Simple and Compound Interest MCQs for Competitive Examination
Solve the following problems.
Q. 41
The principal which gives Re 1 interest per day at a rate of 5% simple interest per annum is
(A) Rs 5000
(B) Rs 7300
(C) Rs 36500
(D) Rs 3650
Answer: (B) Rs 7300
Explanation: N/A
Q. 42
A person deposited Rs 400 for 2 years, Rs 550 for 4 years and Rs 1200 for 6 years. He received a total simple interest of Rs 1020. The rate of interest per annum is
(A) 10%
(B) 5%
(C) 15%
(D) 20%
Answer: (A) 10%
Explanation: N/A
Q. 43
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 Rs 800 become in 3 years?
(A) Rs 1020.80
(B) Rs 1025
(C) Rs 1052
(D) Rs 1050
Answer: (C) Rs 1052
Explanation: N/A
Q. 44
What annual instalment will discharge a debt of Rs 6450 due in 4 years at 5% simple interest?
(A) Rs 1500
(B) Rs 1835
(C) Rs 1935
(D) Rs 1950
Answer: (A) Rs 1500
Explanation: I = (100 * A)/((100 * T) + RT(T – 1)/2)
Q. 45
A person borrows Rs 5000 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
(A) Rs 112.50
(B) Rs 450
(C) Rs 225
(D) Rs 150
Answer: (C) Rs 225
Explanation: N/A
Q. 46
A moneylender 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
(A) Rs 22400
(B) Rs 23800
(C) Rs 24600
(D) Rs 26000
Answer: (C) Rs 24600
Explanation: N/A
Q. 47
A sum of Rs 1600 gives a simple interest of Rs 252 in 2 years and 3 months. The rate of interest per annum is
(A) 5(1/2)%
(B) 8%
(C) 7%
(D) 6%
Answer: (C) 7%
Explanation: N/A
Q. 48
A sum of money at a certain rate per annum of simple interest doubles in 5 years and at a different rate becomes three times in 12 years. The lower rate of interest per annum is
(A) 15%
(B) 20%
(C) 15(3/4)%
(D) 16(2/3)%
Answer: (D) 16(2/3)%
Explanation: N/A
Q. 49
At what rate of simple interest per annum will a sum become (7/4) of itself in 4 years?
(A) 18%
(B) 18(1/4)%
(C) 18(3/4)%
(D) 18(1/2)%
Answer: (C) 18(3/4)%
Explanation: N/A
Q. 50
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
(A) 5%
(B) 6(2/3)%
(C) 7%
(D) 4%
Answer: (D) 4%
Explanation: N/A
Q. 51
The present worth of a bill due 7 months hence is Rs 1200 and if the bill were due at the end of 2(1/2) years its present worth would be Rs 1016. The rate per cent is
(A) 5%
(B) 10%
(C) 15%
(D) 20%
Answer: (B) 10%
Explanation: Let the interest rate = r%
A = 1200 + (1200 * r * 7)/(12 * 100) = 1200 + 7r
Again A = 1016 + (1600 * r * 25)/100
hence, 1200 + 7r = 1016 + (1600 * r * 25)/100
hence, r = 10%
Q. 52
The difference between simple interest and the true discount on Rs 2400 due 4 years hence at 5% per annum simple interest is
(A) Rs 30
(B) Rs 70
(C) Rs 80
(D) Rs 50
Answer: (C) Rs 80
Explanation: True discount = (Amount * Rate * Time)/(100 + (Rate * Time))
Hence, True discount = (2400 * 5 * 4)/(100 + (5 * 4)) = 400
Again Simple interest = (2400 * 5 * 4)/100 = 480
There the difference = 480 – 400 = 80
Q. 53
If x, y, z are three sums of money such that y is the simple interest on x and z is the simple interest on y for the same time and at the same rate of interest, then we have
(A) z² = xy
(B) xyz = 1
(C) x² = yz
(D) y² = zx
Answer: (D) y² = zx
Explanation: N/A
Q. 54
Ram deposited a certain sum of money in a company at 12% per annum simple interest for 4 years and deposited equal amount in fixed deposit in a bank for 5 years at 15% per annum simple interest. The difference in the interest from two sources is Rs 1350, then the sum deposited in each case is
(A) Rs 3000
(B) Rs 4000
(C) Rs 5000
(D) Rs 6500
Answer: (C) Rs 5000
Explanation: N/A
Q. 55
The simple interest on a sum of money is (1/9) of the principal and the number of years is equal to rate per cent per annum. The rate per annum is
(A) 3%
(B) (1/3)%
(C) 3(1/3)%
(D) 2(1/3) %
Answer: (C) 3(1/3)%
Explanation: N/A
Q. 56
If the ratio of principal and the simple interest for 5 years is 10 : 3, then the rate of interest is
(A) 5%
(B) 6%
(C) 8%
(D) 3%
Answer: (B) 6%
Explanation: N/A
Q. 57
Ratio of the principal and the amount after 1 year is 10:12. Then the rate of interest per annum is
(A) 12%
(B) 16%
(C) 18%
(D) 20%
Answer: (D) 20%
Explanation: N/A
Q. 58
With a given rate of simple interest, the ratio of principal and amount for a certain period of time is 4 : 5. After 3 years, with the same rate of interest, the ratio of the principal and amount becomes 5 : 7. The rate of interest is
(A) 4%
(B) 6%
(C) 5%
(D) 7%
Answer: (C) 5%
Explanation: N/A
Q. 59
The rate of simple interest per annum of bank being decreased from 5% to 3(1/2)% the annual income of a person from interest was less by Rs 105. The sum deposited at the bank was
(A) Rs 6000
(B) Rs 7200
(C) Rs 6800
(D) Rs 7000
Answer: (D) Rs 7000
Explanation: N/A
Q. 60
A sum of money was lent at simple interest at a certain rate for 3 years. Had it been lent at 2.5% per annum higher rate, it would have fetched Rs 540 more. The money lent was
(A) Rs 6400
(B) Rs 6472
(C) Rs 6840
(D) Rs 7200
Answer: (D) Rs 7200
Explanation: N/A