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Simple Interest Questions for IPMAT (2027): Practice Set, Formulas & Solutions
September 30, 2026
If you are preparing for IPMAT or BBA exams, simple interest questions for IPMAT are a topic worth locking down early.
The concept is simple, and the key formula can be expressed in a single line. Yet students may still lose marks if the question includes an extra step, for example, by involving a rate that changes after two years, by giving the time in months, by requiring a split investment, or by mentioning instalments.
The guide includes simple interest questions for IPMAT, along with the required formulas and shortcuts, an explanation of the difference between simple and compound interest, and 12 practice questions with solutions.
This material is for Class 11 and Class 12 students, as well as those retaking their exams and preparing for IPMAT Indore, IPMAT Rohtak, or JIPMAT.
What Are IPMAT Simple Interest Questions?
IPMAT simple interest questions are arithmetic problems involving money which is borrowed or invested and which grows over time; they are included in the Arithmetic section of the IPMAT quantitative aptitude syllabus together with questions on percentages, ratios and profit and loss.
Below are the four terms that appear in most questions:
- Principal (P): It is the basic money you start with.
- Rate ®: It is the percentage charged or earned per year.
- Time (T): It is the timeline of the money that remains invested, in years.
- Amount (A): It is the final Principal + interest at the end.
The exam does not always ask you to “find SI” directly. Instead, it may give three values and ask for the fourth. A question can also add a twist, such as a changing rate, split investments or instalments.
Simple Interest Questions for IPMAT Aspirants
Try solving each simple interest question for IPMAT before checking the hint and answer. Aim to spend around 45–90 seconds on most questions.
Q1. Basic
A sum of ₹8,000 is invested by Anisha at 7.5% simple interest per annum for 2 years. What will be the total amount she will get after 2 years?
A. ₹8,600
B. ₹14,000
C. ₹9,200
D. ₹12,400
Hint: First find SI using SI = PRT/100.
Correct Answer: B. ₹9,200
Q2. Finding the Principal
Find the principal for a certain sum, the simple interest on which for 4 years at 6% per annum is ₹1,440.
A. ₹5,000
B. ₹5,130
C. ₹6,000
D. ₹7,200
Hint: Rearrange the SI formula to find P.
Correct Answer: C. ₹6,000
Q3. Time in Months
The amount of ₹12,000 obtains simple interest at the rate of 8% per year. What will be the interest earned in 9 months?
A. ₹640
B. ₹720
C. ₹800
D. ₹960
Hint: Convert 9 months into 9/12 years.
Correct Answer: B. ₹720
Q4. Finding the Rate
If ₹5,000 is to grow to ₹6,200 in 4 years when simple interest is applied, what is the annual rate of interest?
A. 5%
B. 6%
C. 7%
D. 8%
Hint: First find the interest by subtracting the principal from the amount.
Correct Answer: B. 6%
Q5. Doubling
Eight years are required for a sum to double itself when simple interest is applied. After how many years will it reach three times its original amount?
A. 12 years
B. 16 years
C. 20 years
D. 24 years
Hint: If it doubles in 8 years, the interest earned in 8 years is equal to 100% of the principal.
Correct Answer: B. 16 years
Q6. Difference Between Two Amounts
The total amount is ₹7,200 after 3 years and ₹8,400 after 7 years when simple interest is applied. What is the principal?
A. ₹6,000
B. ₹6,200
C. ₹6,300
D. ₹6,600
Hint: The difference between the two amounts represents 4 years of interest.
Correct Answer: A. ₹6,000
Q7. Increased Rate
If the annual rate of simple interest on a given amount is raised by 3 per cent, the interest earned over 4 years will be ₹720 more. What is the principal?
A. ₹5,000
B. ₹6,000
C. ₹7,000
D. ₹8,000
Hint: The extra interest comes only from the additional 3% rate.
Correct Answer: B. ₹6,000
Q8. Split Investment
The amount of ₹20,000 is divided into two portions, one of which is invested at 6% and the other at 9% simple interest; if the total interest obtained in one year is ₹1,500, what is the amount invested at 9%?
A.₹8,000
B. ₹9,000
C. ₹10,000
D. ₹12,000
Hint: Let the amount at 9% be x. The remaining amount will be 20,000 − x.
Correct Answer: B. ₹10,000
Q9. Changing Rates
Money in the amount of ₹10,000 is invested at simple interest; the interest rate is 6% for the first 2 years and 8% for the following 3 years. What is the total interest earned after 5 years?
