Practice Simple & Compound Interest MCQs for FPSC Stenographer / Stenotypist (BS-15) Mathematics — topic-wise sets with solved answers.
Q1. What will be ratio of simple to compound interest on two same sums invested in SBP at rate of interest of 8% kept for 3 years?
Answer: 1875/2029
Explanation: SI for 3 years at 8% = 0.24P; CI = P((1.08)³ − 1) ≈ 0.259712P; ratio SI:CI = 2400:2597.12 ≈ 1875:2029.
Q2. The compound interest earned by Sunil on a certain amount at the end of two years at the rate of 8% p.a. was Rs.2828.80. Find the total amount that Sunil got back at the end of two years in the form of principal plus interest earned.
Answer: Rs.19,828.80
Explanation: CI = P((1.08)² − 1) = 0.1664P = 2828.80 → P = Rs.17,000; total amount = 17000 + 2828.80 = Rs.19,828.80.
Q3. The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:
Answer: Rs. 1325
Explanation: PW of first installment (702 in 6 months at 4%) = 702/1.04 = 675; PW of second (702 in 12 months at 8%) = 702/1.08 = 650; total = Rs.1,325.
Q4. Sehar gave Shazia Rs.1250 on compound interest for 2 years at 4% per annum. How much loss would Sehar has suffered had she given it to Shazia for 2 years at 4% per annum simple interest?
Answer: Rs0.20
Explanation: CI = 1250×(1.04)² − 1250 = Rs.102; SI = 1250×0.04×2 = Rs.100; loss = Rs.2.
Q5. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum?
Answer: Rs. 120
Explanation: PW = 132/(1 + 0.05×2) = 132/1.10 = Rs.120. Show the calculation clearly when solving similar quantitative items.
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