Simple Interest Questions for Bank, SSC and Railway Exams – Simple

Interest Quiz at Smartkeeda.

Simple Interest Quiz 1
Directions: Kindly study the following Questions carefully and choose the right answer:
1. 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. 350 C. Rs. 245
D. Can't be determined E. None of these

2. The simple interest on a sum of money will be Rs. 200 after 5 yr. In the next 5 year,
principal is tripled. What will be the total interest at the end of the 10th year?
A. Rs. 650 B. Rs. 850 C. Rs. 800
D. Can't be determined E. None of these

3. A sum of money becomes 9 times in 20 years. Find the 10 times of rate of interest.
A. 350% B. 45% C. 400%
D. 250% E. None of these

4. A sum becomes 6 fold at 5% per annum. At what rate, the sum becomes 12 fold?
A. 10% B. 12% C. 9%
D. 11% E. None of these

5. The rates of simple interest in two banks x and y are in the ratio of 10 : 8. Rajini wants to
deposit her total savings in two banks in such a way that she receives equal half-yearly
interest from both. She should deposit the savings in banks x and y in the ratio of
A. 4 : 5 B. 3 : 5 C. 5 : 4
D. 2 : 1 E. None of these

6. The simple interest accrued on an amount of Rs. 12450 at the end of 6 years is Rs. 8964.
What is the rate of interest per year?
A. 8% B. 14% C. 10%
D. 12% E. None of these

7. The simple interest on a sum of money will be Rs. 600 after 10 years. If the principal is
trebled after 5 years, what will be the total interest at the end of the tenth year?
A. Rs. 600 B. Rs. 900 C. Rs. 1200
D. Rs. 1500 E. None of these
8. According to a new plan rolled out by HISP Bank, the rate of simple interest on the sum of
money is 8% pa for the first two years, 10% pa for the next three years and 6% pa for the
period beyond the first five years. The simple interest accrued on a sum for a period of eight
years is Rs. 12,800. Find the sum
A. Rs. 24000 B. Rs. 16000 C. Rs. 15000
D. Rs. 13500 E. None of these

9. A certain sum of money amounts to Rs. 720 in 2 years and ₹870 in 4.5 years. Find the
sum and the rate of interest.
A. Rs. 600, 10% B. Rs. 600, 12% C. Rs. 620, 12%
D. Rs. 660, 12% E. None of these

10. Rs. 16000 was invested for three years, partly in scheme A at the rate of 5% simple
interest per annum and partly in scheme B at the rate of 8% simple interest per annum. The
total interest received at the end was Rs. 3480. What amount of money was invested in
scheme A?

A. Rs. 6000 B. Rs. 6500 C. Rs. 4500

D. Rs. 4000 E. Rs. 8000
Correct Answers:

1 2 3 4 5 6 7 8 9 10
D C C D A D C E A D

Explanations:

1. When we solve this question, we find that we have two variables P (Principal) and R (Initial assumed rate of
interest) in the R.H.S. of the SI equation. Therefore, the correct answer can't be determined.

2. According to the question,

SI for first 5 yrs = Rs 200
SI for next 5 yrs = Rs 200 × 3 = Rs 600
∴ Total SI for 10 yr = Rs. (200 + 600) = Rs. 800.
When principal is trebled, then SI for 5 yr will also be treble and hence SI for next 5 yr will be Rs. (200 × 3) = Rs.
600
Hence, option C is correct.

3. According to the formula,

100 (n – 1)
Rate =
T

100 (9 – 1) 800
= = = 40%
20 20
∴ 10 times of 40% = 400%
Hence, option C is correct.

4. Method I:
Given, R1 = 5%, n = 6, m = 12
According to the formula,
m–1
R2 = × R1
n–1

12 – 1 11
= × 5 = × 5 = 111%
6–1 5

Method II:
SI at 5% = 6P – P = 5P
P×5×T
∴ 5P =
100

⇒ T = 100 yr
Now, for new rate (R),

P × R × 100
11P =
100
∴ R = 11%
Hence, option D is correct.

5. Let the savings be P and Q and rates of SI be 10x and 8x, respectively.

1 1 1 1
Then, P × 10x × × = Q × 8x × ×
2 100 2 100
⇒ 10P = 80
P 8 4
∴ = =
Q 10 5

∴ P : Q = 4 : 5.
Hence, option A is correct.

6. SI = 8964 and T = 6 yrs, P = 12450

8964 × 100
Then, rate = = 12%
12450 × 6
Hence, option D is correct.

7. Given that
Simple interest for 10 years = Rs. 600
Therefore, SI for 1 year = Rs. 60
Therefore, SI for 5 years = Rs. 300
Now, if the principal is trebled, the interest will also be trebled.
Therefore, SI for next 5 years = Rs. 300 × 3 = Rs. 900
Hence, total interest after 10 years = 300 + 900 = Rs. 1200
Hence, option C is correct.

8. Total rate of interest = (2 × 8 + 3 × 10 + 3 × 6)%

= (16 + 30 + 18)% = 64%
Let the sum be x, then
∴ 64% of x = 12800

12800 × 100
x= = 20000/-
64
Hence, option E is correct.

9. Let the sum be P; the rate of interest be R.

Then, Amount = P + SI

P×R×2
720 = P + ... (i)
100
 P × R × 4.5
870 = P + ...(ii)
100
Eq. (ii) – (i),

2.5PR
= 150
100

⇒ PR = 6000 ...(iii)

Now, from eq (i),

6000 × 2
720 = P +
100

⇒ P = 720 – 120 = Rs. 600

From eq. (iii),
600 × R = 6000
⇒ R = 10%
Hence, option A is correct.

10. Let the sum invested in scheme A be Rs. x.

Then the amount invested in scheme B = Rs. (16000 – x)

x × 5 × 3 (16000 – x) × 3 × 8
Now, + = 3480
100 100

⇒ 15x + 384000 – 24x = 3480 × 100

⇒ 9x = 384000 – 348000 = 36000
36000
∴ x= = Rs. 4000
9
Hence, option D is correct.