Simple Interest & Compound Interest Practice Questions

This page contains practice questions covering all the concepts of Simple Interest, Compound Interest, Difference Between Simple Interest and Compound Interest, Compound Growth, and Depreciation. The questions are divided into MCQs, True or False, Fill in the Blanks, Word Problems, and Mixed Practice Questions to help you practise every concept thoroughly.

Attempt all the questions before checking the Answer Key provided at the end of each section. If any dobut check our Simple Interest & Compound Interest Formula with Examples and Explanations section to revise important formulas.

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Simple Interest & Compound Interest MCQs

Question 1: An aspirant preparing for the RRB NTPC Examination invested ₹25,000 at 8% simple interest per annum for 4 years. What will be the simple interest earned?

A. ₹7,000  B. ₹8,000  C. ₹8,500  D. ₹9,000

Question 2: An Income Tax Inspector invested ₹30,000 at simple interest. If the amount after 4 years became ₹37,200, what was the annual rate of interest?

A. 5%  B. 6%  C. 7%  D. 8%

Question 3: A customer deposited ₹40,000 in a State Bank of India (SBI) Fixed Deposit at 10% compound interest per annum, compounded annually. What will be the amount after 2 years?

A. ₹48,000  B. ₹48,200  C. ₹48,400  D. ₹48,800

Question 4: The annual passenger footfall at Kanpur Central Railway Station increases by 10% every year. If the current annual footfall is 5,00,000, what will it become after 2 years?

A. 5,95,000  B. 6,00,000  C. 6,05,000  D. 6,10,000

Question 5: An SSC Coaching Centre invested ₹20,000 at 10% per annum for 2 years. What is the difference between the Compound Interest and the Simple Interest?

A. ₹100  B. ₹150  C. ₹200  D. ₹250

Question 6: The number of bookings at the IRCTC Executive Lounge, New Delhi Railway Station, increases by 20% every year. If 5,000 bookings were recorded this year, how many bookings are expected after 2 years?

A. 7,000  B. 7,100  C. 7,200  D. 7,500

Question 7: Which of the following does NOT affect the calculation of Simple Interest?

A. Principal

B. Rate of Interest

C. Time

D. Compounding Frequency

Question 8: A machine at the Railway Coach Factory was purchased for ₹8,00,000. If its value depreciates by 10% per annum, what will be its value after 2 years?

A. ₹6,40,000  B. ₹6,48,000  C. ₹6,50,000  D. ₹6,56,000

Question 9: A Railway Section Controller purchased a car for ₹10,00,000. If its value depreciates by 20% per annum, what percentage of its original value will remain after 2 years?

A. 60%  B. 62%  C. 64%  D. 68%

Question 10: Which of the following is an application of Compounding Decrease?

A. Simple Interest

B. Compound Interest

C. Depreciation at a fixed percentage every year

D. Profit earned on the selling price

Question 11: The Station Manager at Patna Junction invested a sum at 12% simple interest per annum. If the simple interest earned in 5 years is ₹9,000, what was the principal?

A. ₹12,000  B. ₹15,000  C. ₹18,000  D. ₹20,000

Question 12: A GST Inspector invested ₹40,000 at simple interest. If the amount after 4 years became ₹52,800, what was the annual rate of interest?

A. 6%  B. 7%  C. 8%  D. 9%

Question 13: A customer deposits ₹50,000 in Canara Bank at 8% compound interest per annum, compounded annually. What will be the amount after 3 years?

A. ₹62,500  B. ₹62,986  C. ₹63,250  D. ₹64,000

Question 14: The annual freight handled at Hatiya Railway Station increases by 15% every year. If the station currently handles 80,000 tonnes of freight annually, how much freight will it handle after 2 years?

A. 1,04,500 tonnes

B. 1,05,800 tonnes

C. 1,06,000 tonnes

D. 1,07,200 tonnes

Question 15: A Delhi Police Sub-Inspector invested ₹20,000 at 10% per annum for 2 years. What is the difference between the Compound Interest and the Simple Interest?

A. ₹100  B. ₹150  C. ₹200  D. ₹250

Question 16: The furniture inside the IRCTC Executive Lounge, New Delhi Railway Station, was purchased for ₹6,00,000. If its value depreciates by 15% per annum, what will be its value after 2 years?

