Simple and Compound Interest MCQs Class 8 RS Aggarwal Exe-8E Goyal Brothers ICSE Maths Solutions Ch-8. We provide step by step Solutions of council prescribe textbook / publications to develop skill and confidence. Visit official Website **CISCE** for detail information about ICSE Board Class-8 Mathematics.

## Simple and Compound Interest MCQs Class 8 RS Aggarwal Exe-8E Goyal Brothers ICSE Maths Solutions Ch-8

Board | ICSE |

Publications | Goyal Brothers Prakashan |

Subject | Maths |

Class | 8th |

writer | RS Aggarwal |

Book Name | Foundation |

Ch-8 | Simple and Compound Interest |

Exe-8E | Multiple Choice Questions |

Edition | 2024-2025 |

### MCQs on Simple and Compound Interest

The MCQs problems on Simple and Compound Interest is very common now days not only in academic exam but also for various one day exam of NEET and JEE. Hence various type questions with solutions and hint has been given for your complete practice.

**Exercise- 8E**

(Simple and Compound Interest MCQs Class 8 RS Aggarwal Exe-8E Goyal Brothers ICSE Maths Solutions Ch-8)

**Multiple Choice Questions**

**Que-1: The sum which amounts to Rs840 in 5 years at the rate of 8% per annum simple interest is**

(a) Rs[(840×5×8)/100] (b) Rs[(100×840)/{100+(5×8)}] (c) Rs[{100+(5×8×100)}/840] (d) Rs [(100×840)/{100+(5×8)}]

**Sol: **(d) Rs[(100×840)/{100+(5×8)}]

**Reason: **A = Rs 840

R = 8%

T = 5 years

SI = (P×8×5)/100 = 40P/100 = 2P/5

A = P+SI

= P+(2P/5) = (5P+2P)/5 = 7P/5

Given that A = 840 :

7/5P = 840

P = (840×5)/7

P = 600

The correct option that represents this solution is:

(d) Rs[(100×840)/{100+(5×8)}]

**Que-2: If Rs64 amount to Rs83.20 in 2 years, what will Rs86 amount to in 4 years at the same rate per cent per annum ?**

(a) Rs114.80 (b) Rs124.70 (c) Rs127.40 (d) Rs137.60

**Sol: **(d) Rs137.60

**Reason: **P = Rs. 64, t = 2 and A = Rs. 83.20

SI = 83.2 – 64 = 19.2

As we know,

SI = Prt/100

19.2 = (64 × 2 × r)/100

⇒ r = (19.2 × 100)/(64 × 2)

⇒ r = 15%

Again,

P = Rs. 86, t = 4 years and r = 15%

SI = Prt/100

SI = (86 × 15 × 4)/100

SI = 51.6

∴ Amount = 86 + 51.6 = Rs. 137.60

**Que-3: The simple interest at x% for x years will be Rs x on a sum of**

(a) Rs x (b) Rs100x (c) Rs[100/x] (iv) Rs[100/x²]

**Sol: **(c) Rs[100/x]

**Reason: **Let principal sum be y

Simple Interest = Principal × Rate × Time

∴ x = y×(x/100)×x

∴ y = Rs. 100/x

**Que-4: Due to a fall in the rate of interest from 13% p.a. to 12*(1/2)% p.a., a money-lender’s yearly income diminishes by Rs104. His capital is**

(a) Rs20800 (b) Rs21400 (c) Rs22300 (d) Rs24000

**Sol: **(a) Rs20800

**Reason: **Due to the fall in the rate of interest from 13% p. a. to 12 1/2 % p.a. a money lender’s yearly income diminishes by Rs. 104

Simple Interest before the fall, S.I.₁ = (P×13×1)/100

and

Simple Interest after the fall, S.I.₂ = (P×25×1)/100×2

Also given that ⇒ S.I.₁ – S.I.₂ = 104

Therefore, we can form an equation as:

[(P×13×1)/100] – [(P×25×1)/100×2] = 104

0.13P – 0.125P = 104

5×10¯³ P = 104

P = 104/5×10¯³

P = 20800.

**Que-5: A lends a sum of money for 10 years at 5% simple interest. B lends double that amount for 5 years at the same rate of interest. Which of the following statements is true in this regard?**

(a) A will get twice the amount of interest that B would get.

(b) B will get twice the amount of interest that A would get

(c) A and B will get the same amount as interest

(d) B will get four times the amount of interest that A would get.

