Simple Interest Quiz Set 014

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Question 1

The simple interest on a hypothetical investment is Rs. 1250. What is the principal amount if the rate per annum, time in years and the principal, all have the same numerical value?

 A

Rs. 50.

 B

Rs. 150.

 C

Rs. 100.

 D

Rs. 250.

Soln.
Ans: a

If I is the interest, and principal is P, time is P, and rate is P, then, I = $(P × P × P)/100$. Which gives P = $√^3{100 × I}$, which is $√^3{100 × 1250}$, which is $√^3{1000 × 5 × 5 × 5}$ = Rs. 50.


Question 2

An investor puts an amount of Rs. 1600 in a simple interest scheme. If it amounts to Rs. 1696 in 3 years @2%, what would it had amounted to had the rate been 2% more?

 A

Rs. 1792.

 B

Rs. 1892.

 C

Rs. 1692.

 D

Rs. 1992.

Soln.
Ans: a

Shortcut is required here. The addition would be same as if R = 2%, T = 3 years and P = Rs. 1600, which is ${1600 × 2 × 3}/100$ = 96. So new amount is 1696 + 96 = Rs. 1792.


Question 3

A sum of Rs. 300 is lent in two parts. One at 7% p.a. and one at 2% p.a. What is the amount lent at 7% if the total simple interest at the end of 5 years is Rs. 155?

 A

Rs. 500.

 B

Rs. 600.

 C

Rs. 400.

 D

Rs. 700.

Soln.
Ans: a

Let the amount x be lent at r1% and remaining (P - x) at r2%, and let the sum of interests be I. Then, I = ${x × r_1 × 5}/100$ + ${(P - x) × r_2 × 5}/100$, which simplifies to 100I = 5 × ($x × (r_1 - r_2) + P × r_2$). Putting r1 = 7, r2 = 2, P = 300, I = 155, we get x = Rs. 500.


Question 4

There are two simple interest investment options I and II. The rate of interest in option I is $1{1/2}$ times the rate for option II. The time period in option I is 2 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

3.

 B

4.

 C

2.

 D

6.

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 × ${3/2} × {R/100}$ × 2 × T. The ratio I1 to I2 is $3/2$ × 2 = 3.


Question 5

The simple interest on a hypothetical investment is Rs. 80. What is the principal amount if the rate per annum, time in years and the principal, all have the same numerical value?

 A

Rs. 20.

 B

Rs. 120.

 C

Rs. 70.

 D

Rs. 220.

Soln.
Ans: a

If I is the interest, and principal is P, time is P, and rate is P, then, I = $(P × P × P)/100$. Which gives P = $√^3{100 × I}$, which is $√^3{100 × 80}$, which is $√^3{1000 × 2 × 2 × 2}$ = Rs. 20.


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This Blog Post/Article "Simple Interest Quiz Set 014" by Parveen (Hoven) is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Updated on 2019-08-18.

Posted by Parveen(Hoven),
Aptitude Trainer


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