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Simple Interest Questions in English

Competitive Exam Quantitative Aptitude · Interest · Simple Interest

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Showing 46 of 196 questions in English

151
MediumMCQ
In how much time (in $years$) will a sum of ₹ $9500$ amount to ₹ $17622.5$ at the rate of $4.5 \%$ per annum at simple interest?
A
$21$
B
$23$
C
$19$
D
$20$

Solution

(C) Given: Principal $(P)$ = ₹ $9500$,Amount $(A)$ = ₹ $17622.5$,Rate $(R)$ = $4.5 \%$ per annum.
Simple Interest $(S.I)$ = Amount - Principal = $17622.5 - 9500 = ₹ 8122.5$.
Using the formula for Simple Interest: $S.I = \frac{P \times N \times R}{100}$,where $N$ is the time in years.
$8122.5 = \frac{9500 \times N \times 4.5}{100}$.
$8122.5 = 95 \times N \times 4.5$.
$8122.5 = 427.5 \times N$.
$N = \frac{8122.5}{427.5} = 19$.
Therefore,the time required is $19$ years.
152
MediumMCQ
Dalajit lent ₹ $10800$ to Jaabir for $3$ $years$ and ₹ $7500$ to Kabir for $2$ $years$ on simple interest and received ₹ $1422$ in all from both of them as interest. The rate of interest (in $\%$) per annum is
A
$3.5$
B
$4$
C
$3$
D
$4.5$

Solution

(C) Let the rate of interest be $r \%$ per annum.
Simple interest is calculated using the formula: $SI = \frac{P \times R \times T}{100}$.
For Jaabir: Principal $P_1 = ₹ 10800$,Time $T_1 = 3$ years,Rate $= r \%$.
$SI_1 = \frac{10800 \times r \times 3}{100} = 324r$.
For Kabir: Principal $P_2 = ₹ 7500$,Time $T_2 = 2$ years,Rate $= r \%$.
$SI_2 = \frac{7500 \times r \times 2}{100} = 150r$.
Total interest received $= SI_1 + SI_2 = 1422$.
$324r + 150r = 1422$.
$474r = 1422$.
$r = \frac{1422}{474} = 3$.
Therefore,the rate of interest is $3 \%$ per annum.
153
MediumMCQ
Deepak lent ₹ $8800$ to Jaichand for $13$ $years$ and ₹ $5500$ to another person for $12$ $years$ at the same rate of simple interest. He received ₹ $14432$ in total as interest from both. The rate of interest (in $\%$) per annum is:
A
$8.5$
B
$9$
C
$9.5$
D
$8$

Solution

(D) Let the rate of interest be $r \%$ per annum.
The formula for simple interest is $SI = \frac{P \times R \times T}{100}$.
Interest from Jaichand $= \frac{8800 \times 13 \times r}{100} = 1144r$.
Interest from the second person $= \frac{5500 \times 12 \times r}{100} = 660r$.
Total interest received $= 1144r + 660r = 1804r$.
Given that the total interest is ₹ $14432$,we have:
$1804r = 14432$.
Solving for $r$:
$r = \frac{14432}{1804} = 8$.
Therefore,the rate of interest is $8 \%$ per annum.
154
MediumMCQ
$A$ sum was doubled with $12 \frac{1}{2} \%$ rate of simple interest per annum. The time taken (in years) for that sum is:
A
$8.50$
B
$8$
C
$10$
D
$12.50$

Solution

(B) Let the principal sum be $P = x$.
Since the sum is doubled,the final amount becomes $2x$.
Therefore,the Simple Interest $(S.I.)$ earned is $Amount - Principal = 2x - x = x$.
The rate of interest $(R)$ is $12 \frac{1}{2} \% = 12.5 \% = \frac{25}{2} \%$.
The formula for Simple Interest is $S.I. = \frac{P \times N \times R}{100}$,where $N$ is the time in years.
Substituting the values: $x = \frac{x \times N \times 12.5}{100}$.
Dividing both sides by $x$: $1 = \frac{N \times 12.5}{100}$.
$N = \frac{100}{12.5} = 8$.
Thus,the time taken is $8$ years.
155
MediumMCQ
What is the simple interest (in ₹) on ₹ $5400$ in $5$ years at the rate of $12 \%$ per annum?
A
$2700$
B
$2950$
C
$3120$
D
$3240$

Solution

(D) The formula for simple interest is $S.I. = \frac{P \times N \times R}{100}$,where $P$ is the principal,$N$ is the time in years,and $R$ is the rate of interest per annum.
Given: $P = ₹ 5400$,$N = 5$ years,$R = 12 \%$.
Substituting the values into the formula:
$S.I. = \frac{5400 \times 5 \times 12}{100}$
$S.I. = 54 \times 5 \times 12$
$S.I. = 270 \times 12$
$S.I. = ₹ 3240$.
156
EasyMCQ
$A$ certain sum becomes ₹ $1020$ in $5$ years and ₹ $1200$ in $8$ years at simple interest. What is the value of Principal (in ₹)?
A
$820$
B
$780$
C
$700$
D
$720$

Solution

(D) Let the Principal be $P$ and the rate of interest be $R$ percent per annum.
Simple Interest $(SI)$ for $5$ years $= A_1 - P = 1020 - P$.
Simple Interest $(SI)$ for $8$ years $= A_2 - P = 1200 - P$.
Since simple interest is constant for every year,the interest for $(8 - 5) = 3$ years is $1200 - 1020 = ₹ 180$.
Interest for $1$ year $= 180 / 3 = ₹ 60$.
Interest for $5$ years $= 60 \times 5 = ₹ 300$.
Principal $P = \text{Amount after } 5 \text{ years} - \text{Interest for } 5 \text{ years}$.
$P = 1020 - 300 = ₹ 720$.
157
EasyMCQ
$A$ certain sum becomes $5$ times in $3$ years at simple interest. In how many years will it become $13$ times?
A
$6$
B
$15$
C
$9$
D
$12$

