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:

A sum of Rs 8000 is divided into two parts. The simple interest on first part at the rate of 21% per annum is equal to the simple interest on second part at the rate of 35% per annum. What is the interest (in Rs) of each part?

A) 1050 B) 840
C) 1400 D) 1220
 
Answer & Explanation Answer: A) 1050

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2 1825
Q:

A sum fetched a total simple interest of Rs 1200 at the rate of 7.5%/yr in 4 years. What is the sum (in Rs)?

A) 4000 B) 6000
C) 8000 D) 7500
 
Answer & Explanation Answer: A) 4000

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1 1821
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 1820
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 1805
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 1803
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 1799
Q:

A sum fetched a total simple interest of Rs. 8100 at the rate of 6% per year in 9 years. What is the sum?

A) Rs 15000 B) Rs 18000
C) Rs 12000 D) Rs 9000
 
Answer & Explanation Answer: A) Rs 15000

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1 1781
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 1778