100+ Simple Interest Questions and Answers for Bank Exams - 1

Question: 1

Rs.6200 amount to Rs.9176 in 4 years at simple interest. If the interest rate is increased by 3% it would amount to how much?

(A) Rs. 8432

(B) Rs. 9820

(C) Rs. 9822

(D) Rs. 9920

Ans: D

P = Rs. 6200, S.I. = Rs. (9176 – 6200) = Rs. 2976, T = 4 years.

∴ Rate = \$\$({100 × 2976}/{6200 × 4})\$\$ = 12%.

New rate = (12 + 3)% = 15%.

New S.I. = Rs. \$\$({6200 × 15 × 4}/{100})\$\$ = 3720.

Now amount = Rs. (6200 + 3270) = Rs. 9920.

Question: 2

Rs.1000 is invested at 5% per annum simple interest. If the interest is added to the principal after every 10 years, the amount will become Rs.2000 after

(A) 15 years

(B) \$\$16{2}/{3}\$\$

(C) 18 years

(D) 20 years

Ans: B

Amount after 10 years = \$\$[1000 + {1000 × 5 × 10} / {100}]\$\$ = Rs. 1500.

Now, S.I. = Rs. (2000 – 1500) = Rs. 500, P = Rs. 1500, R = 5%.

∴ Time = \$\$({500 × 100}/{1500 × 5})\$\$yrs = \$\$6{2}/{3}\$\$yrs.

Hence, required time= \$\$(10 + 6{2}/{3})\$\$yrs = \$\$16{2}/{3}\$\$yrs.

Question: 3

What should be the least number of years in which the simple interest on Rs. 2600 at \$\$6{2} / {3}\$\$% will be an exact number of rupees?

(A) 2 years

(B) 3 years

(C) 4 years

(D) 5 years

Ans: B

S.I. = Rs. \$\$(2600 × {20}/{3} × {1}/{100} × T)\$\$ = Rs. \$\$({520}/{3} × T)\$\$

which is an exact number of rupees when T = 3 years.

Question: 4

A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of 1 year. In order to clear his dues at the end of 2 years, he would pay

(A) Rs. 105

(B) Rs. 110

(C) Rs. 115

(D) Rs. 120

Ans: C

Amount to be paid = Rs. \$\$(100 + {200 × 5 × 1} / {100} + {100 × 5 × 1} / {100})\$\$ = 115.

Question: 5

An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes

(A) 10%

(B) 10.5%

(C) 10.25%

(D) 10.35%

Ans: C

Let the sum be Rs. 100. Then,

S.I. for first 6 months = Rs. \$\$({100 × 10 × 1} / {100 × 2})\$\$ = Rs. 5.

S.I. for last 6 months = Rs. \$\$({105 × 10 × 1} / {100 × 2})\$\$ = Rs. 5.25.

So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25.

∴ Effective rate = (110.25 – 100) = 10.25%.

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