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This mock test of Simple Interest - MCQ 4 for Quant helps you for every Quant entrance exam.
This contains 20 Multiple Choice Questions for Quant Simple Interest - MCQ 4 (mcq) to study with solutions a complete question bank.
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QUESTION: 1

The simple interest on a sum of money will be rupees 210 after 3 years. In the next 3 years, principal become 4 times, then the total interest at the end of 6 years.

Solution:

Answer – b) 1050 Explanation : 210 = P*(r/100)*3 now, SI = 4*p*(r/100)*3 SI = 4*210 = 840. So total SI for 6 years = 840 + 210 = 1050.

QUESTION: 2

Rahul earns an income of rupees 1200 when he put rupees 3000 at R% per annum and rupees 4500 at one percent higher than previous. He invests for a period of 5 years. Find the rates of interest

Solution:

Answer – c) 13/5 and 18/5 Explanation : 1200 = 3000*(r/100)*5 + 4500*(r+1/100)*5 r = 13/5% and r+1 = 18/5%

QUESTION: 3

A sum of 5000 is invested in which the investor gets 800 as simple interest at the rate of 4 percent per annum. To get an interest of 2000 rupees on the same sum in the same number of years, what will be the rate of interest?

Solution:

Answer – b) 10% Explanation : 800 = 5000*(4/100)*t, we got t = 4 years now, 2000 = 5000*(r/100)*4, we get r = 10%

QUESTION: 4

A certain sum of money is borrowed by ankit at 5 percent per annum for 10 years. If he pays an interest of rupees 200, then the total amount paid by ankit.

Solution:

Answer – c) 600 Explanation : 200 = p*(5/100)*10, we get P = 400 so total amount = 400+200 = 600

QUESTION: 5

Rakesh borrowed rupees 5000 from a bank ABC at simple interest. He pays bank 3000 rupees at the end of 3 years and again he pays 2500 at the end of 5 years from the date of borrowing, Find the rate of interest charged by bank.

Solution:

Answer – b) 50/19 % Explanation : Total money paid by rakesh = 3000 + 2500 = 5500 so total interest paid by rakesh is 500.

For the first three years 5000 will be the principal , then he returns rupees 3000 so fir the next 2 years 2000 will be principal. 500 = 5000*(r/100)*3 + 2000*(r/100)*2, u will get r = 50/19%

QUESTION: 6

Some amount of money out of 8000 rupees is lent at 8 percent and remaining at 6 percent per annum. If the total interest obtained from both sum in 4 years is 2400, then find the sum lent at 8 percent rate (approx)

Solution:

Answer – a) 6000 Explanation : 2400 = p*(8/100)*4 + (8000 – p)*4*(6/100) p = 6000

QUESTION: 7

Two equal amount of sum are deposited in banks at the rate 5 percent per annum. The amount deposited for 3 and 5 years respectively. If the difference between the SI obtained is 120 rupees, then find the sum

Solution:

Answer – b) 1200 Explanation : 120 = p*(5/100)*5 – p*(5/100)*3

QUESTION: 8

A sum of rupees is divided between three people A, B and C in such a way that after 2 years, 3 years and 4 years respectively the amount they get is equal.The rate of interest is 10 percent. Find the ratio in which the amount is divided.

Solution:

Answer – b) 91:84:78 Explanation : Let they get A, B and C rupees initially.

Amount after 2, 3 and 4 years respectively = 6A/5, 13B/10, 7C/5 Ratio=> 6A/5 : 13B/10 : 7C/5 = x (x is any constant) A = 5x/6 , B = 10x/13 and C = 5x/7 So ratio – 91:78:84

QUESTION: 9

Mohan invested 20000 rupee in fixed deposit at the rate of 10% simple interest.After every 3 rd year he added interest to principal. Find the interest earned at the end of 6 year.

