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Simple Interest — Data Sufficiency Questions & Practice

Practise 4 Simple Interest questions from Data Sufficiency for competitive exams such as UPSC, Banking, SSC and Railway. Read the worked questions below, check every answer with an explanation, and track what you get wrong.

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Practice questions on Simple Interest — with answers

Try each question first, then open the answer. Explanations are included.

1. How much more interest would be earned by increasing the rate? I. The original rate was 5% per annum on a Rs. 10,000 principal for 2 years. II. The bank offers competitive rates in the market.

AStatement I alone is sufficient, but Statement II alone is not sufficient
BStatement II alone is sufficient, but Statement I alone is not sufficient
CBoth statements I and II together are sufficient, but neither alone is sufficient
DBoth statements I and II together are not sufficient

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Answer: D

Without knowing the new increased rate, the additional interest cannot be computed, even after considering both statements.

2. What is the time period for which the sum was invested? I. The principal is Rs. 4000 and the simple interest is Rs. 960. II. The interest was compounded annually.

AStatement I alone is sufficient, but Statement II alone is not sufficient
BStatement II alone is sufficient, but Statement I alone is not sufficient
CBoth statements I and II together are sufficient, but neither alone is sufficient
DBoth statements I and II together are not sufficient

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Answer: D

Statement I alone does not give the rate needed to isolate the time. Statement II actually contradicts the premise of simple interest, so it doesn't help; even combined, the time cannot be found without knowing the rate.

3. What was the principal amount if the interest for 4 years equals half the principal? I. The rate of interest is 12.5% per annum. II. The interest was paid annually.

AStatement I alone is sufficient, but Statement II alone is not sufficient
BStatement II alone is sufficient, but Statement I alone is not sufficient
CBoth statements I and II together are sufficient, but neither alone is sufficient
DBoth statements I and II together are not sufficient

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Answer: D

The relationship given (interest = half principal) combined with the rate lets us verify consistency (12.5%x4=50%, matching) but does not give an absolute value for the principal itself, so it remains indeterminate.

4. What is the simple interest rate offered by Bank X? I. Bank X offers a higher rate than Bank Y. II. Bank Y offers a rate of 6% per annum.

AStatement I alone is sufficient, but Statement II alone is not sufficient
BStatement II alone is sufficient, but Statement I alone is not sufficient
CBoth statements I and II together are sufficient, but neither alone is sufficient
DBoth statements I and II together are not sufficient

Show answer

Answer: D

Even combined, we only know Bank X's rate is greater than 6%, but the exact rate remains unknown.

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Simple Interest — Data Sufficiency Questions & Practice

Practice questions on Simple Interest — with answers

1. How much more interest would be earned by increasing the rate? I. The original rate was 5% per annum on a Rs. 10,000 principal for 2 years. II. The bank offers competitive rates in the market.

2. What is the time period for which the sum was invested? I. The principal is Rs. 4000 and the simple interest is Rs. 960. II. The interest was compounded annually.

3. What was the principal amount if the interest for 4 years equals half the principal? I. The rate of interest is 12.5% per annum. II. The interest was paid annually.

4. What is the simple interest rate offered by Bank X? I. Bank X offers a higher rate than Bank Y. II. Bank Y offers a rate of 6% per annum.

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