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:

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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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 1740
Q:

Sachin lent out Rs 60000 in two parts, first at 4% and the second at 10% interest. The yearly average interest comes out to be 6.4%. What are the amounts (in Rs) that were lent at 4% and 10% respectively?

 

A) 40000, 20000   B) 48000, 12000  
C) 36000, 24000   D) 32000, 28000
 
Answer & Explanation Answer: C) 36000, 24000  

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4 1740
Q:

Simple interest on a sum for 5 years is equal to 20% of the principal. In how many years interest will be equal to the principal?

A) 20 B) 25
C) 15 D) 16
 
Answer & Explanation Answer: B) 25

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2 1721
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 1711
Q:

A certain sum of money becomes 4 times of itself in 30 years at a rate of simple interest. In how many years it will become double of itself at the same rate of simple interest?

A) 20 B) 15
C) 10 D) 12
 
Answer & Explanation Answer: C) 10

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3 1705
Q:

An amount fetched a total simple interest of Rs. 3200 at the rate of 6.25 %/yr in 4 years. What is the amount (in Rs)?

A) 13800 B) 11800
C) 12800 D) 14800
 
Answer & Explanation Answer: C) 12800

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0 1700
Q:

A sum becomes Rs 10000 in 10 years on simple interest at the rate of 10% per annum. What is the total interest (in Rs) of the 10 years?

A) 4000 B) 5000
C) 2500 D) 4500
 
Answer & Explanation Answer: B) 5000

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