Simple & Compound Interest MCQs with Answers – Solved from Past Papers
38 solved Simple & Compound Interest MCQs collected from real PPSC, FPSC, SPSC, KPPSC, BPSC & NTS past papers (2009–2025). Tap an option to attempt — see correct answer instantly. Download the full PDF for offline revision.
Ifthe simple interest is Rs. 54,000 at the rate of 12% per annum for 3 years, find the principal amount?
Show solution
Using SI = P*R*T/100, P = SI*100/(R*T) = 54000*100/(12*3) = 5400000/36 = Rs. 150000.
Ifthe principal amount is Rs. 15580, interest rate is 5% for a year and a half. Calculate the simple interest?
Veronica has a bank account that m% interest compounded annually. If she open the account with 200S. The expression 200S (X)t represent the amount in the account after t years. Which of the following given x in terms of m²
If the principal amount is Rs. 15580, interest rate is 5% for a year and a half. Calculate the simple interest?
Ifthe principal amount is $1000, the rate of interest is 2% per year, and the time period is 3 years, what is the simple interest?
Show solution
SI = P*R*T/100 = 1000*2*3/100 = $60.
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as PREPARATION WI interest at 4.5% per annum of simple interest?
Show solution
T = SI*100/(P*R) = 81*100/(450*4.5) = 8100/2025 = 4 years.
Atsimple interest, a sum becomes 3 times in 20 years. In how many years will it double at the same rate of interest?
Show solution
Sum becomes 3x in 20y means SI = 2P, so R = 2P*100/(P*20) = 10%. To double, SI = P, T = P*100/(P*10) = 10 years.
Asum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at simple rate of interest. What is the rate of interest?
Show solution
SI = 15500 – 12500 = Rs. 3000. R = SI*100/(P*T) = 3000*100/(12500*4) = 6%.
What will be the ratio of simple interest earned by certain amount at the same rate of interest for 12 years and for 18 years?
Show solution
SI is proportional to time at same P and R, so ratio = 12:18 = 2:3.
Find interest on Rs. 40,000 at the rate of 3% annually for 4 years investment?
Show solution
SI = P*R*T/100 = 40000*3*4/100 = Rs. 4800.
The value of an article which was purchased 2 years ago, depreciates at 12 %% per annum. If its present value is Rs. 9680, the price at which it was purchased is?
Show solution
Depreciation 12.5% per annum (the '12 %%' indicates 12.5%). Original = 9680/(1-0.125)^2 = 9680/0.765625 = Rs. 12643.27.
The principal which will amount to Rs. 270.40 in 2 years at the rate of 4% per annum compound interest is?
Show solution
P = A/(1+R/100)^T = 270.40/(1.04)^2 = 270.40/1.0816 = Rs. 250.
If principal = Rs. 1,00,000, Rate of interest =10% compounded half yearly. Find amount after one year?
Kriya deposits an amount of Rs. 65800 to get a simple interest at the rate of 14% per annum for 4 years. What total amount will Kriya get at the end of 4 years?
Show solution
SI = 65800*14*4/100 = Rs. 36848. Total = 65800 + 36848 = Rs. 102648.
Ali took a loan of Rs.50,000 at 9% rate of interest for 2 years at simple interest to renovate his house. How much extra amount he pays in 2 years?
Show solution
Extra paid = SI = 50000*9*2/100 = Rs. 9000.
The true discount on Rs. 1760 due after a certain time at 12% per annum is Rs. 160. The time after which it is due is?
Show solution
Present worth = 1760 – 160 = Rs. 1600. T = TD*100/(PW*R) = 160*100/(1600*12) = 5/6 year.
Rs. 1200 is lent out at 5% per annum simple interest for 3 years. Find the amount after 3 years?
Show solution
SI = 1200*5*3/100 = Rs. 180. Amount = 1200 + 180 = Rs. 1380.
What will be the compound interest on a sum of Rs. 1875 after 2 years if the rate of interest for the first year is 4% and that for the second year is 8%?
Show solution
After year 1: 1875*1.04 = 1950. After year 2: 1950*1.08 = 2106. CI = 2106 – 1875 = Rs. 231.
If Rs. 4 becomes Rs. 10 in 50 years at simple interest then rate of interest is?
Show solution
SI = 10 – 4 = Rs. 6. R = SI*100/(P*T) = 6*100/(4*50) = 3%.
Asome of Money becomes doubles in 3 years (annual Cl); years at compound interest compound annually at the same rate.In how many years will it become four times of itself?
Show solution
Sum doubles in 3 years compounded; to become four times (square), time = 2*3 = 6 years.
Hassan borrowed 5000 with simple interest for five years. He paid an extra 500 then how much percent he pays per annum²
Show solution
SI = Rs. 500, P = 5000, T = 5. R = 500*100/(5000*5) = 2%.
