JIPMAT Simple & Compound Interest PYQs

2 solved Simple & Compound Interest previous year questions (PYQs) from JIPMAT past year papers — attempt each and check the answer.

Q1:jipmat 2025QA › Simple & Compound InterestMediumQA · MCQ

The difference between compound and simple interests on a certain sum of money at the interest rate of 10% per annum for

1\frac{1}{2}

years is Rs.183, when the interest is compounded semi-annually, then the sum of money is:

A₹22,000
B₹24,000
C₹26,000
D₹28,000

Pick an option to attempt

The Setup: Compound interest is basically the financial version of a snowball effect. Since it's compounded semi-annually, we need to adjust the rate (

R

) and time (

T

) to reflect half-year cycles before hitting the formula. Step 1: Adjust the variables for semi-annual compounding. Rate per half-year:

R=\frac{10\%}{2}=5\%

. Number of cycles in

1.5

years:

n=1.5 \times 2=3

cycles. Step 2: Use the standard formula for the difference between CI and SI for 3 compounding cycles.

\text{Diff}=P \times (\frac{R}{100})^2 \times (\frac{300+R}{100})

Step 3: Plug in our adjusted rate (

R=5

) and the given difference (Rs.183).

183=P \times (\frac{5}{100})^2 \times (\frac{300+5}{100})

183=P \times (\frac{1}{20})^2 \times (\frac{305}{100})

183=P \times \frac{1}{400} \times \frac{61}{20}

Step 4: Solve for the principal sum (

P

P=\frac{183 \times 400 \times 20}{61}

Since

183/61=3

P=3 \times 8000=24000

Final Answer: 24000

Q2:jipmat 2025QA › Simple & Compound InterestMediumQA · MCQ

In 4 years, an amount of Rs.6,000 becomes Rs.8,000 at a certain rate of simple interest. In what time at the same simple interest rate, will an amount of Rs.525 become Rs.700?

A2 years
B3 years
C4 years
D5 years

Pick an option to attempt

The Setup: Simple interest is literally just basic scaling. We could find the exact rate (

R

), but that's NPC behavior. Instead, let's use ratio logic because the interest rate is the exact same vibe. Step 1: Calculate the interest generated in the first scenario. Amount becomes Rs.8000 from Rs.6000.

\text{Interest}=8000-6000=2000

. Step 2: Find the ratio of Interest to Principal (

\frac{I}{P}

) for the first scenario.

\frac{I}{P}=\frac{2000}{6000}=\frac{1}{3}

. This means in

4

years, the money grows by one-third of its original value. Step 3: Calculate the interest needed for the second scenario. Amount needs to become Rs.700 from Rs.525.

\text{Interest}=700-525=175

. Step 4: Find the

\frac{I}{P}

ratio for the second scenario to see if it matches the energy.

\frac{I}{P}=\frac{175}{525}=\frac{1}{3}

. Step 5: Since the growth ratio (

\frac{1}{3}

) is exactly the same, and the interest rate hasn't changed, the time it takes must also be exactly the same. No extra math required, it's a straight

4

years. Final Answer: 4

JIPMAT Simple & Compound Interest — PYPs

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