Solution

(C) Let the principal sum be $P$.
According to the simple interest formula,the amount $A = P + SI$,where $SI = (P \times R \times T) / 100$.
Given that the sum becomes $5$ times in $3$ years,the amount $A = 5P$.
So,$SI = 5P - P = 4P$.
Using $SI = (P \times R \times T) / 100$,we have $4P = (P \times R \times 3) / 100$,which implies $R = 400 / 3 \%$.
Now,we want the sum to become $13$ times,so $A = 13P$.
This means $SI = 13P - P = 12P$.
Using the formula $SI = (P \times R \times T) / 100$ again:
$12P = (P \times (400 / 3) \times T) / 100$
$12 = (4 / 3) \times T$
$T = 12 \times (3 / 4) = 9 \text{ years}$.
Therefore,the sum will become $13$ times in $9$ years.
158
MediumMCQ
$A$ certain sum of money amounts to ₹ $918$ in $2$ $years$ and ₹ $969$ in $3.5$ $years$ at simple interest. What is the rate of interest (in $\%$ $p.a.$)?
A
$4$
B
$5$
C
$6$
D
$8$

Solution

(A) Simple Interest $(S.I.)$ for $1.5$ years $= 969 - 918 = ₹ 51$.
$S.I.$ for $1$ year $= \frac{51}{1.5} = ₹ 34$.
$S.I.$ for $2$ years $= 34 \times 2 = ₹ 68$.
Principal $(P)$ $= \text{Amount} - S.I. = 918 - 68 = ₹ 850$.
Using the formula $S.I. = \frac{P \times R \times T}{100}$:
$68 = \frac{850 \times R \times 2}{100}$.
$68 = 17 \times R$.
$R = \frac{68}{17} = 4 \% \text{ p.a.}$
159
MediumMCQ
Simple interest received by a person in $10$ $years$ on a principal of ₹ $9500$ is $130 \%$ of the principal. What is the rate of interest (in $\%$) per annum?
A
$12$
B
$13$
C
$15$
D
$19$

Solution

(B) Given:
Principal $(P) = ₹ 9500$
Time $(T) = 10 \text{ years}$
Simple Interest $(S.I.) = 130\% \text{ of } P$
Calculation:
$S.I. = \frac{130}{100} \times 9500 = 130 \times 95 = ₹ 12350$
Using the formula for Simple Interest:
$S.I. = \frac{P \times R \times T}{100}$
$12350 = \frac{9500 \times R \times 10}{100}$
$12350 = 950 \times R$
$R = \frac{12350}{950}$
$R = 13\%$
Therefore,the rate of interest per annum is $13\%$.
160
EasyMCQ
An amount fetched a total simple interest of ₹ $3200$ at the rate of $6.25 \%$ per year in $4$ years. What is the amount (principal) in ₹?
A
$13800$
B
$11800$
C
$12800$
D
$14800$

Solution

(C) The formula for simple interest is given by $S.I = \frac{P \times R \times T}{100}$,where $P$ is the principal,$R$ is the rate of interest,and $T$ is the time period.
Given: $S.I = ₹ 3200$,$R = 6.25 \%$,and $T = 4 \text{ years}$.
Substituting the values into the formula:
$3200 = \frac{P \times 6.25 \times 4}{100}$
$3200 = \frac{P \times 25}{100}$
$3200 = \frac{P}{4}$
$P = 3200 \times 4 = ₹ 12800$.
Thus,the principal amount is ₹ $12800$.
161
MediumMCQ
The effective annual rate of interest (in $\%$) corresponding to a nominal rate of $13 \%$ per annum payable half-yearly is:
A
$26$
B
$26.85$
C
$13$
D
$13.42$

Solution

(D) The nominal rate is $13 \%$ per annum,compounded half-yearly.
The rate per half-year is $r = \frac{13}{2} \% = 6.5 \%$.
The effective annual rate $(EAR)$ is calculated using the formula: $\text{EAR} = (1 + \frac{r}{100})^n - 1$,where $n$ is the number of compounding periods per year.
Here,$n = 2$ (since it is half-yearly).
$\text{EAR} = (1 + \frac{6.5}{100})^2 - 1$
$\text{EAR} = (1.065)^2 - 1$
$\text{EAR} = 1.134225 - 1 = 0.134225$
Converting to percentage: $0.134225 \times 100 = 13.4225 \% \approx 13.42 \%$.
Thus,the effective annual rate is $13.42 \%$.
162
EasyMCQ
$A$ person lent ₹ $10000$ to $B$ for $3$ $years$ and ₹ $6000$ to $C$ for $4$ $years$ on simple interest at the same rate of interest and received ₹ $5400$ in all from both of them as interest. What is the rate of interest (in $\%$)?
A
$10$
B
$12.5$
C
$15$
D
$20$

Solution

(A) Let the rate of interest be $r \%$.
The formula for simple interest is $SI = \frac{P \times R \times T}{100}$.
Interest from $B = \frac{10000 \times r \times 3}{100} = 300r$.
Interest from $C = \frac{6000 \times r \times 4}{100} = 240r$.
Total interest received is $5400$.
Therefore,$300r + 240r = 5400$.
$540r = 5400$.
$r = \frac{5400}{540} = 10 \%$.
Thus,the rate of interest is $10 \%$.
163
MediumMCQ
Albert invested an amount of $x$ rupees in a fixed deposit scheme offering $10 \%$ per annum for the $1^{\text{st}}$ year and $15 \%$ per annum for the $2^{\text{nd}}$ year and received an amount of ₹ $20,240$ after two years. What is $x$ (in ₹)?
A
$15000$
B
$16000$
C
$14000$
D
$18000$

