Free Arithmetic MCQs with Answers

• A. Rs.420
• B. Rs.400
• C. Rs.375
• D. Rs.380

Explanation: At 5% compound interest for 2 years, the amount is P x 1.05² = 1.1025P. Hence 1.1025P = Rs.441, so P = Rs.441/1.1025 = Rs.400.

• A. 15%
• B. 10%
• C. 7 1/2 %
• D. 8%

Explanation: The amount increases from Rs.2420 after 2 years to Rs.2662 after 3 years, so the one-year growth factor is Rs.2662/Rs.2420 = 1.10.

• A. 1875/2029
• B. 1/2.5
• C. 1903/2156
• D. 4/9

Explanation: For a principal P at 8% for 3 years, simple interest is P x 0.08 x 3 = 0.24P, while compound interest is P[(1.08)³ - 1] = P x 0.259712.

• A. 8
• B. 10
• C. 12
• D. Cannot be determined

Explanation: For 2 years, the difference between compound interest and simple interest is P x (r/100)^2.

• A. Rs. 2.50
• B. Rs. 3
• C. Rs. 3.75
• D. Rs. 4

Explanation: The simple interest for 1 year is 1,200 Rs x 10% = 120 Rs. With half-yearly compounding, the rate per half-year is 5%, so compound…

• A. Rs. 51.25
• B. Rs. 52
• C. Rs. 54.25
• D. Rs. 60

Explanation: From simple interest, 50 Rs = P x 5% x 2, giving P = 500 Rs. Compound interest is 500 Rs x (1.05)^2 - 500 Rs = 51.25 Rs.

• A. Rs. 1550
• B. Rs. 1650
• C. Rs. 1750
• D. Rs. 2000

Explanation: The compound interest on 4,000 Rs for 2 years is 4,000 Rs x (1.10)^2 - 4,000 Rs = 840 Rs, and half of this is 420 Rs.

• A. 6%
• B. 8%
• C. 10%
• D. 12%

Explanation: For 2 years, the difference is P x (r/100)^2. Hence, 72 Rs = 5,000 Rs x (r/100)^2, giving r^2 = 144 and r = 12%.

• A. 5%
• B. 6%
• C. 10%
• D. 15%

Explanation: The growth factor over 2 years is 24,200 Rs / 20,000 Rs = 1.21. Therefore, (1 + r)^2 = 1.21, so 1 + r = 1.10 and r = 10% per year.

• A. Rs 6.06%
• B. Rs 6.07%
• C. Rs 6.08%
• D. Rs 6.09%

Explanation: A nominal rate of 6% payable half-yearly gives 3% per half-year, with two periods in one year.

• A. Rs 6500
• B. Rs 6565
• C. Rs 65065
• D. Rs 65650

Explanation: For 2 years at 10%, the difference between compound and simple interest is P x (10/100)^2 = 0.01P. Thus, 65 Rs = 0.01P, so P = 6,500 Rs.

• A. Rs 230
• B. Rs 232
• C. Rs 600
• D. Rs 832

Explanation: The first man's simple interest is 6,000 Rs x 5% x 2 = 600 Rs. The second man's compound interest is 5,000 Rs x (1.08)^2 - 5,000 Rs = 832…

• A. Rs 4500
• B. Rs 5000
• C. Rs 5500
• D. Rs 6000

Explanation: The lender earns an effective annual rate of (1.03)^2 - 1 = 6.09% on the money lent, while paying 4% annually, so the net gain is 2.09% of…

• A. Rs 1575.20
• B. Rs 1600
• C. Rs 1625.80
• D. Rs 2000

Explanation: The amount after the three different annual rates is 10,000 Rs x 1.04 x 1.05 x 1.06 = 11,575.20 Rs.

• A. 7 years
• B. 10 years
• C. 15 years
• D. 20 years

Explanation: If the amount doubles in 5 years, it becomes four times in 10 years and eight times, which is 2^3, in 15 years.

• A. Rs 2518
• B. Rs 2520
• C. Rs 2522
• D. Rs 2524

Explanation: Nine months contain three quarterly periods, and the rate per quarter is 20% / 4 = 5%.

• A. Rs 17423
• B. Rs 18973
• C. Rs 19448
• D. Rs 19880

Explanation: At 10% annually compounded half-yearly, the rate per half-year is 5%, and 2 years contain 4 periods.

• A. Rs 230
• B. Rs 232
• C. Rs 600
• D. Rs 832

Explanation: A's simple interest is 6,000 Rs x 5% x 2 = 600 Rs. B's compound interest is 5,000 Rs x [(1.08)^2 - 1] = 832 Rs, so the difference is 832…

• A. Rs 50
• B. Rs 60
• C. Rs 61
• D. Rs 600

Explanation: The simple interest is 8,000 Rs x 5% x 3 = 1,200 Rs. The compound interest is 8,000 Rs x [(1.05)^3 - 1] = 1,261 Rs, so the difference is…

• A. Rs 145
• B. Rs 150
• C. Rs 165
• D. Rs 180
• E. None of these

Explanation: The simple interest is 5,000 Rs x 10% x 3 = 1,500 Rs. The compound interest is 5,000 Rs x [(1.10)^3 - 1] = 1,655 Rs, so the difference is…