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:

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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0 1816
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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6 1813
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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2 1807
Q:

Both S.I. and C.I. is calculated with a similar rate of 10% per annum on a sum of rupees. If C.I. is calculated yearly for two years, then for what period must S.I. be evaluated such that S.I. = C.I.?

A) 4.2 years B) 2.1 years
C) 1.1 years D) 1.4 years
 
Answer & Explanation Answer: B) 2.1 years

Explanation:

Let time period of S.I. be T years.

Then for a principal amount, say P,

ATQ, as, S.I. = C.I. for rate =10%p.a. and

time for C.I. = 2(P x 10 x T)/100 = P{[ (100+10)/100 ]2-1}T/10 = [ 110/100 ]2–1 = [(11/10)2–1] = (121-100)/100T/10 = 21/100T = 21/10 = 2.1 years

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1 1800
Q:

The difference between simple interest on a certain sum at the rate of 6% per annum for 5 years and 6 years is 25.8. What is the sum (in Rs)?

 

A) 480 B)  430
C) 258 D) 516
 
Answer & Explanation Answer: B)  430

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3 1797
Q:

A sum of Rs 15200 is divided into two parts. The simple interest on first part at the rate of 25% per annum is equal to the simple interest on second part at the rate of 13% per annum. What is the interest (in Rs) of each part?

A) 2500 B) 1300
C) 3250 D) 1625
 
Answer & Explanation Answer: B) 1300

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6 1790
Q:

A sum of Rs 2000 becomes Rs 3645 in 2 years at a certain rate of compound interest. What will be the sum (in Rs) after 4 years?

A) 5942.125 B) 6643.0125
C) 7243.0125 D) 7498.125
 
Answer & Explanation Answer: B) 6643.0125

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2 1782
Q:

Deepanshu lent Rs. 8400 to Jaipal for 15 years and Rs. 5100 to Kareem for 14 years on simple interest at the same rate of interest and received Rs. 17766 in all from both of them as interest. The rate of interest per annum is

A) 9.5 percent B) 10 percent
C) 10.5 percent D) 9 percent
 
Answer & Explanation Answer: D) 9 percent

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3 1750