Simple Interest Aptitude Questions and Answers
Simple Interest Questions - This section focuses on "Simple Interest" in Quantitative Aptitude. These Multiple Choice Questions (mcq) should be practiced to improve the Quantitative Aptitude skills required for various interviews (campus interviews, walk-in interviews, company interviews), placements, entrance exams and other competitive examinations.
1. Find the simple interest on Rs 7000 at 50/3 % for 9 months?
A. 1075
B. 975
C. 875
D. 775
View Answer
Ans : C
Explanation: S.I. = P×R×T100
So, by puting the values in the above formula, our result will be.
Required result = 7000×50×93×12×100=875
2. Find the simple interest on the Rs. 2000 at 25/4% per annum for the period from 4th Feb 2005 to 18th
April 2005?
A. 25
B. 20
C. 30
D. 15
View Answer
Ans : A
Explanation: One thing which is tricky in this question is to calculate the number of days.
Always remember that the day on which money is deposited is not counted while the day on which
money is withdrawn is counted.
So lets calculate the number of days now,
Time = (24+31+18) days = 73/365 years = 1/5 years
P = 2000
R = 25/4%
S.I. = =2000×254×5×100=25
3. Sachin borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends money to Rahul
at 25/4% p.a. for 2 years. Find the gain of one year by Sachin.
A. 105.5
B. 125.75
C. 112.5
D. 118.6
View Answer
Ans : C
Explanation: Two things need to give in this question, First we need to calculate gain for 1 year only.
Second, where we take money at some interest and lends at other, then we use to subtract each other
to get result in this type of question. Lets solve this Simple Interest question now.
Gain in 2 year = [(5000×254×2100)−(5000×4×2100)]=(625−400)=225.
So gain for 1 year = 2252=112.50
4. If A lends Rs. 3500 to B at 10% p.a. and B lends the same sum to C at 11.5% p.a., then the gain of B (in
Rs.) in a period of 3 years is:
A. 3000
B. 3100
C. 3200
D. 3300
View Answer
Ans : B
Explanation: We need to calculate the profit of B.
It will be,
SI on the rate B lends - SI on the rate B gets
Gain of B=157.50=3500×11.5×3100−3500×10×3100
5. Sahil took a loan for 6 years at the rate of 5% per annum on Simple Interest, If the total interest paid
was Rs. 1230, the principal was:
A. 3600
B. 4500
C. 3900
D. 4100
View Answer
Ans : D
Explanation: S.I.=(P*R*T)/100 => P=(S.I.*100)/(R*T)
By applying above formula we can easily solve this quesƟon, as we are already having the simple
interest.
=>P=(1230 * 100)/(6*5) => P=4100
6. Find the rate at Simple interest, at which a sum becomes four times of itself in 15 years
A. 0.2
B. 0.18
C. 0.22
D. 0.24
View Answer
Ans : A
Explanation: Let sum be x and rate be r%
then, (x*r*15)/100 = 3x
[important to note here is that simple interest will be 3x not 4x, beause 3x+x = 4x]
=> r = 20%
7. If a sum of money doubles itself in 8 years at simple interest, the ratepercent per annum is
A. 0.12
B. 0.125
C. 0.14
D. 0.105
View Answer
Ans : B
Explanation: Let sum = x then Simple Interest = x
Rate = (100 * x) / (x * 8) = 12.5
8. 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?
A. 1800
B. 1900
C. 2000
D. 2100
View Answer
Ans : C
Explanation: SI for 3 year = 2600-2240 = 360
SI for 2 year 360/3 * 2 = 240
principal = 2240 - 240 = 2000
9. At what rate percent per annum will the simple interest on a sum of money be 2/5 of the amount in
10 years
A. 0.01
B. 0.02
C. 0.03
D. 0.04
View Answer
Ans : D
Explanation: Let sum = x
Time = 10 years.
S.I = 2x /5, [as per question]
Rate =( (100 * 2x) / (x*5*10))%
=> Rate = 4%
10. 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.