Solution

(B) The amount after the first year is $x \times (1 + \frac{10}{100}) = x \times \frac{110}{100}$.
After the second year,the amount becomes $(x \times \frac{110}{100}) \times (1 + \frac{15}{100}) = x \times \frac{110}{100} \times \frac{115}{100}$.
Given that the final amount is ₹ $20,240$,we have:
$x \times \frac{110}{100} \times \frac{115}{100} = 20240$.
$x \times 1.1 \times 1.15 = 20240$.
$x \times 1.265 = 20240$.
$x = \frac{20240}{1.265} = 16000$.
Therefore,the principal amount $x$ is ₹ $16000$.
164
EasyMCQ
Alipta received some amount of money from her father. In how many $years$ will the ratio of the money (principal) and the interest obtained from it be $10: 3$ at the rate of $6 \%$ simple interest per annum?
A
$7$
B
$3$
C
$5$
D
$4$

Solution

(C) Let the principal amount be $P = 10x$ and the simple interest be $S.I. = 3x$.
The rate of interest is $R = 6 \%$ per annum.
The formula for simple interest is $S.I. = \frac{P \times N \times R}{100}$,where $N$ is the number of years.
Substituting the given values into the formula:
$3x = \frac{10x \times N \times 6}{100}$
Dividing both sides by $x$ (assuming $x \neq 0$):
$3 = \frac{60N}{100}$
$3 = \frac{3N}{5}$
$N = 3 \times \frac{5}{3} = 5 \text{ years}$.
Therefore,the required time is $5$ years.
165
MediumMCQ
The simple interest on a certain sum of money at the rate of $5 \%$ per annum for $8$ years is ₹ $840$. What is the rate of interest per annum for which the same amount of interest can be received on the same sum after $5$ years (in $\%$)?
A
$7$
B
$8$
C
$9$
D
$10$

Solution

(B) The formula for simple interest is $S.I = \frac{P \times N \times R}{100}$,where $P$ is the principal,$N$ is the time in years,and $R$ is the rate of interest.
Given: $S.I = ₹ 840$,$N = 8$ years,$R = 5 \%$.
Substituting the values: $840 = \frac{P \times 8 \times 5}{100}$.
$840 = \frac{P \times 40}{100} \Rightarrow 840 = \frac{P}{2.5} \Rightarrow P = 840 \times 2.5 = ₹ 2100$.
Now,for the same principal $P = ₹ 2100$ and same interest $S.I = ₹ 840$,we need to find the new rate $R$ for $N = 5$ years.
$840 = \frac{2100 \times 5 \times R}{100}$.
$840 = 21 \times 5 \times R$.
$840 = 105 \times R$.
$R = \frac{840}{105} = 8 \%$.
Therefore,the required rate of interest is $8 \%$.
166
MediumMCQ
$A$ sum of ₹ $2800$ is divided into two parts in such a way that the interest on both the parts is equal. If the first part is lent at $9 \% \text{ p.a.}$ for $5 \text{ years}$ and the second part is for $6 \text{ years}$ at $10 \% \text{ p.a.}$,find the two sums.
A
₹ $1800$,₹ $1000$
B
₹ $1600$,₹ $1200$
C
₹ $1400$,₹ $1400$
D
₹ $1300$,₹ $1500$

Solution

(B) Let the first part be $₹ x$. Then the second part is $₹ (2800 - x)$.
Since the simple interest on both parts is equal,we use the formula $SI = \frac{P \times R \times T}{100}$.
$\frac{x \times 9 \times 5}{100} = \frac{(2800 - x) \times 10 \times 6}{100}$
$45x = (2800 - x) \times 60$
Dividing both sides by $15$:
$3x = (2800 - x) \times 4$
$3x = 11200 - 4x$
$7x = 11200$
$x = 1600$
Therefore,the first part is $₹ 1600$ and the second part is $2800 - 1600 = ₹ 1200$.
167
EasyMCQ
If the simple interest of ₹ $1$ for $1$ month is $1$ paisa,then the rate per cent per annum will be:
A
$10$
B
$8$
C
$12$
D
$6$

Solution

(C) Given: Principal $(P) = ₹ 1$.
Simple Interest $(S.I.) = 1$ paisa $= ₹ \frac{1}{100}$.
Time $(T) = 1$ month $= \frac{1}{12}$ years.
We know the formula for Simple Interest: $S.I. = \frac{P \times R \times T}{100}$.
Substituting the values: $\frac{1}{100} = \frac{1 \times R \times (1/12)}{100}$.
By simplifying: $\frac{1}{100} = \frac{R}{1200}$.
$R = \frac{1200}{100} = 12$.
Therefore,the rate per cent per annum is $12 \%$.
168
EasyMCQ
In simple interest rate per annum,a certain sum amounts to ₹ $5,182$ in $2$ $years$ and ₹ $5,832$ in $3$ $years$. The principal in rupees is:
A
$2882$
B
$5000$
C
$3882$
D
$4000$

Solution

(C) Let the principal be $P$ and the simple interest per year be $I$.
Given that the amount after $2$ years is $P + 2I = 5182$ and the amount after $3$ years is $P + 3I = 5832$.
Subtracting the first equation from the second: $(P + 3I) - (P + 2I) = 5832 - 5182$.
This gives the simple interest for $1$ year: $I = 650$.
Now,substitute $I$ into the equation for $2$ years: $P + 2(650) = 5182$.
$P + 1300 = 5182$.
$P = 5182 - 1300 = 3882$.
Therefore,the principal is ₹ $3882$.
169
EasyMCQ
For what sum (in ₹) will the simple interest at $R \%$ per annum for $2$ years be $R$?
A
$\frac{100}{2R}$
B
$50$
C
$\frac{100}{R}$
D
$\frac{200}{R}$

Solution

(B) The formula for simple interest is given by $S.I. = \frac{P \times R \times T}{100}$,where $P$ is the principal sum,$R$ is the rate of interest per annum,and $T$ is the time in years.
Given that $S.I. = R$,$T = 2$ years,and the rate is $R \%$.
Substituting these values into the formula:
$R = \frac{P \times R \times 2}{100}$
Dividing both sides by $R$ (assuming $R \neq 0$):
$1 = \frac{P \times 2}{100}$
$1 = \frac{P}{50}$
$P = 50$
Therefore,the sum is $₹ 50$.
170
EasyMCQ
$A$ certain sum doubles in $7$ years at simple interest. The same sum under the same interest rate will become $4$ times in how many years?
A
$14$
B
$28$
C
$21$
D
$10$

