Simple Interest Questions

Q:

What annual instalment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?

A) Rs.325 B) Rs.545
C) Rs.560 D) Rs.550
 
Answer & Explanation Answer: A) Rs.325

Explanation:

Let each instalment be Rs.x .

1st year =  [x + (x * 12 * 2)/100]

2nd year = [ x + (x *12 * 1)/100]

3rd year = x

Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092

3x + ( 24x/100 ) + ( 12x/100 )  = 1092

 336x =109200

 x = 325

Each instalment = Rs. 325

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17 6287
Q:

In how many years will a sum of Rs.800 at 10% per annum compounded semi annually become Rs.926.10

A) 1.5 B) 2.5
C) 3.5 D) 4.5
 
Answer & Explanation Answer: A) 1.5

Explanation:

Let the time be 'n' years, Then

 Years 

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23 5013
Q:

A certain sum of money amounts to Rs 1008 in 2 years and to Rs 1164 in 3 ½  years. Find the sum and the rate of interest.

A) 800, 14% B) 800, 13%
C) 800, 12% D) 800, 19%
 
Answer & Explanation Answer: B) 800, 13%

Explanation:

S.I. for 1 ½ years = Rs (1164 - 1008) = Rs 156 .

S.I. for 2 years = Rs (156 x  x 2)= Rs 208.

Principal = Rs (1008 - 208) = Rs 800.

Now, P = 800, T= 2 and S.I. = 208.

Rate = (100 x S.I.) / (P x T) = [ (100 x 208)/(800 x 2)]% = 13%

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17 3937
Q:

A sum was put at simple interest at a certain rate for 10 years . Had it been put at 5% higher rate , it would have fetched Rs.600 more. What was the Sum?

A) Rs.1200 B) Rs.1300
C) Rs.1400 D) Rs.1500
 
Answer & Explanation Answer: A) Rs.1200

Explanation:

At 5% more rate, the increase in S.I for 10 years = Rs.600  (given)

So, at 5% more rate, the increase in SI for 1 year = 600/10 = Rs.60/-

i.e. Rs.60 is 5% of the invested sum

So, 1% of the invested sum = 60/5

Therefore, the invested sum = 60 × 100/5 = Rs.1200

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9 3615
Q:

At what rate percent per annum will a sum of money double in 8 years.

A) 12.5% B) 13.5%
C) 11.5% D) 14.5%
 
Answer & Explanation Answer: A) 12.5%

Explanation:

Let principal = P, Then, S.I.=P and Time=8 years

Rate = [(100 x P)/ (P x 8)]% = 12.5% per annum.

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6 3545