 20% per annum for 2 years?
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Answer: (C) ₹480.00. For 2 years, CI − SI = P × (R/100)² = 12000 × (20/100)² = ₹480.00.
Find the simple interest on ₹8,000 at 12% per annum for 4 years.
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Answer: (B) ₹3,840. SI = P × R × T ÷ 100 = 8000 × 12 × 4 ÷ 100 = ₹3,840.
Find the simple interest on ₹10,500 at 8% per annum for 4 years.
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Answer: (C) ₹3,360. SI = P × R × T ÷ 100 = 10500 × 8 × 4 ÷ 100 = ₹3,360.