Simple Interest problems
- 1. When $720 is invested for 36 months it earns $205.20 simple interest. Find the yearly interest rate.
Options- A. 7.5%
- B. 8.5%
- C. 9.5%
- D. 10.5% Also asked in: Bank Exams, Bank PO
Correct Answer: 9.5%
Explanation:
r = (100 x I)/(P x T)
- 2. A loan of $15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due and what is the amount repaid if the loan is due in seven months
Options- A. 15612.50
- B. 14612.50
- C. 13612.50
- D. 17612.50 Also asked in: Bank Exams, Bank PO
Correct Answer: 15612.50
Explanation:
We have P = 15 000, r = 0.07 and since the actual date the loan was taken out
is not given, we use t =7/12
I = Prt=$15 000* 0.07* 7/12 = $612.50
Amount repaid = Future or accumulated value,
S = P + I = $15 000 + $612.50 = $15 612.50
- 3. A loan shark made a loan of $100 to be repaid with $120 at the end of one month. What was the annual interest rate?
Options- A. 210%
- B. 220%
- C. 230%
- D. 240% Also asked in: Bank Exams, Bank PO
Correct Answer: 240%
Explanation:
r=I/PT
- 4. What is the SI on Rs.7500/- at the rate of 10% per annum for 5 years?
Options- A. 3750
- B. 2750
- C. 1750
- D. 750 Also asked in: Bank Exams, Bank PO
Correct Answer: 3750
Explanation:
S.I=PNR/100
- 5. What will be the ratio of simple interest earned by certain amount at the same rate of interestfor 4 years and 6 years ?
Options- A. 1:2
- B. 2:1
- C. 2:3
- D. 3:2 Also asked in: GRE, GATE, CAT, Bank Exams, Bank PO, Bank Clerk
Correct Answer: 2:3
Explanation:
Let p be the principle amount
And R% be the rate of interest
Then, required ratio =
= 2:3
- 6. If rupee two produces rupees eleven over a period of 30 years, find the rate of simple interest ?
Options- A. 17.25 %
- B. 18.14 %
- C. 18.33 %
- D. 17.35 % Also asked in: AIEEE, Bank Exams, CAT, GATE, Bank Clerk, Bank PO
Correct Answer: 18.33 %
Explanation:
We know that I = PTR/100
11 = (2x30xR)/100
R = 18.333 %
- 7. A certain sum is invested at simple interest at 18% p.a. for two years instead of investing at 12% p.a. for the same time period. Therefore the interest received is more by Rs. 840. Find the sum ?
Options- A. Rs. 5858
- B. Rs. 8800
- C. Rs. 7000
- D. Rs. 6350 Also asked in: AIEEE, Bank Exams, CAT, GATE, Bank Clerk, Bank PO
Correct Answer: Rs. 7000
Explanation:
Let the sum be Rs. S.
(S x 18 x 2)/100 - (S x 12 x 2)/100 = 840 => 36S/100 - 24S/100 = 840
=> 12S/100 = 840 => S = 7000.
- 8. An automobile financier claims to be lending money at S.I., but he includes the interest every six months for calculating the principal. If he is charging an interest of 8%, the effective rate of interest becomes ?
Options- A. 10.25 %
- B. 8.16 %
- C. 9.63 %
- D. 0.16 % Also asked in: AIEEE, Bank Exams, CAT, GATE, Bank Clerk, Bank PO
Correct Answer: 8.16 %
Explanation:
Let the sum be Rs. 100. Then,
S.I. for first 6 months = (100 x 8 x 1) / (100 x 2) = Rs. 4
S.I. for last 6 months = (104 x 8 x 1) / (100 x 2) = Rs. 4.16
So, amount at the end of 1 year = (100 + 4 + 4.16) = Rs. 108.16
Effective rate = (108.16 - 100) = 8.16%.
- 9. A sum of money at simple interest amounts to Rs. 415 in 2 years and to Rs. 514 in 4 years. The sum is ?
Options- A. Rs. 316
- B. Rs. 251
- C. Rs. 154
- D. Rs. 294 Also asked in: AIEEE, Bank Exams, CAT, GATE, Bank Clerk, Bank PO
Correct Answer: Rs. 316
Explanation:
S.I. for 2 years = (514 - 415) = Rs. 99
S.I. for 1 year = 99/2
Principal = (415 - 99) = Rs. 316.
- 10. Avinash gave a sum of 5400 at the simple rate of interest of 8% to Rajeev for 4 years and Rajeev gave this amount to Chanukya at the rate of 6% for 4 years. Find how much extra amount has to be paid by Rajeev to Avinash after 4 years?
Options- A. Rs. 364
- B. Rs. 432
- C. Rs. 498
- D. Rs. 554 Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO, IT Trainer
Correct Answer: Rs. 432
Explanation:
Here Avinash gave to Rajeev and Rajeev gave the same to Chanukya
Principal amount and Time is same but the only difference is Rate of interest.
Rajeev took @ 8% and gave it to Chanukya @ 6%
Here the difference in interest rate = 2%
2% of 5400 should be the extra amount paid by Rajeev to Avinash
Required amount =
Hence, Rs. 432 is the extra amount has to be paid by Rajeev to Avinash after 4 years.
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