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:

Two equal sum are invested in two different schemes. One scheme gives simple interest and the other gives compound interest (annual compounding).The sum of interest obtained after 2 years from both the schemes is Rs 3717. If both scheme have 13% per annum interest rate, then what is the first year interest (in Rs) for simple interest scheme?

A) 900 B) 1200
C) 1500 D) 600
 
Answer & Explanation Answer: A) 900

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Q:

The interest on Rs. 1250 for 6 years at the rate of 4% simple interest per annum will be

A) Rs. 360 B) Rs. 350
C) Rs. 375 D) Rs. 300
 
Answer & Explanation Answer: D) Rs. 300

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Q:

Manish lent out Rs 20000 in two parts. He put out first part at 6% and the second part at 8% interest. The yearly average interest comes out to be 6.4%.What are the amounts (in Rs) that were lent at 6% and 8% respectively?

 

A) 16000, 4000 B) 12000, 8000
C) 15000, 5000 D) 18000, 2000
 
Answer & Explanation Answer: A) 16000, 4000

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Q:

An equal sum is invested in two different schemes. One scheme gives simple interest and the other gives compound interest (annual compounding). The total interest obtained after 2 years from both the schemes together is Rs 2090. If both the schemes have 18% per annum interest rate, then what is the first year interest (in Rs) of simple interest scheme?

A) 1000 B) 500
C) 545 D) 1045
 
Answer & Explanation Answer: B) 500

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Q:

The simple interest on a sum of money is 16/25 of the principal. The number of years is equal to the rate of interest per annum. What is the rate (in percentage) of interest per annum?

A) 4 B) 16
C) 8 D) 12
 
Answer & Explanation Answer: C) 8

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Q:

Rahi deposited Rs. 600 in a bank that promised 8% simple interest per annum. If Rahi kept the money with the bank for 5 years, she will earn an interest of

A) Rs. 240 B) Rs. 200
C) Rs. 280 D) Rs. 480
 
Answer & Explanation Answer: A) Rs. 240

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Q:

At 5% simple interest per annum a certain sum yields a total amount of Rs. 2,790 at the end of 3 1/4 years. The sum invested was

A) Rs. 2350 B) Rs. 2400
C) Rs. 2600 D) Rs. 2550
 
Answer & Explanation Answer: B) Rs. 2400

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Q:

Simple interest on a sum of Rs 50200 for 3 months is Rs 1380.5. What is the rate (in percentage) of interest per annum?

 

A) 11 B) 9
C) 9.5 D) 8.5
 
Answer & Explanation Answer: A) 11

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