Simple Interest Word Problems and Question with Solutions PDF

Simple Interest :  

When we need money, we borrow money from individuals or banks or finance companies. At the time of returning the money, we have to pay some additional money for the benefit of using the money borrowed for a specified period.

 Principal is the sum of money borrowed.

Interest is the additional money to be given.

 Amount = Principal + Interest

 A = P + I

Formula for Simple Interest :   Let p  be the principal r  be the rate of interest   n  be the number of years   Simple Interest =   p  x  r  x  n       100

Unitary Method :  

Example : Let the cost of 5 books be Rs. 50. We have to find the cost of 10 books. From the cost of 5 books, we find the cost of one book and then we find the cost of 10 books.  

The cost of 5 books = Rs. 50  

∴ The cost of 1 book = 50 / 5   =  Rs. 10  

∴  The cost of 10 books = 10 × 10 = Rs. 100  

The above process of finding the cost of 10 books is known as unitary method.  Thus the unitary method is a process in which we find the value of the required quantity by converting the given quantity into one unit.  We use unitary method to calculate the simple interest . 

1. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:

1. A. 1     
2. B. 1.5      
3. C. 2        Correct Answer
4. D. 2.5      
5. E. 3      

2.  

    

   The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2 years is Rs. 96. What is the rate of interest per annum?

1. A. 6%     
2. B. 7%      
3. C. 8%        Correct Answer
4. D. 9%      
5. E. 12%      

3.  

    

   The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half-yearly is:

1. A. 6.07%     
2. B. 6.08%      
3. C. 6.06%      
4. D. 6.09%        Correct Answer
5. E. 6.10%      

4.  

    

   The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple interest on the same sum for double the time at half the rate percent per annum is:

1. A. Rs.400       Correct Answer
2. B. Rs.450      
3. C. Rs.500      
4. D. Rs.550      
5. E. Rs.600      

5.  

    

   The compound interest on a sum for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound and simple interest for 3 years will be

1. A. Rs.48     
2. B. Rs.66.56      
3. C. Rs.98.56      
4. D. Can’t be determined        Correct Answer
5. E. None of these      

6.  

    

   A sum of money doubles itself at(c) I in 15 years. In how many years will it become eight times?

1. A. 30 years     
2. B. 45 years        Correct Answer
3. C. 60 years      
4. D. 75 years      
5. E. 55 years      

7.  

    

   A certain amount of money is invested at the simple interest of 15% per annum. If it had been invested at compound interest, an extra interest of Rs. 450 would have been obtained in the obtained in the second year. What must be the amount invested?

1. A. Rs. 30,000     
2. B. Rs. 15,000      
3. C. Rs. 20,000        Correct Answer
4. D. Rs. 10,000      
5. E. Rs.14,000      

8.  

    

   Find the amount paid by a borrower after 3 years, if he has taken a loan of Rs. 5000 at 10% per annum, simple interest.

1. A. Rs. 6000     
2. B. Rs. 6500        Correct Answer
3. C. Rs. 5500      
4. D. Rs. 6750      
5. E. None of these      

9.  

    

   Find the amount of money that Abha should lend at 15% p.a If she wants to earn an interest of Rs. 675 in 2(1 / 2) years.

1. A. Rs. 2000     
2. B. Rs. 1850      
3. C. Rs. 1800        Correct Answer
4. D. Rs. 2010      
5. E. None of these      

10.  

     

    A sum of money amounts to Rs. 1650 in two years and to Rs. 1875 in five years. Find the principal and rate of simple interest.

1. A. P=1500, r=5%       Correct Answer
2. B. P=2000, r=5%      
3. C. P=1000, r=4%      
4. D. Cannot be determined      
5. E. None of these      

11.  

     

    A certain sum of money amounts to Rs. 15,500 in 2 years at simple rate of interest of 12% p.a. Find the principal.

1. A. Rs. 13000     
2. B. Rs. 12500        Correct Answer
3. C. Rs. 14000      
4. D. Rs. 15000      
5. E. None of these      

12.  

     

    A sum of money doubles itself in 6 years. In how many years will it becomes 6 times at the same rate of simple interest?

1. A. 20 years     
2. B. 25 years      
3. C. 15 years      
4. D. 30 years        Correct Answer
5. E. None of these      

13.  

     

    Abhishek lent Rs. 10500, partly to Shahid at 10% p.a. S.I and partly to John, at 15% p.a., S.I. If at the end of 5 years, total amount received by Abhishek, from both, was equal to Rs. 17375, then find the amount of money lent to Shahid.

1. A. Rs. 6000     
2. B. Rs. 6500      
3. C. Rs. 5500      
4. D. Rs. 4000        Correct Answer
5. E. None of these      

14.  

     

    Sachin would have paid Rs. 5280, at the end of 4 years, for a sum of money borrowed, at rate of 8% p.a. S.I. If he wants to repay his loan an year before it was due, then what is the amount paid by him?

1. A. Rs. 5060     
2. B. Rs. 4960        Correct Answer
3. C. Rs. 4760      
4. D. Rs. 4670      

15.  

