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:

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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Q:

A sum fetched a total simple interest of Rs.5,400 at the rate of 12.5 %/yr in 4 years. What is the sum (in Rs)?

A) 11800 B) 12800
C) 9800 D) 10800
 
Answer & Explanation Answer: D) 10800

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Q:

Ram lent Rs. 6,000/- to Shiva for 3 years and Rs. 8,000/- to Krishna for 5 years at the same rate of simple interest per annum. He got a total interest of Rs. 5,220 from both. Find the rate of interest per annum.

A) 6% B) 7%
C) 8% D) 9%
 
Answer & Explanation Answer: D) 9%

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Q:

The interest earned on Rs. 1600 at the rate of 5% S>I per annum for 6 yrs would be:

A) 2080 B) 450
C) 496 D) 480
 
Answer & Explanation Answer: D) 480

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Q:

If in 3 years at simple interest the principal increases by 18%, what will be the compound interest (in Rs) earned on Rs. 25,000 in 3 years at the same rate?

A) 4775.4 B) 5774.4
C) 4557.4 D) 5575.4
 
Answer & Explanation Answer: A) 4775.4

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Q:

Rs. 750 invested for 3 months gave an interest of Rs. 18. What was the simple rate of interest per annum?

A) 9.6% B) 2.4%
C) 7.2% D) 12%
 
Answer & Explanation Answer: A) 9.6%

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Q:

A invested an amount of x rupees in a bank for 2 years which gave 5% interest in year 1 and 6% interest in year 2. The amount received after 2 years is Rs 24,486. What is the value of x?

A) 23000 B) 22500
C) 22000 D) 21500
 
Answer & Explanation Answer: C) 22000

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Q:

A person lent Rs 10000 to B for 3 years and Rs 6000 to C for 4 years on simple interest at same rate of interest and received Rs 5400 in all from both of
them as interest. What is the rate of interest (in %)?

A) 10 B) 12
C) 20 D) 25
 
Answer & Explanation Answer: A) 10

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