Simple Interest Practice Questions
Simple Interest Practice Questions
21. Anil invested an amount for three years at the simple inter- 6. A person has 20, 000 from which he lent 4000 at 7% p.a.,
est rate of 9 p.c.p.a. He got an amount of 19,050 at the end 6000 at 8% p.a., 5000 at 10% p.a. and the rest at r% per
of three years. What principal amount did he invest? annum. On calculating he find that he earns 12% on the
a. 14,500 b. 11,050 c. 15,000 d. 10,950 whole. Find the value of r ?
e. None of these 4 2 4 4
22. Mr. Sharma takes loan 25,000 and repays an amount of a. 22 % b. 20 % c. 21 % d. 20 %
5 5 5 5
31,000 at the end of 2 years. What is the rate of simple
interest at which he repays the loan? 3
a. 8 p.c.p.a. b. 6 p.c.p.a. 7. Mohit and Sohit lent 14400 and 16200 at S.I. for 3
8
c. 12 p.c.p.a. d. 9 p.c.p.a. years and 3 years respectively. At the end of the period
e. None of these Sohit earned 1458 more than Mohit as interest. What is
23. A sum fetches simple interest of 708.75 at the rate of 12.5 the difference between the rate of interest at which they
p.c.p.a. in 10 years. What is the sum? lent?
a. 885.95 b. 567
c. 5,670 d. Can’t be determined 1 2
a. 2 % b. 3% c. 3 % d. 2%
e. None of these 2 5
24. The interest earned of 15,000 in three years at simple in- 8. The interest earned on a certain sum at a certain rate is x.
terest is 5,400. Find the rate percent per annum.
3 4 7
a. 11.5 b. 12.5 c. 15 d. 12 If the sum is increased to , rate and time , then
e. None of these 2 5 6
25. A sum of 5,000 amount to 6,100 in two years at simple interest earned would be y. Find what percentage of x is
interest. What is the rate of interest? y?
a. 15% p.a. b. 13% p.a. c. 11% p.a. d. 21% p.a. 3
a. 140% b. 71 % c. 150% d. 71%
e. None of these 7
9. A certain scheme of investment in simple interest declares
SIMPLE INTEREST LEVEL - II that it trebles the investment in 8 years. If you want to
quadruple your money through that scheme, you have to
1. 19,400 is lent as loan into two parts, one at 8% p.a. for 5 invest it for :
years and the other at 4% p.a. for 9 years. If the ratio of S.I. a. 11 years 6 months b. 10 years 8 months
earned from the two parts has a ratio of 3 : 7 respectively, c. 10 years d. 12 years
then what is the sum lent in second part. 10. In a certain time, the ratio of a certain principal and the
a. 14,000 b. 13,000 c. 14,400 d. 15,000 simple interest obtained from it are in the ratio 10 : 3 at 10%
2. A sum of 18, 600 is distributed into three parts for 2 years, interest per annum. The number of years the money was
4 years and 5 years respectively. If the rate is 10% p.a. at invested is
S.I., then the amount earned from the three parts would be a. 1 b. 3 c. 5 d. 7
equal. What is the sum lent for 4 years? 11. In how many years will the simple interest on a sum of
a. 7000 b. 8000 2
c. 5600 d. 6000 money be equal to the principal at the rate of 16 % per
3
3. A person lent some money to someone at 5% p.a. and after
6 months he lent the same amount of money to another annum ?