A. ₹3,000
B. ₹3,200
C. ₹3,600
D. ₹4,000
Hint: Calculate the interest separately for the two periods and add them.
Correct Answer: C. ₹3,600
Q10. Ratio-Based Question
What annual rate of interest would result in simple interest equal to 3/10 of the principal after 5 years?
A. 5%
B. 6%
C. 7%
D. 8%
Hint: Put SI = 3P/10 into SI = PRT/100.
Correct Answer: B. 6%
Q11. Comparing Two Investments
The amount of ₹15,000 is divided into two parts in the ratio 2:3 and the first part is invested at 8% while the second part at 10% simple interest; what is the total interest obtained in one year?
A. ₹1,732
B. ₹1,580
C. ₹1,440
D. ₹1,200
Hint: Find the two parts first, then calculate interest on each.
Correct Answer: C. ₹1,440
Important Formulas for IPMAT Simple Interest Questions 2027
You don't need a long list of formulas since the ones listed here include the common simple interest patterns as well as the compound interest formulas that IPMAT can connect to them.
| No. | Formula / Concept | Formula | Quick Note |
|---|---|---|---|
| 1 | Simple Interest | SI = (P × R × T) / 100 | Use when the principal, rate and time are given. |
| 2 | Amount | A = P + SI = P × (1 + RT/100) | Amount = Principal + Simple Interest. |
| 3 | Finding Principal | P = (100 × SI) / (R × T) | Use when SI, rate and time are known. |
| 3 | Finding Rate | R = (100 × SI) / (P × T) | Use when SI, principal and time are known. |
| 3 | Finding Time | T = (100 × SI) / (P × R) | Use when SI, principal and rate are known. |
| 4 | Multiplying Rule | T = (n − 1) × 100 / R | Used when a sum becomes n times its original value. |
| 4 | Doubling Rule | T = 100 / R | For example, at 10%, a sum doubles in 10 years. |
| 5 | Different Rates for Different Periods | SI = P × (R₁T₁ + R₂T₂ + R₃T₃) / 100 | Calculate interest for each period using the original principal. |
| 6 | Equal Annual Instalments Under SI | A = nx + (xR/100) × n(n − 1)/2 | Used for a debt A repaid in n equal instalments of x at rate R. |
| 7 | Compound Interest | A = P × (1 + R/100)ⁿ | Formula for annual compounding. |
| 7 | Compound Interest | CI = A − P | Subtract the principal from the final amount. |
| 8 | CI − SI for 2 Years | D = P × (R/100)² | Shortcut for the difference between CI and SI for 2 years. |
| 8 | CI − SI for 3 Years | D = P × (R/100)² × (3 + R/100) | Shortcut for the difference between CI and SI for 3 years. |
For formulas across Quant topics, keep the IPM maths important formulas sheet handy.
Mentor Tip: Formulas 4 and 8 can save significant time in the exam. Learn the shortcut, then practise enough questions to recognise when to use it.
Where Do Interest Questions Appear in IPMAT?
IPMAT Indore has 90 questions in 120 minutes, with an enforced 40-minute limit per section. Check the full IPMAT exam pattern before planning your section strategy.
| Exam | Section | Format | Marking |
|---|---|---|---|
| IPMAT Indore | QA Short Answer (15 questions) | Type the numerical answer; no options | +4 for correct, 0 for wrong |
| IPMAT Indore | QA MCQ (30 questions) | Four options | +4 correct, −1 wrong |
| IPMAT Rohtak | Quantitative Ability (MCQ) | Four options | +4 correct, −1 wrong |
| JIPMAT | Quantitative Aptitude (MCQ) | Four options | Check the latest NTA notice |
How Many Simple Interest Questions Come in the IPMAT Exam?
There is no set number of simple interest questions for IPMAT; neither IIM Indore nor IIM Rohtak give the weightage for each topic, so caution should be exercised when looking at the figures that are available online.
The papers indicate a pattern rather than a strict rule, since interest may occur as a small number of separate questions, or it may be combined with another arithmetic topic such as percentages or ratios.
The key point is straightforward in that you should not omit a topic even if it includes only one or two questions, since each correct answer carries 4 marks and there is no penalty for getting a question wrong in the Short Answer section.
You can examine trends regarding topics by looking at the IPMAT 2027 question paper and the previous year's IPMAT papers.
Are IPMAT Simple Interest Questions Difficult?
