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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 43 of 118 pages
Question 421.

A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?


  1.    3.6%
  2.    4.5%
  3.    5%
  4.    6%
  5.    None of these
 Discuss Question
Answer: Option E. -> None of these

Let the original rate be R%. Then, new rate = (2R)%.

Note:
Here, original rate is for 1 year(s); the new rate is for only 4 months i.e. A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... year(s).

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... 725 x R x 1 A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... + A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... 362.50 x 2R x 1 A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... = 33.50 100 100 x 3

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... (2175 + 725) R = 33.50 x 100 x 3

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... (2175 + 725) R = 10050

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... (2900)R = 10050

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... R = 10050 = 3.46 2900

A Sum Of Rs. 725 Is Lent In The Beginning Of A Year At A Cer... Original rate = 3.46%


Question 422.
At what rate percent per annum will a sum of money double in 16 years.



  1.    5 ¼%
  2.    6 ¼%
  3.    7 ¼%
  4.    8¼%
 Discuss Question
Answer: Option B. -> 6 ¼%

Let principal = P. Then, S.l. = P and T = 16 yrs.
Rate = (100 x P)/(P*16)% = 6 1/4% p.a.



Question 423.

Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?


  1.    Rs. 6400
  2.    Rs. 6500
  3.    Rs. 7200
  4.    Rs. 7500
  5.    None of these
 Discuss Question
Answer: Option A. -> Rs. 6400

Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 - x).

Then, Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... x x 14 x 2 Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... + Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... (13900 - x) x 11 x 2 Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... = 3508 100 100

Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... 28x - 22x = 350800 - (13900 x 22)

Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... 6x = 45000

Mr. Thomas Invested An Amount Of Rs. 13,900 Divided In Two D... x = 7500.

So, sum invested in Scheme B = Rs. (13900 - 7500) = Rs. 6400.


Question 424.

A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:


  1.    Rs. 2000
  2.    Rs. 10,000
  3.    Rs. 15,000
  4.    Rs. 20,000
 Discuss Question
Answer: Option C. -> Rs. 15,000

Principal = Rs. A Man Took Loan From A Bank At The Rate Of 12% P.a. Simple I... 100 x 5400 A Man Took Loan From A Bank At The Rate Of 12% P.a. Simple I... = Rs. 15000. 12 x 3


Question 425.
At what rate percent of simple interest will a sum of money double itself in 20 years?
  1.    4%
  2.    5%
  3.    6%
  4.    8%
 Discuss Question
Answer: Option B. -> 5%

Answer : Option B

Explanation :

Let sum = x
Time = 20 years
Simple Interest = x
$MF#%\text{R = }\dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times x}{x \times 20} = \dfrac{100}{20} = 5\%$MF#%


Question 426.
A sum of Rs. 10 is given as a loan to be returned in 6 monthly installments at Rs.3. What is the rate of interest?
  1.    820%
  2.    620%
  3.    780%
  4.    640%
 Discuss Question
Answer: Option D. -> 640%

Answer : Option D

Explanation :

Amount borrowed = Rs.10
Let rate of interest = R%
$MF#% \text{Simple Interest for Rs.10 for 6 months at R% = }\dfrac{10 \times \text{R} \times \dfrac{1}{2}}{100} = \dfrac{\text{R}}{20}\\
\text{i.e, 10 + }\dfrac{\text{R}}{20}\text{ is due in 6 months}$MF#%
Payment after 1st month = Rs.3
$MF#%\text{Interest for this Rs.3 for the remaining 5 months = }\dfrac{3 \times R \times \dfrac{5}{12}}{100}$MF#%
Payment after 2nd month = Rs.3
$MF#%\text{Interest for this Rs.3 for the remaining 4 months = }\dfrac{3 \times R \times \dfrac{4}{12}}{100}$MF#%
...
Payment after 5th month = Rs.3
$MF#%\text{Interest for this Rs.3 for the remaining 1 month = }\dfrac{3 \times R \times \dfrac{1}{12}}{100}$MF#%
Payment after 6th month = Rs.3 and this closes the loan
$MF#%=> (3 + 3 + 3 + 3 + 3 + 3) + \left(\dfrac{3 \times R \times \dfrac{5}{12}}{100} + \dfrac{3 \times R \times \dfrac{4}{12}}{100} + ... + \dfrac{3 \times R \times \dfrac{1}{12}}{100} \right) = \text{ 10 + }\dfrac{\text{R}}{20} \\\\ 18 + \dfrac{\dfrac{3\text{R}}{12}\left(5+4+...+1\right)}{100}=\text{ 10 + }\dfrac{\text{R}}{20}\\\\ 18 + \dfrac{15\text{R}}{400} = \text{ 10 + }\dfrac{\text{R}}{20} \\\\ 8 = \dfrac{\text{R}}{20} - \dfrac{15\text{R}}{400} = \dfrac{5\text{R}}{400}=\dfrac{\text{R}}{80}\\\\ \text{R} = 640\%$MF#%


Question 427.
If the simple interest on a certain sum of money for 4 years is one–fifth of the sum, then the rate of interest per annum is
  1.    4%
  2.    7%
  3.    6%
  4.    5%
 Discuss Question
Answer: Option D. -> 5%

Answer : Option D

Explanation :

