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Simple interest — Practice MCQs

Sum becomes n times, rate and time, difference in interest

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    Practise 38 questions on this topic
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    1. Formula

    SI = P × R × T / 100; Amount A = P + SI. T in years (months ÷ 12).

    2. Derived results

    CaseResult
    Sum doubles in T yearsR = 100/T
    Sum becomes n times in T yearsR = 100(n − 1)/T
    Doubles in T years; time to become n times(n − 1) × T
    SI is 1/x of the principalR × T = 100/x
    Amount A₁ after T₁, A₂ after T₂SI per year = (A₂ − A₁)/(T₂ − T₁)

    3. Solved examples

    ₹5,000 at 8% for 3 years → SI = ₹1,200.
    Sum doubles in 8 years → R = 12.5%. It triples in 2 × 8 = 16 years.
    Amount ₹1,240 in 2 years, ₹1,360 in 5 years → SI/year = 40; P = 1240 − 80 = ₹1,160.
    Sum lent partly at 5% and partly at 8%; total ₹10,000, yearly interest ₹620 → alligation: (8 − 6.2) : (6.2 − 5) = 1.8 : 1.2 = 3 : 2 → ₹6,000 at 5%.
    If the rate rises by 2%, interest on ₹2,500 for 3 years rises by 2500 × 2 × 3/100 = ₹150.

    Solved examples by question type

    Each type that comes in the ASO paper, worked step by step. Try it yourself first, then read the solution.

    Basic level

    Example 1. Find the simple interest on ₹2,000 at 4% per annum for 3 years.
    (a) ₹480   (b) ₹80   (c) ₹240   (d) ₹2,240
    Answer: (c) ₹240
    Solution: SI = P×R×T/100 = 2,000×4×3/100 = ₹240.
    Example 2. Find the simple interest on ₹12,000 at 6% per annum for 4 years.
    (a) ₹720   (b) ₹14,880   (c) ₹5,760   (d) ₹2,880
    Answer: (d) ₹2,880
    Solution: SI = P×R×T/100 = 12,000×6×4/100 = ₹2,880.
    Example 3. ₹2,500 amounts to ₹3,000 in 4 years at simple interest. The rate per annum is:
    (a) 4.17%   (b) 20%   (c) 5%   (d) 7%
    Answer: (c) 5%
    Solution: SI = 500. R = 100 × 500/(2,500 × 4) = 5%.

    ASO exam level

    Example 4. A sum of ₹1,200 amounts to ₹1,344 in 3 years at simple interest. If the rate is increased by 2%, it would amount to:
    (a) ₹1,416   (b) ₹1,440   (c) ₹1,368   (d) ₹1,364
    Answer: (a) ₹1,416
    Solution: SI = 144 → R = 4%. New R = 6% → SI = 216 → Amount = ₹1,416.
    Example 5. A sum was put at simple interest for 3 years. Had it been put at 2% higher rate, it would have fetched ₹240 more. The sum is:
    (a) ₹4,000   (b) ₹5,000   (c) ₹8,000   (d) ₹12,000
    Answer: (a) ₹4,000
    Solution: P × 2 × 3/100 = 240 → P = ₹4,000.
    Example 6. A sum doubles itself in 10 years at simple interest. In how many years will it become 4 times?
    (a) 30 years   (b) 40 years   (c) 34 years   (d) 26 years
    Answer: (a) 30 years
    Solution: Doubling: R = 100/10 = 10%. For 4 times, SI = 3P → T = 3 × 100/10 = 30 years.
    Example 7. A sum at simple interest amounts to ₹4,640 in 2 years and ₹5,600 in 5 years. The sum is:
    (a) ₹3,700   (b) ₹3,680   (c) ₹4,200   (d) ₹4,000
    Answer: (d) ₹4,000
    Solution: SI for 3 years = 960 → 1 year = 320. P = 4,640 − 2×320 = ₹4,000.

    Topic-wise practice for Simple interest (Quant): Sum becomes n times, rate and time, difference in interest. Useful for OPSC ASO, OSSC, OSSSC and other Odisha exams.

    Question types covered

    Sourced from the Odisha Public Service Commission where applicable. opsc.gov.in. EduSaint is not affiliated with OPSC.