     

    Vishwas borrowed a total amount of Rs. 30000 part of it on simple interest rate of 12 p.c.p.a. and remaining on simple interest rate of 10 p.c.p.c. If at the end of 2 years he paid in all Rs. 36480 to settle the loan amount, what was the amount borrowed at 12 p.c.p.a?

1. A. Rs. 16000     
2. B. Rs. 18000      
3. C. Rs. 17500      
4. D. Rs. 12000        Correct Answer
5. E. None of these      

16.  

     

    Veena obtained an amount of Rs. 8376 as simple interest on a certain amount at 8 p.c.p.a. after 6 years. What is the amount invested by Veena?

1. A. Rs. 17180     
2. B. Rs. 18110      
3. C. Rs. 16660      
4. D. Rs. 17450        Correct Answer
5. E. None of these      

17.  

     

    If the simple interest for 6 years be equal to 30% of the principal, then it will be equal to the principal after

1. A. 20 years       Correct Answer
2. B. 30 years      
3. C. 10 years      
4. D. 22 years      
5. E. None of these      

18.  

     

    Jackie invested Rs. 12000 in a bank at 15% p.a., C.I. He pays 40% of his income from interest to a charitable trust every year. How much money does Jackie have after 4 years ?

1. A. Rs. 16583.16     
2. B. Rs. 15683.6      
3. C. Rs. 16843      
4. D. None of these        Correct Answer
5. E. Cannot be determined      

19.  

     

    A mobile phone can be purchased on cash payment of Rs. 7500. The same phone can also be purchased by making a down payment of Rs. 1750 and rest can be paid in 3 equal installments of Rs. 2000 each for next 3 months. The rate of simple interest charged by the shopkeeper is

1. A. 23.67%     
2. B. 19.67%      
3. C. 17.67%      
4. D. None of these        Correct Answer
5. E. 16.27%      

20.  

     

    C.I and S.I on a certain amount of money for 2 years is Rs. 525 and Rs. 500 respectively. If the amount is invested such that S.I is Rs. 4050 while no. of years is double the rate per cent per annum, then find the time (in years) –

1. A. 16 years     
2. B. 18 years        Correct Answer
3. C. 20 years      
4. D. None of these      
5. E. 24 years      

21.  

     

    Abhimanyu deposited RS. 55935 in each of the two banks for 5 years. On one he got 20% p.a. S.I while on the other he got 20% C.I p.a By how much % is the CI greater than the SI for the given period?

1. A. 38%     
2. B. 48.8%        Correct Answer
3. C. 52%      
4. D. 40%      
5. E. None of these      

22.  

     

    A car depreciates at a certain rate. The current value of the car is estimated to be Rs. 32.768. Also, the ratio of decrease in the value for 4 year and 5 year is 5 : 4. Find the value of the car 5 years ago.

1. A. Rs. 1,00,000       Correct Answer
2. B. Rs. 1,50,000      
3. C. Rs. 2,00,000      
4. D. None of these      
5. E. Cannot be determined      

23.  

     

    Basanti took a loan of Rs. 12,500 at 10% p.a. compounded annually, which is to be repaid in 3 equal installments, paid at the end of each year for 3 years. Find the value of each installment.

1. A. Rs. 2056.4     
2. B. Rs. 5026.4        Correct Answer
3. C. Rs.4620.4      
4. D. Rs.6002.4      
5. E. None of these      

24.  

     

    A certain sum of money lent out at simple interest amounts to Rs. 1380 in 3 years and Rs. 1500 in 5 years. Find the rate per cent, per annum.

1. A. 3     
2. B. 3.5      
3. C. 4      
4. D. 5        Correct Answer
5. E. None of these      

25.  

     

    The simple interest on a sum of money is 1/16 of the sum. If the number of years is numerically equal to the rate percent per annum, then the rate percent per annum is

1. A. 3(1 / 3)     
2. B. 6(2 / 3)      
3. C. 2(1 / 2)        Correct Answer
4. D. 7(1 / 2)      
5. E. None of these      

26.  

     

    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

1. A. z = xy     
2. B. xyz = 1      
3. C. x = yz      
4. D. y = zx        Correct Answer
5. E. None of these      

27.  

     

    The difference between the interest received from two different banks on Rs. 500 for 2 years is Rs. 2.50. The difference between their rate is:

1. A. 0.5%     
2. B. 2.5%      
3. C. 0.25%        Correct Answer
4. D. 1%      
5. E. None of these      

28.  

     

    Rs. 58,750 amounts to Rs. 79,900 in four years at simple interest. What is the rate of interest paid?

1. A. 14     
2. B. 13      
3. C. 12      
4. D. 16      
5. E. 9        Correct Answer

29.  

     

    How much will a sum of Rs.12,0007 deposited at a rate of 9% per annum (simple interest)for 13 years amount to ?

1. A. Rs. 14,040     
2. B. Rs.20,650      
3. C. Rs.13,404      
4. D. Rs.27,800      
5. E. Rs.26,040        Correct Answer

30.  

     

    The simple interest accrued in 2 years on a principal of Rs.24000 is one-eighth of the principal. What is the rate of simple interest p.c.p.a?

