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Interest - Aptitude MCQ Questions and Solutions with Explanations

Interest MCQ Questions and answers with easy and logical explanations.Arithmetic Ability provides you all type of quantitative and competitive aptitude mcq questions on Interest with easy and logical explanations. Interest MCQ is important for exams like Banking exams,IBPS,SCC,CAT,XAT,MAT etc. Page-1 section-3

Each section contains 100 MCQs on Interest .
1
In a certain time, a sum becomes 4 times of itself on simple interest at the rate of 10% per annum. What is the rate of interest if the same sum becomes 7 times of itself in the same duration?
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
2
Rs. 2,500, when invested for 8 years at a given rate of simple interest per year, amounted to Rs. 3,725 on maturity. What was the rate of simple interest that was paid per annum?
Discuss
Answer & Solution
Answer: Option B
Solution:
$$\eqalign{ & {\text{Simple interest}} = 3725 - 2500 = 1225 \cr & {\text{SI}} = \frac{{P \times r \times t}}{{100}} \cr & 1225 = \frac{{2500 \times r \times 8}}{{100}} \cr & r = \frac{{49}}{8} \cr & r = 6.125\% \cr} $$
3
In how many least number of complete years a sum of money become more than four times of itself at the rate of 50% per annum on simple interest?
Discuss
Answer & Solution
Answer: Option C
Solution:
Interest mcq question image
$$\eqalign{ & {\text{SI}} = \frac{{{\text{PRT}}}}{{100}} \cr & 3x = \frac{{x \times 50 \times {\text{T}}}}{{1.0}} \cr & {\text{T}} = \frac{{3 \times 100}}{{50}} \cr & {\text{T}} = 6 \cr} $$
In T = 6 yrs it will become 4 times
For making it more than 4 time check what the time least time after 6 years in option.
4
A sum of Rs. 8,400 amounts to Rs. 11,046 at 8.75% p.a. simple interest in a certain time. What will be the simple interest (in Rs.) on a sum of Rs. 10,800 at the same rate for the same time?
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{A}} = {\text{P}} + {\text{S}}{\text{.I}}{\text{.}} \cr & {\text{S}}{\text{.I}}{\text{.}} = \frac{{{\text{P}} \times {\text{R}} \times {\text{T}}}}{{100}} \cr & 11046 = 8400 + \frac{{8400 \times 8.75 \times {\text{T}}}}{{100}} \cr & 2646 = \frac{{84 \times 875 \times {\text{T}}}}{{100}} \cr & 2646 = 21 \times 35 \times {\text{T}} \cr & {\text{T}} = 3.6{\text{ years}} \cr & {\text{S}}{\text{.I}}{\text{.}} = \frac{{10800 \times 8.75 \times 3.6}}{{100}} \cr & = \frac{{108 \times 875 \times 36}}{{1000}} \cr & = 3402 \cr} $$
5
The simple interest on Rs. 7,300 at 15% p.a. from 28th April to 4th November, approximately is
Discuss
Answer & Solution
Answer: Option A
Solution:
$$\eqalign{ & P = 7300 \cr & R = 15\% {\text{ per annum}} \cr & = \frac{{15}}{{365}}{\text{ per day}} \cr & t = {\text{2}}{{\text{8}}^{{\text{th}}}}{\text{ April to }}{{\text{4}}^{{\text{th}}}}{\text{ November}} \cr & t = 190{\text{ days}} \cr & {\text{SI}} = \frac{{PRT}}{{100}} \cr & = \frac{{7300}}{{100}} \times \frac{{15}}{{365}} \times 190 \cr & = 570{\text{ Answer}} \cr} $$
6
In how many years will the simple interest on a sum of money be equal to the principle at rate of $$12\frac{2}{4}\% $$  per annum?
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & 1 = 1 \times \frac{{50}}{{400}} \times t \cr & t = 8{\text{ years}} \cr} $$
7
What is the present value of Rs. 10,000 received in 2 years, if the interest rate is 12% per year discounted semi-annually?
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{Amount received in 2 years}} = {\text{Rs}}{\text{. }}10,000 \cr & {\text{Interest rate}} = 12\% {\text{ per year}} \cr & {\text{Time}} = 2{\text{ years}} \cr & {\bf{Formula \,used:}} \cr & {\text{Amount}} = {\text{Principal}}{\left[ {1 + \left( {\frac{R}{{100}}} \right)} \right]^n} \cr & {\bf{Calculation:}} \cr & A = 10000 \cr & R = 6\% {\text{ }}\left( {{\text{semi - annually}}} \right) \cr & n = 4\% {\text{ }}\left( {{\text{semi - annually}}} \right) \cr & {\text{Thus,}} \cr & \Rightarrow 10000 = P{\left[ {1 + \left( {\frac{6}{{100}}} \right)} \right]^4} \cr & \Rightarrow 10000 = P{\left[ {\frac{{106}}{{100}}} \right]^4} \cr & \Rightarrow 10000 = P \times {\left( {1.06} \right)^4} \cr & \Rightarrow P = \frac{{10000}}{{{{1.06}^4}}} \cr & \Rightarrow P = 7920.9426 \cr & \Rightarrow P = {\text{Rs}}{\text{. }}7920.94 \cr & {\text{Hence, the correct answer is Rs}}{\text{. 7,920}}{\text{.94}} \cr} $$
8
An amount of Rs. 12,000 was borrowed at some rate of simple interest. After four months, Rs. 6,000 more were added to it and the rate of interest on the total principal was doubled from the previous rate. At the end of the year, Rs. 2,800 was paid as interest, calculate the rate of interest initially charged?
Discuss
Answer & Solution
Answer: Option D
Solution:
$$\eqalign{ & {\text{Let, Rate}} = 12x\% {\text{ per year}} \cr & \frac{{12000 \times 4x}}{{100}} + \frac{{18000 \times 16x}}{{100}} = 2800 \cr & 480x + 2880x = 2800 \cr & 3360x = 2800 \cr & x = \frac{{10}}{{12}} \cr & {\text{Rate}} = 12x \cr & = \frac{{10}}{{12}} \times 12 \cr & = 10\% \cr} $$
9
Damani purchased an item costing Rs. 7,500 and paid Rs. 3,500 as a down payment for the same. If the simple interest charged for the remaining amount is 9% per annum and Damani cleared all dues after 4 months of the purchase, how much did Damani pay after 4 months as interest?
Discuss
Answer & Solution
Answer: Option A
Solution:
$$\eqalign{ & {\text{She paid}} = 3500 \cr & {\text{Left amount}} = 7500 - 3500 = 4000 \cr & {\text{S}}{\text{.I}}{\text{.}} = \frac{{4000 \times 9 \times 4}}{{100 \times 12}} = 120 \cr} $$
10
A sum of money invested at simple interest becomes 17/10 of itself in 2 years and 6 months. What is the rate of interest per annum?
Discuss
Answer & Solution
Answer: Option C
Solution:
$$\eqalign{ & {\text{S}}{\text{.I}}{\text{.}} = \frac{{P \times r \times t}}{{100}} \cr & 7 = \frac{{10 \times r \times 5}}{{2 \times 100}} \cr & r = 28\% \cr} $$