person at 6% p.a. After a certain period, he received 4600 a. 4 b. 5 c. 6 d. 8
as amount from both of them. How much money has he lent 12. A sum of money was invested at a certain rate of simple
to the two person? interest for 2 years. Had it been invested at 1% higher rate,
a. 3500 b. 4000 c. 4200 d. 4150 it would have fetched 24 more interest. The sum of money
4. Ankit lent some money for some years. For the first 3 years is :
he lent at 7% p.a., for the next 4 years at 9% p.a. and for the a. 1200 b. 1050 c. 1000 d. 9600
remaining period at 4% p.a. If after 12 years he received 13. The difference between the simple interests received from
2772 as S.I., then what was the sum that he lent? two different banks on 500 for 2 years is 2.50. The
a. 3600 b. 3200 c. 4200 d. 4100 difference between their per annum rates of interest is :
5. A certain sum at a certain rate for a certain period gives a a. 0.10% b. 0.25%
certain S.I. If that sum is increased by 20%, rate reduced to c. 0.50% d. 1.00%
2/3 and time increased to 6/5, then S.I. earned is 2400. 14. Rs. 6,000 becomes Rs. 7,200 in 4 years at a certain rate of
What was the S.I. earned initially. simple interest. If the rate becomes 1.5 times of itself, the
a. 2750 b. 2600 c. 2500 d. 2450 amount of the same principal in 5 years will be
a. Rs. 8,000 b. Rs. 8,250
c. Rs. 9,250 d. Rs. 9,000
15. If the simple interest for 6 years be equal to 30% of the 4. A merchant gave a loan of 44, 000 to two persons into two
principal, it will be equal to the principal after parts, one at the rate of 7% for 4 years and other at the rate
a. 20 years b. 30 years of 10% for 2 years. The interest he earned from the two is in
c. 10 years d. 22 years the ratio 4 : 5 respectively. What sum did he lent to the first
16. A sum becomes 1440 in 2 years and 2040 in 7 years when person?
lent at S.I. Find the rate of interest p.a. a. 28,000 b. 16,000 c. 20,000 d. 24,000
1 5. A lent B and C some money as a loan. One-third of the
a. 8% b. 7 % amount lent to B is equal to one–fifth of the amount lent to
2
c. 10% d. 7% C. He lent to B at the rate of 3% p.a. for 6 years and to C at
17. Naresh borrowed 28,000 from a bank at S.I. After three the rate of 5% p.a. for 4 years and earned 6160 as interest.
years he returned 12,000 to the bank and two years later What is the difference between the sum given to B and C.
he returned 21,800 and cleared the dues of the bank. Find a. 12000 b. 20000 c. 8000 d. 18000
the rate of interest charged by the bank. 6. A lent B 4800 for 2 years at the rate of 8% p.a. at S.I. B lent
a. 4.5% b. 5.5% the same amount to C at a rate 3% higher for the same
c. 5% d. 6% period. If on completion of time, B return to A and C return
18. Vishwas borrowed a total amount 30,000 part of it on simple to B the interest, then what is the extra income earned by
interest, rate of 12 p.c.p.a and remaining on simple interest B?
rate of 10 p.c.p.a. If at the end of 2 years he paid in all a. 288 b. 302 c. 350 d. 266
36,480 to settle the loan amount, what was the amount 7. A, B and C are three friends. A borrowed 1200 and 1600
borrowed at 12 p.c.p.a.? from B and C at the rate of 5% p.a. and 4% p.a. respectively
a. 16000 b. 18000 c. 17500 d. 12000 for 3 years. On the completion of the period he returned the
e. None of these money borrowed with interest. Being friends B and C re-
19. The rate of simple intrest on an amount of money is 6 per- turned 1% of the interest received from A. How much money
cent annum for the first two years, 9 percent per annum for was actually given by A as an interest?
the next five years and 13 percent annum for the period a. 350.41 b. 388.26 c. 354.21 d. 368.28
beyond seven years. If the total interest on a sum at the 8. Sunil deposits a total of 27950 in three nationalised banks.
end of ten years is 7,680, what is the sum? The rate percent given by each bank is in the ratio 4 : 5 : 6.
a. 7,000 b. 8,000 c. 8,500 d. 10,000 The time for which the money is deposited in each bank is
e. None of these in the ratio 7 : 6 : 5. If he received equal interest from the
20. Nelson borrowed some money at the rate of 6 p.c.p.a. for three banks, then what amount has he deposited in the first
the first three years, 9 p.c.p.a for the next five years and 13 bank?
