Quantitative Aptitude Questions and Answers section on “Simple Interest” with solution and explanation for competitive examinations such as CAT, MBA, SSC, Bank PO, Bank Clerical and other examinations.

# Simple Interest

A sum of money lent at simple interest amount to Rs. 880 in 2 years and to Rs. 920 in 3 years. The sum of money (in rupees) is :

[A]784

[B]800

[C]700

[D]760

**800**

If the principal be x and rate of interest be r % per annum then,

SI after 1 year = 920 – 880 = Rs. 40

∴ after 2 year = Rs. 80

Hence option [B] is the right answer.

A man took a loan from a bank at the rate of 12% per annum at simple interest. After 3 years he had to pay Rs. 5400 as interest only for the period. The principle amount borrowed by him was:

[A]2000

[B]10000

[C]15000

[D]20000

**15000**

Let the principal be x.

Hence option [C] is the right answer.

A lends Rs. 2500 to B and certain sum to C at the same time at 7% annual simple interest. If after 4 years, A altogether receives Rs. 1120 as interest from B and C, the sum lent to C is :

[A]6500

[B]1500

[C]4000

[D]700

**1500**

Let the sum lent to C be x

According to the question,

Hence option [B] is the right answer.

Rs. 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the sum of the interest on both the sum after 4 years is Rs. 480, the latter sum of money is :

[A]550

[B]450

[C]750

[D]600

**600**

Simple interest gained from Rs. 500 =

Let the other principal be x.

S.I. gained = Rs. (480 – 240) = Rs. 240

Hence option [D] is the right answer.

At some rate of simple interest, A lent Rs. 6000 to B for 2 years and Rs. 1500 to C for 4 years and received Rs. 900 as interest from both of them together. The rate of interest per annum was:

[A]5%

[B]10%

[C]6%

[D]8%

**5%**

If rate of interest be R% p.a. then,

5%

Hence option [A] is the right answer.

What sum will amount to 7000 Rs. In 5 years at simple interest?

[A]5000 Rs.

[B]6300 Rs.

[C]6000 Rs.

[D]6500 Rs.

**6000 Rs.**

Hence option [C] is the right answer.

A sum of 1600 Rs. gives a simple interest of 252 Rs. in 2 years and 3 months. The rate of the interest per annum is :

[A]

[B]

[C]

[D]

Principal = 1600 Rs.

T = 2 years 3 months

S.I = 252 Rs.

R = % rate of interest per annum

Rate of interest = 7% per annum

Hence option [C] is the right answer.

A lent 5000 Rs. to B for 2 years and 3000 Rs. to C for 4 years on simple interest at the same rate of interest and received 2200 Rs. in all from both as interest. The rate of interest per annum is :

[A]

[B]10%

[C]7%

[D]5%

**10%**

Let the rate of the interest per annum be r%

According to the question,

Hence option [B] is the right answer.

What sum of money will amount to 520 Rs. in 5 years and to 568 Rs. in 7 years at simple interest?

[A]220 Rs.

[B]400 Rs.

[C]120 Rs.

[D]510 Rs.

**400 Rs.**

Simple interest for 2 years = (568 – 520) Rs. = 48 Rs.

∴ Interest for 5 years =

Principal = (520 – 120) = 400 Rs.

Hence option [B] is the right answer.

A money lender finds that due to fall in the annual rate of interest to , his yearly income diminishes by 61.50 Rs. His capital is:

[A]23800 Rs.

[B]26000 Rs.

[C]22400 Rs.

[D]24600 Rs.

**24600 Rs.**

Difference in rate =

Let the capital be rate x Rs.

Hence option [D] is the right answer.