Practice MCQ Questions and Answer on Interest

11.

Ramakant invested amounts in two different schemes A and B for five years in the ratio of 5 : 4 respectively. Scheme A offers 8% simple interest and bonus equal to 20% of the amount of interest earned in 5 years on maturity. Scheme B offers 9% simple interest. If the amount invested in scheme A was Rs. 20000, what was the total amount received on maturity from both the schemes?

(A) Rs. 50800
(B) Rs. 51200
(C) Rs. 52800
(D) Rs. 58200

Solution: Let the amounts invested in schemes A and B be Rs. 5x and 4x respectively. then, 5x = 20000 ⇒ x = 4000 ∴ Amount invested in scheme B = Rs. 16000 Total interest received on maturity $= Rs . [120 % of (\frac{20000 \times 8 \times 5}{100}) + (\frac{16000 \times 9 \times 5}{100})]$ $\begin{aligned} = Rs . (120 % of 8000 + 7200) \\ = Rs . (9600 + 7200) \\ = Rs . 16800 \\ ∴ Total amount \\ = Rs . (20000 + 16000 + 16800) \\ = Rs . 52800 \end{aligned}$

12.

A sum of money becomes $\frac{7}{4}$ of itself in 6 years at a certain rate of simple interest. Find the rate of interest.

(A) 12%
(B) $12 \frac{1}{2}$ %
(C) 8%
(D) 14%

Solution: $\begin{aligned} Let sum i s Rs . 100, \\ Then it become \frac{7}{4} times \\ i . e . Rs . \frac{700}{4} in 6 years . \\ Interest = \frac{700}{4} - 100 = R s . \frac{300}{4} \\ Hence, \\ Rate = \frac{Total interest}{Given time} \\ = \frac{300}{4} \times 6 \\ = 12 \frac{1}{2} % \end{aligned}$

13.

At which rate of simple interest does an amount become double in 12 years?

(A) $7 \frac{4}{5} %$
(B) $8 %$
(C) $8 \frac{1}{3} %$
(D) $7 \frac{1}{2} %$

Solution: $\begin{aligned} 1 = \frac{1 \times 12 \times r}{100} \\ r = 8 \frac{1}{3} % \end{aligned}$

14.

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. 245
(C) Rs. 350
(D) Cannot be determined

15.

If the ratio of principal and the simple interest of 5 years is 10 : 3, then the rate of interest is = ?

(A) 6%
(B) 8%
(C) 3%
(D) 5%

Solution: $\begin{aligned} \frac{P}{S .I .} = \frac{10}{3} \\ Let Principal = 10 \\ S .I . for 5 years = 3 \\ S .I . for 1 year = 0 .6 \\ Rate = \frac{S .I .}{Principal} \times 100 \\ Rate = \frac{0.6}{10} \times 100 \\ = 6 % \end{aligned}$

16.

Find the simple interest on Rs. 2,700 for 8 months at 5 paisa per rupee per month?

(A) Rs. 950
(B) Rs. 720
(C) Rs. 540
(D) Rs. 1,080

Solution: $\begin{aligned} Rate = \frac{5 paisa}{1 rupee} = 5 % \\ Time = 8 months \\ S .I . = \frac{2700 \times 5 \times 8}{100} = 1080 \end{aligned}$

17.

Sum Rs. 20000 and Rs. 40000 are given on simple interest at the rate of 10% and 15% per annum respectively for three years. What will be the total simple interest?

(A) Rs. 36000
(B) Rs. 32000
(C) Rs. 24000
(D) Rs. 28000

Solution: Simple interest on 20000 for 3 years at 10% rate $SI = \frac{20000 \times 3 \times 10}{100} = 6000$ Simple interest on 40000 for 3 years at 15% rate $SI = \frac{40000 \times 3 \times 15}{100} = 18000$ Total interest = 6000 + 18000 = 24000

18.

A sum of money placed at compound interest doubles itself in 4 years. In how many years will it amount to 8 times?

(A) 9 years
(B) 8 years
(C) 27 years
(D) 12 years

Solution: $\begin{aligned} Let, \\ Principal = R s . 100 \\ Amount = R s . 200 \\ Rate = r % \\ Time = 4 years \\ Now, \\ A = P \times {[1 + (\frac{r}{100})]}^{n} \\ 200 = 100 \times {[1 + (\frac{r}{100})]}^{4} \\ 2 = {[1 + (\frac{r}{100})]}^{4} - - - - - - (i) \\ If sum become 8 times in the time n years \\ then, \\ 8 = {(1 + (\frac{r}{100}))}^{n} \\ 2^{3} = {(1 + (\frac{r}{100}))}^{n} - - - - - - (i i) \\ Using eqn (i) i n (i i), we get \\ {({[1 + (\frac{r}{100})]}^{4})}^{3} = {(1 + (\frac{r}{100}))}^{n} \\ {[1 + (\frac{r}{100})]}^{12} = {(1 + (\frac{r}{100}))}^{n} \\ Thus, n = 12 years . \end{aligned}$

19.

A man takes a loan of some amount at some rate of simple interest. After three years, the loan amount is doubled and rate of interest is decreased by 2%. After 5 years, if the total interest paid on the whole is Rs. 13,600, which is equal to the same when the first amount was taken for $11 \frac{1}{3}$ ÃÂÃÂ years, then the loan taken initially is:

(A) Rs. 13,600
(B) Rs. 12,500
(C) Rs. 10,000
(D) Rs. 12,000

Solution: $\begin{aligned} \frac{x \times r \times 3}{100} + \frac{2 x \times (r - 2)}{100} \times 5 = \frac{x \times r}{100} \times \frac{34}{3} \\ \frac{2 x \times (r - 2) \times 5}{100} = \frac{x \times r}{100} \times \frac{34}{3} - \frac{x \times r \times 3}{100} \\ \frac{2 x \times (r - 2) \times 5}{100} = \frac{(34 r - 9 r) \times x}{300} \\ 6 (r - 2) \times 5 = 25 r \\ \frac{36 x}{100} + \frac{2 x \times 10}{100} \times 5 = 13600 \\ \frac{136 x}{100} = 13600 \\ x = Rs . 10000 \end{aligned}$

20.

A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

(A) Rs. 650
(B) Rs. 690
(C) Rs. 698
(D) Rs. 700

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Practice MCQ Questions and Answer on Interest

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