Simple Interest Questions Answers

• 15. A sum of money at simple interest amounts to Rs. 2240 in 2 years and to Rs. 2600 in 5 years. What is the principal amount

  1. 1000
  2. 1500
  3. 2000
  4. 2500

  Answer And Explanation

  Answer: Option C

  Explanation:

  
  SI for 3 year = 2600-2240 = 360
  SI for 2 year 360/3 * 2 = 240
  principal = 2240 - 240 = 2000

  • View Answer
  • Comment on this question

• 16. At what rate percent per annum will the simple interest on a sum of money be 2/5 of the amount in 10 years

  1. 1%
  2. 2%
  3. 3%
  4. 4%

  Answer And Explanation

  Answer: Option D

  Explanation:

  Let sum = x
  Time = 10 years.
  S.I = 2x /5, [as per question]
  Rate =( (100 * 2x) / (x*5*10))%
  => Rate = 4%

  • View Answer
  • Comment on this question

• 17. Rs. 800 becomes Rs. 956 in 3 years at a certain rate of simple interest. If the rate of interest is increased by 4%, what amount will Rs. 800 become in 3 years.

  1. Rs 1052
  2. Rs 1152
  3. Rs 1252
  4. Rs 1352

  Answer And Explanation

  Answer: Option A

  Explanation:

  S.I. = 956 - 800 = Rs 156
  
  \begin{aligned}
  R = \frac{156*100}{800*3} \\
  R = 6\frac{1}{2}\% \\
  
  \text{ New Rate = }6\frac{1}{2}+4 \\
  = \frac{21}{2} \% \\
  
  \text{ New S.I. = }800\times\frac{21}{2}\times{3}{100} \\
  = 252
  \end{aligned}
  
  Now amount will be 800 + 252 = 1052

  • View Answer
  • Comment on this question

• 18. In how many years Rs 150 will produce the same interest at 8% as Rs. 800 produce in 3 years at 9/2%

  1. 8
  2. 9
  3. 10
  4. 11

  Answer And Explanation

  Answer: Option B

  Explanation:

  Clue:
  Firstly we need to calculate the SI with prinical 800,Time 3 years and Rate 9/2%, it will be Rs. 108
  
  Then we can get the Time as
  
  Time = (100*108)/(150*8) = 9

  • View Answer
  • Comment on this question

• 19. What will the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years.

  1. 1:2
  2. 2:1
  3. 2:2
  4. 2:3

  Answer And Explanation

  Answer: Option D

  Explanation:

  Let the principal be P and rate be R
  
  then
  
  \begin{aligned}
  \text{ratio = } [\frac{(\frac{P*R*6}{100})}{(\frac{P*R*9}{100})}] \\
  
  = \frac{6PR}{9PR} = 2:3
  \end{aligned}

  • View Answer
  • Comment on this question

• 20. A 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.

  1. 10.25%
  2. 10%
  3. 9.25%
  4. 9%

  Answer And Explanation

  Answer: Option A

  Explanation:

  Let the sum is 100.
  
  As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below:
  
  SI for first Six Months = (100*10*1)/(100*2) = Rs. 5
  
  Important: now sum will become 100+5 = 105
  
  SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25
  
  So amount at the end of year will be (100+5+5.25)
  = 110.25
  
  Effective rate = 110.25 - 100 = 10.25
  
  

  • View Answer
  • Comment on this question

• 21. 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

  1. 9%
  2. 10%
  3. 11%
  4. 12%

  Answer And Explanation

  Answer: Option D

  Explanation:

  We can get SI of 3 years = 12005 - 9800 = 2205
  
  SI for 5 years = (2205/3)*5 = 3675 [so that we can get principal amount after deducting SI]
  
  Principal = 12005 - 3675 = 6125
  
  So Rate = (100*3675)/(6125*5) = 12%

  • View Answer
  • Comment on this question