This page is all about important questions related to Simple Interest. These questions are important because they are previously asked in the competition exams like SSC, CAT, NDA etc, so make sure you invest some time to solve each of the questions.

In order to solve these problems you should have clear understanding of the concept of simple interest. I strongly suggest you to read the theory first and then try your hands in these questions

## Simple Interest MCQ

### (01) Arun lends Rs. 20,000 to two of his friends. He gives Rs. 12,000 to the first at 8% p.a. simple interest. Arun wants to make a profit of 10% on the whole. The simple interest rate at which he should lend the remaining sum of money to the second friend is:

a. 10%

b. 11%

c. 12%

d. 13%

Sol: Desired gain on Rs. 20,000 = 20,000 × 10/100 = Rs. 2000

SI on Rs. 8000 = Rs. (2000 – 960) = Rs. 1040

**D is the right answer**

### (02) . A person invests Rs. 12,000 as fixed deposit at a bank at the rate of 10% per annum simple interest. But due to some pressing needs he has to withdraw the entire money after 3 years, for which the bank allowed him a lower rate of interest. If he gets Rs. 3320 less than what he would have got at the end of 5 years, the rate of interest allowed by the bank is:

a. 4%

b. 5%

c. 7%

d. 10%

Interest received by person after 3 years = Rs. (6000 – 3320) = Rs. 2680

Required rate = (2680 / 12000) × (100 / 3) = 67/9 = 7%**C is the right answer**

### (03) The simple interest on Rs. 4,000 in 3 years at the rate of x% per annum equals the simple interest on Rs. 5,000 at the rate of 12% per annum in 2 years. The value of x is

a. 10%

b. 8%

c. 12%

d. 9%

**A is the right answer**

### (04) Nitin borrowed some money at the rate of 6% p.a. for the first three years, 9% p.a. for the next five years and 13% p.a. for the period beyond eight years. If the total interest paid by him at the end of eleven years is Rs. 8,160, the money borrowed by him (in Rs.):

a. Rs. 5000

b. Rs. 8000

c. Rs. 6000

d. Rs. 3000

Sol: Let the money borrowed be P

18P + 45P + 39P = 816000

P = 816000 / 102 = Rs. 8000

**B is the right answer**

### (05) A sum of Rs. 7,930 is divided into 3 parts and given at loan at 5% simple interest to A, B and C for 2, 3 and 4 years respectively. If the amounts of all three are equal after their respective periods of loan, then the A received a loan of:

a. Rs. 2760

b. Rs. 2000

c. Rs. 1540

d. Rs 3180

110A = 115B = 120C

22A = 23B = 24C

Ratio of amount = 276 : 264 : 253

A’s loan = ( 276 / 793 ) × 7930 = Rs. 2760

**Option A is the right answer**

### (06)The time required for a sum of money to amount to four times itself at 15% simple interest p.a. will be:

a. 5 Years

b. 10 Years

c. 15 Years

d. 20 Years

Sol: A = 4P

SI = 4P – P = 3P

**Option D is the right answer**

### 07) A man buys a TV priced at 16000. He pays 4000 at once and the rest after 15 months on which he charges a simple interest at the rate of 12% per year. The total amount he pays for the TV is:

a. Rs. 17,600

b. Rs. 17,800

c. Rs. 17,400

d. Rs. 17,200

With SI, total amount to be paid for amount Rs. 12000

= Rs. (12000 + 1800) = Rs. 13800

Total amount he paid = Rs. ( 4000 + 13800 ) = Rs. 17,800

**Option B is the right answer**

### (08) Dutta desired to deposit his retirement benefit of Rs. 3 lacs partly to a post office and partly to bank at 10% and 6% interests respectively. If his monthly interest income was Rs. 2000, then the difference of his deposits in the post office and in the bank was:

a. Rs. 800

b. Rs. 1500

c. Rs 0

d. Rs. 1800

Sol: 10% of 3 lacs = Rs. 30,000

6% of 3 lacs = Rs. 18,000

1 month interest income = Rs. 2000

1 year interest income = Rs. (2000 × 12) = Rs. 24,000

Profit of bank = 24,000 – 18,000 = Rs. 6,000

Profit of Post Office = 30,000 – 24,000 = Rs. 6,000

Ratio of Profit = 6000 : 6000 = 1 : 1

So, amount deposited = Rs. 1,50,000 each Difference = 0

**Option C is the right answer**

### (09) A boy aged 12 years is left with Rs. 100,000 which is under a trust. The trustees invest the money at 6% per annum and pay the minor boy a sum of Rs. 2,500, for his pocket money at the end of each year. The expenses of trust come out to be Rs. 500 per annum. Find the amount that will be handed over to the minor boy after he attains the age of 18 years

a. Rs. 1,18,000

b. Rs. 2,00,000

c. Rs. 1,35,000

d. Rs. 2,40,000

Total expenses = Rs. (2500 + 500) = Rs. 3,000

Total expenses in 6 years = Rs. (3,000 × 6) = Rs. 18,000

Amount obtained = Rs. (1,36,000 – 18,000) = Rs. 1,18,000

**Option A is the right answer**

### (10) The simple interest on a sum of money for 3 years is Rs. 240 and the compound interest on the same sum, at the same rate for 2 years is Rs. 170. The rate of interest is:

a. 8.%

b. 9%

c. 14%

d. 12.5%

SI for 2 years = 240/3 × 2 = Rs. 160

PR = 8000 ……….. (i)

CI – SI = 170 – 160 = Rs. 10

Difference = PR² / 10000

**Option D is the right answer**