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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 44 of 118 pages
Question 431.

A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?


  1.    Rs. 35
  2.    Rs. 245
  3.    Rs. 350
  4.    Cannot be determined
  5.    None of these
 Discuss Question
Answer: Option D. -> Cannot be determined

We need to know the S.I., principal and time to find the rate.

Since the principal is not given, so data is inadequate.


Question 432.
Adam borrowed some money at the rate of 6% p.a. for the first two years,
at the rate of 9% p.a. for the next three years , and at the rate of
14% p.a. for the period beyond five years. 1f he pays a total interest
of Rs. 11, 400 at the end of nine years how much money did he borrow?



  1.    12000
  2.    13000
  3.    14000
  4.    15000
 Discuss Question
Answer: Option A. -> 12000

Let the sum borrowed be x. Then,
(x*2*6)/100 + (x*9*3)/100 + (x*14*4)/100 = 11400
3x/25 + 27x/100 + 14x / 25) = 11400
95x/100 = 11400
x = (11400*100)/95 = 12000



Question 433.
A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:
  1.    5%
  2.    10%
  3.    7%
  4.    8%
 Discuss Question
Answer: Option B. -> 10%

Answer : Option B

Explanation :

Let the rate of interest per annum be R%
$MF#%\text{Simple Interest for Rs. 5000 for 2 years at rate R% per annum }\\\\ + \text{Simple Interest for Rs. 3000 for 4 years at rate R% per annum = Rs.2200}$MF#%
$MF#%\Rightarrow \dfrac{5000\times \text{R}\times 2}{100} + \dfrac{3000\times \text{R}\times 4}{100}=2200\\\\ \Rightarrow \text{100R + 120R} = 2200\\\\ \Rightarrow \text{220R} = 2200\\\\ \Rightarrow \text{R} = 10$MF#%
i.e, Rate = 10%.


Question 434.

A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:


  1.    5%
  2.    8%
  3.    12%
  4.    15%
 Discuss Question
Answer: Option C. -> 12%

S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.

S.I. for 5 years = Rs.  A Sum Of Money Amounts To Rs. 9800 After 5 Years And Rs. 12... 2205 x 5  A Sum Of Money Amounts To Rs. 9800 After 5 Years And Rs. 12... = Rs. 3675 3

 A Sum Of Money Amounts To Rs. 9800 After 5 Years And Rs. 12... Principal = Rs. (9800 - 3675) = Rs. 6125.

Hence, rate =  A Sum Of Money Amounts To Rs. 9800 After 5 Years And Rs. 12... 100 x 3675  A Sum Of Money Amounts To Rs. 9800 After 5 Years And Rs. 12...% = 12% 6125 x 5


Question 435.

A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is


  1.    Rs. 650
  2.    Rs. 690
  3.    Rs. 698
  4.    Rs. 700
 Discuss Question
Answer: Option C. -> Rs. 698

S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698.


Question 436.
Divide Rs. 2379 into 3 parts so that their amount after 2,3 and 4 years respectively may be equal, the rate of interest being 5% per annum at simple interest. The first part is
  1.    Rs. 828
  2.    Rs. 746
  3.    Rs. 248
  4.    Rs. 1024
 Discuss Question
Answer: Option A. -> Rs. 828

Answer : Option A

Explanation :

Let the parts be x, y and z
R = 5%
x + interest on x for 2 years = y + interest on y for 3 years = z + interest on z for 4 years
$MF#%\begin{align}&\left(x + \dfrac{x \times 5 \times 2}{100}\right) = \left(y + \dfrac{y \times 5 \times 3}{100}\right) = \left(z + \dfrac{z \times 5 \times 4}{100}\right)\\\\ &\left(x + \dfrac{x}{10}\right) = \left(y + \dfrac{3y}{20}\right) = \left(z + \dfrac{z}{5}\right)\\\\ &\dfrac{11x}{10} = \dfrac{23y}{20} = \dfrac{6z}{5}\\\\\\\\ &\text{ Let }\dfrac{11x}{10} = \dfrac{23y}{20} = \dfrac{6z}{5} = \text{ k} \quad \text{ (where k is a constant)}\\\\ &\text{Then, }x = \dfrac{10k}{11}, \quad y = \dfrac{20k}{23}, \quad z = \dfrac{5k}{6}\\\\ &\text{ we know that }x + y + z = 2379 \\\\ &\dfrac{10k}{11} + \dfrac{20k}{23} + \dfrac{5k}{6} = 2379\\\\ &10k \times 23 \times 6 + 20k \times 11 \times 6 + 5k \times 11 \times 23 = 2379 \times11 \times23 \times 6\\\\ &1380k + 1320k + 1265k = 2379 \times11 \times23 \times 6\\\\ &3965k = 2379 \times11 \times23 \times 6\\\\ &k = \dfrac{2379 \times11 \times 23 \times 6}{3965}\\\\ &\text{First part, x = }\dfrac{10k}{11} = \dfrac{10}{11} \times \dfrac{2379 \times11 \times 23 \times 6}{3965} = \dfrac{10 \times 2379\times 23 \times 6}{3965} \\\\&= \dfrac{2\times 2379\times 23 \times 6}{793} = 2 \times 3 \times 23 \times 6 = 828\end{align}$MF#%


