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Quantitative Aptitude > Interest

SIMPLE & COMPOUND INTEREST MCQs

Compound Interest, Simple Interest, Interest (combined)


Total Questions : 1171 | Page 88 of 118 pages
Question 871. At what rate of simple interest per annum will a sum become $7/4$ of itself in 4 years ?
  1.    18$1/4$%
  2.    18%
  3.    18$1/2$%
  4.    18$3/4$%
 Discuss Question
Answer: Option D. -> 18$3/4$%
Answer: (d)Let the principal be xPrincipal + SI = ${7x}/4$SI = ${7x}/4 - x = {3x}/4$Rate = ${SI × 100}/\text"Principal × Time"$= ${3x × 100}/{4 × x × 4} = 18{3}/4%$Using Rule 3,R = ${(7/4 - 1)}/4 × 100%$= $3/16$ × 100%= $75/4% = 18{3}/4%$
Question 872. A sum doubles itself in 16 years, then in how many years will it triple itself; rate of interest being simple
  1.    32 years
  2.    25 years
  3.    64 years
  4.    48 years
 Discuss Question
Answer: Option A. -> 32 years
Answer: (a)Case IPrincipal = Rs. xInterest = Rs. xRate = ${SI × 100}/\text"Principal × Time"$= ${x × 100}/{x × 16} = 25/4%$ per annumCase IIInterest = Rs. 2xTime = ${SI × 100}/\text"Principal × Rate"$= ${2x × 100 × 4}/{x × 25}$ = 32 yearsUsing Rule 3,R = ${(n - 1)}/T × 100%$= ${(2 - 1)}/16 × 100%$= $25/4 % = 6{1}/4%$Now, T = ${(n - 1)}/R × 100%$= ${(3 - 1)}/{25/4} × 100$= $800/25$ = 32 years.
Question 873. At a certain rate of simple interest, a certain sum of money becomes double of itself in 10 years. It will become treble of itself in
  1.    18 years
  2.    15 years
  3.    30 years
  4.    20 years
 Discuss Question
Answer: Option D. -> 20 years
Answer: (d)If principal be x, interest = xand rate = r% p.a. thenRate = ${SI × 100}/\text"Principal × Time"$= ${x × 100}/{x × 10}$ = 10%Now, p = x, interest = 2xThen, time = ${SI × 100}/\text"Principal × Rate"$= ${2x × 100}/{x × 10}$ = 20 yearsUsing Rule 3,R = ${(2 - 1)}/10$ × 100%R = 10%T = ${(n - 1)}/R × 100$ years= ${3 - 1}/10 × 100$ = 20 years.
Question 874. If a sum of money at simple interest doubles in 12 years, the rate of interest per annum is
  1.    7.5%
  2.    16$2/3$%
  3.    10%
  4.    8$1/3$%
 Discuss Question
Answer: Option D. -> 8$1/3$%
Answer: (d)Let the principal be x.Amount = 2xInterest = (2x - x) = xRate = ${S.I. × 100}/\text"Principal × Time"$= ${x × 100}/{x × 12} = 25/3 = 8{1}/3%$Using Rule 3,R = ${(2 - 1)}/12 × 100%$R = $25/3% = 8{1}/3$%
Question 875. Simple interest on a certain sum for 6 years is $9/25$ of the sum. The rate of interest is
  1.    6$1/2$%
  2.    6%
  3.    8$1/2$%
  4.    8%
 Discuss Question
Answer: Option B. -> 6%
Answer: (b)Rate = ${\text"SI" × 100}/\text"Principal × Time"$= $9/25 × 100/6$ = 6% per annumUsing Rule 5,Here, n = $9/25$, T = 6 years.R = ${n × 100}/T$R = $9/25 × 100/6$R = 6%
