Simple and Compound Interest is a consistently tested and high-scoring topic in Arithmetic for CAT 2026. This page provides structured CAT arithmetic important questions covering SI vs CI comparisons, installment problems, and application-based interest calculations aligned with CAT exam difficulty levels. The focus is on building formula fluency, speed, and accuracy for Quant improvement.
51. Anwar invests equal amount of money at the same fixed rate of annual interest under simple interest as well as under compound interest. If the simple interest accrued at the end of the third year is Rs.1,200 and the compound interest accrued at the end of the third year is Rs.1,324, then the rate of interest per annum is:
52. If the interest compounded annually on a certain sum at a certain rate of interest for 2 years is equal to 44% of the simple interest on the same amount at the same interest rate for five years, then find the rate percentage.
53. Mr. Gupta invested one half of his savings in an Insurance Policy that paid simple interest for 2 years and received Rs. 18,000 as interest. He invested the remaining in a Mutual fund that paid compound interest, calculated annually, for 2 years at the same rate of interest and received Rs. 19,350 as interest. What amount (in Rs.) of his savings did he invest in the Insurance Policy?
54. Kulbhushan deposited an equal amount of money in two schemes – A and B. Both schemes offer r% interest per annum, but scheme A calculates Simple Interest and Scheme B calculates Compound Interest. The interest earned in the third year and fourth year from Scheme B was Rs. 49,650 and Rs. 54,615 respectively. Find the total interest (in Rs.) earned from Schemes A at the end of the fifth year.
55. A man invested Rs. 20,000 at a rate of 7.5% per annum at simple interest. He withdraws the final amount after ‘T’ years. He keeps half of the withdrawn amount with him and invests the remaining. This invested amount kept on reducing at a simple rate of 25% per annum for a period of 3 years. If the aggregate sum with the man after ‘T + 3’ years is Rs.20,000, then find the value of ‘T’ (in years).
56. The ratio of compound interest and simple interest on a certain sum is 11: 10 after two years. What is the common rate of interest (in percentage) per year?
57. The difference between the Compound Interest and Simple Interest on a certain sum at the same rate of interest for the second year is Rs. 32 and for the third year is Rs. 66.56. Find the rate of interest (in %).
58. Asmita borrowed some amount for her business for two years. The interest rate for the first year was 10% while the interest rate for the second year was decided at the beginning of the second year. She completely repaid the loan (with accrued interest) in two installments. The first installment was Rs. 12000 paid at the end of the first year and the second installment was Rs.11200 paid at the end of the second year. The first installment payment included the interest for the first year and half of the principal amount borrowed. Calculate the interest rate for the second year.
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