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

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

(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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