Simple Interest Questions

FACTS  AND  FORMULAE  FOR  SIMPLE  INTEREST  QUESTIONS

 

 

1. Principal: The money borrowed or lent out for a certain period is called the principal or the sum.

 

2. Interest: Extra money paid for using other's money is called interest

 

3. Simple Interest (S.I.) : If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest.

Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then,

(i)  S.I=P×T×R100

(ii)  P=100×S.IR×T ; R=100×S.IP×T and T=100×S.IP×R

Q:

A bank offers 20% compound interest per half year. A customer deposits Rs 7600 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained from interest is

A) Rs 9727 B) Rs 2432
C) Rs 4864 D) Rs 1216
 
Answer & Explanation Answer: C) Rs 4864

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

5 1673
Q:

What Principal will yield Rs. 120 as Simple Interest at 6% p.a. in 10 years?

A) ₹ 120 B) ₹ 180
C) ₹ 200 D) ₹ 210
 
Answer & Explanation Answer: C) ₹ 200

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

4 1669
Q:

The difference of compound interest and simple interest for 3 years and for 2 years are in ratio 23 : 7 respectively. What is rate of interest per annum (in %)?

A) 200/7 B) 100/7
C) 300/7 D) 400/7
 
Answer & Explanation Answer: A) 200/7

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

1 1654
Q:

Raghu has invested Rs. 1000 and received Rs. 1300 at 6% per annum simple interest after X years. Find thevalue of X.

A) 4 years B) 3 years
C) 2 years D) 5 years
 
Answer & Explanation Answer: D) 5 years

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

4 1639
Q:

What is the difference (in Rs) in Compound interest earned in 1 year on a sum of Rs 10,000 at 40% per annum compounded quarterly and annually?

A) 461 B) 346
C) 463 D) 641
 
Answer & Explanation Answer: D) 641

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

4 1628
Q:

The simple interest on a sum of money for 10 years is Rs 3130. If the principal becomes 5 times after 5 years, then what will be the total interest (in Rs)obtained after 10 years?

A) 6260 B) 7825
C) 9390 D) 15650
 
Answer & Explanation Answer: C) 9390

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

1 1600
Q:

A man borrowed some money from a private organisation at 5% simple interest per annum. He lended this money to another person at 10% compound interest per annum, and made a profit of 26,410 in 4 years. The man borrowed

A) 200000 B) 150000
C) 132050 D) 100000
 
Answer & Explanation Answer: D) 100000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

0 1576
Q:

The simple interest accrued on a sum of money at the end of four years is 1/5th of its principal. What is the rate of interest per annum?

A) 4% B) 5%
C) 6% D) Inadequate data
 
Answer & Explanation Answer: B) 5%

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

4 1529