Simple Interest – Aptitude Questions and Answers

Simple Interest Aptitude Questions and Answers

Simple Interest aptitude questions and answers section with explanation. Practice online test for various interview, competitive and entrance exams.

1. A certain sum is invested at simple interest at 18% p.a. for two years instead of investing at 12% p.a. for the same time period. Therefore the interest received is more by Rs. 840. Find the sum?

A.Rs. 7000           B.Rs. 8500           C.Rs. 8000           D.Rs. 7500           E.None of these

Answer: A

Explanation:

Let the sum be Rs. x.
(x * 18 * 2)/100 – (x * 12 * 2)/100 = 840 => 36x/100 – 24x/100 =840
=> 12x/100 = 840 => x = 7000.

2. An amount of Rs. 3000 becomes Rs. 3600 in four years at simple interest. If the rate of interest was 1% more, then what was be the total amount?

A.Rs. 3800               B.Rs. 3780           C.Rs. 3720 D.Cannot be determined
E.None of these

Answer: C

Explanation:

A = P(1 + TR/100)
=> 3600 = 3000[1 + (4 * R)/100] => R = 5%
Now R = 6%
=> A = 3000[1 + (4 * 6)/100] = Rs. 3720.

3. A certain sum becomes four times itself at simple interest in eight years. In how many years does it become ten times itself?

A.21                       B.25                      C.23       D.27     E.None of these

Answer: E

Explanation:

Let the sum be Rs. x, then it becomes Rs. 4x in eight years Rs. 3x is the interest on x for eight years.
R = (100 * 3x)/(x * 8) = 300/8 %
If the sum becomes ten times itself, then interest is 9x.
The required time period = (100 * 9x)/(x * 300/8) = (100 * 9x * 8)/(x * 300) = 24 years.

4. Vijay lent out an amount Rs. 10000 into two parts, one at 8% p.a. and the remaining at 10% p.a. both on simple interest. At the end of the year he received Rs. 890 as total interest. What was the amount he lent out at 8% pa.a?

A.Rs. 6000                 B.Rs. 5500               C.Rs. 4500           D.Rs. 5000 E.None of these

Answer: B

Explanation:

Let the amount lent out at 8% p.a. be Rs. A
=> (A * 8)/100 + [(10000 – A) * 10]/100 = 890
=> A = Rs. 5500.

5. Anil invested a sum of money at a certain rate of simple interest for a period of five years. Had he invested the sum for a period of eight years for the same rate, the total intrest earned by him would have been sixty percent more than the earlier interest amount. Find the rate of interest p.a.

A.6%                           B.9%          C.12.5%     D.Cannot be determined E.None of these

Answer: D

Explanation:

Let the sum be Rs.P. Let the rate of interest be R% p.a.
(P)(8)(R)/100 = [1 + 6/100][ (P)(5)(R) /100] = 1.6{5PR/100]
8PR/100 = 8PR/100 which is anyway true.
R cannot be found.

6. Manoj borrowed Rs.3450 from Anwar at 6% p.a. simple interest for three years. He then added some more money to the borrowed sum and lent it to Ramu for the same time at 9% p.a. simple interest. If Manoj gains Rs.824.85 by way of interest on the borrowed sum as well as his own amount from the whole transaction, then what is the sum lent by him to Ramu?

A.Rs.3,870               B.Rs.5,355             C.Rs.3,855     D.Rs.3600   E.None of these

Answer: B

Explanation:

Let the sum lent by Manoj to Ramu be Rs.P.
Amount gained by Manoj = P. 3.9 /100 = 3450.3.6/100 = Rs.824.85
27P = 62100 = 82485
P = (82485 + 62100)/27 = 3055 + 2300 = Rs.5355

7. A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the invest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest?

A.4% p.a.                B.6% p.a.              C.8% p.a.         D.12% p.a. E.None of these

Answer: D

Explanation:

If the interest earned is 25% more than the earlier interest then the rate of interest also should be 25% higher than the earlier rate. 
Let the earlier rate of interest be x%. 
Now it will be (x + 3)% 
% increase = (x + 3) – x/x * 100 = 25
=> x = 12

8. Rs.4500 amounts to Rs.5544 in two years at compound interest, compounded annually. If the rate of the interest for the first year is 12%, find the rate of interest for the second year?

A.10%                  B.12%              C.15%                   D.20%   E.None of these

Answer: A

Explanation:

Let the rate of interest during the second year be R%. Given, 
4500 * {(100 + 12)/100} * {(100 + R)/100} = 5544 
R = 10%

9. What amount does Kiran get if he invests Rs. 18000 at 15% p.a. simple interest for four years?

A.Rs. 24800         B.Rs. 28400        C.Rs. 24400 D.Rs. 28800 E.None of these

Answer: D

Explanation:

Simple interest = (18000 * 4 * 15)/100 = Rs. 10800
Amount = P + I = 18000 + 10800 = Rs. 28800

10. How much interest can a person get on Rs. 8200 at 17.5% p.a. simple interest for a period of two years and six months?

A.Rs. 3770                 B.Rs. 2850.50         C.Rs. 3587.50 D.Rs. 3750     E.None of these

Answer: C

Explanation:

I = (8200 * 2.5 * 17.5)/100 = (8200 * 5 * 35)/(100 * 2 * 2) = Rs. 3587.50


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