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:

There is 40% increase in an amount in 10 years at simple interest. What will be the compound interest of Rs. 30000 after 3 years at the same rate?

A) Rs 3745.92 B) Rs 7491.84
C) Rs 9364.8 D) Rs 5618.88
 
Answer & Explanation Answer: A) Rs 3745.92

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Q:

Simple interest on a certain sum of money for 3 years at 18% per annum is half the compound interest on Rs. 9000 for 2 years at 10% per annum. The sum placed on simple interest is:

A) Rs 3500 B) Rs 875
C) Rs 1750 D) Rs 1400
 
Answer & Explanation Answer: C) Rs 1750

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Q:

The simple and compound interest that can be earned in two years at the same rate is Rs 1,000 and Rs 1,040 respectively. What is the rate (percent per annum) of interest?

A) 9 B) 10
C) 8 D) 11
 
Answer & Explanation Answer: C) 8

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Q:

For what sum will the simple interest at R% for 2 years will be R?

A) 100/2R B) 50/R
C) 100/R D) 200/R
 
Answer & Explanation Answer: C) 100/R

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Q:

The difference between compound interest and simple interest on a sum for 2 year at 20% per annum is Rs 200. If the interest is compounded half yearly, then what is the difference (in Rs) between compound and simple interest for 1st year?

A) 50 B) 75
C) 100 D) 150
 
Answer & Explanation Answer: A) 50

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Q:

A money lender lends Rs. 400 for 3 years to a person and lends Rs. 500 for 4 years to the other person at the same rate of simple interest. If altogether he receives Rs. 160 as interest, what is the rate of interest per annum ?

A) 5% B) 7%
C) 9% D) 10%
 
Answer & Explanation Answer: A) 5%

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Q:

A certain principal is invested in a scheme of compound interest. The amount obtained after 1 year is Rs 2400 and the amount obtained after 2 years is Rs 2880. What is the rate of interest (in percentage)?

A) 20 B) 15
C) 25 D) 10
 
Answer & Explanation Answer: A) 20

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Q:

A sum fetched a total simple interest of Rs. 7728 at the rate of 7% per year in 8 years. What is the sum?

A) Rs 13800 B) Rs 16560
C) Rs 11040 D) Rs 8280
 
Answer & Explanation Answer: A) Rs 13800

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