Solution:

Answer – a) 7800 Explanation : For the first 3 years SI will be = 20000*10/100*3 = 6000 Now he add 3000 to the principal i.e = 20000+6000 = 26000 Now interest earned at end of 6 year = 26000*10/100*3 = 7800

QUESTION: 10

The simple interest on a certain sum is 4/9 of the principal and the numbers of years is equal to the rate of interest. The rate of interest is.

Solution:

Answer – a) 20/3 Explanation : 4/9*P = P*R/100*R

QUESTION: 11

A certain sum of money amounts to rupees 2900 at 4% per annum in 4 years.In how many years will it amount to rupees 5000 at the same rate?

Solution:

Answer – d) 25 Explanation : 2900 = p + p*(4/100)*4, p = 2500 5000 = 2500 + 2500*(4/100)*t

QUESTION: 12

A sum of money becomes four times at simple interest rate of 5%. At what rate it becomes seven times

Solution:

Answer – b) 10% Explanation : 3p = p*(5/100)*t, t = 60 6p = p*(r/100)*60

QUESTION: 13

Arya borrows rupees 6000 from a bank at SI. After 4 years she paid Rs 2500 to the bank and at the end of 5 years from the date of borrowing he paid Rs 4560 to settle the account. Find the rate of interest (approx)

Solution:

Answer – c) 3.85% Explanation : Total interest she paid = 6000*(r/100)*4 + 3500*(r/100)*1 = 275r total interest = 2500 + 4560 – 6000 = 1060 so 1060 = 275r, r = 3.85% approx

QUESTION: 14

A sum of money lent out at simple interest amounts to rupees 840 in 3 years and to rupees 1200 in 8 years. Find the rate of interest

Solution:

Answer – b) 11.7/13% Explanation : 1200 = p + p*(r/100)*8 840 = p + p*(r/100)*3 Solve both equations to get r

QUESTION: 15

The simple interest on a certain sum of money at 4% per annum for 5 years is 100 more than the interest on the same sum for 3 years at 5% per annum. Find the sum

Solution:

Answer – c) 2000 Explanation : p*(4/100)*5 – p*(5/100)*3 = 100

QUESTION: 16

A sum of rupees 4800 is lent out in two parts in such a way that the interest on one part at 10% for 4 years is equal to that on another part at 8% for 7 years.Find the two sums

Solution:

Answer – a) 2800, 2000 Explanation : Let first part is A then second will be 4800 – A A*(10/100)*4 = (4800 – A)*(8/100)*7

QUESTION: 17

The simple interest on a sum of money will be rupees 400 after 5 years. In the next 5 years the principal is doubled, what will be the total interest at the end of the 10 year

Solution:

Answer – c) 1200 Explanation : 400 = p*(r/100)*5, pr = 8000 SI = 2p*(r/100)*5 = pr/10 = 8000/10 = 800 Total interest = 400 + 800 = 1200

QUESTION: 18

What annual instalment will discharge a debt of rupees 1060 due in 4 years at 4 % simple interest?

Solution:

Answer – b) 250 Explanation : Let each instalment be P, [P + P*(4/100)*3] + [P + P*(4/100)*2] + [P + P*(4/100)*1] + P = 1060

QUESTION: 19

Anil borrowed some money at the rate of 5 percent per annum for the first 2 years, 3 percent for the next 4 years and 4 percent per annum beyond 6 years.If the total interest paid by him at the end of 9 years is rupees 3400, how much money did anil borrow.

Solution:

Answer – c) 10000 Explanation : 3400 = p*(5/100)*2 + p*(3/100)*4 + p*(4/100)*3 = 3400

QUESTION: 20

Saroj invested 20000 rupee in fixed deposit at the rate of 10% simple interest.After every 3 rd year he added interest to principal. Find the interest earned at the end of 6 year.

Solution:

Answer – a)7800 Explanation : For the first 3 years SI will be = 20000*10/100*3 = 6000 Now he add 6000 to the principal i.e = 20000+6000 = 26000 Now interest earned at end of 6 year = 26000*10/100*3 = 7800

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