A. ₹4,33,500

B. ₹4,35,000

C. ₹4,36,500

D. ₹4,40,000

Question 17: A machine in a Railway Workshop depreciates by 20% every year. If its present value is ₹2,56,000, what was its original purchase price 3 years ago?

A. ₹4,80,000

B. ₹4,90,000

C. ₹5,00,000

D. ₹5,20,000

Question 18: The annual revenue of Bhiwani Mall increased by 25% in the first year and 20% in the second year. What is the overall percentage increase in revenue over the two years?

A. 45%

B. 48%

C. 50%

D. 52%

Question 19: Rahul invested ₹50,000 at 10% Simple Interest for 3 years, while Apsara invested the same amount at 10% Compound Interest, compounded annually, for 3 years.

Which of the following statements is correct?

A. Rahul earns more interest.

B. Apsara earns more interest.

C. Both earn the same interest.

D. The information is insufficient.

Question 20: A candidate preparing for the RRB Thiruvananthapuram Examination makes the following statements:

1. Compound Interest is always greater than or equal to Simple Interest for the same principal, rate and time.
2. Depreciation at a fixed percentage every year is an example of compounding decrease.
3. An asset depreciated by 20% in one year and appreciated by 20% in the next year returns to its original value.

Which of the following is correct?

A. 1 and 2 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3

Simple Interest & Compound Interest True and False Questions

Statement 1: An aspirant preparing for the RRB NTPC Examination invested ₹20,000 at 10% simple interest per annum for 3 years. The simple interest earned is ₹6,000.

True / False

Statement 2: An Income Tax Inspector invested ₹50,000 at 8% simple interest per annum for 5 years. The total amount after 5 years is ₹70,000.

True / False

Statement 3: A customer deposited ₹40,000 in a Punjab National Bank (PNB) Fixed Deposit at 10% compound interest per annum, compounded annually. After 2 years, the amount becomes ₹48,400.

True / False

Statement 4: The annual passenger footfall at Kanpur Central Railway Station increases by 10% every year. If the present annual footfall is 5,00,000, then after 2 years it will become 6,00,000.

True / False

Statement 5: A machine in the Railway Coach Factory was purchased for ₹8,00,000. If it depreciates by 10% every year, its value after 2 years will be ₹6,48,000.

True / False

Statement 6: A GST Inspector invested ₹30,000 at 10% per annum for 2 years. The difference between Compound Interest and Simple Interest is ₹250.

True / False

Statement 7: A Railway Section Controller purchased a car for ₹10,00,000. If its value depreciates by 20% per annum, 64% of its original value remains after 2 years.

True / False

Statement 8: An asset depreciates by 20% in the first year and then appreciates by 20% in the second year. At the end of 2 years, the asset retains 96% of its original value.

True / False

Statement 9: The Station Manager at Patna Junction invested a sum at 12% simple interest per annum. If the simple interest earned in 5 years is ₹9,000, then the principal invested was ₹15,000.

True / False

Statement 10: A customer deposited ₹50,000 in Canara Bank at 8% compound interest per annum, compounded annually. After 3 years, the amount becomes ₹62,986.

True / False

Statement 11: The annual freight handled at Hatiya Railway Station increases by 15% every year. If the station currently handles 80,000 tonnes of freight annually, it will handle 1,05,800 tonnes after 2 years.

True / False

Statement 12: The furniture inside the IRCTC Executive Lounge, New Delhi Railway Station, was purchased for ₹6,00,000. If its value depreciates by 15% per annum, its value after 2 years will be ₹4,35,000.

True / False

Statement 13: A machine in a Railway Workshop depreciates by 20% every year. If its present value is ₹2,56,000, then its original purchase price 3 years ago was ₹5,00,000.

True / False

Statement 14: Rahul invested ₹50,000 at 10% Simple Interest for 3 years, while Apsara invested the same amount at 10% Compound Interest, compounded annually, for 3 years. Rahul earned more interest than Apsara.

True / False

Statement 15: If an asset depreciates by 10% every year for 2 years, then its overall depreciation is 20%.

True / False

Simple Interest & Compound Interest  Fill in the Blanks

Question 1

An aspirant preparing for the RRB NTPC Examination invested ₹25,000 at 8% simple interest per annum for 4 years. The simple interest earned is ₹__________.

