Simple Interest problems
- 1. At what rate percent per annum will a sum of money double in 8 years.
Options- A. 12.5%
- B. 13.5%
- C. 11.5%
- D. 14.5% Also asked in: GRE, CAT, Bank Exams, Bank PO, Bank Clerk
Correct Answer: 12.5%
Explanation:
Let principal = P, Then, S.I.= P and Time = 8 years
We know that S.I. = PTR/100
Rate = [(100 x P)/ (P x 8)]% = 12.5% per annum.
- 2. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:
Options- A. 650
- B. 690
- C. 698
- D. 700 Also asked in: GRE
Correct Answer: 698
Explanation:
S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698
- 3. What annual instalment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?
Options- A. Rs.325
- B. Rs.545
- C. Rs.560
- D. Rs.550 Also asked in: GRE
Correct Answer: Rs.325
Explanation:
Let each instalment be Rs.x .
1st year = [x + (x * 12 * 2)/100]
2nd year = [ x + (x *12 * 1)/100]
3rd year = x
Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092
3x + ( 24x/100 ) + ( 12x/100 ) = 1092
336x =109200
Therefore, x = 325
Each instalment = Rs. 325
- 5. A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
Options- A. Rs.2000
- B. Rs.10000
- C. Rs.15000
- D. Rs.20000 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs.15000
Explanation:
Principal =
- 6. A certain sum of money amounts to Rs 1008 in 2 years and to Rs 1164 in 3 ½ years. Find the sum and the rate of interest.
Options- A. 800, 14%
- B. 800, 13%
- C. 800, 12%
- D. 800, 19% Also asked in: GRE
Correct Answer: 800, 13%
Explanation:
S.I. for 1 ½ years = Rs (1164 - 1008) = Rs 156 .
S.I. for 2 years = Rs (156 x x 2)= Rs 208.
Therefore, Principal = Rs (1008 - 208) = Rs 800.
Now, P = 800, T= 2 and S.I. = 208.
Therefore, Rate = (100 x S.I.) / (P x T) = [ (100 x 208)/(800 x 2)]% = 13%
- 7. Simple interest on a certain sum is 16/25 of the sum. Find the rate percent and time, If both are numerically equal.
Options- A. Rate = 7% and Time = 7 years.
- B. Rate = 8% and Time = 8 years.
- C. Rate = 6% and Time = 6 years.
- D. Rate = 5% and Time = 5 years. Also asked in: GRE
Correct Answer: Rate = 8% and Time = 8 years.
Explanation:
Let sum = X. Then S.I = 16x/25
Let rate = R% and Time = R years.
Therefore, (x * R * R)/100 = 16x/25 => R = 40/5 = 8
Therefore, Rate = 8% and Time = 8 years.
- 8. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 614 p.a for 2 years. Find his gain in the transaction per year
Options- A. Rs. 112.50
- B. Rs.150.25
- C. Rs.167.50
- D. Rs.170 Also asked in: Bank Exams, Bank PO
Correct Answer: Rs. 112.50
Explanation:
= Rs. (625 - 400)
= Rs. 225
- 10. A sum of Rs.1550 was lent partly at 8% p.a. simple interest. The total interest received after 3 years was Rs.300. The ratio of the money lent at 5% to that lent at 8% is :
Options- A. 5:8
- B. 6:7
- C. 16:15
- D. 17:18 Also asked in: Bank Exams, Bank PO
Correct Answer: 16:15
Explanation:
let the sum lent at 5% be Rs.x and that lent at 8% be Rs.(1550-x). then,
Interest on x at 5% for 3 years + interest on (1550-x) at 8% for 3 years = 300
x=800
Required ratio = x : (1550-x) = 800 : (1550-800) = 800 : 750 = 16 : 15
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