p.c.p.a for the period beyond eight years. If the total inter- a. 9750 b. 9100 c. 10100 d. 9500
est paid by him at the end of eleven years is 8,160, how 9. A person invests 12,000 as fixed deposit in a bank at the
much money did he borrow? rate of 10% per annum simple interest. But due to some
a. 12,000 b. 10,000 d. 8,000 urgent needs he has to withdraw the entire money after 3
d. Data inadequate e. None of these years, for which the bank allowed him a lower rate of inter-
SIMPLE INTEREST LEVEL - III est. If he gets 3,320 less than what he would have got at
the end of 5 years, the rate of interest allowed by the bank
1. Cost of a T.V. is 9000 and is available on down payment of is
2350 and 5 equal monthly installments of 5 4 8 7
1400 each. What is the simple rate of interest. a. 7 % b. 7 % c. 7 % d. 8 %
9 9 9 9
a. 12% b. 30% c. 24% d. 15%
10. At some rate of simple interest, A lent 6,000 to B for 2
2. A loan of 12, 800 is payable in three installments. First
years and 1,500 to C for 4 years and received 900 as
installment is half of the second installment and one-third
interest from both of them together. The rate of interest per
of the third installment. If on installment, for the remaining
annum was
period, the rate of interest is 10% p.a., then find the three
a. 5% b. 6% c. 9% d. 4%
installments.
11. A sum of money at a certain rate per annum of simple inter-
a. 2000 b. 4000
est doubles in the 5 years and at a different rate becomes
c. 6000 d. 8000
three times in 12 years. The lower rate of interest per annum
3. A sum of 30,000 is paid in three equal yearly installment. If
is
on the remaining sum interest is calculated at the rate of 4%
p.a. and is included in each installment, then what are the 3 2
a. 15% b. 20% c. 15 % d. 16 %
three installments? 4 3
a. 11, 000; 10,800; 10, 500
b. 11, 200; 11,200; 11, 200
c. 11, 200; 10,800; 10, 400
d. None of these
12. A person invests money in three different schemes for 6 SIMPLE INTEREST LEVEL - IV
years, 10 years and 12 years at 10 p.a., 12 p.a. and 15 p.a. 1. Three amounts ‘x’, ‘y’ and ‘z’ are such that ‘y’ is the S.I. of
simple interest respectively. AT the completion of each ‘x’ and ‘z’ is the S.I. of ‘y’. If in these two conditions, time
scheme, he gets the same interest. The ratio of his invest- and rate of interest is same, then establish a relationship
ment is among ‘x’, ‘y’ and ‘z’.
a. 6 : 3 : 2 b. 2 : 3 : 4 1 1 1
c. 3 : 4 : 6 d. 3 : 4 : 2 a. xyz = 1 b. y x z
13. A person borrows Rs. 5,000 for 2 years at 4% per annum
1 1 1
simple interest. He immediately lends it to another person c. y2 = xz d. x y z 1
1
at 6 % per annum simple interest for 2 years. His gain in 2. Chandra and Arun put 5400 and 7200 for 4 years and 3
4 years respectively at interest. If the S.I. earned is 3456
the transaction is: and the ratio of their given rates of interest is 3 : 5, then at
a. Rs. 112.50 b. Rs. 450 c. Rs. 225 d. Rs. 150 what rate of interest Arun put his money at interest?
14. A 10 year old boy received 50,000 which was deposited a. 6% b. 8% c. 12% d. 10%
with a trust. Trust put it at 4% p.a. interest. From the inter- 3. X lent some part of 22000 to Y and the rest to Z. The ratio
est, this adolescent child gets 1200 as pocket money at of the rates of interest at which Y and Z were lent is 4 : 5 and
the end of each year. Expenditure of trust is 300 per year. the ratio of the time period at which Y and Z were lent
Find the amount that adolescent child will receive when he
1 1
attains the age of 18. is 2 : 3 . If both of them pay same interest, then what
a. 54000 b. 62000 2 2
c. 56400 d. 58000 amount was lent to Y?