Question 2

A customer deposited ₹40,000 in a State Bank of India (SBI) Fixed Deposit at 10% compound interest per annum, compounded annually. The amount after 2 years is ₹__________.

Question 3

The annual passenger footfall at Kanpur Central Railway Station increases by 10% every year. If the current annual footfall is 5,00,000, then after 2 years it becomes __________ passengers.

Question 4

A machine in the Railway Coach Factory was purchased for ₹8,00,000. If it depreciates by 10% every year, its value after 2 years is ₹__________.

Question 5

A GST Inspector invested ₹20,000 at 10% per annum for 2 years. The difference between the Compound Interest and the Simple Interest is ₹__________.

Question 6

The Station Manager at Patna Junction invested a sum at 12% simple interest per annum. If the simple interest earned in 5 years is ₹9,000, then the principal invested was ₹__________.

Question 7

A customer deposited ₹50,000 in Canara Bank at 8% compound interest per annum, compounded annually. The amount after 3 years is ₹__________.

Question 8

A machine in a Railway Workshop depreciates by 20% every year. If its present value is ₹2,56,000, then its original purchase price 3 years ago was ₹__________.

Question 9

The annual freight handled at Hatiya Railway Station increases by 15% every year. If the station currently handles 80,000 tonnes of freight annually, then after 2 years it will handle __________ tonnes.

Question 10

A Railway Section Controller purchased a car that depreciates by 20% in the first year and then appreciates by 20% in the second year. At the end of 2 years, the car retains __________% of its original value.

Simple Interest & Compound Interest Word Problems

Question 1

A candidate appearing for RRB Bhopal invested a part of his savings in an HDFC Bank Fixed Deposit at 12% simple interest per annum. If he earned ₹18,000 as simple interest in 5 years, determine the amount he invested.

Question 2

After joining SGPGI Lucknow, a doctor invested ₹1,20,000 in a scheme offering 10% compound interest per annum, compounded annually. What will be the maturity amount after 2 years?

Question 3

The annual number of applications received by RRB Chandigarh increases by 15% every year. If 40,000 applications were received this year, how many applications are expected after 2 years?

Question 4

A Railway Signal Maintenance Unit purchased a testing device for ₹10,00,000. Its value depreciates by 12% every year. Calculate its value after 2 years.

Question 5

A GST Inspector invested ₹80,000 at 10% per annum for 2 years. Calculate the difference between the Compound Interest and the Simple Interest.

Question 6

An iPhone purchased for ₹1,00,000 depreciates by 20% every year. What will be its value after 3 years?

Question 7

Two candidates preparing for RRB Prayagraj each invested ₹50,000 for 3 years at 10% per annum.

• Candidate A chose Simple Interest.
• Candidate B chose Compound Interest, compounded annually.

Who earns more interest, and by how much?

Question 8

A machine at the Railway Coach Factory was purchased for ₹12,00,000. Its value depreciated by 20% during the first year. The management wants to restore the machine to its original value before selling it. By what percentage must its depreciated value increase?

Question 9

A candidate appearing for RRB Patna invested a sum in a scheme offering 12% compound interest per annum, compounded annually. If the amount became ₹1,40,492.80 after 2 years, determine the original amount invested.

Question 10

A MacBook was purchased for ₹2,00,000. Its value depreciated by 10% in the first year, 15% in the second year and 20% in the third year. Calculate its value at the end of the third year.

Question 11

The annual water supply connections managed by the Lucknow Jal Board increase by 8% every year. If there are currently 1,25,000 active connections, determine the number of connections after 3 years.

Question 12

A customer invested ₹1,00,000 in an HDFC Bank Fixed Deposit at 10% simple interest per annum for 3 years. Another customer invested the same amount for the same period at 10% compound interest per annum, compounded annually. How much more interest did the second customer earn?

Question 13

A machine at the Railway Workshop was purchased for ₹15,00,000. It depreciates by 10% every year. Calculate the total depreciation after 3 years.

Question 14

An iPhone was purchased for ₹1,50,000. Its value depreciates by 20% per annum. Calculate its value after 3 years.

Question 15

A candidate appearing for RRB Malda invested ₹80,000 at 10% simple interest per annum for 2 years. He then reinvested the maturity amount for 2 more years at 10% compound interest per annum, compounded annually. What was the final amount at the end of 4 years?

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