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 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

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Q:

A person borrows some money for 4 years at the rate of simple interest. If the ratio of principal and total interest is 5 : 1, then what is the rate ( in percentage) of interest?

A) 5 B) 25
C) 10 D) 20
 
Answer & Explanation Answer: A) 5

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Q:

Simple interest on a sum for six months at 5% per annum is Rs 65.5.What is the value (in Rs) of sum ?

A) 2600 B) 2620
C) 1320 D) 2880
 
Answer & Explanation Answer: B) 2620

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Q:

A certain bank offers 8% rate of interest on the 1st year and 9% on the 2nd year in a certain fixed deposit scheme. If Rs 17,658 are received after investing for 2 years in this scheme, then what was the amount (in Rs) invested?

A) 16000 B) 15000
C) 15500 D) 16500
 
Answer & Explanation Answer: B) 15000

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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%

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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 1459
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:

The simple and compound interest that can be earned in two years at the same rate is Rs 4000 and Rs 4180 respectively. What is the rate (percent per annum) of interest?

A) 18 B) 4.5
C) 9 D) 12
 
Answer & Explanation Answer: C) 9

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