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:

The simple interest on Rs. 25 for 4 months at the rate of 3 paise per rupee per month is :

A) 240 paise B) Rs. 1.40
C) Rs. 2.20 D) Rs. 3
 
Answer & Explanation Answer: D) Rs. 3

Explanation:

I = PTR/100
I = 25 x 4 x 0.03/100
I = 0.03 x 100 = 300 Ps = Rs. 3

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23 13451
Q:

What is the principal sum?
I. The sum amounts to Rs. 690 in 3 years at S.I.
II. The sum amounts to Rs. 750 in 5 years at S.I.
III. The rate of interest is 5% p.a.

A) I and III only B) II and III only
C) I and II only D) Any two of the three
 
Answer & Explanation Answer: D) Any two of the three

Explanation:

Clearly, any of the three will give us the answer

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11 12991
Q:

A sum at simple interest at 1312% per annum amounts to Rs. 2502.50 after 4 years. Find the sum

A) Rs.1625 B) Rs1525
C) Rs.1425 D) Rs.1325
 
Answer & Explanation Answer: A) Rs.1625

Explanation:

 Let sum be Rs.x then, S.I. =Rs. [ x * (27/2) * 4 * (1/100) ] = Rs. 27x/50 

 

Amount =Rs [ x + (27x/50)] = Rs.77x/50 

 

=> 77X/50 = 2502.50  

 

=>X= (2502.50 * 50)/77 = 1625 

 

Hence Sum = Rs.1625

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11 12705
Q:

What will be the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years?

A) 1:3 B) 1:4
C) 2:3 D) data is inadequate
 
Answer & Explanation Answer: C) 2:3

Explanation:

Let the principal be P and rate of interest be R%.

 

Required ratio =P*R*6100P*R*9100=6PR9PR=69=23

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14 12570
Q:

The simple interest on a sum of money will be Rs.600 after 10 years. If the principal is trebled after 5 years what will be the total interest at the end of the tenth year ?

A) Rs. 1100 B) Rs. 1200
C) Rs. 1000 D) Rs. 1840
 
Answer & Explanation Answer: B) Rs. 1200

Explanation:

P --- 10 ----- 600 

  P --- 5 ----- 300

3P --- 5 ----- 900
                __________
                   1200

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25 12233
Q:

The simple interest on Rs.10 for 4 months at the rate of 3 paise per month is

A) 0.3 Paise B) 1.2 Paise
C) 30 Paise D) 3 Paise
 
Answer & Explanation Answer: B) 1.2 Paise

Explanation:

Given Principal amount P = Rs. 10

 Time T = 4 months

 Rate of interest R = 3 ps

 Interest I = PTR/100 = (10 x 4 x 3)/100 = 12/10 = 1.2 paise.

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6 11964
Q:

1. The simple interest on a sum of money is Rs. 50. What is the sum?
I. The interest rate is 10% p.a.
II. The sum earned simple interest in 10 years

A) I alone sufficient while II alone not sufficient to answer B) II alone sufficient while I alone not sufficient to answer
C) Either I or II alone sufficient to answer D) Both I and II are necessary to answer
 
Answer & Explanation Answer: D) Both I and II are necessary to answer

Explanation:

Given : S.I. = Rs. 50.

I  gives,  R = 10% p.a.

II gives,  T = 10 years.

Sum = (100 x S.I)/(t x r ) =  Rs.(100 x 50)/(10 x 10) = Rs.50

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5 11708
Q:

How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?

A) 3.5 years B) 4 years
C) 4.5 years D) 5 years
 
Answer & Explanation Answer: B) 4 years

Explanation:

Time = (100 x 81)/(450 x 4.5) years

= 4 years.

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12 11375