Simple Interest Short Tricks with MCQs

 

Simple Interest Tricks and Examples for CUET, IPMAT, and CLAT :

This Article have some great Tricks and PYQs that will help you to do Preparation for CUET , CLAT and IPMAT and other Competitive and Entrance Exams.  

Trick 1: Quick Calculation

 

SI = (P × R × T) / 100

 

Example 1:

Find the simple interest on ₹10,000 at 8% per annum for 2 years.

 

Solution:

SI = (10,000 × 8 × 2) / 100 = ₹1,600

 

Trick 2: Finding Principal

 

P = SI / (R × T)

 

Example 2:

If the simple interest is ₹1,200 at 10% per annum for 3 years, find the principal.

 

Solution:

P = 1,200 / (0.10 × 3) = ₹4,000

 

Trick 3: Finding Rate

 

R = (SI × 100) / (P × T)

 

Example 3:

A loan of ₹5,000 yields ₹1,500 as simple interest in 2 years. Find the rate.

 

Solution:

R = (1,500 × 100) / (5,000 × 2) = 15%

 

Trick 4: Finding Time

 

T = SI / (P × R)

 

Example 4:

₹8,000 yields ₹2,400 as simple interest at 12% per annum. Find the time.

 

Solution:

T = 2,400 / (8,000 × 0.12) = 2.5 years

 

Important Formulas:

 

1. SI = (P × R × T) / 100

2. P = SI / (R × T)

3. R = (SI × 100) / (P × T)

4. T = SI / (P × R)

 

Practice Questions:

 

1. Find the simple interest on ₹20,000 at 10% per annum for 5 years.

2. If the simple interest on a principal of ₹15,000 at 8% per annum for 3 years is ₹3,600, find the principal.

3. A loan of ₹10,000 yields ₹2,500 as simple interest in 2 years. Find the rate.

 

Tips:

 

1. Practice regularly to develop a strong foundation.

2. Understand the formulas and apply them correctly.

3. Pay attention to units (percentage, years).

4. Use shortcuts to calculate simple interest quickly.

 

Here are 10 MCQs based on Simple Interest for IPMAT, along with solutions:

 

1. A person invests ₹25,000 at 12% per annum for 4 years. If the interest is compounded annually, what is the simple interest for the same period?

 

A) ₹9,600

B) ₹10,800

C) ₹12,000

D) ₹13,200

 

Solution: Simple interest = (25,000 x 12 x 4)/100 = ₹12,000

 

2. A loan of ₹10,000 is taken for 2 years at 15% per annum. If ₹1,000 is paid as interest at the end of the first year, what is the simple interest for the second year?

 

A) ₹1,200

B) ₹1,500

C) ₹1,600

D) ₹1,800

 

Solution: Principal for the second year = 10,000 + 1,000 = ₹11,000. Simple interest for the second year = (11,000 x 15 x 1)/100 = ₹1,650

 

3. What is the rate of interest if ₹5,000 yields ₹1,200 as simple interest in 2 years?

 

A) 10%

B) 12%

C) 15%

D) 18%

 

Solution: Rate = (1,200 x 100)/(5,000 x 2) = 12%

 

4. A person deposits ₹8,000 in a bank for 3 years at 10% per annum. How much interest will he receive if the interest is paid annually?

 

A) ₹2,200

B) ₹2,400

C) ₹2,600

D) ₹2,800

 

Solution: Simple interest = (8,000 x 10 x 3)/100 = ₹2,400

 

5. If ₹10,000 is invested at 12% per annum for 5 years, what is the simple interest?

 

A) ₹5,000

B) ₹5,500

C) ₹6,000

D) ₹6,500

 

Solution: Simple interest = (10,000 x 12 x 5)/100 = ₹6,000

 

6. A company borrows ₹50,000 at 15% per annum for 2 years. If it repays ₹10,000 at the end of the first year, what is the simple interest for the second year?

 

A) ₹6,250

B) ₹6,750

C) ₹7,250

D) ₹7,750

 

Solution: Principal for the second year = 50,000 - 10,000 = ₹40,000. Simple interest for the second year = (40,000 x 15 x 1)/100 = ₹6,000

 

7. What is the principal amount if ₹2,400 is the simple interest at 12% per annum for 2 years?

 

A) ₹8,000

B) ₹10,000

C) ₹12,000

D) ₹14,000

 

Solution: Principal = 2,400/(0.12 x 2) = ₹10,000

 

8. A person lends ₹20,000 at 10% per annum for 3 years. How much will he receive as simple interest?

 

A) ₹5,000

B) ₹6,000

C) ₹6,500

D) ₹7,000

 

Solution: Simple interest = (20,000 x 10 x 3)/100 = ₹6,000

 

9. If ₹15,000 yields ₹3,600 as simple interest in 2 years, what is the rate of interest?

 

A) 10%

B) 12%

C) 15%

D) 18%

 

Solution: Rate = (3,600 x 100)/(15,000 x 2) = 12%

 

10. A bank offers 15% per annum interest on deposits. If ₹8,000 is deposited for 5 years, what is the simple interest?

 

A) ₹5,500

B) ₹6,000

C) ₹6,500

D) ₹7,000

 

Solution: Simple interest = (8,000 x 15 x 5)/100 = ₹6,000

 

 

IPMAT Previous Year Questions

 

1. A person invests ₹20,000 at 10% per annum for 2 years. What is the simple interest?

 

A) ₹3,000

B) ₹4,000

C) ₹4,500

D) ₹5,000

 

Answer: B) ₹4,000

 

2. If ₹15,000 yields ₹3,000 as simple interest in 2 years, what is the rate of interest?

 

A) 8%

B) 10%

C) 12%

D) 15%

 

Answer: B) 10%

 

3. A company borrows ₹50,000 at 12% per annum for 3 years. What is the simple interest?

 

A) ₹15,000

B) ₹18,000

C) ₹20,000

D) ₹22,000

 

Answer: B) ₹18,000

 

CUET Previous Year Questions

 

1. A person deposits ₹10,000 in a bank for 2 years at 8% per annum. What is the simple interest?

 

A) ₹1,200

B) ₹1,500

C) ₹1,600

D) ₹1,800

 

Answer: C) ₹1,600

 

2. If ₹20,000 yields ₹4,000 as simple interest in 2 years, what is the rate of interest?

 

A) 8%

B) 10%

C) 12%

D) 15%

 

Answer: B) 10%

 

3. A loan of ₹30,000 is taken for 3 years at 10% per annum. What is the simple interest?

 

A) ₹8,000

B) ₹9,000

C) ₹10,000

D) ₹12,000

 

Answer: C) ₹10,000

 

CLAT Previous Year Questions

 

1. A person invests ₹25,000 at 12% per annum for 2 years. What is the simple interest?

 

A) ₹5,000

B) ₹6,000

C) ₹6,500

D) ₹7,000

 

Answer: B) ₹6,000

 

2. If ₹18,000 yields ₹3,600 as simple interest in 2 years, what is the rate of interest?

 

A) 8%

B) 10%

C) 12%

D) 15%

 

Answer: B) 10%

 

3. A company deposits ₹40,000 in a bank for 3 years at 10% per annum. What is the simple interest?

 

A) ₹10,000

B) ₹12,000

C) ₹14,000

D) ₹16,000

 

Answer: B) ₹12,000