Q1. A total of Rs.1200 is deposited in two savings accounts for one year, part at 5% and the remainder at 7%.

If
Rs.72 was earned in interest, how much was deposited at 5%?
(A) 410
(B) 520
(C) 600
(D) 650
A1.c
Let x be the amount deposited at 5%. Then 1200 – x is the amount deposited at 7%. The interest on these
investments is .05x and .07(1200 – x). Since the total interest is $72, we get
.05x + .07(1200 – x) = 72
.05x + 84 – .07x = 72
–.02x + 84 = 72
–.02x = –12
x = 600 Rs.

Q2. Find the simple interest on Rs. 5000 at 6 % per annum for the period from 5th Feb., 2012 to 20th April, 2012.
(A) 54.67
(B) 61.64
(C) 67.80
(D) None of these
A2. B
S.I. = PRT/100
Time = (24+31+20) days = 75 days = 75/365 years = 15/73 years.
P = Rs.5000 and R = 6 % p.a
S.I. = Rs.(5,000*6*(15/73)*(1/100))= Rs.61.64

Remark : The day on which money is deposited is not counted while the day on which money is withdrawn is
counted .

Q3. A sum of Rs. 1000 amounts to Rs. 1120 in 3 years at simple interest? Find the rate percent per annum?
(A) 7
(B) 6
(C) 4
(D) 5
A3. C
S.I. = PRT/100
A = P + S.I.
S.l. = Rs. (1120 - 1000) = Rs. 120; p = Rs. 1000, T = 3 yrs.
R = ((100 x 120) / (1000*3) ) % = 4%.

Q4. Munish borrowed some money at the rate of 5% p.a. for the first two years, at the rate of 7% p.a. for the next
four years, and at the rate of 12% p.a. for the period beyond six years. If he pays a total interest of Rs. 34, 400 at
the end of ten years how much money did he borrow?
(A) 75,000
(B) 60,000
(C) 44,000
(D) 40,000
A4. D
Let the sum borrowed be x. Then,
(x*5*2)/100 + (x*7*4)/100 + (x*12*4)/100 = 34400
(10x/100) + (28x/100) + (48x / 100) = 86x/100 = 34400
x = (34400*100)/86 = 400*100 = 40,000
Hence, sum borrowed = Rs.40,000
Q5. At what rate percent per annum will a sum of money triple in 25 years?
(A) 6
(B) 9
(C) 8
(D) 4
A5. C
Let principal = P. A = 3P
Then, S.l. = A – P = 2P and T = 25 yrs.
Rate = (100 x 2P) / (P*25) % = 8 % p.a.

Q6. A sum was put at simple interest at a certain rate for 4 years. Had it been put at 3% higher rate, it would have
fetched Rs. 480 more. Find the sum.
(A) 6000
(B) 4000
(C) 8000
(D) 4500
A6. B
Let sum = P and original rate = R.
Then, [ (P*(R+3)*4)/100] – [ (P*R*4)/100] = 480.
4PR + 12P - 4PR = 48000
12P=48000
P=4000
Hence, sum = Rs. 4000.

Q7. A sum of Rs.2000 is lent out into two parts, one at 6% and another one at 4%. If the total annual income is Rs.
100, find the money lent at each rate.
(A) 1200,800
(B) 1000, 1000
(C) 600, 1400
(D) None of these
A7. B
Let the sum lent at 6% be Rs. x and that at 4% be Rs. (2000 - x).
((x*6*1)/100) + ((2000-x)*4*1)/100=100
6x + 8000 –4x=10000
2x = 2000
x = 1000.
Money lent at 8% = Rs. 1000. Money lent at 6% = Rs. (2000 - 100) = Rs. 1000

Q8. In what time RS.5000/- give RS.1500/-as SI at the rate of 12%?

