Aptitude: Simple Interest

1. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 9. A sum of Rs. 725 is lent in the beginning of a year at a certain rate of
854 in 4 years. The sum is: interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice
A.Rs. 650 B. Rs. 690 the former. At the end of the year, Rs. 33.50 is earned as interest from both the
C. Rs. 698 D.Rs. 700 loans. What was the original rate of interest?
A.3.6% B. 4.5%
C. 5% D.6%
Answer: Option C
E. None of these

S.I. for 1 year = Rs. (854 - 815) = Rs. 39.

Answer: Option E

S.I. for 3 years = Rs.(39 x 3) = Rs. 117.

Let the original rate be R%. Then, new rate = (2R)%.

Principal = Rs. (815 - 117) = Rs. 698. Note:

2. Mr. Thomas invested an amount of Rs. 13,900 divided in two different Here, original rate is for 1 year(s); the new rate is for only 4 months i.e.
schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. year(s).
respectively. If the total amount of simple interest earned in 2 years be Rs.
3508, what was the amount invested in Scheme B?
A.Rs. 6400 B. Rs. 6500 725 x R x 1 362.50 x 2R x 1
C. Rs. 7200 D.Rs. 7500 + = 33.50
100 100 x 3
E. None of these

Answer: Option A (2175 + 725) R = 33.50 x 100 x 3

Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 (2175 + 725) R = 10050
- x).
(2900)R = 10050
x x 14 x 2 (13900 - x) x 11 x 2
Then, + = 3508 10050
100 100 R= = 3.46
2900

28x - 22x = 350800 - (13900 x 22) Original rate = 3.46%

6x = 45000

x = 7500. 10. A man took loan from a bank at the rate of 12% p.a. simple interest. After
3 years he had to pay Rs. 5400 interest only for the period. The principal
amount borrowed by him was:
So, sum invested in Scheme B = Rs. (13900 - 7500) = Rs. 6400. A.Rs. 2000 B. Rs. 10,000
C. Rs. 15,000 D.Rs. 20,000
3. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. 11.
in 5 years. What is the sum?
A.Rs. 4462.50 B. Rs. 8032.50 A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years
C. Rs. 8900 D.Rs. 8925 at the same rate of simple interest. The rate of interest per annum is:
E. None of these
A.5% B. 8%
C. 12% D.15%
Answer: Option D
Answer: Option C
100 x 4016.25
Principal= Rs.
9x5 Explanation:
401625
= Rs. S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.
45
= Rs. 8925.
2205
S.I. for 5 years = Rs. x 5 = Rs. 3675
4. How much time will it take for an amount of Rs. 450 to yield Rs. 81 as 3
interest at 4.5% per annum of simple interest?
A.3.5 years B. 4 years
C. 4.5 years D.5 years Principal = Rs. (9800 - 3675) = Rs. 6125.

100 x 3675
Answer: Option B Hence, rate = = 12%
6125 x 5
%
100 x 81 12. What will be the ratio of simple interest earned by certain amount at the
same rate of interest for 6 years and that for 9 years?
Time = = 4 years. A.1 : 3 B. 1 : 4
450 x 4.5
years C. 2 : 3 D.Data inadequate
5. Reena took a loan of Rs. 1200 with simple interest for as many years as the E. None of these
rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what
Aptitude: Simple Interest Page 1
was the rate of interest?
A.3.6 B. 6
Answer: Option C
C. 18 D.Cannot be determined
E. None of these
Explanation:
Answer: Option B
Let the principal be P and rate of interest be R%.
Let rate = R% and time = R years.
PxRx6
6PR 6
1200 x R x R 100
Then, = 432 Required ratio = = = = 2 : 3.
100 PxRx9
9PR 9
100
12R2 = 432 13. 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?
A.Rs. 35 B. Rs. 245
R2 = 36 C. Rs. 350 D.Cannot be determined
E. None of these
R = 6.
Answer: Option D
6. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple
interest. What is the rate of interest? We need to know the S.I., principal and time to find the rate.
A.3% B. 4%
C. 5% D.6%
E. None of these Since the principal is not given, so data is inadequate.

Answer: Option D 14. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He

S.I. = Rs. (15500 - 12500) = Rs. 3000. immediately lends it to another person at 6 p.a for 2 years. Find his gain in
the transaction per year.
A.Rs. 112.50 B. Rs. 125
100 x 3000 C. Rs. 150 D.Rs. 167.50
Rate = = 6%
12500 x 4
%
Answer: Option A
7.

25 2 5000 x 4 x 2
An automobile financier claims to be lending money at simple interest, but he
Gain in 2 years= Rs. 5000 x x -
includes the interest every six months for calculating the principal. If he is 4 100 100
charging an interest of 10%, the effective rate of interest becomes:
= Rs. (625 - 400)
= Rs. 225.
A.10% B. 10.25% 225
C. 10.5% D.None of these Gain in 1 year = Rs. = Rs. 112.50
2

Answer: Option B
1. Principal:
Let the sum be Rs. 100. Then,
The money borrowed or lent out for a certain period is called the
principal or the sum.
100 x 10 x 1
S.I. for first 6 months = Rs. = Rs. 5
100 x 2
2. Interest:
105 x 10 x 1
S.I. for last 6 months = Rs. = Rs. 5.25
100 x 2 Extra money paid for using other's money is called interest.

3. Simple Interest (S.I.):

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

If the interest on a sum borrowed for certain period is reckoned

Effective rate = (110.25 - 100) = 10.25%
uniformly, then it is called simple interest.

Let Principal = P, Rate = R% per annum (p.a.) and Time = T years.

Then

PxRxT
(i). Simple Intereest =
100
100 x S.I. 100 x S.I. 100 x S.I.
(ii). P = ;R= and T = .
RxT PxT PxR

Aptitude: Simple Interest Page 2