Solution

(C) Let the principal be $P$ and the rate of interest be $R\%$.
Given that the sum doubles in $7$ years,the simple interest $(S.I.)$ is $P$.
Using the formula $S.I. = \frac{P \times R \times T}{100}$,we have $P = \frac{P \times R \times 7}{100}$,which implies $R = \frac{100}{7}\%$.
Now,we want the sum to become $4$ times,meaning the amount $A = 4P$. Thus,the required simple interest is $S.I. = A - P = 4P - P = 3P$.
Using the formula $3P = \frac{P \times R \times T}{100}$,we substitute $R = \frac{100}{7}$:
$3P = \frac{P \times (100/7) \times T}{100}$
$3 = \frac{T}{7}$
$T = 21 \text{ years}$.
Therefore,the sum will become $4$ times in $21$ years.
171
DifficultMCQ
$A$ certain sum of money amounts to ₹ $2200$ at $5 \%$ $p.a.$ rate of interest,and ₹ $2320$ at $8 \%$ interest in the same period of time. The period of time (in years) is:
A
$3$
B
$4$
C
$5$
D
$2$

Solution

(D) Let the principal be $P$ and the time period be $T$ years.
The formula for the amount $A$ is $A = P + \frac{P \times R \times T}{100}$.
For the first case: $2200 = P + \frac{P \times 5 \times T}{100} \implies 2200 = P(1 + 0.05T) \quad -(1)$
For the second case: $2320 = P + \frac{P \times 8 \times T}{100} \implies 2320 = P(1 + 0.08T) \quad -(2)$
Dividing equation $(2)$ by equation $(1)$:
$\frac{2320}{2200} = \frac{1 + 0.08T}{1 + 0.05T}$
$\frac{232}{220} = \frac{1 + 0.08T}{1 + 0.05T} \implies \frac{58}{55} = \frac{1 + 0.08T}{1 + 0.05T}$
$58(1 + 0.05T) = 55(1 + 0.08T)$
$58 + 2.9T = 55 + 4.4T$
$58 - 55 = 4.4T - 2.9T$
$3 = 1.5T$
$T = \frac{3}{1.5} = 2$ years.
172
MediumMCQ
At what percent of simple interest will a sum of money double itself in $15$ years?
A
$6 \frac{1}{3} \%$
B
$6 \frac{2}{3} \%$
C
$6 \frac{1}{2} \%$
D
$6 \%$

Solution

(B) Let the principal amount be $P$.
Since the sum doubles itself,the final amount $A = 2P$.
Therefore,the Simple Interest $(S.I.)$ is $A - P = 2P - P = P$.
We know the formula for Simple Interest is $S.I. = \frac{P \times R \times T}{100}$,where $R$ is the rate of interest and $T$ is the time in years.
Substituting the values: $P = \frac{P \times R \times 15}{100}$.
Dividing both sides by $P$,we get $1 = \frac{15R}{100}$.
$R = \frac{100}{15} = \frac{20}{3} = 6 \frac{2}{3} \%$.
Thus,the rate of interest is $6 \frac{2}{3} \%$.
173
EasyMCQ
The rate of simple interest (in $\%$) for which a sum of money becomes $5$ times of itself in $8$ years is:
A
$30$
B
$40$
C
$50$
D
$55$

Solution

(C) Let the principal amount be $P$.
Since the sum becomes $5$ times itself,the final amount $A = 5P$.
The simple interest $(S.I.)$ is given by $S.I. = A - P = 5P - P = 4P$.
The formula for simple interest is $S.I. = \frac{P \times R \times T}{100}$,where $R$ is the rate of interest and $T$ is the time in years.
Substituting the values: $4P = \frac{P \times R \times 8}{100}$.
Dividing both sides by $P$: $4 = \frac{8R}{100}$.
$400 = 8R$.
$R = \frac{400}{8} = 50 \%$.
Therefore,the rate of interest is $50 \%$.
174
DifficultMCQ
If $A$ borrowed $₹P$ at $x\%$ and $B$ borrowed $₹Q$ $(Q > P)$ at $y\%$ per annum at simple interest at the same time,then the amount of their debts will be equal after:
A
$100\left(\frac{Q-P}{Px-Qy}\right)$ years
B
$100\left(\frac{Px-Qy}{Q-P}\right)$ years
C
$100\left(\frac{Px-Qy}{P-Q}\right)$ years
D
$100\left(\frac{P-Q}{Px-Qy}\right)$ years

Solution

(A) Let the time after which the amounts are equal be $N$ years.
Amount of debt for $A = P + \text{Simple Interest} = P + \frac{P \times x \times N}{100}$.
Amount of debt for $B = Q + \text{Simple Interest} = Q + \frac{Q \times y \times N}{100}$.
Since the amounts are equal,we set them equal to each other:
$P + \frac{PxN}{100} = Q + \frac{QyN}{100}$.
Rearranging the terms to solve for $N$:
$\frac{PxN}{100} - \frac{QyN}{100} = Q - P$.
$N \left(\frac{Px - Qy}{100}\right) = Q - P$.
$N = 100 \left(\frac{Q - P}{Px - Qy}\right)$ years.
175
MediumMCQ
$A$ money lender claims to lend money at the rate of $10 \%$ per annum simple interest. However,he takes the interest in advance when he lends a sum for one year. At what interest rate does he lend the money actually?
A
$10 \%$
B
$10 \frac{1}{9} \%$
C
$11 \%$
D
$11 \frac{1}{9} \%$

