Simple Interest Problems with Solutions for Bank Exams

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Simple interest is an important topic of aptitude section. If you are preparing for banking exams, then here are simple interest problems with solutions are given and very helpful for you. In this topic, you have to calculate interest according to the time and rate.

Here are given, solutions of simple interest problems in this blog for your help. You can properly understand the method to solve simple interst problems during the practice of these questions. So, continue your practice with these questions regulary and obtain good marks in the examination.


Solutions of Simple Interest Problems

Q.1. The difference between the simple interest received from two different sources on Rs.1500 for 3 years is Rs.13.50. The difference between their rates of interest is

(A) 0.4%               

(B)0.5%

(C) 0.3%                

(D) 0.1%


Ans .  C


(1500 x R1 x 3)/100 

→ 4500 (R1-R2) = 1350 

→ (R1-R2)= 1350/4500 = 0.3 %

 

Q.2. A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?

(A) 3.46%

(B) 2.5%

(C) 6%

(D) 5%

(E) None of these


Ans .  A


Let the original rate be R%. Then, new rate = (2R)%.

Note: 

Here, original rate is for 1 year(s); the new rate is for only 4 months i.e. 1/3 year(s).

⸫[(725 x R x 1)/(100)]+[(362.50 x 2R x 1)/(100 x 3)]= 33.50

→ (2175 + 725) R = 33.50 x 100 x 3

→ (2175 + 725) R = 10050

→ (2900)R = 10050

→ R = 10050/2900 = 3.46

Original rate = 3.46%


Q.3. A sum was put at simple interest at a certain rate for 10 years . Had it been put at 5% higher rate , it would have fetched Rs.600 more. What was the Sum?

(A) Rs.1200          

(B) Rs.1500

(C) Rs.1300          

(D) Rs.1600 


Ans .  A
 


At 5% more rate, the increase in S.I for 10 years = Rs.600   (given)

So, at 5% more rate, the increase in SI for 1 year = 600/10 = Rs.60/-

i.e. Rs.60 is 5% of the invested sum 

So, 1% of the invested sum = 60/5

Therefore, the invested sum = 60 × 100/5 = Rs.1200


Q.4. An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:

(A) 10.15%

(B) 10.25%

(C) 11.35%

(D) None of these


Ans .  B


Let the sum be Rs. 100. Then,

S.I. for first 6 months = Rs.[(100 x 10 x 1)/(100 x 2)]           = Rs. 5

S.I. for last 6 months = Rs.[(105 x 10 x 1)/(100 x 2)] = Rs. 5.25

So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25

⸫ Effective rate = (110.25 - 100) = 10.25%

Q.5. Rs.1500 is divided into two parts such that if one part is invested at 6% and the other at 5% the whole annual interest from both the sum is Rs.85. How much was lent at 5% ?

(A) Rs. 500           

(B) Rs. 450

(C) Rs. 150           

(D) Rs. 250


Ans .  A
 


[(kx5x1)/100] + [(1500 - k)x6x1]/100 = 85

[(5k/100 +( 90) – (6k/100) = 85

k/100 = 5

k = 500

Q.6. A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

(A) Rs. 5400

(B) Rs. 11000

(C) Rs. 15,000

(D) Rs. 22,000


Ans .  C


Principal = Rs.[(100 x 5400)/(12x3)]= Rs. 15000.

 

Q.7.  A sum was put at simple interest at a certain rate for 3 years. Had it been put at 2% higher rate, it would have fetched Rs 360 more. Find the sum.

(A) Rs.3500          

(B) Rs.8000

(C) Rs.4500          

(D) Rs.6000


Ans .  D


Let sum = P and original rate = R. Then

[(P x (R+2) x 3)/100] - [ (P x R x 3)/100] = 360

→ 3P x (R+2) - 3PR = 36000

→ 3PR + 6P - 3PR = 36000

→ 6P = 36000

P = 6000

Q.8. A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:

(A) 4%

(B) 6%

(C) 9%

(D) 10%


Ans .  D


Let the rate be R% p.a.

Then, [(5000 x R x 2)/(100)+[(3000 x R x 4)/(100)]= 2200. 

→100R + 120R = 2200 

→ R =(2200/220)= 10.

Rate = 10%.

Q.9.A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:

(A) 13% 

(B) 9%

(C) 12% 

(D) 14%


Ans .  C


S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.

S.I. for 5 years = Rs.[(2205)/3]×5= Rs.3675

Principle = Rs.(9800-3675) = Rs.6125

Hence, Rate = [(100×3675)/(6125×5)] =12%

Q.10. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

(A) 5%

(B) 3%

(C) 4%

(D) 6%

(E) None of these


Ans .  D


S.I. = Rs. (15500 - 12500) = Rs. 3000.

Rate = [(100 x 3000)/(12500 x 4)]% = 6%

If you are facing any problems in the simple interest problems with solutions, ask me in the comment section without any hesitation.

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