MCQ on Simple Interest Questions and Answers

mcq on simple interest questions and answers for bank exams

simple interest questions for bank exams

Simplification

Time & Work

Ratios

Permutations

21. If the rate of interest is 10% per annum and is compound half-yearly, then the principle of ₹ 400 in 3/2 years will amount to

(a) ₹ 463.00

(b) ₹ 463.05

(d) ₹ 463.20

(e) None of these

Solution: (b)
Given R = 10%, P = ₹ 400 and T = \(\displaystyle \frac{3}{2}years\)
Compounding is half-yearly, then,
T= \(\displaystyle \frac{3}{2}\times 2=3years\)
P = \(\displaystyle \frac{{10}}{2}=5\%\)
Amount, A = \(\displaystyle p{{(1+\frac{R}{{100}})}^{T}}\)
A = \(\displaystyle 400{{(1+\frac{5}{{100}})}^{3}}\)
\(\displaystyle 400\times \frac{{21}}{{20}}\times \frac{{21}}{{20}}\times \frac{{21}}{{20}}=463.5\)

22. A person invested some amount at the rate of 12% simple interest and the remaining at 10%. He received yearly an interest of ₹ 130. Had he interchanged the amounts invested, he would have received an interest of ₹ 134. How much money did he invest at different rates?

(a) ₹ 500 at the rate of 10%, ₹ 800 at the rate of 12%

(b) ₹ 700 at the rate of 10%, ₹ 600 at the rate of 12%

(d) ₹ 700 at the rate of 10%, ₹ 500 at the rate of 12%

(e) None of these

Solution: (d)
Let the person invest ₹ x and y at two different rates 12% and 14% respectively.
\(\displaystyle \frac{{x\times 12\times 1}}{{100}}+\frac{{y\times 10\times 1}}{{100}}=134(SI=\frac{{P\times R\times T}}{{100}})\)
\(\displaystyle \Rightarrow \)12x + 10y = 13000 … (i)
After inter changing invested amount
\(\displaystyle \frac{{y\times 12\times 1}}{{100}}+\frac{{x\times 10\times 1}}{{100}}=134\)
\(\displaystyle \Rightarrow \)12y + 10x = 13400 … (ii)
On solving equations (i) and (ii), we get
x = ₹ 500 and y = ₹ 700

23. The simple interest accrued on an amount of ₹20,000 at the end of three years is ₹7,200. What would be the compound interest accrued on the same amount at the same rate in the same period?

(a) ₹ 8098.56

(b) ₹ 8246.16

(d) ₹ 8342.36

(e) None of these

Solution: (a)
\(\displaystyle rate=\frac{{SI\times 100}}{{principal\times time}}\)
\(\displaystyle \frac{{7200\times 100}}{{20000\times 3}}=12\%\)
CI = \(\displaystyle p[{{(1+\frac{R}{{100}})}^{t}}-1]\)
\(\displaystyle 2000[{{(1+\frac{{12}}{{100}})}^{3}}-1]\)
\(\displaystyle 2000[{{(1.12)}^{3}}-1]\)
\(\displaystyle =20000\times (1.404928-1)\)
= ₹ 8098.56

24. What will be the ratio of simple interest earned by certain amount at the same rate of interest for 12 yr and for 18 yr?

(a) 2 : 5

(b) 1 : 3

(d) 3 : 1

(e) None of these

Solution: (c)
If the principal = P and interest = R%
Then, required ratio
\(\displaystyle \frac{{\frac{{P\times R\times 12}}{{100}}}}{{\frac{{P\times R\times 18}}{{100}}}}=\frac{{12}}{{18}}=\frac{2}{3}=2:3\)

25. The simple interest on a sum of money will be rupees 210 after 3 years. In the next 3 years, principal become 4 times, then the total interest at the end of 6 years.

(a) 1020

(b) 1050

(d) 1100

(e) None of these

Solution: (b)
\(\displaystyle 210=p\times (\frac{r}{{100}})\times 3\)
now, SI = \(\displaystyle 4\times p\times (\frac{r}{{100}})\times 3\)
SI = 4×210 = 840. So total SI for 6 years = 840 + 210
= 1050.

26. A person makes a fixed deposit of Rs. 20000 in Bank of India for 3 years. If the rate of interest be 13% SI per annum charged half yearly. What amount will he get after 42 months?

(a) 29100

(b) 28100

(d) 26100

(e) 26500

Solution: (a)
R=13%, T= 42 months
For half year
\(\displaystyle R=\frac{{13}}{2},T=\frac{{42}}{{12}}\times 2=7halfyears\)
SI = \(\displaystyle \frac{{20000\times 7\times 6.5}}{{100}}=9100\)
A= P + SI = 20000 + 9100=29100

27. Vikram invests some money in three different schemes for 4 years, 8 years and 12 years at 10%, 15% and 20% Simple Interest respectively. At the completion of each scheme, he gets the same interest. The ratio of his investments is

(a) 6 : 2 : 1

(b) 5 : 2 : 1

(d) 3 : 2 : 7

(e) None of the Above

Solution: (a)
\(\displaystyle \begin{array}{*{20}{l}} {\Pr incipal=X1,X2,X3} \\ {X1\times 4\times 10=X2\times 8\times 15=X3\times 12\times 20} \\ {X1=3X2=6X3} \\ {X1:X2=3:1} \\ {and\to X2:X3=2:1} \\ {X1:X2:X3=6:2:1} \end{array}\)

28. Ankita borrows Rs.7000 at simple Interest from a lender. At the end of 3 years, she again borrows Rs.3000 and settled that amount after paying Rs.4615 as interest after 8 years from the time she made the first borrowing. What is the rate of interest?

(a) 5.5%

(b) 9.5%

(d) 6.5%

(e) None of the Above

Solution: (d)
SI for Rs.7000 for 8 years = \(\displaystyle \frac{{7000\times r\times 8}}{{100}}\)
Again borrowed = 3000
SI = \(\displaystyle \frac{{3000\times r\times 5}}{{100}}\)
Total interest = \(\displaystyle \frac{{7000\times r\times 8}}{{100}}+\frac{{3000\times r\times 5}}{{100}}=4615\)
560r + 150r = 4615
710r = 4615
r = 6.5%

29. A certain sum of money at certain rate of interest becomes ₹ 3420 after 2 years and at same rate after two and a half years becomes ₹ 3525. Find the rate percent per annum.

(a) 8.5%

(b) 8%

(d) 10%

(e) 11%

Solution: (c)
Amount after 2.5 yrs = 3525, after 2 yrs = 3420
So SI for half yr = 3525-3420 = 105,
So for 1 yr SI = 105 × 2 = 210
P + 2 × SI = 3420
So P = 3420 – 2 × 210 = 3000
So \(\displaystyle 3000\times r\times \frac{2}{{100}}=420\)
r=7%

30. A certain sum of money amounts to rupees 2900 at 4% per annum in 4 years. In how many years will it amount to rupees 5000 at the same rate?

(a) 20

(b) 22

(d) 25

(e) None of these

Solution: (d)
\(\displaystyle \begin{array}{l}2900=P+\frac{{P\times 4}}{{100}}\times 4\\Therefore,P=2500\\5000=2500+\frac{{2500\times 4}}{{100}}\times t\\t=25years\end{array}\)

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