Simple Interest Question for Bank Exam

 

Problems on Simple Interest

1)      At the rate o 8.5% p.a. simple interest, a sum of Rs. 4800 will earn how much interest in 2 years 3 months?

a)      796            b) 816              c) 918              d) 956              e) None of these

2)      What will be the simple interest earned on an amount of Rs. 16, 800 in 9 months at 6.25%  p.a. ?

a)      Rs. 787.50             b) Rs. 812.50               c) Rs. 860        d) Rs. 887.50\

e) None of these

3)      How much time will it take for an amount of Rs. 450 to yield an interest of Rs. 81 at 4.5 p.a.?

a)      3.5 years                b) 4 years                     c) 4.5 years      d) 5 years

e) None of these

4)      A man took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. At the end, if he paid Rs. 432 as interest, what was the rate of interest per annum?

a)      3.6%                      b) 6%               c) 18                d) Cannot be determined

e) None of these

5)      In how many years will 150 produce the same interest at 8% p.a. as Rs. 800 produce in 3 years at 4.5% p.a.?

a)      6                b) 8                  c) 9                  d) 12                e) None of these

6)      At what rate will 1000 produce the same interest in 1 year as 2000 will produce at 2 % p.a. in 2 years?

a)      2%             b) 3%               c) 8%               d) 10%                        e) None of these

7)      The simple interest at x% for x years will be Rs. x on a sum of:

a)      Rs. x          b) Rs. (100/x)              c) Rs. 100x                  d) Rs. (100/x²)

e) None of these

8)      The simple interest on Rs. 10 at the rate of 3 paisa per rupee per month is Rs:

a)      1.20           b) 2.40             c) 1.60             d) 3.60             e) None of these

9)      A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

a)      Rs. 650      b) Rs. 690        c) Rs. 698        d) Rs. 700       e) None of these.

10)  A sum of money lent out amounts to Rs. 720 in 2 years and to Rs. 1020 after a further period of 5 years. The sum is:

a)      Rs. 500      b) Rs. 600        c) Rs. 700        d) Rs. 710       e) Cannot be determined

11)  A sum of money amounts to Rs. 9800 in 5 years and Rs. 12005 in 8 years at the same rate of simple interest. The rate of interest per annum is:

a)      5%             b) 8%               c) 12%             d) 15%                        e) None of these

12)  The simple interest on a sum of money at 8% per annum for 6 years is half the sum. The sum is:

a)      Rs. 4800    b) Rs. 6000      c) Rs. 8000      d) Data Inadequate     e) None of these

13)  A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of the first year. To clear his dues at the end of second year, he would pay:

a)      Rs. 105      b) Rs. 110        c) Rs. 115        d) Rs. 115.50              d) None of these

14)  The simple interest on Rs. 100 at the rate of 5 paisa per rupee per year for 6 months is:

a)      Rs. 5          b) Rs. 2.50       c) Rs. 20          d) Rs.6                        e) None of these

15)  A sum of money amounts to Rs. 720 in 2 years and Rs. 1020 in a further period of 6 years. The sum is:

a)      Rs. 500                  b) Rs. 620                    c) Rs. 700                    d) Rs. 600

e) None of these

Solutions to problems on Simple Interest

1)      C

Apply the formula I= PRT/100. Interest will be Rs. 918.

2)      A

Apply the formula I= PRT/100. Interest will be Rs. 918.

3)      B

I= PRT/100

 81= 450 * 4.5*T/100

  T = 81*100/450 * 4.5

  T= 4 years

4)      B

Since the rate of interest and time period is the same, let the time and rat of interest be R.

I= PRT/100 = PRR/100

ð  432 = 1200RR/100

ð  R² = 36

ð  R= 6% and T= 6 years

5)      C

I = PRT/100 = 800 * 3 * 4.5/100 = 108

ð  108 = 150 * 8 *T/100

ð  T = 9 years

6)      C

The interest produced by 2000 will 2000 * 2 * 2 /100. The numerator will have 8 as the starting. Since the time is given as 1 year for 1000 rupees, the rate of interest should be 8%.

7)      B

Sum = (100 * SI)/(R*T) = Rs (100 * x)/(x * x) = Rs. (100/x).

8)      A

10 rupees, hence 30p. 4 months, hence 30p *4 = 1.20 rupees.

9)      C

Simple Interest for 1 year = 854 -815 = 39

Hence Simple Interest for 3 years = Rs. 117

Hence the amount is 815 – 117 = Rs. 698

10)  B

Interest for 5 years is (1020 – 720)/5 = Rs. 60

720 is the amount after 2 years, hence the original amount is Rs. (720 -120) = Rs. 600

11)  C

Interest for 3 years = Rs. 2205 i.e. the interest per  year is 735.

The original amount is Rs. 6125. Hence rate of interest is (735/6125) *100 = 12%

12)  D

The given question cannot be solved with the given data.

13)   D

Amount borrowed = Rs. 200

So, total interest for 1 years = (200 * 5 * 1)/100 = 10

He paid 100 at the end of the first year, hence, the remaining amount = 110

Interest for the remaining 110 = Rs. 5.50

Hence, he would have to pay Rs. 115.50 to clear his dues.

14)  B

The interest is at 5 paisa per rupee. Hence, the amount will be 5 for those 100 rupees. The time is 6 months, i.e. 0.5 years, Hence the amount is Rs. 2.50

15)  B

The interest for 6 years is Rs. 300, i.e. the interest per year is Rs. 50.

Hence the sum is RS. (720 – 50*2) = Rs. 620

16)  C

I = PRT/100, using the formula and taking the ratios, we get the ratio as 2:3.

17)  D

Interest for 4 years = Rs. 3000 i.e. Interest for an year = Rs. 750.

Hence rate of interest = (750/12500) * 100 = 6%

18)  D

The additional amount cannot be determined without the details such as principal, time and the original rate.

19)  D

Principal = Rs. (4016.25 * 100)/(9 *5) = Rs. 8925

20)  A

Let the sum be x.

The rate of interest is given as 10%.

Since the amount doubles itself, the simple interest must be x.

 (x * 10 * T) / 100 = x

  T = 100/10 = 10 years.