# Simple Interest Practice Questions Set - 1

Simple Interest Practice Questions Set - 1
1. Ronika deposited Rs.7000 which amounted to Rs.7420 after 3 years at simple interest. Had the interest been 2% more. She would get how much ?
A) 9850
B) 9500
C) 8400
D) 9760
E) 9930
2. At what rate percent on simple interest will Rs.415 amount to Rs.514 in 4 years  ?
A) 4.58%
B) 5.96%
C) 6.52%
D) 4.98%
E) 7.32%
3. A sum of money at simple interest amounts to Rs. 415 in 2 years and to Rs. 514 in 4 years. The sum is ?
A) Rs.316
B) Rs.251
C) Rs.154
D) Rs.294
E) Rs.364
4. A lady took loan from a bank at the rate of 12% p.a. simple interest. After 3 years she had to pay Rs. 5400 interest only for the period. The principal amount borrowed by her was :
A) Rs.15000
B) Rs.150000
C) Rs.1500
D) Rs.162000
E) Rs.16200
5. In how many years, Rs. 200 will produce the same interest @ 5 % as Rs. 900 produce in 2 years @ 3 ½ %  ?
A) 5.2 years
B) 7 years
C) 7.9 years
D) 6.3 years
E) 7.2 years
6. An automobile financier claims to be lending money at S.I., but he includes the interest every six months for calculating the principal. If he is charging an interest of 8%, the effective rate of interest becomes ?
A) 10.5%
B) 10.25%
C) 8.16%
D) 9.63%
E) 0.16%
7. The interest on a certain deposit at 4.5% p.a. is Rs. 202.50 in one year. How much will the additional interest in one year be on the same deposit at 5% p.a.  ?
A) Rs.22.5
B) Rs.2.5
C) Rs.202
D) Rs.25
E) Rs.225
8. The simple interest on Rs. 25 for 4 months at the rate of 3 paise per rupee per month is :
A) 240 paise
B) Rs.1.40
C) Rs.2.20
D) Rs.3
E) 320 paise
9. A sum of money becomes 7/6 of itself in 3 years at a certain rate of simple interest. The rate per annum is ?
A) 45/7%
B) 50/9%
C) 51/7%
D) 47/9%
E) 53/7%
10. If the C.I. on a sum for 2 years at 12 1/2 % per annum is Rs. 510, the S.I. on the same sum at the same rate for the same period of time is   ?
A) Rs.580
B) Rs.480
C) Rs.550
D) Rs.470
E) Rs.450
Solutions:
1. C) SI = (7420 – 7000) = Rs.420; P = 7000; T = 3 years
Therefore, R = (100 × 420)/(7000 × 3) = 42/21 = 2
New Rate = 2 + 2 = 4%
New SI = (7000 × 3 × 4)/100 = 8400
2. B) Difference in amount = 514 - 415 = 99
99 = (415 x 4 x R)/100
R = 5.96%
3. A) S.I. for 2 years = (514 - 415) = Rs. 99
S.I. for 1 year = 99/2
Principal = (415 - 99) = Rs. 316.
4. A) Principal = Rs.(100 x 5400)/(12 x 3)= Rs. 15000.
5. D) P = Rs. 900, R = 3 ½ % = 7/2 %, T = 2 years.
Therefore,
S.I. = PTR/100
S.I. = Rs. (900 x 7/2 x 2/100) = Rs. 63
Now, P = Rs. 200, S.I. = Rs. 63, R = 5 %
Time = ((100 x 63) / (200 x 5) ) years = 6.3 years.
6. C) Let the sum be Rs. 100. Then,
S.I. for first 6 months = (100 x 8 x 1) / (100 x 2) = Rs. 4
S.I. for last 6 months = (104 x 8 x 1) / (100 x 2) = Rs. 4.16
So, amount at the end of 1 year = (100 + 4 + 4.16) = Rs. 108.16
Effective rate = (108.16 - 100) = 8.16%.
7. A) We know that I = PTR/100
=> P = 20250/4.5 = 4500
Now, new Interest at 5% = 4500x1x5/100 = 225
Now the additional amount = 225 - 202.5 = Rs. 22.5
8. D) I = PTR/100
I = 25 x 4 x 0.03/100
I = 0.03 x 100 = 300 Ps = Rs. 3
9. B) Let sum = S. Then, amount = 7S/6
S.I. = 7S/6 - S = S/6; Time = 3 years.
Rate = (100 x S) / (S x 6 x 3) = 5 5/9 = 50/9 %.
10. B) Let the sum be Rs. P. Then, [P(1 + {25/2}/100)2 – P] = 510
=> P[(9/8)2  - 1] = 510 => P = (510 × 64)/17 = 30 × 64 = 1920
Sum = Rs.1920
So, SI = (1920 × 25 × 2)/(2 × 100) = Rs.480