Let the Principal(P) be x
Then, Simple Interest(SI) = x/5
Time(T) = 4 years
$MF#%\text{Rate of interest per annum(R) = }\dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times \dfrac{x}{5}}{x \times 4} = \dfrac{20}{4}= 5\%$MF#%


Question 428.
David invested certain amount in three different schemes A, B and C with the rate of interest 10% p.a., 12% p.a. and 15% p.a. respectively. If the total interest accrued in one year was Rs. 3200 and the amount invested in Scheme C was 150% of the amount invested in Scheme A and 240% of the amount invested in Scheme B, what was the amount invested in Scheme B?
  1.    Rs.5000
  2.    Rs.2000
  3.    Rs.6000
  4.    Rs.3000
 Discuss Question
Answer: Option A. -> Rs.5000

Answer : Option A

Explanation :

Let x , y and x be his investments in A, B and C respectively. Then
Then, Interest on x at 10% for 1 year
+ Interest on y at 12% for 1 year
+ Interest on z at 15% for 1 year
= 3200
$MF#%\dfrac{x \times 10 \times 1}{100} + \dfrac{y \times 12 \times 1}{100} + \dfrac{z \times 15 \times 1}{100} = 3200\\\\ \Rightarrow 10x + 12y + 15z = 320000 \quad \color{RED}{---(1)}$MF#%
Amount invested in Scheme C was 240% of the amount invested in Scheme B
$MF#%=> z = \dfrac{240y}{100} = \dfrac{60y}{25} = \dfrac{12y}{5} \color{RED}{---(2)}$MF#%
Amount invested in Scheme C was 150% of the amount invested in Scheme A
$MF#%=> z = \dfrac{150x}{100} = \dfrac{3x}{2}\\\\ => x = \dfrac{2z}{3} = \dfrac{2}{3} \times \dfrac{12y}{5} = \dfrac{8y}{5} \color{RED}{---(3)}$MF#%
From(1),(2) and (3),
10x + 12y + 15z = 320000
$MF#%10\left(\dfrac{8y}{5}\right) + 12y + 15\left(\dfrac{12y}{5}\right) = 320000\\\\ 16y + 12y + 36y = 320000\\\\ 64y = 320000\\\\ y=\dfrac{320000}{64}= \dfrac{10000}{2}=5000$MF#%
i.e.,Amount invested in Scheme B = Rs.5000


Question 429.
If a sum of Rs. 9 is lent to be paid back in 10 equal monthly installments of re. 1 each, then the rate of interest is
  1.    11.33%
  2.    11%
  3.    266.67%
  4.    26.67%
 Discuss Question
Answer: Option D. -> 26.67%

Answer : Option D

Explanation :

Amount borrowed = Rs.9
Let rate of interest = R%
$MF#%\text{Simple Interest for Rs.9 for 10 months at R% = }\dfrac{9 \times \text{R} \times \dfrac{10}{12}}{100} = \dfrac{90\text{R}}{1200}\\\\ \text{i.e., }9 + \dfrac{90\text{R}}{1200}\text{ is due in 10 months}$MF#%
Payment after 1st month = Rs.1
$MF#%\text{Interest for this Rs.1 for the remaining 9 months = }\dfrac{1 \times \text{R} \times \dfrac{9}{12}}{100} $MF#%
Payment after 2nd month = Rs.1
$MF#%\text{Interest for this Rs.1 for the remaining 8 months = }\dfrac{1 \times \text{R} \times \dfrac{8}{12}}{100}\\\\ \cdots$MF#%
Payment after 9th month = Rs.1
$MF#%\text{Interest for this Rs.1 for the remaining 1 month = }\dfrac{1 \times \text{R} \times \dfrac{1}{12}}{100} $MF#%
Payment after 10th month = Rs.1 and this closes the loan
$MF#%\begin{align}&9 + \dfrac{90\text{R}}{1200} = 10 \times 1 + \left(\dfrac{1 \times \text{R} \times \dfrac{9}{12}}{100} + \dfrac{1 \times \text{R} \times \dfrac{8}{12}}{100} + \cdots + \dfrac{1 \times \text{R} \times \dfrac{1}{12}}{100}\right)\\\\ &9 + \dfrac{90\text{R}}{1200} = 10 + \dfrac{ \text{R}}{1200} \left(9 + 8 + \cdots + 1 \right)\\\\ &9 + \dfrac{90\text{R}}{1200} = 10 + \dfrac{ \text{R}}{1200} \left(\dfrac{9 \times 10}{2}\right)\\\\ &9 + \dfrac{90\text{R}}{1200} = 10 + \dfrac{ \text{45R}}{1200}\\\\ &\dfrac{45\text{R}}{1200} = 1\\\\ &\text{R} = \dfrac{1200}{45} = 26.67\%\end{align}$MF#%


Question 430.
How much time will it take for an amount of Rs. 900 to yield Rs. 81 as interest at 4.5% per annum of simple interest?
  1.    2 years
  2.    3 years
  3.    1 year
  4.    4 years
 Discuss Question
Answer: Option A. -> 2 years

Answer : Option A

Explanation :

P = Rs.900
SI = Rs.81
T = ?
R = 4.5%
$MF#%\text{T= }\dfrac{100 ×\text{SI}}{\text{PR}} = \dfrac{100 × 81}{900 × 4.5} = 2 \text{ years}$MF#%


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