Solution

(D) Let the principal amount be $P = 100$.
Given that the interest rate is $10 \%$ per annum.
The interest for one year is calculated as $I = \frac{P \times R \times T}{100} = \frac{100 \times 10 \times 1}{100} = 10$.
Since the money lender takes the interest in advance,the actual amount he gives to the borrower is $100 - 10 = 90$.
Therefore,the borrower effectively receives $90$ and pays $10$ as interest for one year.
The actual rate of interest is calculated as $\text{Rate} = \frac{\text{Interest}}{\text{Actual Principal}} \times 100$.
$\text{Rate} = \frac{10}{90} \times 100 = \frac{100}{9} = 11 \frac{1}{9} \%$.
176
MediumMCQ
$A$ man buys a watch for ₹ $1950$ in cash and sells it for ₹ $2200$ at a credit of $1$ $year$. If the rate of interest is $10 \%$ $p.a.$,what is his profit or loss?
A
₹ $55$ gain
B
₹ $50$ profit
C
₹ $30$ gain
D
₹ $30$ profit

Solution

(B) The selling price $(S.P.)$ is the present worth $(P.W.)$ of ₹ $2200$ due $1$ year hence.
The formula for present worth is $P.W. = \frac{\text{Amount} \times 100}{100 + (R \times T)}$.
Substituting the given values: $P.W. = \frac{2200 \times 100}{100 + (10 \times 1)} = \frac{220000}{110} = ₹ 2000$.
Since the cost price $(C.P.)$ is ₹ $1950$,the profit is $S.P. - C.P. = 2000 - 1950 = ₹ 50$.
177
EasyMCQ
$A$ money lender lends ₹ $400$ for $3$ $years$ to a person and ₹ $500$ for $4$ $years$ to another person at the same rate of simple interest. If altogether he receives ₹ $160$ as interest,what is the rate of interest per annum (in $\%$)?
A
$5$
B
$7$
C
$9$
D
$10$

Solution

(A) Let the rate of interest be $R\%$ per annum.
The formula for simple interest is $SI = \frac{P \times R \times T}{100}$.
For the first person: $SI_1 = \frac{400 \times R \times 3}{100} = 12R$.
For the second person: $SI_2 = \frac{500 \times R \times 4}{100} = 20R$.
According to the problem,the total interest received is ₹ $160$.
$12R + 20R = 160$
$32R = 160$
$R = \frac{160}{32} = 5$.
Thus,the rate of interest is $5\%$ per annum.
178
MediumMCQ
The simple interest on a sum of money is $\frac{8}{25}$ of the sum. If the number of years is numerically half the rate percent per annum,then the rate percent per annum is
A
$4$
B
$6.25$
C
$5$
D
$8$

Solution

(D) Let the principal sum be $P$ and the rate of interest be $R \%$ per annum.
According to the problem,the simple interest $(S.I.)$ is $\frac{8}{25} P$.
The time period $(T)$ in years is numerically half the rate percent per annum,so $T = \frac{R}{2}$.
The formula for simple interest is $S.I. = \frac{P \times R \times T}{100}$.
Substituting the given values: $\frac{8}{25} P = \frac{P \times R \times (R/2)}{100}$.
Canceling $P$ from both sides: $\frac{8}{25} = \frac{R^2}{200}$.
Solving for $R^2$: $R^2 = \frac{8 \times 200}{25} = 8 \times 8 = 64$.
Taking the square root: $R = \sqrt{64} = 8$.
Thus,the rate percent per annum is $8 \%$.
179
DifficultMCQ
$A$ sum of money lent out at simple interest amounts to $Rs. 720$ after $2$ years and $Rs. 1020$ after a further period of $5$ years. Find the principal (in $Rs.$).
A
$600$
B
$1740$
C
$120$
D
$6000$

Solution

(A) Let the principal be $P$ and the rate of interest be $R$ per annum.
Simple Interest $(SI)$ for $2$ years $= A_2 - P = 720 - P$.
Simple Interest $(SI)$ for $7$ years ($2 + 5$ years) $= A_7 - P = 1020 - P$.
Since simple interest is constant every year,the interest for $5$ years is $1020 - 720 = 300$.
Interest for $1$ year $= 300 / 5 = 60$.
Interest for $2$ years $= 60 \times 2 = 120$.
Principal $P = \text{Amount after } 2 \text{ years} - \text{Interest for } 2 \text{ years}$.
$P = 720 - 120 = 600$.
Therefore,the principal is $Rs. 600$.
180
DifficultMCQ
Ram deposited a certain sum of money in a company at $12 \%$ per annum simple interest for $4$ years and deposited an equal amount in a fixed deposit in a bank for $5$ years at $15 \%$ per annum simple interest. If the difference in the interest from the two sources is $Rs. 1350$,then the sum (in $Rs.$) deposited in each case is:
A
$5000$
B
$4000$
C
$6500$
D
$3000$

Solution

(A) Let the principal amount deposited in each case be $P$.
For the company:
Principal = $P$,Rate $(r_1)$ = $12 \%$,Time $(t_1)$ = $4$ years.
Simple Interest $(SI_1)$ = $\frac{P \times r_1 \times t_1}{100} = \frac{P \times 12 \times 4}{100} = \frac{48P}{100}$.
For the bank:
Principal = $P$,Rate $(r_2)$ = $15 \%$,Time $(t_2)$ = $5$ years.
Simple Interest $(SI_2)$ = $\frac{P \times r_2 \times t_2}{100} = \frac{P \times 15 \times 5}{100} = \frac{75P}{100}$.
Given that the difference in interest is $Rs. 1350$:
$SI_2 - SI_1 = 1350$
$\frac{75P}{100} - \frac{48P}{100} = 1350$
$\frac{27P}{100} = 1350$
$P = \frac{1350 \times 100}{27}$
$P = 50 \times 100 = 5000$.
Thus,the sum deposited in each case is $Rs. 5000$.
181
DifficultMCQ
Prakash lends a part of ₹ $20,000$ at $8 \%$ simple interest and the remaining at $\frac{4}{3} \%$ simple interest. His total income after a year was ₹ $800$. Find the sum (in ₹) lent at $8 \%$ interest.
A
$8000$
B
$12000$
C
$6000$
D
$10000$