Question 876. A and B borrowed Rs. 3000 and Rs. 3200 respectively at the same rate of interest for 2$1/2$ years. If B paid Rs. 40 more interest than A, find the rate of interest.
  1.    7%
  2.    5%
  3.    6%
  4.    8%
 Discuss Question
Answer: Option D. -> 8%
Answer: (d)Rate of interest = r % per annumS.I. = ${\text"Principal × Rate × Time"/100$According to the question,${3200 × 5 × r}/{100 × 2} - {3000 × 5 × r}/200$ = 4080r - 75r = 405r = 40 ⇒ r = $40/5$= 8% per annum Using Rule 13The difference between the S.I. for a certain sum $P_1$ deposited for time $T_1$ at $R_1$ rate of interest and another sum $P_2$ deposited for time $T_2$ at $R_2$ rate of interest isS.I. = ${P_2R_2T_2 - P_1R_1T_1}/100$
Question 877. At the rate of simple interest per annum, the interest on a certain sum of money for 10 years will be $2/5$th part of the amount, then the rate of simple interest is
  1.    6$2/3$%
  2.    5%
  3.    4$1/2$%
  4.    7%
 Discuss Question
Answer: Option A. -> 6$2/3$%
Answer: (a)Amount after 10 years= P$(1 + {RT}/100)$ = P$(1 + {R × 10}/100)$= Rs. P$(1 + R/10)$Interest = Rs.P$(1 + R/10) × 2/5$Rate= ${\text"SI" × 100}/\text"Principal × Time"$R = ${P(1 + R/10) × 2/5 × 100}/{P × 10}$R = 4$(1 + R/10)$$R/4 = 1 + R/10$$R/4 - R/10$ = 1${5R - 2R}/20$ = 13R = 20R = $20/3 = 6{3}2%$Using Rule 5,Here, S.I. = $2/5$ amountS.I. = $2/5$ (P + S.I.)S.I. = $2/5$ S.I. + $2/5$ P$3/5$ S.I. = $2/5$ PS.I. = $2/3$PNow, n = $2/3$, T = 10 years.R= ${n × 100}/T$= $2/3 × 100/10$= $20/3 = 6{2}/3%$
Question 878. The simple interest on a sum after 4 years is $1/5$ of the sum. The rate of interest per annum is
  1.    5%
  2.    4%
  3.    8%
  4.    6%
 Discuss Question
Answer: Option A. -> 5%
Answer: (a)Let Prinicpal = Rs.100S.I. = $100 × 1/5$ = Rs.20Rate = ${20 × 100}/{100 × 4}$ = 5%Using Rule 5,Here, n = $1/5$, T = 4 years.R = ${n × 100}/T$R = $1/5 × 100/4$R = 5%
Question 879. In what time will the simple interest be $2/5$ of the principal at 8 per cent per annum?
  1.    7 years
  2.    8 years
  3.    6 years
  4.    5 years
 Discuss Question
Answer: Option D. -> 5 years
Answer: (d)Let the principal be xInterest = $2/5$ xRate = 8% per annumTime = ${\text"Interest" × 100}/\text"Principal × Rate"$=${{2/5}x × 100}/{x × 8} = 40/8$ = 5 years Using Rule 5If Simple Interest (S.I.) becomes 'n' times of principal i.e.S.I. = P × n then.RT = n × 100
Question 880. On a certain sum, the simple interest at the end of 6$1/4$ years becomes $3/8$ of the sum. The rate of interest is
  1.    6%
  2.    5%
  3.    8%
  4.    7%
 Discuss Question
Answer: Option A. -> 6%
Answer: (a)$\text"Interest"/ \text"Principal" = 3/8$Rate = ${\text"SI" × 100}/\text"Principal × Time"$= $3/8 × 100/{25/4}$= $3/8 × 400/25$ = 6% per annumUsing Rule 5,Here, n = $3/8$, T = $25/4$ years.R = ${n × 100}/T$= $3/8 × 100/{25/4}$ ⇒ R = 6%

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