A. 0.1
B. 0.105
C. 0.1075
D. 0.1025
View Answer
Ans : D
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
11. The difference between simple interest and compound on Rs. 1200 for one year at 10% per annum
reckoned half-yearly is:
A. Rs. 2
B. Rs.3
C. Rs.4
D. Rs. 5
View Answer
Ans : B
Explanation: Solution: SI =Rs. (1200 ×10×1)/100= Rs. 120
CI = Rs. [ 1200×(1+5/100) ^2 - 1200] = Rs.123
So CI-SI = Rs. 3
12. A and B each borrowed equal sums for 3 years at the rate of 5% simple and compound interest
respectively. At the time of repayment B has to pay Rs. 76.25 more than A. The sum borrowed and the
interest paid by A (in Rs.) is:
A. Rs. 10,000, Rs. 1,500
B. Rs. 11,000, Rs. 1,100
C. Rs. 10,000, Rs. 1,400
D. Rs. 9,000, Rs. 200
View Answer
Ans : A
Explanation: CI-SI=Rs. 76.25
p[1+r/100]^n-p-PRN/100=76.25
p[1+5/100]^3-p-p*5*3/100=76.25
p[21/20*21/20*21/20]-p-15p/100=76.25
9261p-8000p-1200p/8000=76.25
61p=8000*76.25
p=10000
SI paid by A=PNR/100=10000*5*3/100=Rs. 1500
13. Equal amounts of each Rs. 43,892 is lend to two persons for 3 years. One at the rate of 30% S.I. and
second at the rate of 30% C.I. annually. By how much percent the C.I. is greater than the simple interest
received in this 3 years duration?
A. 0.31
B. 0.32
C. 0.33
D. 0.34
View Answer
Ans : C
Explanation: SI=43892*30*3=43892[9/10]|
CI=43892[(1+30/100)^3-1]=43892(2197-1000/1000)=43892(1197/1000)
CI-SI=43892(297/1000)
Desired%=43892(297/1000)/43892(900/1000) = 33%
14. The compound interest on a certain sum for 2 years is Rs. 756 and S.I. is Rs. 720. If the sum is invested
such that the S.I. is Rs. 1296 and the number of years is equal to the rate per cent per annum, Find the rate
of interest?
A. 0.05
B. 0.08
C. 0.07
D. 0.06
View Answer
Ans : D
Explanation: CI for 2 years = Rs. 756
SI for 2 years = Rs. 720
36/360 * 100 = 10%
P for first year = 3600
P*x*x/100 = 1296
x = 6%
15. The compound interest on a certain sum for 2 years at a certain rate of interest is Rs 1025 and Simple
Interest on the same sum, same time and same rate of interest is Rs 1,000. Then find the C.I for same sum in
3 years.
A. 1456.75
B. 1657.5
C. 1576.25
D. 1502.25
View Answer
Ans : C
Explanation: SI for 2 years = Rs 1000 =.> Si 1 year = Rs 500
In the second years Rs 25 is added in CI (1025-1000) which is 5% of 500
Hence R=5%
5%=500
100%=10000
sum=10000
CI for 3 years= RS 1576.25
16. A sum becomes triple in 6 years at S.I. The same sum will become 19 times in how many years?
A. 18 yrs
B. 36 yrs
C. 54 yrs
D. 72 yrs
View Answer
Ans : C
Explanation: SI=A-P=> A=3P as sum triples
SI=3P-P=2P in 6 years
In 19 times SI=18 P => 54 years (2:6 hence 18=54)
17. A lent Rs. 25000 to B for 4 years and Rs. 40,000 to C for 3 1/2 years and got Rs. 24,000 S.I from both B
and C. Find the rate PCPA.
A. 5
B. 10
C. 15
D. 20
View Answer
Ans : B
Explanation: 250 X 4R = 400 X (7/2) R = 2400R
=> R = 10
18. A sum of money, simple interest for 2 years is Rs 660 and compound interest is Rs 696.30, the rate of interest being the same in both cases.
A. 0.11
B. 0.08
C. 0.13
D. 0.09
View Answer
Ans : A
Explanation: Difference between C.I and S.I for 2 years = 36.30|
S.I. for one year = 330
S.I. on Rs 330 for one year = 36.30
So R% = {100*36.30}/{330*1} = 11%
19. If the simple interest on a sum of money for 2 years at 5% per annum is Rs.50, what is the compound
interest on the same at the same rate and for the same time?
A. 50.75
B. 51.25
C. 52.5
D. 53.75
View Answer
Ans : B
Explanation: Simple interest for 2 years = Rs.50 ie. For 1 years Rs. 25. . In the first year the S.I and C.I are
Same ie.Rs. 25. So in the 2nd year in C.I calculated for 1 years interest also. So in second years for
Rs.25 interest is 25*5/100 = 1.25 . So total C.P = 51.25.
20.
A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?
A. Rs. 350
B. Rs. 245
C. Rs. 290
D. Cannot be determined
View Answer
Ans : D
Explanation: We need to know the S.I., principal and time to find the rate.
Since the principal is not given, so data is inadequate.
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