Solution

(A) Let the amount lent at $8 \%$ rate of interest be $₹ x$.
Then,the amount lent at $\frac{4}{3} \%$ rate of interest is $₹(20,000 - x)$.
The formula for Simple Interest $(SI)$ is $SI = \frac{P \times R \times T}{100}$.
According to the problem,the total interest after $1$ year is $₹ 800$.
$\frac{x \times 8 \times 1}{100} + \frac{(20000 - x) \times (4/3) \times 1}{100} = 800$
$\frac{8x}{100} + \frac{4(20000 - x)}{300} = 800$
Multiply the entire equation by $300$ to clear the denominators:
$3(8x) + 4(20000 - x) = 800 \times 300$
$24x + 80000 - 4x = 240000$
$20x = 240000 - 80000$
$20x = 160000$
$x = \frac{160000}{20} = 8000$.
Thus,the sum lent at $8 \%$ interest is $₹ 8000$.
182
MediumMCQ
Nitin borrowed some money at the rate of $6 \% \text{ p.a.}$ for the first three years,$9 \% \text{ p.a.}$ for the next five years,and $13 \% \text{ p.a.}$ for the period beyond eight years. If the total interest paid by him at the end of eleven years is ₹ $8,160$,the money borrowed by him was:
A
$12000$
B
$6000$
C
$8000$
D
$10000$

Solution

(C) Let the principal amount borrowed be $₹ x$.
The total interest is calculated based on the simple interest formula: $SI = \frac{P \times R \times T}{100}$.
For the first $3$ years at $6 \% \text{ p.a.}$,interest $= \frac{x \times 6 \times 3}{100} = \frac{18x}{100}$.
For the next $5$ years at $9 \% \text{ p.a.}$,interest $= \frac{x \times 9 \times 5}{100} = \frac{45x}{100}$.
For the remaining period of $11 - (3 + 5) = 3$ years at $13 \% \text{ p.a.}$,interest $= \frac{x \times 13 \times 3}{100} = \frac{39x}{100}$.
The total interest is given as $₹ 8,160$.
Therefore,$\frac{18x + 45x + 39x}{100} = 8160$.
$\frac{102x}{100} = 8160$.
$102x = 816000$.
$x = \frac{816000}{102} = 8000$.
Thus,the money borrowed by Nitin was ₹ $8,000$.
183
DifficultMCQ
$A$ sum of ₹ $16800$ is divided into two parts. One part is lent at a simple interest rate of $6 \%$ per annum and the other at $8 \%$ per annum. After $2$ years,the total amount received is ₹ $19000$. The sum lent at the rate of $6 \%$ simple interest (in ₹) is:
A
$12200$
B
$12000$
C
$11000$
D
$10000$

Solution

(A) Let the sum lent at $6 \%$ rate of interest be $₹ x$.
Then,the sum lent at $8 \%$ rate of interest is $₹(16800 - x)$.
The total simple interest earned is $SI = 19000 - 16800 = ₹ 2200$.
Using the simple interest formula $SI = \frac{P \times R \times T}{100}$,we have:
$\frac{x \times 6 \times 2}{100} + \frac{(16800 - x) \times 8 \times 2}{100} = 2200$
$12x + 16(16800 - x) = 220000$
$12x + 268800 - 16x = 220000$
$-4x = 220000 - 268800$
$-4x = -48800$
$x = \frac{48800}{4} = 12200$.
Therefore,the sum lent at $6 \%$ interest is ₹ $12200$.
184
MediumMCQ
Arun invested a sum of money at a certain rate of simple interest for a period of $4$ years. Had he invested the same sum for a period of $6$ years,the total interest earned by him would have been $50\%$ more than the earlier interest amount. What was the rate of interest per cent per annum?
A
$4$
B
$8$
C
$5$
D
Cannot be determined

Solution

(D) Let the principal be $P$ and the rate of interest be $R\%$ per annum.
Simple interest for $4$ years,$SI_1 = \frac{P \times R \times 4}{100}$.
Simple interest for $6$ years,$SI_2 = \frac{P \times R \times 6}{100}$.
According to the problem,$SI_2$ is $50\%$ more than $SI_1$.
So,$SI_2 = SI_1 + 0.50 \times SI_1 = 1.5 \times SI_1$.
Substituting the values: $\frac{P \times R \times 6}{100} = 1.5 \times \frac{P \times R \times 4}{100}$.
Simplifying both sides: $\frac{6PR}{100} = 1.5 \times \frac{4PR}{100}$.
$\frac{6PR}{100} = \frac{6PR}{100}$.
Since the equation holds true for any value of $R$,the rate of interest cannot be determined from the given information.
185
MediumMCQ
The simple interest on a sum of money is $\frac{1}{9}$ of the principal and the number of years is equal to the rate per cent per annum. The rate per cent per annum is equal to
A
$3 \%$
B
$\frac{1}{3} \%$
C
$\frac{1}{10} \%$
D
$3 \frac{1}{3} \%$

Solution

(D) Let the principal be $P$ and the rate of interest be $r \%$ per annum.
According to the problem,the time $T$ in years is equal to the rate $r$,so $T = r$.
The simple interest $SI$ is given as $\frac{1}{9}$ of the principal,so $SI = \frac{P}{9}$.
The formula for simple interest is $SI = \frac{P \times r \times T}{100}$.
Substituting the values: $\frac{P}{9} = \frac{P \times r \times r}{100}$.
Dividing both sides by $P$: $\frac{1}{9} = \frac{r^2}{100}$.
$r^2 = \frac{100}{9}$.
Taking the square root: $r = \sqrt{\frac{100}{9}} = \frac{10}{3} = 3 \frac{1}{3} \%$.
186
DifficultMCQ
Arun lends ₹ $20,000$ to two of his friends. He gives ₹ $12,000$ to the first at $8 \%$ p.a. simple interest. Arun wants to make a profit of $10 \%$ on the whole. The simple interest rate $\%$ at which he should lend the remaining sum of money to the second friend is
A
$8$
B
$16$
C
$12$
D
$13$