1. A. 5     
2. B. 4.5      
3. C. 6.25        Correct Answer
4. D. 7.25      
5. E. None of these      

31.  

     

    Mr.Phanse invests an amount of Rs.24,200 at the rate of 4 p.c.p.a for 6 years to obtain a simple interest. Later he invests the principal amount as well as the amount obtained as simple interest for another 4 years at the same rate of interest. What amount of simple interest will he obtain as the end of the last 4 years?

1. A. Rs. 4,800     
2. B. Rs. 4,850.32      
3. C. Rs. 4,801.28        Correct Answer
4. D. Rs. 4,700      
5. E. None of these      

32.  

     

    In how many years will Rs. 4400 amount to Rs. 5984 at 4 p.c.p.a simple interest?

1. A. 9       Correct Answer
2. B. 6      
3. C. 8      
4. D. 7      
5. E. None of these      

33.  

     

    What would be the compound interest obtained on an amount of Rs. 7,790 at the rate of 10 p.c.p.a. after two years?

1. A. Rs.1532.60     
2. B. Rs.1495.90      
3. C. Rs.1653.50      
4. D. Rs.1635.90        Correct Answer
5. E. None of these      

34.  

     

    What is the difference between the simple and compound interest earned from a sum of Rs.13,033 at a rate of 13 percent per annum for a period of 3 years (rounded off to 2 digits after decimal)?

1. A. Rs.5,082.87     
2. B. Rs.689.41      
3. C. Rs.5,772.28      
4. D. Rs.680.94      
5. E. None of these        Correct Answer

35.  

     

    How much will a sum of Rs.7,250 amount to in a span of 2 years, at 6 p.c.p.a rate of compound interest (Rounded off to the nearest integer)?

1. A. Rs.8,176     
2. B. Rs.8,146        Correct Answer
3. C. Rs.8,216      
4. D. Rs.8,170      
5. E. Rs.8,190      

36.  

     

    A sum of Rs.3200 becomes Rs.3456 in two years at a certain rate of simple interest. What is the rate of interest per annum?

1. A. 5.5%     
2. B. 6%      
3. C. 4%        Correct Answer
4. D. 4.5%      
5. E. None of these      

37.  

     

    A sum of Rs.2200 is invested at two different rates of interest. The difference between the interests got after 4 years is Rs.202.40. What is the difference between the rates of interest?

1. A. 3.3%     
2. B. 2.3%        Correct Answer
3. C. 3.5%      
4. D. 2.5%      
5. E. None of these      

38.  

     

    If the rate of interest per annum increase from 8 1/3 % to 9 3/8 % then a person’s annual income from interest increases by Rs.100. What was the amount invested?

1. A. Rs.9600       Correct Answer
2. B. Rs.8000      
3. C. Rs.8400      
4. D. Rs.10,000      

39.  

     

    The simple interest on a sum of money is ¼ of the Principal and the number of years is equal to the rate percent annum. What is the rate per cent annum is

1. A. 6%     
2. B. 5%        Correct Answer
3. C. 7 ½%      
4. D. 5 ½%      

40.  

     

    A sum lent at 7% per annum will produce as much as simple interest in 2 years as Rs.1750. lent at 55 will produce in 4 years. Find the sum

1. A. Rs.1600     
2. B. Rs.1800      

41.  

     

    How long will Rs.1320 take to yield Rs.198 simple interest at 2 ½% per annum.

1. A. 2 years     
2. B. 3 years      
3. C. 6 years        Correct Answer
4. D. 10 years      

42.  

     

    The simple interest on a sum of money is (1/9) of principal and the number of years equal to the rate percent per annum. What is the rate percent per annum.
    a) 2 (1/3)%

1. A. 2 (1/3)%     
2. B. 2 (2/3)%      
3. C. 3%      
4. D. 3 (1/3) %        Correct Answer

43.  

     

    Calculate the compound interest for Rs.1000 at 5% compound interest for 2 years.

1. A. Rs.102.50       Correct Answer
2. B. Rs.105      
3. C. Rs.109      
4. D. Rs.109.25      

44.  

     

    Find the compound interest for Rs.1000 at 10% for 1 ½ years when interest is accounted at every six mouths.

1. A. Rs.1150     
2. B. Rs.1158        Correct Answer
3. C. Rs.160      
4. D. Rs.167      

45.  

     

    A sum yields interest of Rs.3783 in 3 years at 5% per annum of compound interest. What is the sum?

1. A. Rs.8000     
2. B. Rs.10, 800      
3. C. Rs.24, 000        Correct Answer
4. D. Rs.10, 000      

46.  

     

    A sum of Rs.16400 is borrowed to be paid back in 2 years by equal payments allowing 5% compound interest. Find the annual payment.

1. A. Rs.8820       Correct Answer
2. B. Rs.7600      
3. C. Rs.7620      
4. D. Rs.8620      

47.  

     

    Rs.800 at 5% per annum compound interest amounts to Rs.882. What is the period?

1. A. 3 years     
2. B. 2 years        Correct Answer
3. C. 4 years      
4. D. 10 years