Simple Interest

1. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum?

(a) Rs. 112

(b)  Rs. 118. 80

(c) Rs. 120

(d) Rs. 122

Answer: (c)

Explanation:

Let the present worth be Rs. x.

Then, S. I. = Rs. (132-x).

110x = 13200

x = 120


2. Sanjay deposited Rs. 5000 in the bank. The bank offered simple interest at the rate of 12 per cent per year. After 5 years the total amount received by him will be:

(a) Rs. 7,000

(b) Rs. 7,500

(c) Rs. 8,000

(d) Rs. 8,500

Answer: (c)

Explanation:

P = Rs. 5000, R = 12% p. a and T = 5 years

Amount = P+S. I = Rs. 5000+Rs. 3000 = Rs. 8000


3. A moneylender charged Rs. 120 as simple interest on a sum of Rs. 400 for four months. The rate of interest per annum will be: [CDS 2000]

(a) 65%

(b) 83.6%

(c) 97%

(d) 90%

Answer: (d)

Explanation:


4. What sum of money will amount to Rs. 520 in 5 years and to Rs. 568 in 7 years at simple interest?

(a) Rs. 400. 00

(b) Rs. 120. 00

(c) Rs. 510. 00

(d) Rs. 220. 00

Answer: (a)

Explanation:

SI for 2 years = 568 – 520 = Rs. 48

SI for 5 years = Rs. 120

Principal = 520-120 = Rs. 400


5. In what time will the simple interest be 2/5 of the principal at 8 per cent per annum? [SSC Grad. 2002]

(a) 8 years

(b) 7 years

(c) 5 years

(d) 6 years

Answer: (c)

Explanation:

Let sum = x.

Then, Amount =


6. What is the rate of annual simple interest at which a sum of money would double itself in 25 years? [CDS 1999]

(a) 4%

(b) 100%

(c) 89%

(d) 25%

Answer: (a)

Explanation:

Let sum = x. Then, Amount=2x

S.I = (2x-x)=x; Time = 25years;


7. A sum of Rs. 1550 was lent partly at 5% and partly at 8% simple interest. The total interest received after 3 years is Rs. 300. The ratio of money lent at 5% to that at 8% is: [SSC Grad. 2002]

(a) 05:08

(b) 08:05

(c) 31:06:00

(d) 16:15

Answer: (d)

Explanation:

9x=6750

x=750

Money lent at 5%=Rs. (1550-750) =Rs. 800

Money lent at 8%=Rs. 750

The ratio of money lent at 5% to that at 8% is 16:15


8. Two equal sums of money were invested, one at 4 and the other at 4 1/2 %. At the end of 7 years, the simple interest received from the latter exceeded to that received from the former by Rs. 31. 50. each sum was: [SSC Grad. 1999]

(a) Rs. 1,000

(b) Rs. 500

(c) Rs. 750

(d) Rs. 900

Answer: (d)

Explanation:

7P=6300, P=Rs. 900

(OR)

P = Rs. 900


9. I had Rs. 10,000 with me. Out of this, money I lent some money to A for 2 years at 15% simple interest. I lent the remaining money to B for an equal number of years at 18% simple interest. After 2 years, I found that A had given me Rs. 360 more as interest as compared to(b) the amount of money which I had lent to B must have been: [CDS 1999]

(a) Rs. 2,000

(b) Rs. 3,000

(c) Rs. 4,000

(d) Rs. 5,000

Answer: (c)

Explanation:

Total amount = Rs. 10,000

Let money lent A =Rs. x and money lent to B = Rs. (10,000x)

x = Rs. 6,000. So the amount of money lent to B = Rs. 4,000


10. Two equal sums were lent out 9% and 7% simple interest, respectively. The sum of simple interest earned for the two loans at the end 3 years is Rs. 480. What is each sum equal to? [CDS 2006]

(a) Rs. 1,000

(b)  Rs. 2,000

(c) Rs. 3,000

(d) Rs. 4,000

Answer: (a)

Explanation:

P=100.

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