# Simple Interest Quiz Set 018

### Question 1

What is the interest on Rs. 7500 @6% for 73 days starting from Jan 1, 2001?

A

Rs. 90.

B

Rs. 190.

C

Rs. 140.

D

Rs. 290.

Soln.
Ans: a

The given year is not a leap year. So it has 365 days. Since 73 X 5 = 365, t = 1/5 year. We have r = 6%, t = 1/5, P = 7500, so I = \${7500 × 6 × 1}/{5 × 100}\$ = Rs. 90.

### Question 2

An amount of Rs. 1000 is split into two parts. The first part is invested @4% for 2 years, and the second @10% for 6 years. What is the ratio of the first part is to the second part if they yield the same amount of simple interest?

A

\$7{1/2}\$.

B

\$7{5/8}\$.

C

\$7{3/8}\$.

D

\$7{3/4}\$.

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 (10 × 6) : (4 × 2) = 60 : 8, or same as \$7{1/2}\$. Please note that the answer is independent of the value of the total amount.

### Question 3

Mr. X puts an amount of Rs. 1300 in a simple interest scheme. If he gets a total amount of Rs. 1404 after 2 months, what is the rate of interest?

A

\${1/3}\$% p.a.

B

4% p.a.

C

\${1/2}\$% p.a.

D

\${7/12}\$% p.a.

Soln.
Ans: a

The interest is I = 1404 - 1300 = 104. So R = \$(I × 100)/(T × P)\$. Solving, we get R = \$(104 × 100)/(2 × 1300)\$ = 4% per month, which is \${1/3}\$% per annum. Please note that since the time is in months the rate is also p.m.

### Question 4

There are two simple interest investment options I and II. The rate of interest in option I is \${3/4}\$ times the rate for option II. The time period in option I is 4 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 × \${3/4} × {R/100}\$ × 4 × T. The ratio I1 to I2 is \$3/4\$ × 4 = 3.

### Question 5

What is the interest on Rs. 22000 @3% for 73 days starting from Jan 1, 2601?

A

Rs. 132.

B

Rs. 232.

C

Rs. 182.

D

Rs. 332.

Soln.
Ans: a

The given year is not a leap year. So it has 365 days. Since 73 X 5 = 365, t = 1/5 year. We have r = 3%, t = 1/5, P = 22000, so I = \${22000 × 3 × 1}/{5 × 100}\$ = Rs. 132. 