15. A sum at S.I. becomes 9440 in 3 years. If the rate of inter- a. 16000 b. 12000
est is increased by 25%, then this sum in the same period c. 8000 d. 14000
becomes 9800. Find the sum and the rate of interest. 1
a. 8000; 6% b. 7200; 8% 4. Pradeep borrowed 50, 000 at the rate of 6 % p.a. for 3
2
c. 7800; 7% d. 8000; 8%
16. A person withdraw 1,10,000 and closes his account in a 1
years and lent 60,000 at the rate of 7% p.a. for 3 years.
bank. He withdrew 65,000 an year ago. 2 years ago he 2
withdrew 1,25,000. If rate of interest is 10% p.a. and inter- The income he earned from the above transaction he pur-
est is calculated yearly, then what sum he would have chased a fan, a table and a calculator whose value is in the
deposited three years ago in the bank when opening an ratio 28 : 15 : 7 respectively. What is the cost of the table?
account? a. 1485 b. 2750 c. 2850 d. 650
a. 2,50,000 b. 3,20,000 5. ‘a’, ‘b’, ‘c’ and ‘d’ are four sum in such a way that ‘a’ is the
c. 3,50,000 d. 2,25,000 interest for ‘b’, ‘b’ is the interest for ‘c’ and ‘c’ is the inter-
17. A person borrowed 4000 at 5% p.a. when interest is calcu- est for ‘d’. If in these three situations, the rate of interest
lated yearly. After 2 years he gave back 2210 and 2 years and time period is same, then the ratio of ‘a’ and ‘d’ can be
from then he gave away the remaining sum with interest. shown by which expression?
Find the total interest paid by him. a. b3 : c3 b. b : c
a. 535.50 b. 640.50
c. 635.50 d. 537 .50 c. b2 : c2 d. 3 3
b2 : c2
18. A person wants to distribute 3,75,000 between his two 1
son, whose ages are 12 years and 14 years respectively, in 6. Out of Rs. 50,000 that a man has, he lends Rs. 8000 at 5 %
2
such a way that both of them would receive equal money per annum simple interest and Rs. 24,000 at 6% per annum
when they attain the age of 18 at 5% p.a. S.I. Find the part simple interest. He lends the remaining money at a certain
(of money) of each son. rate of interest so that he gets total annual interest of Rs.
a. 1,50,000; 2,25,000 b. 1,80,000; 1,95,000 3680. The rate of interest per annum, at which the remain-
c. 2,00,000; 1,75,000 d. 2,05,000; 1,70,000 ing money is lent, is
19. A person lent 9000 on a condition that sum borrowed will a. 5% b. 7% c. 10% d. 12%
have to be returned in 10 installments of 1000 each in 10 7. With a given rate of simple interest, the ratio of principal
month. Find the rate of interest at S.I. and amount for a certain period of time is 4 : 5. After 3 years,
a. 26.7% b. 20.2% with the same rate of interest, the ratio of the principal and
c. 23% d. 18% amount becomes 5 : 7. The rate of interest is
20. At S.I., a certain sum amounts to 5200 in 5 years and a. 4% b. 6% c. 5% d. 7%
5680 in 7 years. Find the rate of interest.
a. 5% b. 5.6%
c. 6% d. 6.5%
8. If the simple interest on a certain sum of money for 15 15. Akbar lends twice the interest received from Birbal to
1 Chanakya at half of the interest at which he lent to Birbal. If
months at 7 % per annum exceeds the simple interest on Akbar lent P @ r% per annum for 1 year to Birbal, then the
2
interest received by Akbar from Chanakya is :
1
same sum for 8 months at 12 % per annum be Rs. 32.50, 2
2 Pr 2 Pr
then the sum of money (in Rs.) is : a. b.
