Simple Interest - MCQ 1 - GMAT MCQ

# Simple Interest - MCQ 1 - GMAT MCQ

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## 20 Questions MCQ Test Quantitative for GMAT - Simple Interest - MCQ 1

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Simple Interest - MCQ 1 - Question 1

### On a certain sum, the simple interest at the end of 5(1/3) years becomes 4/9 ofthe sum.What is the rate percent ?

Detailed Solution for Simple Interest - MCQ 1 - Question 1

Explanation :
R = 100*(4x/9) / (x*16/3)
R =100*4*3/9*16 = 100/12 = 8.3%

Simple Interest - MCQ 1 - Question 2

### P is going to pay Rs.700 to Q, 7 months later at 6% annual simple interest, Q isgoing to pay Rs.550 to P, 12 months later at 8% annual simple interest, if theydecide to settle the debts, who will pay what amount to whom ?

Detailed Solution for Simple Interest - MCQ 1 - Question 2

Explanation :
For P:
P+ (p*6*7/12*100) = 700
1200p+42P = 700*1200
P = 676.33
For Q:
P+ (p*8*12/12*100) = 550
1200P+96P = 550*1200
P =509.26
Q =676-509 = 167

Simple Interest - MCQ 1 - Question 3

### A father left a will of Rs.5 lakhs between his two daughters aged 10 and 15 such that they may get equal amounts when each of them reach the age of 21 years. The original amount of Rs.5 lakhs has been instructed to be invested at 10% p.a. simple interest. How much did the elder daughter get at the time of the will?

Detailed Solution for Simple Interest - MCQ 1 - Question 3

Answer – A.Rs.2,04,797 Explanation : Let Rs.x be the amount that the elder daughter got at the time of the will. Therefore, the younger daughter got (5,00,000 – x).
The elder daughter’s money earns interest for (21 – 15) = 6 years @ 10% p.a simple interest The younger daughter’s money earns interest for (21 – 10) = 11 years @ 10% p.a simple interest.
As the sum of money that each of the daughters get when they are 21 is the same, x + (6*10*x/100)= (5,00,000 – x) +(11*10*[5,00,000-x]/100) 100x+60x = (5,00,000-x)+(55,000,000-110x) 160x =55,500,000-111x 271x = 55,500,000 X = 2,04,797

Simple Interest - MCQ 1 - Question 4

Two equal some of money were invested at an annual rate of 10%, One sum at simple interest and other at compound interest, If the difference between the interest after 2 years was Rs.100, What were the sum invested ?

Detailed Solution for Simple Interest - MCQ 1 - Question 4

Explanation : Assume X = 100

SI = 120

CI = 121

100 mean difference is 1

200 mean difference is 2

Therefore, 10000 mean difference is 100.

Simple Interest - MCQ 1 - Question 5

A man invests Rs.8000 for 5 years at 5% p.a. Simple Interest interest reckoned yearly. Income tax at the rate of 20% on the interest earned is deducted at the end of each year. Find the amount at the end of the fifth year.

Detailed Solution for Simple Interest - MCQ 1 - Question 5

Answer – C.Rs.9,600 Explanation : 5% is the rate of interest. 20% deducted mean rate of Interest 4% SI = 8000*4*5/100=1600
The amount at the end of 5 years = 8000 + 1600 = 9600

Simple Interest - MCQ 1 - Question 6

Ajay bought Rs.11,000 from a bank to buy a car at 12% simple Interest. If he paid \$ 6,600 as interest while clearing the loan, find the time for which the loan was given.

Detailed Solution for Simple Interest - MCQ 1 - Question 6

Answer – D.5 Explanation : T = 6600/11000*0.12
T = 5

Simple Interest - MCQ 1 - Question 7

Tarun invested an amount of Rs. 10000 at the simple interest rate of 8% per annum and another amount at the simple interest rate of 20% per annum. The total interest earned at the end of one year on the total amount invested became 12% per annum. Find the total amount invested.

Detailed Solution for Simple Interest - MCQ 1 - Question 7

Answer – B.Rs.15000 Explanation : SI1= 10000*8*1/100 = 800
SI2 = x*20*1/100 = x/5 800+(x/5) = (10000+x)*12*1/100 80000+20x = 1,20,000+12x 8x = 40,000 X = 5000
Total= 10000+5000 = 15000

Simple Interest - MCQ 1 - Question 8

If simple interest on a certain sum of money for 6 years at 5% per annum is same as the simple interest on Rs. 650 for 9 years at the rate of 12% per annum then the sum of money is

Detailed Solution for Simple Interest - MCQ 1 - Question 8

Answer – A.Rs.2340 Explanation : X *6*5/100 = 650*12*9/100
30x/100 = 70,200/100 30x = 70200 X = 2340

Simple Interest - MCQ 1 - Question 9

Kailash borrowed some money at the rate of 5% p.a. for the first three years, 8% p.a. for the next five years and 11% p.a. for the period beyond eight years.
If the total interest paid by him at the end of eleven years is Rs. 8800, how much money did he borrow?

