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 money invested for 2 yrs and 9 months at the rate of 8% simple interest per annum became Rs.732 at the end of the period. What was the sum that was initially invested?

A) Rs. 575 B) Rs. 500
C) Rs. 600 D) Rs. 550
 
Answer & Explanation Answer: C) Rs. 600

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Q:

A certain sum of money becomes double of itself in 15 years at a rate of simple interest. In how many years will it become 5 times of itself at the same rate of simple interest

A) 45 B) 37.5
C) 75 D) 60
 
Answer & Explanation Answer: D) 60

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Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs 8. The sum is ______.

A) Rs 10000 B) Rs 20000
C) Rs 5000 D) Rs 15000
 
Answer & Explanation Answer: C) Rs 5000

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Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 9% per annum is Rs 405. The sum is ______ .

A) Rs 50000 B) Rs 100000
C) Rs 200000 D) Rs 150000
 
Answer & Explanation Answer: A) Rs 50000

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Q:

If a sum of money doubles itself in 8 yrs, then the interest rate in percentage is ?

A) 8 1⁄2% B) 10%
C) 10 1⁄2 % D) 12 1⁄2 %
 
Answer & Explanation Answer: D) 12 1⁄2 %

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Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 1. The sum (in Rs.) is:

A) 620 B) 630
C) 640 D) 625
 
Answer & Explanation Answer: D) 625

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Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 16% per annum is Rs 320. What is the value of given sum (in Rs)?

A) 25000 B) 50000
C) 37500 D) 12500
 
Answer & Explanation Answer: D) 12500

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Q:

Find the simple interest on Rs. 50 for 6 months at the rate of 10 paise per rupee per month.

A) Rs.35 B) Rs.40
C) Rs.25 D) Rs.30
 
Answer & Explanation Answer: D) Rs.30

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