Simple & Compound Interest(Quantitative Aptitude > Interest ) Questions and answers for exam Preparation

Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)

Total Questions : 1171 | Page 75 of 118 pages

Question 741. The difference between the compound interest and the simple interest on a certain sum at 5% per annum for 2 years is 1.50. The sum is

Discuss Question

Answer: Option B. -> 600
Answer: (b)Using Rule 6,Difference = ${PR}^2/(100)^2$1.50 = ${P × 5 × 5}/(100)^2$P = 400 × 1.5 = Rs.600

Question 742. A man took a loan from a bank at the rate of 12% per annum at simple interest. After 3 years he had to pay Rs.5,400 as interest only for the period. The principal amount borrowed by him was :

Rs.10,000
Rs.2,000
Rs.15,000
Rs.20,000

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Answer: Option C. -> Rs.15,000
Answer: (c)Using Rule 1,Let the principal be x.S.I. = ${\text"Principal × Rate × Time"/100$5400 = ${x × 12 × 3}/100$$x = {5400 × 100}/{12 × 3}$ = Rs.15000

Question 743. In what time will Rs.72 become Rs.81 at 6$1/4$% per annum simple interest ?

3 years
2 years
None of these
2 years 6 months

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Answer: Option B. -> 2 years
Answer: (b)Using Rule 1,Interest = Rs.(81–72)= Rs.9Let the time be t years.Then, 9 = ${72 × 25 × t}/{4 × 100}$t = ${9 × 400}/{72 × 25}$ = 2 years.

Question 744. Rs.800 becomes Rs.956 in 3 years at a certain rate of simple interest. If the rate of interest is increased by 4%, what amount will 800 become in 3 years ?

Rs.1025
Rs.1020.80
Rs.1050
Rs.1052

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Answer: Option D. -> Rs.1052
Answer: (d)Using Rule 1,S.I. = 956 - 800 = Rs.156Rate = ${S.I. × 100}/{Principal × Time}$= ${156 × 100}/{800 × 3}$ = 6.5% per annumNew rate = 10.5%S.I. = ${\text"Principal × Rate × Time"/100$= ${800 × 3 × 10.5}/100$ = Rs.252 Amount = 800 + 252 = Rs.1052

Question 745. The sum of money, that will give Rs.1 as interest per day at the rate of 5% per annum simple interest is

Rs.36500
Rs.3650
Rs.7300
Rs.730

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Answer: Option C. -> Rs.7300
Answer: (c)Using Rule 1,The sum of money will give Rs.365 as simple interest in a year.S.I. = $\text"PRT"/100$365 = ${P × 5 × 1}/100$P = ${365 × 100}/5$ = Rs.7300

Question 746. A money lender finds that due to fall in the annual rate of interest 8% to 7$3/4$% , his yearly income diminishes by Rs.61.50. His capital is

Rs.23800
Rs.22400
Rs.26000
Rs.24600

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Answer: Option D. -> Rs.24600
Answer: (d)Difference in rate= $(8 - 7{3}/4)% = 1/4$%Let the capital be Rs.x.$1/4$% of x = 61.50x = 61.50 × 100 × 4 = Rs.24600

Question 747. A person borrows Rs.5,000 for 2 years at 4% per annum simple interest. He immediately lends it to another person at 6$1/4$% per annum simple interest for 2 years. His gain in the transaction is

Rs.450
Rs.112.50
Rs.150
Rs.225

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Answer: Option D. -> Rs.225
Answer: (d)Using Rule 1,Case I : S.I. = ${5000 × 2 × 4}/100$ = Rs.400Case II :S.I. = ${5000 × 25 × 2}/{100 × 4}$ = Rs.625Gain = Rs.(625 - 400) = Rs.225

Question 748. A lends Rs.2500 to B and a certain sum to C at the same time at 7% annual simple interest. If after 4 years, A altogether receives Rs.1120 as interest from B and C, the sum lent to C is

Rs.6500
Rs.700
Rs.1500
Rs.4000

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Answer: Option C. -> Rs.1500
Answer: (c)Using Rule 1,Let the sum lent to C be xAccording to the question,${2500 × 7 × 4}/100 + {x × 7 × 4}/100 = 1120$or 2500 × 28 + 28x = 112000or 2500 + x = 4000or x = 4000 - 2500 = 1500

Question 749. In how many years will a sum of Rs.3,000 yield a simple interest of Rs.1,080 at 12% per annum ?

2$1/2$ years
3 years
3$1/2$ years
2 years

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Answer: Option B. -> 3 years
Answer: (b)Using Rule 1,Time = ${SI × 100}/{\text"Principal × Rate"$= ${1080 × 100}/{3000 × 12} = 3$ years

Question 750. A sum of money at some rate of simple interest amounts to Rs.2,900 in 8 years and to Rs.3,000 in 10 years. The rate of interest per annum is

2$1/2$%
4%
2%
3%

Discuss Question

Answer: Option C. -> 2%
Answer: (c)Principal + interest for 8 years= Rs.2900... (i)Principal + interest for 10 years = Rs.3000 ... (ii)Subtracting equation (i) from (ii)Interest for 2 years = Rs.100Interest for 8 years= $100/2 × 8$ = Rs.400From equation (i),Principal = Rs.(2900 - 400) = Rs.2500Rate = ${S.I × 100}/{\text"Time × Principal"}$= ${400 × 100}/{8 × 2500} = 2%$Using Rule 12,R = $({A_1 - A_2}/{A_2T_1 - A_1T_2})$ × 100= $({2900 - 3000}/{3000 × 8 - 2900 × 10})$ × 100=$({- 100}/{24000 - 29000}) × 100$= ${-100}/{-5000}$ × 100 = 2%