Simple Interest

5. A sum was put a simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 60 more. The sum is: A)650 B)750 C)850 D)860 Answer : Option B Explanation: Let the sub be Rs.x and the initial rate be R%.Then xŨ(R+4)Ũ2/100−xŨRŨ2/100=60 ⇒xŨ4Ũ2/100=60 ⇒xŨ2/100=15 ⇒2x=1500 ⇒x=750 6. A sum of money becomes 7⁄5 of itself in 4 years at a certain rate of simple interest. The rate per annum is : A)11% B)12% C)10% D)13% Answer : Option C Explanation: Let the sum of money be Rs.x Amount after 4 years = 7x/5 T = 4 years R = ? Simple Interest, SI = ((7x/5)−x)=2x/5 R = 100ŨSI/PT=(100Ũ2x/5)/xŨ4=40/4=10% 7. Find the principle on a certain sum of money at 5% per annum for 2 2/5 years if the amount being Rs.1120? A)1000 B)1100 C)1050 D)1200 Answer : Option A Explanation: 1120 = P [1 + (5*12/5)/100] P= 1000 8. At what rate percent on simple interest will Rs.750 amount to Rs.900 in 5 years? A)3.5% B)4% C)5.50% D)61.5% Answer : Option B Explanation: 150 = (750*5*R)/100 R = 4%

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