(A) 2.5
(B) 3
(C) 5
(D) 6.5
A8. A
S.I = PNR/100
P – Principal amount, N- Number of years, R – Rate of Interest Time = Number of years (N)

Given :
S.I. = Rs. 1500/-
P = Rs. 5000/-
R = 12%
To find time (Number of years (N))
1500 = (5000*12*N)/100
N = 150000/(5000*12)
N = 2.5 years

Q9. If Rs.700/- amount to Rs.16800/- in 5 years SI. If the rate of interest is increased by 5%. It would amount to
how much?
(A) 12000
(B) 17500
(C) 16975
(D) 17100
A9. C
Short cut method:
First we are calculating it for 100 rupees
100 : 5 X 5 = 25 (NXR)
700 : 25 X 7 = 175
Given amount + S,I = Rs. 16800 + 175 = 16975
Therefore the amount = Rs. 16975/-

Q10. A principal amount to RS.8500/- in 4 years and Rs.9500/- in 5 years what is the rate of interest?
(A) 25
(B) 30
(C) 22.22
(D) 23.14
A10. C
S.I = PNR/100
Amount = Principal + S.I

S.I for one Year = Rs.1000 = (9500 – 8500)

S.I for 4 years = Rs.4000
Principal = Amount – S.I
= 8500 – 4000
= 4500

R = (SI X 100)/PN
= (4000 x 100) / (4500*4)
= 22.22 %

Q11. Rahul invested a certain sum of money at 8% p.a. simple interest for 'n' years. At the end of 'n' years, Rahul
got back 4 times his original investment. What is the value of n?
A. 50 years
B. 25 years
C. 12 years 6 months
D. 37 years 6 months
A11. D
Let us say Rahul invested Rs.100.

Then, at the end of 'n' years he would have got back Rs.400.

Therefore, the Simple Interest earned = 400 - 100 = Rs.300.

We know that Simple Interest = 

Substituting the values in the above equation we get 300 =   

Or 8n = 300

Or n = 37.5 years.

Q12. Harsha invested a certain sum of money in a simple interest bond whose value grew to Rs.300 at the end of 3
years and to Rs. 400 at the end of another 5 years. What was the rate of interest in which he invested his sum?

A. 12%
B. 8.33%
C. 6.67%
D. 6.25%
A12. B
Initial amount invested = Rs. X
Amount at the end of year 3 = Rs. 300
Amount at the end of year 8 (another 5 years) = Rs.400
Therefore, the interest earned for the 5 year period between the 3rd year and 8th year = Rs.400 - Rs.300 = Rs.100
As the simple interest earned for a period of 5 years is Rs. 100, interest earned per year = Rs.20.
Therefore, interest earned for 3 years = 3 * 20 = Rs. 60.
Hence, initial amount invested X = Amount after 3 years - interest for 3 years
= 300 - 60 = Rs. 240.

Rate of interest =   =   = 8.33%

Q13. Surbhi invested a certain sum of money in a bank that paid simple interest. The amount grew to Rs.240 at the
end of 2 years. She waited for another 3 years and got a final amount of Rs.300. What was the principal amount
that she invested at the beginning?

A. Rs. 200
B. Rs. 150
C. Rs. 210
D. Rs. 175
A13.
The sum grew to Rs.240 at the end of 2 years.
At the end of another 3 years, the sum grew to Rs. 300
i.e. in 3 years, the sum grew by Rs. 60
Therefore, each year, it grew by Rs. 20
Sum at the end of 2 years = Rs. 240
Sum grew by Rs. 20 each year
Hence, in the first 2 years, sum grew by 2 * 20 = Rs. 40
Therefore, sum at the beginning of the period = Sum at the end of 2 years - Rs.40 = Rs. 240 - Rs. 40 = Rs. 200.

