Simple Interest problems
- 1. 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?
Options- A. 3%
- B. 4%
- C. 5%
- D. 6%
- E. None of these Also asked in: GRE
Correct Answer: 6%
Explanation:
S.I. = Rs. (15500 - 12500) = Rs. 3000.
| Rate = | ❨ | 100 x 3000 | ❩% | = 6% |
| 12500 x 4 |
- 2. Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest?
Options- A. 3.6
- B. 6
- C. 18
- D. Cannot be determined
- E. None of these Discuss
Correct Answer: 6
Explanation:
Let rate = R% and time = R years.
| Then, | ❨ | 1200 x R x R | ❩ | = 432 |
| 100 |
⟹ 12R2 = 432
⟹ R2 = 36
⟹ R = 6.
- 4. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is the sum?
Options- A. Rs. 4462.50
- B. Rs. 8032.50
- C. Rs. 8900
- D. Rs. 8925
- E. None of these Discuss
Correct Answer: Rs. 8925
Explanation:
| Principal |
|
|||||
|
||||||
| = Rs. 8925. |
- 5. 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. Rs. 650
- B. Rs. 690
- C. Rs. 698
- D. Rs. 700 Discuss
Correct Answer: Rs. 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.
- 6. 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:
Options- A. 5%
- B. 8%
- C. 12%
- D. 15% Also asked in: Bank Exams, Bank PO
Correct Answer: 12%
Explanation:
S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.
| S.I. for 5 years = Rs. | ❨ | 2205 | x 5 | ❩ | = Rs. 3675 |
| 3 |
∴ Principal = Rs. (9800 - 3675) = Rs. 6125.
| Hence, rate = | ❨ | 100 x 3675 | ❩% | = 12% |
| 6125 x 5 |
- 7. Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?
Options- A. Rs. 6400
- B. Rs. 6500
- C. Rs. 7200
- D. Rs. 7500
- E. None of these Discuss
Correct Answer: Rs. 6400
Explanation:
Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 - x ).
| Then, | ❨ | x x 14 x 2 | ❩ | + | ❨ | (13900 - x) x 11 x 2 | ❩ | = 3508 |
| 100 | 100 |
⟹ 28x - 22x = 350800 - (13900 x 22)
⟹ 6x = 45000
⟹ x = 7500.
So, sum invested in Scheme B = Rs. (13900 - 7500) = Rs. 6400.
- 8. A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:
Options- A. 5%
- B. 7%
- C. 7 1⁄8%
- D. 10% Discuss
Correct Answer: 10%
Explanation:
Let the rate be R% p.a.
| Then, | ❨ | 5000 x R x 2 | ❩ | + | ❨ | 3000 x R x 4 | ❩ | = 2200. |
| 100 | 100 |
⟹ 100R + 120R = 2200
| ⟹ R = | ❨ | 2200 | ❩ | = 10. |
| 220 |
∴ Rate = 10%.
- 9. An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:
Options- A. 10%
- B. 10.25%
- C. 10.5%
- D. None of these Discuss
Correct Answer: 10.25%
Explanation:
Let the sum be Rs. 100. Then,
| S.I. for first 6 months = Rs. | ❨ | 100 x 10 x 1 | ❩ | = Rs. 5 |
| 100 x 2 |
| S.I. for last 6 months = Rs. | ❨ | 105 x 10 x 1 | ❩ | = Rs. 5.25 |
| 100 x 2 |
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25
∴ Effective rate = (110.25 - 100) = 10.25%
- 10. 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. 10,000
- C. Rs. 15,000
- D. Rs. 20,000 Discuss
Correct Answer: Rs. 15,000
Explanation:
| Principal = Rs. | ❨ | 100 x 5400 | ❩ | = Rs. 15000. |
| 12 x 3 |
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