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Q:

What is the rate of simple interest?
I. The total interest earned was Rs. 4000.
II. The sum was invested for 4 years.

A) I alone sufficient while II alone not sufficient to answer B) II alone sufficient while I alone not sufficient to answer
C) Either I or II alone sufficient to answer D) Both I and II are not sufficient to answer
 
Answer & Explanation Answer: D) Both I and II are not sufficient to answer

Explanation:

We know that, R = (100 x S.I) / (P x T)

Now I gives, S.I = Rs. 4000.

        II gives,  T = 4 years.

But, P is unknown. So, we cannot find R.

So, given data is insufficient to get R.

 

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Q:

What percentage of simple interest per annum did Anand pay to Deepak?
I. Anand borrowed Rs. 8000 from Deepak for four years.
II. Anand returned Rs. 8800 to Deepak at the end of two years and settled the loan

A) I alone sufficient while II alone not sufficient to answer B) II alone sufficient while I alone not sufficient to answer
C) Either I or II alone sufficient to answer D) Both I and II are necessary to answer
 
Answer & Explanation Answer: D) Both I and II are necessary to answer

Explanation:

Let the rate be R% p.a.

I  gives, P = Rs. 8000 and T = 4 years.

II gives, S.I = Rs. (8800 - 8000) = Rs. 800.

R = [100 x S.I] / [p x t ]= (100 x 800)/(8000 x 4) = 2 ½ % p.a

Thus, I and II both are needed to get the answer.

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Q:

How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?

A) 65years B) 56years
C) 45years D) 57years
 
Answer & Explanation Answer: B) 56years

Explanation:

Simple interest is given by the formula SI = (pnr/100), where p is the principal, n is the numberof years for which it is invested, r is the rate of interest per annum

 

In this case, Rs. 1250 has become Rs.10,000.

 

Therefore, the interest earned = 10,000 – 1250 = 8750.

 

8750 = [(1250 x n x 12.5)/100]

 

=> n = 700 / 12.5 = 56 years.

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Q:

A sum of money invested for a certain number of years at 8% p.a. simple interest grows to Rs.180. The same sum of money invested for the same number of years at 4% p.a. simple interest grows to Rs.120 only. For how many years was the sum invested?

A) 25years B) 15years
C) 20years D) 22years
 
Answer & Explanation Answer: A) 25years

Explanation:

From the information provided we know that,

Principal + 8% p.a. interest on principal for n years = 180 …….. (1)

Principal + 4% p.a. interest on principal for n years = 120 ……… (2)

Subtracting equation (2) from equation (1), we get

4% p.a. interest on principal for n years = Rs.60.

Now, we can substitute this value in equation (2),

i.e Principal + 60 = 120

= Principal = Rs.60.

We know that SI = , where p is the principal, n the number of years and r the rate percent of  interest.

In equation (2), p = Rs.60, r = 4% p.a. and the simple interest = Rs.60.

Therefore, 60 =(60*n*4)/100

=> n = 100/4 = 25 years.

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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

Therefore, x = 325 

Each instalment = Rs. 325

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Q:

A man borrowed Rs 24000 from two money lenders. For one loan, he paid 15% per annum and for the other 18% per annum. At the end of one year, he paid Rs 4050. How much did he borrow at each rate ?

A) Rs.16000 B) Rs.12000
C) Rs.15000 D) Rs.13000
 
Answer & Explanation Answer: C) Rs.15000

Explanation:

Let the sum at 15% be Rs x and that at 18% be Rs (24000 - x).

{(x * 15 * 1)/100 } + { [(24000 – x) * 18 * 1]/100 } = 4050

or 15 x + 432000 - 18x = 405000 or x = 9000.

Money borrowed at 15% = Rs 9000 .

Money borrowed at 18% = Rs 15000.

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Q:

Simple interest on a certain sum is 16/25 of the sum. Find the rate percent and time, If both are numerically equal.

A) Rate = 7% and Time = 7 years. B) Rate = 8% and Time = 8 years.
C) Rate = 6% and Time = 6 years. D) Rate = 5% and Time = 5 years.
 
Answer & Explanation Answer: B) Rate = 8% and Time = 8 years.

Explanation:

Let sum = X. Then S.I = 16x/25

 

Let rate = R% and Time = R years.

 

Therefore,  (x * R * R)/100 = 16x/25   =>  R = 40/5 = 8

 

Therefore, Rate = 8% and Time = 8 years.

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Q:

A sum was put at simple interest at a certain rate for 3 years. Had it been put at 2% higher rate, it would have fetched Rs 360 more. Find the sum.

A) Rs.4000 B) Rs.9000
C) Rs.5000 D) Rs.6000
 
Answer & Explanation Answer: D) Rs.6000

Explanation:

Let sum = P and original rate = R. Then

[(P * (R+2) * 3)/100] - [ (P * R * 3)/100] = 360

3P*(R+2) - 3PR = 36000

3PR + 6P - 3PR = 36000

6P = 36000

P = 6000

 

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