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 Simple Interest Questions

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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:

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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0 1080
Q:

In 2 years at simple interest the principal increases by 8%. What will be the compound interest earned (in Rs) on Rs 10 lakhs in 2 years at the same rate?

A) 86000 B) 81600
C) 90000 D) 94000
 
Answer & Explanation Answer: B) 81600

Explanation:
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5 1057
Q:

The rate of simple interest per annum at which a sum of money double itself in 16 2/3 yrs is

A) 4% B) 5%
C) 6% D) 6.5%
 
Answer & Explanation Answer: C) 6%

Explanation:
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1 1045
Q:

If a certain sum of money doubles itself in 7 years 8 months at simple interest, then what will be the yearly rate of interest (in %)?

A) 18 3/4 B) 13 1/23
C) 26 2/23 D) 30
 
Answer & Explanation Answer: B) 13 1/23

Explanation:
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0 1031
Q:

A sum fetched a total simple interest of Rs. 7056 at the rate of 8 percent per year in 7 years. What is the sum?

A) Rs 12600 B) Rs 15120
C) Rs 10080 D) Rs 7560
 
Answer & Explanation Answer: A) Rs 12600

Explanation:
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2 1028
Q:

The effective annual rate of interest corresponding to a nominal rate of 15% per annum payable half-yearly is

A) 15.56 percent B) 30 percent
C) 31.13 percent D) 15 percent
 
Answer & Explanation Answer: A) 15.56 percent

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2 1020
Q:

Each question contains Quantity I and Quantity II. Read the contents clearly and answer your questions accordingly.

Quantity I: The Sl on a certain sum of money for 3 years at 5% per annum is Rs 4800. Then the principle is?

Quantity II: The Cl on a certain sum of money for 2 years at 6% per annum is Rs. 3708. Then the principle is?

A) Quantity I > Quantity II B) Quantity I ≥ Quantity II
C) Quantity I < Quantity II D) Quantity I < Quantity II
 
Answer & Explanation Answer: A) Quantity I > Quantity II

Explanation:

Quantity I=15% of Principle=4800 

Principle=Rs.32000

Quantity II=12.36% of Principle =3708 

Principle=Rs.30000

Hence Quantity I > Quantity II 

 

 

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1 1019
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

Explanation:
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6 1015