Q14. A Principal amount gives Rs.15000/- as SI for 8 years at the rate of 14%, to get the same amount of interest
for 14 years, what will be the rate of interest?
A. 8%
B. 6%
C. 7%
D. 4.5%
A14. A
Basic Formula:
S.I = PNR/100

Results:
Number of years in Part (i) = Rate of interest in Part (ii)
Rate of interest is part (i) = Number of years in part (ii)

We split the given problem into 2 parts

Part (i)
Given P = 15000, N = 8, R = 14
Part (ii)
Given P = 15000, N = 14,
Using the results (in the formula),
R = 8%

Q15. Mr. A. give Rs.1600/- to Mr. X for 3 years and Rs.1000/- to Mr. Y for 16 years. If the rate of interest is the
same and Mr. A received Rs.2080/- from both Mr. X and Mr. Y what is the rate of SI ?
A. 8%
B. 9%
C. 12%
D. 10%
A15. D
S.I = PNR/100

Given:
For X, P = 1600, N = 3
For Y, P = 1000, N= 16
S.I = Rs. 2080 (For X and Y)

(1600X 3XR) / 100 + (1000X16XR)/100 = 2080

48R + 160R = 2080
208R = 2080
R = 2080 / 208
R = 10%
Rate of interest of SI = 10%

Q16. A sum of money becomes double in 20 years. What is the rate of interest?
A. 4%
B. 5%
C. 11%
D. 6%
A16. B
S.I = PNR/100

Given : N = 20
Let the sum be P, Amount = 2P,
Then S.I = A – P = 2P – P = P

S.I = PNR / 100

P = PNR/100
P = (P x 20 x R) / 100
Rate of Interest = 5%
Q17. A person borrows Rs. 6000 for 3 years at 4% p.a. simple interest. He immediately lends it to another person
at 6 % p.a. for 3 years. Find his gain in the transaction per year.
(A) 300
(B) 400
(C) 180
(D) 500
A17.
We split the given problem into 2 parts

Part (i)
Given P = Rs. 6000, N=3, R = 4%
S.I = (6000 X 3 X 4) / 100 = 720
S.I = 720

Part (ii)
Given P = Rs. 6000, N=3, R = 6 %
S.I = (6000X 3X 6) / 100 = 1080

Gain = 1080 -720 = 360 for 2 years

Gain for one year = Rs. 180

Q18. How much time will it take for an sum of Rs.600 to yield Rs.30 as interest at 5% p.a. of simple interest?
a)
3.5 years
b)
1 year
c)
4.5 years
d) 5 years
A18. b
S.I = PNR / 100
P=600, S.I = 30, R = 5%

N = (S.I.*100) / (PR)
= (30*100) / (600*5)
= 1 year

Q19. What will be the difference between simple and compound interest at 10% per annum on a sum of Rs.1000
after 4 years?
(A) Rs. 30
(B) Rs. 65
(C) Rs. 64.1
(D) Rs. 50
A19. C
S.I = PNR / 100

C.I = P [1 +(R/100)]N - P

1. S.I = (1000*4*10) / 100 = 400 Rs.

2. C.I. = P [1 +(R/100)]N - P
= 1000 [1 +(10/100)]4 - 1000
1000 (11/10)4- 1000
= 1464.1 – 1000 = 464.1

C.I. – S.I. = 464.1 – 400 = Rs. 64.1

Q20. What will be the ratio of simple interest earned by certain amount at the same rate of interest for 5 years and
that for 15 Years?
a)
1:2
b)
2 :3
c)
3:4
d)
None of these

A20. d
Let P = Principal, R- Rate of interest
Case (i)
N=5
S.I. = (P X 5 X R) / 100 ------------------------------1

Case (ii)
N = 15
S.I. = (P X 15 X R) / 100 ------------------------------2

Divide eqn 1 by 2

Ratio =[ (P X 5 X R) / 100] / [(P X 15 X R) / 100]

= 5PR / 15PR
=1:3

Q21. If the sum of money doubles in 10 years. It will become 4 times in how many years?
a)
20 years
b)
30 years
c)
40 years
d)
50 years
A21. b
S.I = PNR/100