**Sol: **(c) A and B will get the same amount as interest

**Reason: **let sum be ‘x’

SI = PTR/100

= x*10*5/100

= x/2 (for A)

B lends double the amount means 2x for 5 years and with 5% interest

SI = 2x*5*5/100

= x/2

Since in both cases A and B get same interest

**Que-6: B borrowed Rs720 from A at 8% simple interest for 3 years and lent the same sum to C at 10*(1/2)%, simple interest for 2 years. In the whole transactions B get**

(a) lost Rs21.60 (b) gained Rs21.60 (c) neither gained nor lost (d) none of these

**Sol: **(a) lost Rs21.60

**Reason: **B borrowed 720 from A at 8% for 3 years so

=720*8%*3

=Rs 172.8

B earned Rs 172.8

Then he gave C the same amount of money 720 at 10 1/2% for 2 years so C earned

=720*10 1/2%*2

=Rs 151.2

THEN B GAINED BY =172.8-151.2=Rs 21.6

**Que-7: Rs800 amount to Rs920 in 3 years at simple interest. If the interest rate is increased by 3%, it would amount to**

(a) Rs992 (b) Rs1056 (c) Rs1112 (d) Rs1182

**Sol: **(a) Rs992

**Reason: **S.I = Rs. (920 – 800) = Rs. 120;

P = Rs. 800, T = 3 yrs.

So, R = (100 × 120 /800 x 3)% = 5%.

New rate (5 +3)% = 8%.

New S.I = Rs(800 × 8 × 3 /100) = Rs 192.

So, New amount = Rs. (800 + 192) = Rs 992.

**Que-8: Rahul Rs6000 to Manick for 2 years and Rs1500 to Arif for 4 years and received altogether from both Rs900 as simple interest. The rate of interest is**

(a) 4% p.a. (b) 5% p.a. (c) 10% p.a. (d) 12% p.a.

**Sol: **(b) 5% p.a.

**Reason: **Let the rate of interest be x%.

SI = Simple Interest = Principal × Rate% × Time

Interest paid by Jogi = 6000 × (x/100) × 2 = 120x

Interest paid by Jeevan = 1500 × (x/100) × 4 = 60x

Total interest = 120x + 60x = 180x = Rs. 900

∴ x = 5

∴ Rate of interest = 5% per annum

**Que-9: Consider the following statements**

If a sum of money is loaned at simple interest then the

If a sum of money is loaned at simple interest then the

(i) Money gets doubled in 5 years if the rate of interest is 16*(2/3)% p.a.

(ii) Money gets doubled in 5 years if the rate of interest is 20% p.a.

(iii) Money becomes four times in 10 years if it gets doubled in 5 years

Of these statements,

(a) (i) and (iii) are correct (b) (ii) alone is correct (c) (ii) and (iii) are correct (d) (iii) alone is correct

**Sol: **(b) (ii) alone is correct

**Reason: **Let the principal =x

rate of interest = 20%

time = 5 years

S.I = (x×20×5)/100 = x

Amount = x+x = 2x

Hence statement 2 is only correct.

**Que-10: In what time will a sum of money double itself at 6*(1/4)% p.a. simple interest?**

(a) 5 years (b) 8 years (c) 12 years (d) 16 years

**Sol: **(d) 16 years

**Reason: **Let the principal (P) be 1 unit (for simplicity), hence the interest (I) at the end of the period is also 1 unit (because the money doubles).

Convert the rate of interest to a decimal: R = 6.25 / 100 = 0.0625.

Substituting I, P and R into the formula and solving for T:

⇒ 1 = 1 × 0.0625 × T ⇒ T = 1 / 0.0625 ⇒ T = 16

Hence, the time required to double the sum of money at 6 1/4% simple interest per annum is 16 years.

**Que-11: A sum of money becomes 8/5 of itself in 5 years at a certain rate of interest. The rate of interest per annum is**

(a) 5% (b) 8% (c) 10% (d) 12%

**Sol: **(d) 12%

**Reason: **Let the sum be Rs. x

Amount = 8x/5

∴ S.I. = A−P

= (8x/5) − x

= 3x/5

Let the rate be R%.

S.I.= (P×R×T)/100

3x/5 = (x×R×5)/100

3x × 100 = 25x × R

300x = 25x × R

R = 300x/25x

R = 12%

Hence, the rate of interest is 12%.

**Que-12: In what will the simple interest on Rs780 at 5% will be equal to the simple interest on Rs600 at 6*(1/2)% ?**

(a) 2 years (b) 3*(1/2) years (c) 5 years (d) always

**Sol: **(d) always

**Reason: **Let the time taken for first case is T₁.

Simple interest on 780 Rs at 5 % for time T.

⇒S.I = P × R × T₁/100

= (780 × 5 × T₁)/100

= 39T₁

again, Let the time taken for the 2nd case is T₂.

∴ Simple interest on 600 at 6 1/2 % = 13/2 %.