100 10
a. 312 b. 312.50
c. 3120 d. 3120.50 2 2
r r
9. A person deposits some money in Savings Account and c. P d. P
10 100
receives 15 as interest. He adds 85 to this and deposit it
for an year. At the end of the year he receives 420 includ-
ing principal and interest. What was the money deposited 16. ICICI lent 1 lakh to Major Mohit @ 6% per annum of
and the rate of interest initially? simple interest for 10 years period. Meanwhile ICICI offered
a. 500, 3% b. 750, 2% a discount in rate of interest for armed forces and thus the
c. 300, 5% d. 250, 6% rate of interest by ICICI is decreased to 4%. In this way
10. A colour T.V. is brought in installment. He gave 2000 as Mohit had to pay total amount of 1.48 lakh. After how
down payment and promised to pay 1800, 1560 and 1430 many years, Mohit got the discount in the rate of interest?
at the end of first year, second year and third year respec- a. 3 years b. 4 years c. 6 years d. 5 years
tively. If the rate of interest is 10% p.a., then find the cash 17. Mr. Sane invested a total amount 16,500 for two years in
price and the total interest in installments paid. two Schemes A & B with rate of Simple Interest 10 p.c.p.a.
a. 6136.36; 853.64 b. 6036.36; 753.64 and 12 p.c.p.a. respectively. If the total amount of interest
c. 65984.24; 484.24 d. 6236.36; 953.64 earned was 3,620, what was the amount invested in Scheme
11. A certain sum is borrowed at 6% p.a. rate of interest. At the B?
end of first year 6800 is returned and the rate of interest a. 8,000 b. 8,600 c. 8,150
on the remaining sum is decreased by 1%. If interest of d. Data inadequate e. None of these
18. Aniket deposited two parts of a sum of 25000 in different
11 banks at the rates of 15% per annum and 18% per annum
second year is of the first year, so what was the sum
20 respectively. In one year he got 4050 as the total interest.
borrowed initially? What was the amount deposited at the rate of 18% per
a. 17000 b. 20000 annum?
c. 18000 d. 15000 a. 9000 b. 12000 c. 15000
d. Data inadequate e. None of these
12. Pratibha invests an amount of 15, 860 in the name of her 19. Mr. A lends 40% of sum at 15% p.a. 50% of rest sum at 10%
three daughters A, B and C in such a way that they get the p.a. and the rest at 18% p.a. rate of intrest. What would be
same interest after 2, 3 and 4 years respectively. If the rate of the rate of interest if the interest is calculated on the whole
simple interest is 5% p.a., then the ratio of the amounts sum?
invested among A, B and C is : a. 13.4% p.a. b. 14.33% p.a.
c. 14.4% p.a. d. 13.33% p.a.
1 1 1
a. 5:10:12 b. : : c. 6:7:8 d. 6:5:4 e. None of these
10 15 20 20. A man invests Rs. 3000 at the rate of 5% per annum. How
13. A man invests 50000 in two different mutual funds (M.Fs) much more should he invest at the rate of 8%, so that he
in the ratio 3 : 2 at different interest rates. After 10 years, the can earn a total of 6% per annum ?
total worth of this amount is 385000. What is the difference [CAT - 1995]
between the rate of interest for the two mutual funds if the a. 1200 b. 1300
amount received is same for both the M.Fs after 20 years? d. 1500 d. 2000
(On simple interest)
a. 30 b. 52 c. 43 d. 38
14. A businessman donated 50000 to a hospital, which earns
a simple interest of 15% per annum. After three years, 50%
of the amount generated was used for the treatment of
poor patients and the remaining amount was again put in a
hospital trust with the bank at the same rate at simple interest
for two years. What was the total amount left with the
hospital trust after his period of five years was over?
a. 47125 b. 48125 c. 46825 d. 36250