Question 1

A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs.100 at the end of one year. In order clear his dues at the end of 2 years, he would pay :

Accepted Answer

Amount to be paid = R s . 100 + 200 × 5 × 1 100 + 100 × 5 × 1 100 = Rs. 115.

Question 2

How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?

Accepted Answer

Simple interest is given by the formula SI = (pnr/100), where p is the principal, n is the numberof years for which it is invested, r is the rate of interest per annum In this case, Rs. 1250 has become Rs.10,000. Therefore, the interest earned = 10,000 – 1250 = 8750. 8750 = [(1250 x n x 12.5)/100] => n = 700 / 12.5 = 56 years.

Question 3

In what time will Rs. 1860 amount to Rs. 2641.20 at simple interest 12% per annum?

Accepted Answer

Given that Rs. 1860 will become Rs. 2641.20 at 12% => Simple Interest = 2641.20 - 1860 = Rs. 781.20 We know I = PTR/100 => 781.20 x 100 = 1860 x T x 12 => T = 78120/1860x12 => T = 78120/22320 => T = 3.5 years.

Question 4

A man borrowed Rs 24000 from two money lenders. For one loan, he paid 15% per annum and for the other 18% per annum. At the end of one year, he paid Rs 4050. How much did he borrow at each rate ?

Accepted Answer

Let the sum at 15% be Rs x and that at 18% be Rs (24000 - x). {(x * 15 * 1)/100 } + { [(24000 – x) * 18 * 1]/100 } = 4050 or 15 x + 432000 - 18x = 405000 or x = 9000. Money borrowed at 15% = Rs 9000 . Money borrowed at 18% = Rs 15000.

Question 5

The simple interest on Rs. 25 for 4 months at the rate of 3 paise per rupee per month is :

Accepted Answer

I = PTR/100 I = 25 x 4 x 0.03/100 I = 0.03 x 100 = 300 Ps = Rs. 3

Question 6

Manju borrows Rs.5000 for 2 years at 4% p.a. simple interest from Sudha. She immediately lends it to another person at 6 1⁄4% p.a for 2 years. Find her gain in the transaction per year.

Accepted Answer

Manju borrows Rs. 5000 for 2 years at 4% p.a. simple interest She also lends it at 6 1⁄4% p.a for 2 years => Total Gain = 6 1/4% − 4% = 2 1/4% So her gain in the transaction for 1 year = The simple interest she gets for Rs.5000 for 1 year at 2 1⁄4% per annum = P T R 100 = 5000 × 9 4 × 1 100 = Rs. 112.5/ year.

Question 7

A person lends Rs. 1540 for five years and Rs. 1800 for four years. If he gets Rs. 1788 as interest on both amounts, what is the rate of interest ?

Accepted Answer

Let the interest rate be r% We know that, S.I = PTR/100 => (1540 x 5 x r)/100 + (1800 x 4 x r)/100 = 1788 => r = 178800/14900 = 12%

Question 8

Two equal sums were lent, one at the rate of 11% per annum for five years and the other at the rate of 8% per annum for six years, both under simple interest. If the difference in interest accrued in the two cases is Rs 1008. Find the sum?

Accepted Answer

Let the required Sum = Rs.S From the given data, 1008 = [(S x 11 x 5)/100] - [(S x 8 x 6)/100] => S = Rs. 14,400.

Question 9

A certain amount earns simple interest of Rs. 2260 after 3 years. Had the interest been 1 % more how much more interest would it have earned ?

Accepted Answer

Here given Interest earned = Rs. 2260 Time = 3 years Rate of interest = ? Principal Amount = ? So, it can't be determined.

Question 10

The simple interest on a sum of money will be Rs.600 after 10 years. If the principal is trebled after 5 years what will be the total interest at the end of the tenth year ?

Accepted Answer

P --- 10 ----- 600 P --- 5 ----- 300 3P --- 5 ----- 900 __________ 1200

Question 11

Find: S.l. on Rs 3000 at 18% per annum for the period from 4th

Accepted Answer

(24 + 31 + 18) days = 73 days = 1/5 year . P = Rs 3000 and R = 18 % p.a. S . I = 3000 * 18 * 1 5 100

Question 12

Arun took a loan of Rs. 29000 with simple interest for as many years as the rate of interest. If he paid Rs. 10440 as interest at the end of the loan period, what was the rate of interest?

Accepted Answer

Principle amount = Rs. 29000 Interest = Rs. 10440 Let rate of interest = r% => So, time = r years According to the question, 10440 = 29000 x r x r/100 290 x r x r = 10440 r x r = 1044/29 = 36 r = 6 Hence, the rate of interest = 6% and time = 6 yrs.

Question 13

A Certain sum of money an amounts to Rs 2500 in a span Of 5 years and further to Rs.3000 in a span of 7 years at simple interest The sum is ?

Accepted Answer

2500 in 5th year and 3000 in 7th year So in between 2 years Rs. 500 is increased => for a year 500/2 = 250 So, per year it is increasing Rs.250 then in 5 years => 250 x 5 = 1250 Hence, the initial amount must be 2500 - 1250 = Rs. 1250

Question 14

A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:

Accepted Answer

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205. S.I. for 5 years = Rs. 2205 3 × 5 = Rs.3675 Principle = Rs.(9800-3675) = Rs.6125 Hence, Rate = 100 × 3675 6125 × 5 =12%

Question 15

The total simple interest earned on a sum of money increases by Rs. 600 when the rate of interest increases by 2% per annum. If the investment was made for 5 years, find the sum of money that was invested ?

Accepted Answer

Let the sum invested be Rs. P Let the rate of interest be R% per annum => Interest earned for 5 years = (P x 5 x R/100) = PR/20 Now, given that the interest earned increased by Rs. 600 if the Rate increased to (R+2)% => SI = (P x 5 x (R+2))/100 = PR/20 + 10P/100 Hence, PR/20 + 10P/100 = PR/20 + 600 => P = 6000 Therefore, the sum invested is Rs. 6000

Question 16

Gopal borrowed some money at 12% simple interest. If he had to pay back Rs. 1280 after 5 years, in order to clear off the loan. How much did he borrow?

Accepted Answer

Let the principle amount be Rs. P Interest rate = 12% Total amount he paid after 5 years = Rs. 1280 ATQ, P + I = PTR 100 + P 1280 = P TR 100 + 1 1280 = P 5 x 12 100 + 1 16 P 10 = 1280 P = 80 x 10 = 800 Hence, the amount he borrowed = P = Rs. 800.

Question 17

A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest

Accepted Answer

S.I. = Rs. (15500 - 12500) = Rs. 3000. Rate = 100 * 3000 12500 * 4 % = 6%

Question 18

The interest on a certain deposit at 4.5% p.a. is Rs. 202.50 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a. ?

Accepted Answer

We know that I = PTR/100 => P = 20250/4.5 = 4500 Now, new Interest at 5% = 4500x1x5/100 = 225 Now the additional amount = 225 - 202.5 = Rs. 22.5

Question 19

Ronika deposited Rs.7000 which amounted to Rs.9200 after 3 years at simple interest. Had the interest been 2% more. She would get how much ?

Accepted Answer

As the interest rate increases by 2% => (7000x3x2)/100 = 420 9200 -------- 9620

Question 20

A man invested an amount at the rate of 10% p.a. on compound interest and after two years he again invested half of the initial amount. If man got Rs. 457.2 Rs. as interest after three years, find the amount received by man after three years, if he …

Accepted Answer

Let man invested Rs. A And, after two years amount invested = (A +

Simple Interest Questions