Question 437.
Arun took a loan of Rs. 1400 with simple interest for as many years as the rate of interest. If he paid Rs.686 as interest at the end of the loan period, what was the rate of interest?
  1.    8%
  2.    6%
  3.    4%
  4.    7%
 Discuss Question
Answer: Option D. -> 7%

Answer : Option D

Explanation :

Let rate = R%
Then, Time, T = R years
P = Rs.1400
SI = Rs.686
$MF#%\begin{align}&\text{SI= }\dfrac{\text{PRT}}{100} \\ \\
&\Rightarrow \text{686 = }\dfrac{\text{1400 × R × R}}{100} \\ \\
&\Rightarrow 686 = 14 \text{ R}^2 \\ \\
&\Rightarrow 49 = \text{R}^2 \\ \\
&\Rightarrow \text{R} = 7\end{align}$MF#%
i.e.,Rate of Interest was 7%


Question 438.
If simple interest on a certain sum of money for 8 years at 4% per annum is same as the simple interest on Rs. 560 for 8 years at the rate of 12% per annum then the sum of money is
  1.    Rs.1820
  2.    Rs.1040
  3.    Rs.1120
  4.    Rs.1680
 Discuss Question
Answer: Option D. -> Rs.1680

Answer : Option D

Explanation :

Let the sum of money be x
then
$MF#%\begin{align}&\dfrac{x \times 4 \times 8}{100 } = \dfrac{560 \times 12 \times 8}{100 }\\\\ &x \times 4 \times 8 = 560 \times 12 \times 8\\\\ &x \times 4 = 560 \times 12\\\\ &x = 560 \times 3 = 1680\end{align}$MF#%


Question 439.
If a sum of money trebles itself in 40 years,what is the rate of interest?
  1.    5%
  2.    6%
  3.    4%
  4.    None of these
 Discuss Question
Answer: Option A. -> 5%

Answer : Option A

Explanation :

-----------------------------------------------------------------------------------
Solution 1
-----------------------------------------------------------------------------------
Let the sum of money be Rs.x
After 40 years, this becomes 3x
Simple Interest = 3x - x = 2x
$MF#%\begin{align}&\text{Simple Interest = }\dfrac{\text{PRT}}{100}\\\\&2x =\dfrac{x \times \text{R} \times 40}{100}\\\\&2 =\dfrac{\text{R} \times 40}{100}\\\\&200 =40\text{R}\\\\&\text{R} = 5\%\end{align}$MF#%
-----------------------------------------------------------------------------------
Solution 2
-----------------------------------------------------------------------------------
If a sum of money becomes n times in T years at simple interest, then the rate of interest per annum can be given be
$MF#%\text{R = }\dfrac{100(\text{n}-1)}{\text{T}}\%$MF#%

Question 440.
A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 61⁄4% p.a for 2 years. Find his gain in the transaction per year.
  1.    Rs. 167.50
  2.    Rs. 150
  3.    Rs.225
  4.    Rs. 112.50
 Discuss Question
Answer: Option D. -> Rs. 112.50

Answer : Option D

Explanation :

------------------------------------------------------------------------------
Solution 1
------------------------------------------------------------------------------
The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest
$MF#%\text{Simple interest that he needs to pay = }\dfrac{\text{PRT}}{100} = \dfrac{5000 \times 4 \times 2}{100} = 400$MF#%
He also lends it at 61⁄4% p.a for 2 years
$MF#%\text{Simple interest that he gets = }\dfrac{\text{PRT}}{100} = \dfrac{5000 \times \dfrac{25}{4} \times 2}{100} = 625$MF#%
His overall gain in 2 years = Rs.625 - Rs.400 = Rs.225
$MF#%\text{His overall gain in 1 year = }\dfrac{225}{2}\text{ = Rs.112.5}$MF#%
------------------------------------------------------------------------------
Solution 2
------------------------------------------------------------------------------
The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest
He also lends it at 61⁄4% p.a for 2 years
$MF#%6 \dfrac{1}{4}\% - 4\% = 2 \dfrac{1}{4}\%$MF#%
So his gain in the transaction for 1 year
= The simple interest he gets for Rs.5000 for 1 year at 2 1⁄4% per annum
$MF#%= \dfrac{\text{PRT}}{100} = \dfrac{5000 \times \dfrac{9}{4} \times 1}{100} = 112.5$MF#%


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