Problems on Simple Interest with Solutions for Competitive Exams

As you know simple interest problems are important for ssc and bank exams. So, here I am sharing with you the problems on simple interest with solutions. In this blog, you can learn how to solve simple interest problems with the practice of different-2 ways.

Here are the different questions with answers or solutions which asked mostly in the competitive exams. So, you should strong more your preparation by practice with these questions-answers or Problems with solutions.

Simple Interest Problems with Solutions

Q.1. The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs. 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. Find the sum.

(A) Rs. 600                    

(B) Rs. 666                 

(C) Rs. 780                 

(D) Rs. 800

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Solution

Then we can write: [{x*10*7}/{100*2}] – [{x*12*5}/{100*2}] = 40.

This can be written as: 7x/20 – 3x/10 = 4o. Therefore we have x = Rs. 800

Hence the sum is Rs. 800.

Q.2.  A certain amount becomes Rs. 5760 in 2 years and Rs. 6912 in 3 years. What is the principal amount and the rate of interest?

(A) 5000

(B) 1152

(C) 5760

(D) 4000

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Solution

Therefore, Rate of interest for 1 year = 100*1152/5760*1 = 20%

Let the principal be p.

Then, Principal = p[1+ 20/100]² = 5760

Solving which gives Principal = Rs. 4000

Q.3. What is the rate of simple interest?

I. The total interest earned was Rs. 4000.

II. The sum was invested for 4 years.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

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Solution

Now, I gives, S.I. = Rs. 4000.

II gives, T = 4 years.

But, P is unknown. So, we cannot find R.

So, given data is insufficient to get R

Q.4. Find the compound interest on Rs. 3000 at 5% for 2 years, compounded annually.

(A) 307.5

(B) 3307.5

(C) 3000.5

(D) 3100

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Solution

Therefore, CI = 3307.5 – 3000 = Rs. 307.5

Q.5.  A man took a loan from a bank at the rate of 12 % p.a. simple interest. After three years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:

(A) Rs. 12000                  

(B) Rs. 11000                    

(C) Rs. 14000                         

(D) Rs. 15000

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Solution

the principal = Rs. [{100×5400}/{12×3}]

= Rs. 15000

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