⇒ S.I = (P × R × T₂)/100

= (600 × 13/2 × T₂)/100

= 39T₂

as it said, Simple interest on both cases are same.

∴ 39T₁ = 39T₂

⇒T₁ = T₂

Here you see, The ratio of time period of both cases is 1 : 1. it means, the simple interest doesn’t depend on time, it **always** will be same.

**Que-13: Two equals sum of money are deposited in two banks, each at 15% per annum, for 3*(1/2) years and 5 years. If the difference between their interests is 144, each sum is**

(a) Rs460 (b) Rs500 (c) Rs640 (d) Rs720

**Sol: **(c) Rs640

**Reason: **Let each sum be Rs. P.

Then, [(P x 15 x 5) / 100] – [(P x 15 x 7) / 100] x 2 = 144

⇒ 3P/4 -21P/40 = 144

⇒ 9P/40 = 144

∴ P = (144 x 40) / 9 =Rs. 640

**Que-14: A sum Rs2500 is lent out in two parts, one at 12% and another at 12*(1/2)%. In the total annual income is Rs306, the money lent at 12% is**

(a) Rs1200 (b) Rs1240 (c) Rs1300 (d) Rs1340

**Sol: **(c) Rs1300

**Reason: **A sum of rs. 2500 is lent out in two parts, one at 12% and another one at 12.5%.

The total income is rs. 306.

Money lent at 12%

Let the money lent at 12% be x,

then money lent at 12.5% will be (2500 – x)

Now,

12% of x = 12x/100

12.5% of (2500 – x) = (2500 – x).12.5/100

as per question,

total income is 306, so,

⇒ 12x/100 + (2500 – x).12.5/100 = 306

⇒ 12x – 12.5x + 31250 = 30600

⇒ – 0.5x = 30600 – 31250

⇒ -0.5x = – 650

⇒ x = 650/0.5

⇒ x = 1300

**Que-15: Out of a sum of Rs625, a part was lent at 5% and the other at 10% simple interest. If the interest on the first part after 2 years is equal to the interest on the second part after 4 years, then the second sum is**

(a) Rs125 (b) Rs200 (c) Rs250 (d) Rs300

**Sol: **(a) Rs125

**Reason: **A sum of Rs 625 was lent by Kartik to Radhika.

A part of this amount was lent at 5% simple interest and the other part was lent at 10% simple interest.

Interest on the first part after 2 years was equal to the interest on the second part after 4 years.

Let the sum lent at 5% be x, and the sum lent at 10% be y.

So, x + y = 625 — (1)

Simple interest for first part = x * 5 * 2 / 100 = 0.1x

Simple interest for second part = y * 10 * 4 / 100 = 0.4y

Given, interest on the first part after 2 years was equal to the interest on the second part after 4 years. So,

0.1x = 0.4y

x = 4y — (2)

Substituting equation (2) in (1), we get

5y = 625

y = 125

**Que-16: The compound interest on Rs540 at 16*(2/3)% per annum for 2 years is**

(a) Rs180 (b) Rs192.50 (c) Rs195 (d) Rs735

**Sol: **(c) Rs195

**Reason: **Principal = 540

Rate = 50/3

Time Period = 2 years

A = P ( 1 + R/100)ⁿ

= 540 ( 1 + 50/3* 100)²

= 735

Compound Interest = A – P

= 735 – 540

= 195.

**Que-17: The difference between the simple interest and the compound interest on Rs600 for 1 year at 10% per annum, reckoned half-yearly is**

(a) Nil (b) Rs1.50 (c) Rs4.40 (d) Rs6.40

**Sol: **(b) Rs1.50

**Reason: **S.I. = Rs. (600 x 5 x 2)/100 = Rs.60

C.I.= Rs. [600 x (1 + 5/100)2 – 600] = Rs. 61.50

∴ Requred Difference = Rs. (61.50 – 60) = Rs.1.50

**Que-18: Simple interest on a sum at 12*(1/2)% per annum for 2 years is Rs256. The compound interest on the same sum at the same rate and for the same period is**

(a) Rs262.40 (b) Rs264 (c) Rs265.80 (d) Rs272

**Sol: **(d) Rs272

**Reason: **SI = PRN/100

Si = 256, R = 12.5%, N = 2 Years

Thus

256 = P 25/100

P = 256*4

Thus P = 1024

Now For CI

A = P ( 1 + R/100)^N

= 1024 ( 1.125)^2

A = 1296

Now CI = A – P = 1296 – 1024 = 272

Thus CI = 272

–: Simple and Compound Interest MCQs Class 8 RS Aggarwal Exe-8E Goyal Brothers ICSE Maths Solutions :–

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