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 difference between the compound interest compounding half yearly for 1 year and the simple interest for 1 year on a certain sum of money lent out at 8% per annum is Rs 64. What is the sum (in Rs)?

A) 40000 B) 42000
C) 44000 D) 44800
 
Answer & Explanation Answer: A) 40000

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2 1843
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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1 1842
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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0 1830
Q:

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs. 16000 for 2 years at 10% per annum. The sum placed on simple interest is:

A) Rs 14000 B) Rs 3500
C) Rs 7000 D) Rs 5600
 
Answer & Explanation Answer: C) Rs 7000

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0 1819
Q:

Rohan borrowed a certain sum of money at simple interest. Rate of interest was 3% per annum for first 3 years, 4% per annum for next 5 years and 6% per annum for next 7 years. If he paid Rs 2059 as interest, then what is the sum borrowed (in Rs)?

A) 2400 B) 2500
C) 2900 D) 3100
 
Answer & Explanation Answer: C) 2900

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0 1814
Q:

Simple interest on a certain sum of money for 3 years at 10% per annum is half the compound interest on Rs 6000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 4200 B) Rs 2100
C) Rs 1680 D) Rs 1050
 
Answer & Explanation Answer: B) Rs 2100

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2 1811
Q:

Dalajit lent Rs 10800 to Jaabir for 3 years and Rs 7500 to Kabir for 2 years on simple interest at the same rate of interest and received Rs 1422 in all from both of them as interest. The rate of interest per annum is

A) 3.5 percent B) 4 percent
C) 3 percent D) 4.5 percent
 
Answer & Explanation Answer: C) 3 percent

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2 1803
Q:

What is the ratio of simple interest earned on certain amount at the rate of 12% for 6 years and that for 12 years?

A) 1:2 B) 2:3
C) 3:4 D) 4:5
 
Answer & Explanation Answer: A) 1:2

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6 1794