Rs.1200 lent at 5% p.a. simple interest for 3 years; amount after 3 years?
Show solution
SI = 1200*5*3/100 = 180. Amount = 1200 + 180 = Rs. 1380.
Asum of Rs. 12,500 amounts to Rs. 15,500 in 2 years (simple interest). Rate of interest?
Show solution
SI = 15500 – 12500 = 3000. R = 3000*100/(12500*2) = 12%.
Ifthe interest rate of Rs 800 be more than the interest on Rs400 by Rs 40 in 2 years then the rate of interest per annum is?
Show solution
Extra SI on extra Rs. 400 for 2 years = Rs. 40. R = 40*100/(400*2) = 5%.
If you borrow an amount of 300 Rs for one month, the borrower charged 6 Rs. The rate of interest is?
Show solution
T = 1/12 year. R = SI*100/(P*T) = 6*100*12/(300*1) = 24%.
Aperson lent certain sum of money at 5% per annum simple interest and in 15 years the interest announced to Rs. 250 less than the sum lent. What was the sum lent (in Rs.)?
Show solution
SI = P*5*15/100 = 0.75P. Given SI = P – 250, so 0.75P = P – 250, 0.25P = 250, P = Rs. 1000.
If Rs 1000 is invested at 12% interest and interest is compounded half yearly, what will be the total amount at the end of one year?
Show solution
Half-yearly: A = 1000*(1+6/100)^2 = 1000*1.1236 = Rs. 1123.60.
Aman has Rs. 10,000 to invest. He invests Rs. 4000 at 5% and Rs. 3500 at 4%. In order to have a yearly income of Rs. 500, he must invest the remaining Rs. 2500 at what rate of interest?
Show solution
Income from 4000@5% = 200; 3500@4% = 140; total = 340. Required from Rs. 2500 = 500 – 340 = 160. R = 160*100/2500 = 6.4%.
Mr. Akram borrows Rs. 500 from bank for a period of 4 years. If interest rate is 11% per annum, what would be the amount of interest he has to pay back in addition to the principal amount?
Aman took loan from a bank at the rate of 12% per annum, Simple interest. After 3 years he had to pay Rs.5400 interest only for the period. The principal amount borrowed by him was?
Show solution
P = SI*100/(R*T) = 5400*100/(12*3) = Rs. 15000.
Aman took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was?
Mr Atiq-ur-Rehman deposited Rs. 7500 at the compound interest rate of 4% per annum. How much money as interest will he get after 2 years?
Anamount doubles itself in 5 years with simple interest. What is the rate of interest?
Show solution
Doubling means SI = P in 5 years, so R = P*100/(P*5) = 20%.
Aninvestment pays 8% simple interest per year. If the investment earns 84S interest in the first year, then how much money was originally invested?
Show solution
P = SI*100/(R*T) = 84*100/(8*1) = $1050.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
Show solution
Difference in SI = 2.50 on P=500 for T=2. Rate difference = 2.50*100/(500*2) = 0.25%.
What sum of money will amount to Rs. 1800 in 5 years at 12% per annum simple interest?
Show solution
A = P(1 + RT/100) = P(1 + 60/100) = 1.6P = 1800, so P = Rs. 1125.
Asum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is?
Show solution
SI per year = 854 – 815 = Rs. 39. SI for 3 years = 117. P = 815 – 117 = Rs. 698.
An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes?
Show solution
Compounding every 6 months at half the nominal rate: effective rate = (1+5/100)^2 – 1 = 1.1025 – 1 = 10.25%.
Simple & Compound Interest MCQs for PPSC, FPSC, NTS & All Pakistani Competitive Exams
Simple & Compound Interest is one of the most predictable scoring topics in Pakistani competitive exam Math. From PPSC Lecturer, Sub-Inspector and Tehsildar tests to FPSC CSS Screening (MPT), NTS NAT/GAT, OTS, CTS, KPPSC, SPSC, BPSC and AJKPSC — almost every paper contains 1 to 3 SI or CI MCQs. With just two core formulas (SI = PRT/100, CI: A = P(1 + R/100)^T) you can secure 2–4 marks in any One Paper exam.
QuizWing has compiled 38 verified simple & compound interest MCQs from real past papers spanning 2009–2025 — every question solved from scratch by AI and answer keys verified. The bank covers find-SI, find-rate, find-time, find-principal, compound interest annually & half-yearly, time-to-double / triple, and SI-vs-CI difference problems.
What types of simple & compound interest problems appear?
