Problems from Simple Interest(SI) are an important part of the Quantitative Aptitude section in every competitive examination including Banking, SSC, Railway and State PSC. It is relatively easy to solve the Simple Interest questions on comparing with the Compound Interest. Let’s discuss some shortcut methods to solve Simple Interest problems in this article.
The important variables in the SI are
- Principal (P)
- Rate of Interest( R)
- Time Duration (T)
- Simple Interest (I)
The general formula to solve SI questions are
Practice Simple Interest Questions 2020
Problems on Simple Interest
Type 1
- In what time, we can get Rs. 1200 as Simple Interest on Rs. 5000 at the rate of 8%?
Conventional Method
2. A sum fetched a total simple interest of Rs.929.20 at the rate of 8% in 5yrs. Find the sum.
Conventional Method
Short cut
In 5years at 8% interest, the simple interest fetched would be 40% of the principal.
Type 2
1. Ravi gave an amount of Rs 20,000 to persons A and B for 2 years at the rate of 10% and 15% Simple interest respectively. After 2 years, he received a total amount of Rs.4400 as Simple Interest. How much money was given at 10% interest?
Conventional Method
Short cut Method (Alligation Method)
Simple interest in 3 years = 18,000
Simple Interest in 1 year = 18,000/3 = 6000
6000= x% of 50,000
= 11%
2. A total sum of Rs.50,000 has been given to A and B at the rate of 10% and 15% respectively. After 3years, a total of Rs.18,000 is obtained as interest. Find the amount given at 10%.
Conventional Method
Alligation Method
The amount given at 10% is Rs 5000. In 3 yrs. It becomes Rs15,000.
The amount given at 15% is Rs. 7500, in 3 yrs it becomes Rs. 22500
Type 3
1. Find the SI accrued on Rs.20,000 for 1 year at 4% compounded half-yearly.
Conventional Method
If compounded half-yearly, Rate= r/2= 2% and time period= t^2 = 2yrs.
Shortcut Method
Sample Questions
1. The difference between the simple interest received from two different sources on Rs.15000 for 3yrs is Rs13.50. The difference between the rate of interest is
(a) 020% (b)0.30% (c)0.50% (d) 0.80% (e) None of these
Answer: B
2. An automobile finance claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes?
(a) 10% (b) 10.25% (c)10.10% (d) 10.08% (e) None of these
Answer: B
3. Stokes gave a loan of Rs. 400 to Ravi and recovered it at the rate of Rs. Rs.100 each month for six months, Rs.100 each month for six months, commencing from the end of 1st month. What is the effective rate of simple interest per annum?
(a) 115% (b) 100% (c) 95% (d) 80% (e) None of these
Answer: B
4. Out of a certain sum, one fifth is invested at 4%, one-sixth is invested at 8% and the rest at 2%. If the simple interest for 2 years from all these investments amounts to Rs.578.find the original sum.
.(a) 8500 (b) 7500 (c) 6000 (d) 7000 (e) None of these
Answer: A
5. If Rs.7452 is divided into three parts such that their amounts after 2, 3 and 4 years respectively are equal, the simple interest is at the rate of 5% per annum. Find the difference between the greatest and smallest parts of the sum.
(a) 204 (b) 214 (c) 211 (d) 216 (e) 264
Answer: D
6. Arun took a loan of Rs.1400 with simple interest for as many years as the rate of interest. If he paid Rs686 as interest at the end of the loan period, what was the rate of interest?
(a)4 (b)5 (c)6 (d)7 (e) None of these
Answer: D
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Conclusion
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