Given : N = 10
Let the sum be P, Amount = 2P
Then S.I = A – P = 2P – P = P

S.I = PNR / 100

P = PNR/100
P = (P x 10 x R) / 100
Rate of Interest = 10%

Case ii

Let the sum be P, Amount = 4P, R = 10%

Then S.I = A – P = 4P – P = 3P

S.I = PNR / 100

3P = PNR/100
3P = (P x N x 10) / 100
Time = 30 years
Q22. If C.I on a certain sum for 2 yrs at 12% per annum is Rs.1590. What would be S.I?
a)
Rs. 1200
b)
Rs. 1500
c)
Rs. 1300
d)
Rs. 1400
A22. b
C.I. = Amount-Principle
Let P be X
C.I=X [1+(12/100)]² - X
=> (784X/625) - X=1590
=>X=Rs.6250
S.I = (6250*12*2)/100=Rs.1500

Q23. A sum of money doubles itself at C.I. in 20 years. In how many years will it become sixteen times?
a)
20 years
b)
100 years
c)
60 years
d)
80 years
A23. C

A = P(1+R/100)20
2P =P (1+R/100) 20 ; 2 = (1+R/100)20
If A = 16P
16P = P(1+R/100)n
24 = ( 1+R/100)
[(1+R/100) 15]4 = (1+R/100)n
n = 4*15
It will take a period of 60 years.

Q24. What will be the difference between S.I and C.I on a sum of Rs. 5000 put for 2 years at 10% per annum?
(A) Rs. 30
(B) Rs. 55
(C) Rs. 56
(D) Rs. 50
A24. D
Shortcut method
C.I – S.I = P (R/100)2
= 5000(10/100)2 = Rs. 50
Difference = Rs. 50

Q25. What will be the C.I on Rs. 18000 for 2½ years at 4% per annum?
(A) Rs. 3000
(B) Rs. 2000
(C) Rs. 1858.18
(D) Rs. 1700.94
A25. C
A = P(1+R/100)n
A = 18000 [(1+4/100)2 ( 1+(4*1/2) / 100)]
= 19858.18
C.I = A – P
C.I = 19858.18 – 18000 = Rs. 1858.18
Q26. A man borrowed Rs.900 at 10 % per annum S.I and immediately lent the whole sum at 10% per annum C.I,
what does he gain at the end of 2yrs?
(A) Rs. 9
(B) Rs. 20
(C) Rs. 10
(D) Rs. 17
A26. A
C.I.=Rs.[900[1+(10/100)]²- 900]=Rs.189
S.I=Rs.[900*10*2/100]=Rs.180
Gain=C.I - S.I=Rs(189-180)
=Rs.9

Q27. Divide Rs. 1500 between A and B, so that the amount of A after 4 years is equal to the amount of B after 6
years, the interest being compounded at 5% per annum.
(A) 776.5, 723.5
(B) 1100,400
(C) 786.5, 713.5
(D) 850, 650
A27. C
Sol. Let the two parts be Rs. x and Rs. (1500 - x).
x(1+5/100)4 =(1500-x)(1+5/100)6
x/(1500-x)= (1+5/100)2 =(21/20*21/20)
400x=441(1500-x)
841x=441*1500
x=786.5
So, the parts are Rs. 786.5 and (1500 – 786.5) Rs.(713.5)

Q28. A man earns Rs. 480 as an interest in 3 years on a certain sum invested with a company at the rate of 10%
per annum. Find the sum invested.
(A) Rs. 1500
(B) Rs. 1200
(C) Rs. 1600
(D) Rs. 1100
A28. C
P = I*100/R*N
= 480*100/10*3
Principal = Rs. 1600

Q29. Ram borrowed certain money at a certain rate of S.I. After 4 years, he had to pay back twice the amount that
he had borrowed. What was the rate of interest?
A. 34%
B. 25%
C. 11%
D. 26%
A29. B
A = 2P
I = A – P = 2P – P = P
P = PNR/100
R = 100/N = 100/4 = 25%

Q30. In simple interest what sum amounts to Rs. 1200 in 3 years and Rs. 1400 in 4 years?
(A) Rs. 600
(B) Rs. 800
(C) Rs. 1000
(D) Rs. 1200
A30. A
Interest for 1 year = 1400 – 1200 = Rs. 200
Interest for 3 years = 200*3 = 600
A = 1200
P = A – P = 1200 – 600
The Principal is Rs. 600