Detailed Solution for Simple Interest - MCQ 1 - Question 9

Answer – D.Rs.10,000 Explanation : (x*5*3/100) + (x*8*5/100)+ (x*11*3/100 ) = 8800 15x/100 +40x/100 + 33x/100 = 8800 88x = 880000 X = 10000

Simple Interest - MCQ 1 - Question 10

If the annual rate of simple interest increases from 8% to 13%, a man’s yearly income increases by Rs. 4800. His principal (in Rs.) is:

Detailed Solution for Simple Interest - MCQ 1 - Question 10

Answer – B.Rs.96,000 Explanation : X*13*1/100  – x*8*1/100 = 4800 13x/100  –   8x/100 = 4800 5x/100 = 4800 5x = 480000 X = 96000

Simple Interest - MCQ 1 - Question 11

Cost of a Mobile Rs.8000. Sudha bought Mobile in EMI. She paid a Down payment of Rs. 2000 and paid rest in 6 equal installments of Rs.1020 for next 6 months. Then what is the SI rate charged?

Detailed Solution for Simple Interest - MCQ 1 - Question 11

Answer – 2. 6.95% Explanation : Balance to be paid in installments = 8000-2000 = 6000 (6000+6000*r*3/12*100) = 1020*6+1020r/12*100(1+2+3+4+5) r = 6.95%

Simple Interest - MCQ 1 - Question 12

Ajay lent Rs.8800 to be divided between his two sons aged 11 years and 13 years such that both of them would get an equal amount when lent at the rate of 10% SI when they attain 18 years of age. What is the share of elder in Rs.8800?

Detailed Solution for Simple Interest - MCQ 1 - Question 12

Answer – 4. 4675 Explanation : x+x*7*10/100 = (8800-x)+(8800- x)*5*10/100 x = 4125 elder = 8800-4125 = 4675

Simple Interest - MCQ 1 - Question 13

SBI lent Rs. 10,000 to Deepak @7% SI for 10 years. Mean while, the government implemented a scheme due to which interest rate reduced by 2%.By this Deepak paid Rs.16,000 in total. Then after how many years after Deepak took the loan, the government introduced the scheme?

Detailed Solution for Simple Interest - MCQ 1 - Question 13

Answer – 3. 5 years Explanation : 6000 = 10000(7*x+5*(10-x))/100 x = 5

Simple Interest - MCQ 1 - Question 14

What amount would Rs.2560 fetch if it is lent at 8% SI for 15 years?

Detailed Solution for Simple Interest - MCQ 1 - Question 14

Answer – 4. Rs.5632 Explanation : SI = 2560*8*15/100
3072
Amount = 2560+3072 = 5632

Simple Interest - MCQ 1 - Question 15

Veena has to pay Rs. 2460 to Sita, 5 Months later at 6% SI per annum, and Gita has to pay Sita same amount at 7.5% SI per annum after certain months. If both took the same amount of loan from Sita then Gita paid loan after how many months?

Detailed Solution for Simple Interest - MCQ 1 - Question 15

Answer – 2. 4 Months Explanation : 2460= p+p*6*5/12*100 p = 2400 Now Gita 2460 = 2400+2400*7.5*x/12*100 x = 4

Simple Interest - MCQ 1 - Question 16

Amit lent a part of Rs. 15900 to Raju at 6% SI. Rest to Anil at 5% SI. After 4 years he got an amount of Rs 19376 in total. Then what is the amount paid by Anil in total?

Detailed Solution for Simple Interest - MCQ 1 - Question 16

Answer – 3.Rs. 10200Explanation : 3476 = x*6*4/100 + (15900-x)*5*4/100 x =7400 Anil = 8500+8500*4*5/100 = 10200

Simple Interest - MCQ 1 - Question 17

A man invests Rs. 124000 for 9 years at 5% SI. Income tax at the rate of 19% is deducted from interest earned at the end of every year. Find the amount at the end of the 9th year?

Detailed Solution for Simple Interest - MCQ 1 - Question 17

Answer – 1.Rs. 169198 Explanation : for one year = 124000*5/100 = 6200 income tax = 6200*81/100 = 5022 for 9 years = 45198 Amount = 124000+45198 = 169198

Simple Interest - MCQ 1 - Question 18

Nitin invested an amount of Rs. 24000 at the 4% SI per annum, and another amount at 10% SI per annum. The total interest earned at the end of one year will be same as interest earned when the total amount invested at 6% SI per annum. Find the total amount invested?

Detailed Solution for Simple Interest - MCQ 1 - Question 18

Answer – 4.Rs.36000 Explanation : 24000*4/100 = 960
x*10/100 = 0.1x 960+0.1x = (24000+x)*6/100 x =12000 Total = 24,000+12,000 = 36,000

Simple Interest - MCQ 1 - Question 19

A sum of money becomes Rs.1815 at 7% SI after 3 years. Same sum of money becomes Rs. 2235 at same interest after 7 years.

Detailed Solution for Simple Interest - MCQ 1 - Question 19

Answer –2.Rs.1500 Explanation : 2235-1815 = p/100(7*7-7*3) p = 1500

Simple Interest - MCQ 1 - Question 20

Pratap lent Rs.21600 to be divided between his two sons who aged 9 years and 11 years such that both of them would get an equal amount at certain age when lent at rate of 10% SI per anuum. If their investments are in the ratio of 51:57 respectively.Then at what age both received same amount?

Detailed Solution for Simple Interest - MCQ 1 - Question 20

Answer –3.18 years Explanation : x+y = 21600 x/y = 51/57 x = 10200 y = 11400 10200+10200*10*(x-9)/100 = 11400+11400*10*(x-11)/100 x = 18

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