Solution

(D) Total principal amount = ₹ $20,000$.
Interest earned from the first friend on ₹ $12,000$ at $8 \%$ p.a. for $1$ year = $\frac{12000 \times 8 \times 1}{100} = ₹ 960$.
Total desired gain on ₹ $20,000$ at $10 \%$ p.a. = $\frac{20000 \times 10}{100} = ₹ 2,000$.
Remaining principal to be lent to the second friend = $20000 - 12000 = ₹ 8,000$.
Required interest from the second friend = $2000 - 960 = ₹ 1,040$.
Let the rate of interest for the second friend be $R \%$.
Using the formula,$SI = \frac{P \times R \times T}{100}$,we get $1040 = \frac{8000 \times R \times 1}{100}$.
$R = \frac{1040}{80} = 13 \%$.
Therefore,the required rate is $13 \%$ per annum.
187
MediumMCQ
In what time (in $years$) will a sum of money double itself at the rate of $20 \%$ per annum simple interest?
A
$10$
B
$5$
C
$2$
D
$14$

Solution

(B) Let the principal amount be $P$.
Since the sum doubles itself,the final amount $A = 2P$.
The simple interest $SI$ is given by $SI = A - P = 2P - P = P$.
The formula for simple interest is $SI = \frac{P \times R \times T}{100}$,where $R = 20 \%$ and $T$ is the time in years.
Substituting the values: $P = \frac{P \times 20 \times T}{100}$.
Dividing both sides by $P$: $1 = \frac{20 \times T}{100}$.
$1 = \frac{T}{5}$.
Therefore,$T = 5$ years.
188
DifficultMCQ
$₹ 800$ becomes $₹ 956$ in $3$ years at a certain rate of simple interest. If the rate of interest is increased by $4 \%$,what amount (in $₹$) will $₹ 800$ become in $3$ years?
A
$1020.80$
B
$1025$
C
$1052$
D
$1050$

Solution

(C) Given: Principal $(P) = ₹ 800$,Amount $(A) = ₹ 956$,Time $(T) = 3$ years.
Simple Interest $(SI) = A - P = 956 - 800 = ₹ 156$.
Using the formula $SI = \frac{P \times R \times T}{100}$,we find the initial rate $(R)$:
$156 = \frac{800 \times R \times 3}{100} \implies 156 = 24R \implies R = \frac{156}{24} = 6.5 \%$.
New rate of interest $= 6.5 \% + 4 \% = 10.5 \%$.
New Simple Interest $(SI') = \frac{800 \times 10.5 \times 3}{100} = 8 \times 10.5 \times 3 = 24 \times 10.5 = ₹ 252$.
New Amount $= P + SI' = 800 + 252 = ₹ 1052$.
189
MediumMCQ
Simple interest on a certain sum is $\frac{16}{25}$ of the sum. If the rate per cent and time (in years) are equal,then the rate per cent is:
A
$6$
B
$8$
C
$10$
D
$12$

Solution

(B) Let the principal sum be $P$ and the rate of interest be $R = x \%$. Given that the time $T$ (in years) is equal to the rate $R$,so $T = x$.
Simple Interest $(SI)$ is given as $\frac{16}{25} P$.
The formula for Simple Interest is $SI = \frac{P \times R \times T}{100}$.
Substituting the values: $\frac{16}{25} P = \frac{P \times x \times x}{100}$.
Dividing both sides by $P$: $\frac{16}{25} = \frac{x^2}{100}$.
$x^2 = \frac{16}{25} \times 100$.
$x^2 = 16 \times 4 = 64$.
$x = \sqrt{64} = 8$.
Thus,the rate per cent is $8 \%$.
190
DifficultMCQ
If the simple interest on ₹ $x$ at a rate of $a \%$ for $m$ years is same as that on ₹ $y$ at a rate of $a^2 \%$ for $m^2$ years,then $x: y$ is equal to
A
$m: a$
B
$am: 1$
C
$\frac{1}{m}: \frac{1}{a}$
D
$\frac{1}{am}: 1$

Solution

(B) The formula for simple interest $(SI)$ is given by $SI = \frac{P \times R \times T}{100}$,where $P$ is the principal,$R$ is the rate of interest,and $T$ is the time in years.
According to the problem,the simple interest on ₹ $x$ at $a \%$ for $m$ years is equal to the simple interest on ₹ $y$ at $a^2 \%$ for $m^2$ years.
Therefore,we can write:
$\frac{x \times a \times m}{100} = \frac{y \times a^2 \times m^2}{100}$
By canceling $100$ from both sides,we get:
$x \times a \times m = y \times a^2 \times m^2$
To find the ratio $x: y$,we divide both sides by $y$ and then by $(a \times m)$:
$\frac{x}{y} = \frac{a^2 \times m^2}{a \times m}$
$\frac{x}{y} = am$
Thus,$x: y = am: 1$.
191
MediumMCQ
$A$ took two loans altogether of ₹ $1200$ from $B$ and $C$. $B$ claimed $14 \%$ simple interest per annum,while $C$ claimed $15 \%$ per annum. The total interest paid by $A$ in one year was ₹ $172$. How much did $A$ borrow from $B$?
A
₹ $800$ from $C$
B
₹ $625$ from $C$
C
₹ $400$ from $B$
D
₹ $800$ from $B$

Solution

(D) Let the amount borrowed by $A$ from $B$ be ₹ $x$.
Then,the amount borrowed from $C$ is ₹ $(1200 - x)$.
The simple interest formula is $SI = \frac{P \times R \times T}{100}$.
According to the question,the total interest paid in one year is ₹ $172$:
$\frac{x \times 14 \times 1}{100} + \frac{(1200 - x) \times 15 \times 1}{100} = 172$
Multiply the entire equation by $100$:
$14x + 15(1200 - x) = 17200$
$14x + 18000 - 15x = 17200$
$-x + 18000 = 17200$
$x = 18000 - 17200$
$x = 800$
Therefore,$A$ borrowed ₹ $800$ from $B$.
192
DifficultMCQ
$A$ person has left an amount of ₹ $1,20,000$ to be divided between his two sons aged $14$ years and $12$ years such that they get equal amounts when each attains $18$ years of age. If the amount gets a simple interest of $5 \%$ per annum,the younger son's share at present (in ₹) is
A
$48800$
B
$57600$
C
$62400$
D
$84400$

