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.