Interest-related questions, specifically compound interest and simple interest, are a significant part of the CLAT quantitative techniques. Understanding these concepts is crucial not only for the exam but also for real-life financial situations.
Simple interest and compound interest problems test your mathematical skills and logical thinking. We have shared below the practice questions to help you level-up your CLAT preparation.
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Compound Interest & Simple Interest Questions for CLAT
Let’s practice the top questions on simple interest and compound interest for CLAT exam:
Passage 1:
Mr. Bhargav has 3 sons A, B and C. He distributed his money which is 225000 among 3 of them in ratio 4:5:6. They invested the money in three different schemes. Scheme 1 offers 8% simple interest and the minimum period of investment in this scheme is 2 years. Scheme 2 offers 10% simple interest but the minimum period of investment is 4 years. Scheme 3 offers 7% simple interest with no minimum period of investment. A invested 50% of his money in scheme 2 while B and C invested 30% and 40% of their money respectively in scheme 1.
Q1. B invest his remaining money in scheme 2 for 4 years and then invest the total money in scheme 3 for next 1 year. What is the total amount he has at the end of 5 years?
(a) Rs. 110424
(b) Rs. 103200
(c) Rs. 108450
(d) Rs. 105245
Q2. If A invest half of the remaining money he has in scheme 1 and remaining half in scheme 3 for 4 years, what is the total interest he earns at the end of 4 years?
(a) Rs. 30000
(b) Rs. 21000
(c) Rs. 25000
(d) Rs. 28000
Q3. What is the total amount of money with C after 4 years if he invests remaining money in scheme 3?
(a) Rs. 116140
(b) Rs. 111640
(c) Rs. 116640
(d) Rs. 116440
Q4. What can be the maximum interest A can earn at the end of 4 years? (A is allowed to shuffle the amount in different schemes).
(a) Rs. 24000
(b) Rs. 37440
(c) Rs. 44260.8
(d) Rs. 37800
Q5. What is the average amount with B and C at the end of 2 years if they invest their whole amount in scheme 1?
(a) Rs. 101400
(b) Rs. 104400
(c) Rs. 87000
(d) Rs. 95700
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Passage 2:
Tushar invested some money under 20% per annum simple interest in Axis bank. At the end of one – year, he withdrew all amount from the Axis bank and invested in Bandhan bank at the rate of R % per annum under compound interest compounded annually for two years and received Rs. 57600 as total interest from the Bandhan bank. The first year’s interest at Bandhan bank was Rs. 24000.
Q6. In starting, how much money had Tushar invested in Axis bank?
(a) Rs. 60000
(b) Rs. 75000
(c) Rs. 10000
(d) Rs. 50000
Q7. Total how much interest did Tushar get from the Axis bank and the Bandhan bank together?
(a) Rs. 68600
(b) Rs. 67600
(c) Rs. 64600
(d) Rs. 71200
Q8. If the rate of interest was interchanged i.e. Axis bank had offered R% per annum simple interest and Bandhan bank had offered 20% per annum compound interest then how much less money Tushar would have received at the end of 3 years?
(a) Rs. 16800
(b) Rs. 15800
(c) Rs. 14800
(d) Rs. 16400
Q9. If Krishan had invested the sum of money only in Axis bank for 3 years under 20% per annum simple interest then at the end of 3 years, total how much simple interest he would have received from the Axis bank?
(a) Rs. 25000
(b) Rs. 30000
(c) Rs. 40000
(d) Rs. 2000
Q10. If the first year’s interest at Bandhan bank was same as the simple interest received from the Axis bank at the end of 1 year and the rate of interest for the Bandhan bank remained constant then what should be the rate of interest for Axis bank?
(a) 40%
(b) 50%
(c) 48 %
(d) 32%
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Wrapping Up:
Mastering compound and simple interest questions is important for excelling in the CLAT exam. With a solid understanding of the formulas and regular practice, you can tackle these problems confidently. Remember to practice a variety of questions and review the solutions to strengthen your skills.
To further enhance your preparation, consider taking CLAT mock tests to simulate exam conditions and identify areas for improvement.
Additionally, joining an online CLAT coaching program provides structured guidance and personalized support. With dedication and the right resources, you can excel in this section and boost your overall CLAT score.
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