Solution

(B) Let the younger son's share be $₹ x$. Then the elder son's share is $₹ (120000 - x)$.
The younger son is $12$ years old,so he will receive the amount after $18 - 12 = 6$ years.
The elder son is $14$ years old,so he will receive the amount after $18 - 14 = 4$ years.
Since the amounts become equal at the age of $18$ with $5 \%$ simple interest per annum:
Amount for younger son $= x + \frac{x \times 5 \times 6}{100} = x(1 + 0.3) = 1.3x$
Amount for elder son $= (120000 - x) + \frac{(120000 - x) \times 5 \times 4}{100} = (120000 - x)(1 + 0.2) = 1.2(120000 - x)$
Equating both amounts:
$1.3x = 1.2(120000 - x)$
$1.3x = 144000 - 1.2x$
$2.5x = 144000$
$x = \frac{144000}{2.5} = 57600$
Therefore,the younger son's share is $₹ 57600$.
193
MediumMCQ
The simple interest accrued on an amount of ₹ $22,500$ at the end of four years is ₹ $10,800$. What would be the compound interest accrued on the same amount (in ₹) at the same rate of interest at the end of two years?
A
$16908$
B
$5724$
C
$28224$
D
$8586$

Solution

(B) Step $1$: Calculate the rate of interest $(r)$ using the simple interest formula: $SI = \frac{P \times r \times t}{100}$.
Given $SI = 10800$,$P = 22500$,and $t = 4$ years.
$10800 = \frac{22500 \times r \times 4}{100} \implies 10800 = 900 \times r \implies r = \frac{10800}{900} = 12 \%$.
Step $2$: Calculate the compound interest $(CI)$ for $t = 2$ years using the formula: $CI = P \left(1 + \frac{r}{100}\right)^t - P$.
$CI = 22500 \left(1 + \frac{12}{100}\right)^2 - 22500$.
$CI = 22500 \left(1.12\right)^2 - 22500$.
$CI = 22500 \times 1.2544 - 22500$.
$CI = 28224 - 22500 = 5724$.
Thus,the compound interest is ₹ $5724$.
194
MediumMCQ
The simple interest accrued on a certain principal is ₹ $1200$ in $4$ years at the rate of $8 \%$ per annum. What would be the simple interest (in ₹) accrued on thrice of that principal at the rate of $6 \%$ per annum in $3$ years?
A
$2025$
B
$3025$
C
$2250$
D
$2150$

Solution

(A) The formula for simple interest is $S.I. = \frac{P \times R \times T}{100}$.
Given,$S.I. = 1200$,$T = 4$ years,and $R = 8 \%$.
Substituting these values: $1200 = \frac{P \times 8 \times 4}{100}$.
$P = \frac{1200 \times 100}{32} = 3750$.
Now,we need to find the simple interest on thrice the principal $(3P)$ at $6 \%$ per annum for $3$ years.
New Principal $P' = 3 \times 3750 = 11250$.
New $S.I. = \frac{11250 \times 6 \times 3}{100} = 112.5 \times 18 = 2025$.
Thus,the simple interest is ₹ $2025$.
195
DifficultMCQ
$A$ man invested $\frac{1}{3}$ of his capital at $7 \%$,$\frac{1}{4}$ at $8 \%$,and the remaining at $10 \%$ rate of simple interest. If his annual income from interests is ₹ $561$,then the total capital invested (in ₹) was:
A
$6000$
B
$5600$
C
$6600$
D
$7200$

Solution

(C) Let the total capital invested be $₹ x$.
The capital is divided into three parts:
Part $1 = \frac{1}{3}x$ at $7 \%$ interest.
Part $2 = \frac{1}{4}x$ at $8 \%$ interest.
Part $3 = \left(1 - \frac{1}{3} - \frac{1}{4}\right)x = \left(\frac{12-4-3}{12}\right)x = \frac{5}{12}x$ at $10 \%$ interest.
The total annual interest is given by:
$\text{Interest} = \left(\frac{\frac{1}{3}x \times 7}{100}\right) + \left(\frac{\frac{1}{4}x \times 8}{100}\right) + \left(\frac{\frac{5}{12}x \times 10}{100}\right) = 561$
$\frac{7x}{300} + \frac{8x}{400} + \frac{50x}{1200} = 561$
Finding a common denominator $(1200)$:
$\frac{28x + 24x + 50x}{1200} = 561$
$\frac{102x}{1200} = 561$
$x = \frac{561 \times 1200}{102} = 5.5 \times 1200 = 6600$
Thus,the total capital invested is ₹ $6600$.
196
MediumMCQ
$A$ person receives a simple interest of ₹ $1,000$ on a certain principal at the rate of $5 \%$ $p.a.$ in $4$ years. What compound interest (in ₹) will that person receive on twice the principal in $2$ years at the same rate?
A
$1000$
B
$1005$
C
$11205$
D
$1025$

Solution

(D) Step $1$: Calculate the original principal $(P)$.
Simple Interest $(SI)$ = $\frac{P \times R \times T}{100}$
$1000 = \frac{P \times 5 \times 4}{100}$
$1000 = \frac{20P}{100} \implies 1000 = \frac{P}{5}$
$P = ₹ 5000$.
Step $2$: Calculate the new principal and compound interest.
New Principal $(P')$ = $2 \times P = 2 \times 5000 = ₹ 10000$.
Rate $(R)$ = $5 \%$,Time $(T)$ = $2$ years.
Compound Interest $(CI)$ = $P' \times [(1 + \frac{R}{100})^T - 1]$
$CI = 10000 \times [(1 + \frac{5}{100})^2 - 1]$
$CI = 10000 \times [(1.05)^2 - 1]$
$CI = 10000 \times [1.1025 - 1]$
$CI = 10000 \times 0.1025 = ₹ 1025$.

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