__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

**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