The majority of them are only of a moderate level. The formula is simple, though the difficulty generally arises from the way the question is put.
| Level | What it looks like | Target time |
|---|---|---|
| Easy | Find SI, P, R or T directly | Under 45 seconds |
| Moderate | Two amounts for different periods, rate changes, doubling | 60–90 seconds |
| Hard | Instalments, split investments, SI vs CI difference, R = T type | 90–150 seconds |
A good rule is this: when dealing with a simple interest problem and it takes longer than two minutes, stop and check the problem statement. Before carrying out any calculations, write down the values of P, R, T and note what is required.
Simple Interest vs Compound Interest Questions 2027
Simple interest is based only on the original principal, so the interest earned each year remains constant.
Interest is calculated on the original sum plus the interest that has already been earned. This causes the interest amount to increase over time.
Take ₹10,000 at 10% per year:
| Year | SI earned | SI amount | CI earned | CI amount |
|---|---|---|---|---|
| 1 | ₹1,000 | ₹11,000 | ₹1,000 | ₹11,000 |
| 2 | ₹1,000 | ₹12,000 | ₹1,100 | ₹12,100 |
| 3 | ₹1,000 | ₹13,000 | ₹1,210 | ₹13,310 |
In the first year,, they are equal because compound interest earns interest on the interest earned earlier. This is why the difference between compound interest and simple interest after two years is P × (R/100)². In this case, the amount is ₹100.
| Feature | Simple Interest | Simple Interest |
|---|---|---|
| Calculated on | Original principal only | Principal + earlier interest |
| Yearly interest | Same every year | Increases every year |
| Growth pattern | Linear, like an AP | Exponential, like a GP |
| First-year result | Same as CI | Same as SI |
| Common in IPMAT as | Direct, instalment, and split-sum questions | Growth, depreciation and CI–SI difference questions |
| Key shortcut | T = 100 / R for doubling | D = P(R/100)² for 2 years |
Is Compound Interest Important for IPMAT 2027?
Yes, compound interest falls under the same arithmetic category as IPMAT questions. You can link it with simple interest, particularly through questions that involve the difference between compound and simple interest.
The questions involving percentages and geometric progressions also apply. After you have a good grasp of simple interest, go on to these techniques for solving compound interest questions in IPMAT.
How to Prepare for IPMAT Interest Questions 2027?
The IPMAT 2027 cycle is complete, so this plan is written for students preparing for the next attempt, IPMAT 2027.
When your percentage skills are already good, simple and compound interest together will take about a week of concentrated practice. But if your percentage skills are uncertain, then you should work on them first since interest is just percentages applied over time.
A 7-Day Plan for Simple and Compound Interest
| Day | Focus | What to do |
|---|---|---|
| 1 | Concepts | Learn P, R, T, A and Formulas 1–3. Solve 10 direct questions without a calculator. |
| 2 | Twists | Two-amount questions, rate changes, doubling and tripling. Solve 10 questions. |
| 3 | Split sums | Learn alligation for two-rate investments. Solve 8 questions both ways, then keep the faster method. |
| 4 | Installments | Learn Formula 6 and the “each instalment earns interest” logic. Solve 6 questions. |
| 5 | Compound interest | CI formula, half-yearly compounding, growth and depreciation. Solve 10 questions. |
| 6 | SI + CI mix | CI–SI difference for 2 and 3 years. Solve 10 mixed questions. |
| 7 | Timed test | 15 mixed questions in 20 minutes. Log every error by type. |
Do not stop after seven days. Keep 3–4 interest questions in your weekly mixed arithmetic sets, and track them inside your wider IPMAT study plan. For the full Quant roadmap, see how to crack the arithmetic section in IPMAT.
Faculty Note: Calculators are not allowed in the exam, so practise the way you will be tested. Check the rules on whether a calculator is allowed in IPMAT. Build speed with fraction equivalents: 12.5% = 1/8, 16.66% = 1/6, 8.33% = 1/12.
Conclusion
Simple interest is an easy topic to handle in IPMAT once you understand its common patterns. Focus on the key formulas, shortcuts, changing rates, split investments, instalments and CI–SI questions.
After that, practise mixed questions with a timer. Keep track of your mistakes and work on the areas where you lose time or accuracy.
With regular practice, simple interest questions for IPMAT can become a quick and manageable part of your arithmetic preparation.
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Frequently Asked Questions
Is there negative marking for interest questions in IPMAT?
What are the most common mistakes in IPMAT interest questions?
How many interest questions come in IPMAT exam?
Are IPMAT interest questions difficult?
What is the difference between simple interest and compound interest?
Can I use a calculator for interest questions in IPMAT?
Lalita Vishwakarma
Content Writer
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