# Simple Interest Quiz Set 001

### Question 1

The simple interest on a certain principal sum @4% for a period of 3 years is Rs. 204. What is the sum?

A

Rs. 1700.

B

Rs. 1800.

C

Rs. 1600.

D

Rs. 1900.

Soln.
Ans: a

P = \$(I × 100)/(R × T)\$. Solving, we get P = \$(204 × 100)/(4 × 3)\$ = Rs. 1700.

### Question 2

There are two simple interest investment options I and II. The rate of interest in option I is \${4/11}\$ times the rate for option II. The time period in option I is 11 times that for the option II. What is the ratio of interest of option I to option II, if the same amount is invested in either?

A

4.

B

5.

C

3.

D

7.

Soln.
Ans: a

Let P, R and T have their usual meanings. For option II we have I2 = PRT/100. For option I we have I1 = P × \${4/11} × {R/100}\$ × 11 × T. The ratio I1 to I2 is \$4/11\$ × 11 = 4.

### Question 3

An amount of Rs. 1000 is split into two parts. The first part is invested @5% for 4 years, and the second @11% for 16 years. What is the ratio of the first part is to the second part if they yield the same amount of simple interest?

A

\$8{4/5}\$.

B

\$8{17/20}\$.

C

\$8{3/4}\$.

D

\$8{9/10}\$.

Soln.
Ans: a

Let the amounts be x and y. We have x × r1 × t1 = y × r2 × t2. We can see that x : y is same as r2t2 : r1t1. The ratio is (11 × 16) : (5 × 4) = 176 : 20, or same as \$8{4/5}\$. Please note that the answer is independent of the value of the total amount.

### Question 4

An investor puts an amount of Rs. 2300 in a simple interest scheme. If the rate of interest is 4% per month, how long does he have to wait for getting an amount of Rs. 2944?

A

\${7/12}\$ year.

B

\${2/3}\$ year.

C

\${3/4}\$ year.

D

\${5/6}\$ year.

Soln.
Ans: a

The interest is I = 2944 - 2300 = 644. So T = \$(I × 100)/(R × P)\$. Solving, we get T = \$(644 × 100)/(4 × 2300)\$ = 7 months.

### Question 5

A certain amount is split into two parts. The first part is invested at 8% p.a. and the second at 4% p.a. What is the total amount if the total simple interest at the end of 3 years is Rs. 312, and if the amount invested at 8% is Rs. 1800?

A

Rs. 800.

B

Rs. 900.

C

Rs. 700.

D

Rs. 1000.

Soln.
Ans: a

Let the amount x be invested at r1% and remaining (P - x) at r2%, and let the sum of interests be I. Then, I = \${x × r_1 × 3}/100\$ + \${(P - x) × r_2 × 3}/100\$, which simplifies to 100I = 3 × (\$x × (r_1 - r_2) + P × r_2\$). Putting r1 = 8, r2 = 4, x = 1800, I = 312, we get P = Rs. 800.