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 certain sum of money triples itself in 5 years at simple interest. In how many years it will be five times?

A) 5 B) 8
C) 10 D) 15
 
Answer & Explanation Answer: C) 10

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Q:

For an amount, simple interest at the rate of interest of 12% per annum for 6 years is Rs 25920. What will be the compound interest (in Rs) on same amount at the rate of interest of 8% per annum compounding annually for 2 years?

A) 4326.3 B) 5563.4
C) 5888.6 D) 5990.4
 
Answer & Explanation Answer: D) 5990.4

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Q:

Ganesh invested an amount of Rs x in a fixed deposit scheme offering 5% per annum for 1st year and 15% per annum for 2nd year and received an amount of Rs 9660 after two years. What is the value of x (in Rs)?

A) 9000 B) 8000
C) 8500 D) 8200
 
Answer & Explanation Answer: B) 8000

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Q:

The sum of money that will yield Rs. 60 as simple interest at 6% per annum in 5 years is

A) 200 B) 225
C) 175 D) 300
 
Answer & Explanation Answer: A) 200

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Q:

A sum amounts to Rs 7727.104 at the rate of 12% per annum compounded annually after three years. What is the value of principal (in Rs)?

A) 5000 B) 5200
C) 5350 D) 5500
 
Answer & Explanation Answer: D) 5500

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Q:

The simple interest on Rs. 2000 for 2 years at Rs. 75 per thousand per annum will be

A)  Rs.150 B)  Rs.300
C)  Rs.600 D) Rs.400
 
Answer & Explanation Answer: B)  Rs.300

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2 1132
Q:

The amount of simple interest accrued on an amount of Rs 28,500 in seven years is Rs 23,940 What is the rate of interest p.c.p.a ?

A) 10.5 B) 12.5
C) 11 D) 12
 
Answer & Explanation Answer: D) 12

Explanation:

Simple Interest = S.I= pnr/100 Given, S.I = 23940 , p = 28500 , n = 7 thus, r = 100x23940/28500x7 = 12

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Q:

On a certain Principal if the Simple interest for two years is Rs 4800 and Compound interest for the two years is Rs 5088, what is the rate of Interest?

A) 6 percent B) 24 percent
C) 12 percent D) 18 percent
 
Answer & Explanation Answer: C) 12 percent

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