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LIC ADO Simple & Compound Interest Questions with Answers & Explanations

20 Simple & Compound Interest questions from the Quantitative Aptitude section of LIC ADO, each with the correct answer and a worked explanation. Try each question first, then tap Show answer to check. When you're ready, take the timed chapter-wise test to see your all-India rank.

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Question 1

What is the simple interest on ₹13,500 at 4% per annum for 6 years?

  1. A₹3,240
  2. B₹540
  3. C₹2,700
  4. D₹3,564
  5. E₹3,780
Show answer
Answer: (A) ₹3,240 SI = P × R × T / 100 = 13500 × 4 × 6 / 100 = ₹3,240.
Question 2

What is the difference between compound interest and simple interest on ₹10,000 for 2 years at 5% per annum?

  1. A₹35
  2. B₹25
  3. C₹37.50
  4. D₹500
  5. E₹50
Show answer
Answer: (B) ₹25 For 2 years, CI − SI = P × (R/100)² = ₹25.
Question 3

What is the simple interest on ₹12,500 at 5% per annum for 3 years?

  1. A₹1,875
  2. B₹2,500
  3. C₹1,250
  4. D₹625
  5. E₹2,062.50
Show answer
Answer: (A) ₹1,875 SI = P × R × T / 100 = 12500 × 5 × 3 / 100 = ₹1,875.
Question 4

What is the compound interest on ₹16,000 for 2 years at 5% per annum, compounded annually?

  1. A₹1,640
  2. B₹1,480
  3. C₹1,600
  4. D₹1,804
  5. E₹2,440
Show answer
Answer: (A) ₹1,640 CI = P[(1 + R/100)² − 1] = ₹1,640.
Question 5

What is the simple interest on ₹11,500 at 6% per annum for 6 years?

  1. A₹3,450
  2. B₹4,140
  3. C₹690
  4. D₹4,830
  5. E₹4,554
Show answer
Answer: (B) ₹4,140 SI = P × R × T / 100 = 11500 × 6 × 6 / 100 = ₹4,140.
Question 6

What is the compound interest on ₹3,300 for 2 years at 20% per annum, compounded annually?

  1. A₹2,112
  2. B₹1,452
  3. C₹1,419
  4. D₹1,597.20
  5. E₹1,320
Show answer
Answer: (B) ₹1,452 CI = P[(1 + R/100)² − 1] = ₹1,452.
Question 7

What is the simple interest on ₹13,000 at 6% per annum for 3 years?

  1. A₹2,340
  2. B₹1,560
  3. C₹2,574
  4. D₹780
  5. E₹3,120
Show answer
Answer: (A) ₹2,340 SI = P × R × T / 100 = 13000 × 6 × 3 / 100 = ₹2,340.
Question 8

What is the difference between compound interest and simple interest on ₹500 for 2 years at 20% per annum?

  1. A₹100
  2. B₹40
  3. C₹20
  4. D₹30
  5. ENone of these
Show answer
Answer: (C) ₹20 For 2 years, CI − SI = P × (R/100)² = ₹20.
Question 9

What is the simple interest on ₹8,500 at 6% per annum for 3 years?

  1. A₹2,040
  2. B₹510
  3. C₹1,530
  4. D₹1,683
  5. E₹1,020
Show answer
Answer: (C) ₹1,530 SI = P × R × T / 100 = 8500 × 6 × 3 / 100 = ₹1,530.
Question 10

What is the compound interest on ₹2,000 for 2 years at 10% per annum, compounded annually?

  1. A₹420
  2. B₹400
  3. C₹620
  4. D₹462
  5. ENone of these
Show answer
Answer: (A) ₹420 CI = P[(1 + R/100)² − 1] = ₹420.

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Question 11

What is the simple interest on ₹11,500 at 6% per annum for 4 years?

  1. A₹3,036
  2. B₹3,450
  3. C₹2,760
  4. D₹2,070
  5. E₹690
Show answer
Answer: (C) ₹2,760 SI = P × R × T / 100 = 11500 × 6 × 4 / 100 = ₹2,760.
Question 12

What is the difference between compound interest and simple interest on ₹2,800 for 2 years at 10% per annum?

  1. A₹38
  2. B₹280
  3. C₹28
  4. D₹42
  5. E₹56
Show answer
Answer: (C) ₹28 For 2 years, CI − SI = P × (R/100)² = ₹28.
Question 13

What is the simple interest on ₹11,000 at 4% per annum for 6 years?

  1. A₹3,080
  2. B₹2,640
  3. C₹440
  4. D₹2,200
  5. E₹2,904
Show answer
Answer: (B) ₹2,640 SI = P × R × T / 100 = 11000 × 4 × 6 / 100 = ₹2,640.
Question 14

What is the difference between compound interest and simple interest on ₹4,400 for 2 years at 5% per annum?

  1. A₹21
  2. B₹11
  3. C₹220
  4. D₹22
  5. E₹16.50
Show answer
Answer: (B) ₹11 For 2 years, CI − SI = P × (R/100)² = ₹11.
Question 15

What is the simple interest on ₹19,500 at 12% per annum for 2 years?

  1. A₹7,020
  2. B₹2,340
  3. C₹4,680
  4. D₹5,148
  5. ENone of these
Show answer
Answer: (C) ₹4,680 SI = P × R × T / 100 = 19500 × 12 × 2 / 100 = ₹4,680.
Question 16

What is the difference between compound interest and simple interest on ₹2,900 for 2 years at 10% per annum?

  1. A₹43.50
  2. B₹58
  3. C₹29
  4. D₹290
  5. E₹39
Show answer
Answer: (C) ₹29 For 2 years, CI − SI = P × (R/100)² = ₹29.
Question 17

What is the simple interest on ₹28,500 at 12% per annum for 6 years?

  1. A₹17,100
  2. B₹3,420
  3. C₹23,940
  4. D₹22,572
  5. E₹20,520
Show answer
Answer: (E) ₹20,520 SI = P × R × T / 100 = 28500 × 12 × 6 / 100 = ₹20,520.
Question 18

What is the compound interest on ₹3,400 for 2 years at 10% per annum, compounded annually?

  1. A₹785.40
  2. B₹1,054
  3. C₹714
  4. D₹680
  5. ENone of these
Show answer
Answer: (C) ₹714 CI = P[(1 + R/100)² − 1] = ₹714.
Question 19

What is the simple interest on ₹24,000 at 8% per annum for 3 years?

  1. A₹5,760
  2. B₹7,680
  3. C₹1,920
  4. D₹6,336
  5. E₹3,840
Show answer
Answer: (A) ₹5,760 SI = P × R × T / 100 = 24000 × 8 × 3 / 100 = ₹5,760.
Question 20

What is the compound interest on ₹2,100 for 2 years at 10% per annum, compounded annually?

  1. A₹441
  2. B₹420
  3. C₹651
  4. D₹485.10
  5. ENone of these
Show answer
Answer: (A) ₹441 CI = P[(1 + R/100)² − 1] = ₹441.

These are RankerClub practice questions written in the LIC ADO pattern. They are not official SSC/IBPS/RRB papers.

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