- Find SI given P, R, T — “P = Rs. 40,000, R = 3%, T = 4 yrs” → SI = 40000×3×4/100 = Rs. 4,800
- Find Principal — “SI = Rs. 54,000, R = 12%, T = 3 yrs” → P = SI×100/(R×T) = Rs. 1,50,000
- Find Rate — “Rs. 12,500 → Rs. 15,500 in 4 yrs (SI)” → SI = 3000, R = 3000×100/(12500×4) = 6%
- Find Time — “How long for Rs. 450 to earn Rs. 81 at 4.5%?” → T = 81×100/(450×4.5) = 4 yrs
- Compound Interest (annual) — “P = Rs. 7,500, R = 4%, T = 2 yrs” → A = 7500(1.04)² = Rs. 8,112
- CI compounded half-yearly — A = P(1 + R/200)^(2T); rate halved, periods doubled
- Time to double / triple — “Sum doubles in 5 yrs at SI” → R = 100/5 = 20%; triples in 20 yrs → doubles in 10 yrs
- CI − SI difference — for 2 years: difference = P(R/100)²
Key simple & compound interest formulas
Step-by-step solving checklist
- 1. Identify P, R, T — read once and label principal, rate per annum, and time in years
- 2. Convert time to years — months → ÷12, days → ÷365; rate is always per annum unless stated
- 3. SI or CI? — if the question says “simple interest” use SI = PRT/100; if “compound” use A = P(1 + R/100)T
- 4. Half-yearly / quarterly CI — halve the rate, double the time (or quarter the rate, quadruple time)
- 5. Decide: interest or amount? — re-read the last line; SI is interest only, A is principal + interest
- 6. Sanity-check — CI is always > SI for T > 1 year (same P, R); if your CI < SI you’ve slipped
Mental-math shortcuts
- Doubling at SI — sum doubles when SI = P, i.e. RT = 100. So time-to-double = 100/R years
- CI for 2 years quick — A = P + 2(PR/100) + P(R/100)²; the extra P(R/100)² over SI is the “interest on interest”
- 10% per year, 2 yrs CI — A = P × 1.21 (commit this to memory); 10% per year, 3 yrs → 1.331
- SI is linear, CI is exponential — for the same P, R: SI is the same each year; CI grows every year
- If P, R both small numbers, multiply first then ÷100 — avoids fractional intermediate steps
- CI − SI = P(R/100)² for 2 yrs — fast formula when MCQ asks for the difference
How to use this page for revision
Quiz mode: Tap any option — green = correct, red = wrong. Use the pagination buttons to move between sets of 25 MCQs at a time.
PDF download: Click Download PDF in the sticky bar to grab all 38 MCQs with answers for offline study.
Mixed practice: attempt our full PPSC Mock Test with all subjects + weighted distribution to simulate the real exam.
Simple & Compound Interest weightage by exam
| Exam | Typical Simple & Compound Interest MCQs | Marks Share |
|---|---|---|
| PPSC One Paper | 1–3 | 2–5 |
| FPSC Screening | 2–4 | 4–7 |
| NTS NAT / GAT | 2–5 | 4–8 |
| CSS Screening (MPT) | 2–5 | 4–10 |
| OTS / CTS | 2–4 | 3–7 |
| SPSC / KPPSC / BPSC | 1–3 | 2–5 |
All MCQs sourced from official past papers of PPSC, FPSC, SPSC, KPPSC and NTS. Found a wrong answer? WhatsApp 0302-1417839 — we fix every reported issue within 24 hours.
Frequently Asked Questions
Typically 1 to 3 simple & compound interest MCQs appear in every PPSC One Paper test (Sub-Inspector, Tehsildar, Junior Clerk, Lecturer, BPS-14/16/17). FPSC, NTS and CSS papers tend to include 2–5. Mastering SI = PRT/100 and A = P(1 + R/100)T secures 2–4 guaranteed marks because most questions are one-step plug-ins.
Based on our analysis of 38 past-paper MCQs (2009–2025), the three most-recurring types are: (1) find SI given P, R, T, (2) find one of P, R or T when SI is given, and (3) compound interest amount problems where A = P × (1 + R/100)T.
In SI the interest is on the original principal every year, so yearly interest is constant. In CI the interest is added back each year, so you earn interest on interest. For T > 1 year, CI is always greater than SI; the difference for 2 years equals P × (R/100)².
No. Calculators are not allowed in PPSC, FPSC, NTS, OTS or any provincial commission exam. Practise mental math shortcuts — 10%, 25%, 50% calculations should take under 5 seconds.
Yes for PPSC and FPSC — 0.25 marks deducted per wrong answer. Strategy: if you can eliminate 2 out of 4 options confidently, attempt it; otherwise leave blank.
Yes — click the Download PDF button in the sticky bar at the top of the quiz section. You get all 38 MCQs with answers in a branded QuizWing PDF, free, no signup.
Yes — 100% transferable. All provincial public service commissions follow a near-identical Math syllabus. The same simple & compound interest MCQs appear (often verbatim) in SPSC, KPPSC, BPSC, AJKPSC and NTS NAT/GAT papers.
Message us on WhatsApp at 0302-1417839 with the question number and what you believe the correct answer should be. We verify against multiple sources and fix every reported issue within 24 hours.