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:

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:

A sum of money of Rs. 1000 is lent out in two parts in such a way that the interest on one part at 10% per annum for 5 years is equal to another at 5% for 10 years. Calculate the sum lent out at 5%.

A) Rs. 500 B) Rs. 800
C) Rs. 1000 D) Rs. 1200
 
Answer & Explanation Answer: A) Rs. 500

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Q:

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs 1200 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 525 B) Rs 1050
C) Rs 260 D) Rs 420
 
Answer & Explanation Answer: A) Rs 525

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Q:

What sum will produce the same interest in 9 years at the rate 8% simple interest as Rs. 800 producein 3 years at 9/2% per annum?

A) Rs. 100 B) Rs. 125
C) Rs. 150 D) Rs. 110
 
Answer & Explanation Answer: C) Rs. 150

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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:

The Simple Interest(SI) for 16 years on an amount at particular rate is Rs 10000. If the principal is doubled at an interval of every 4 years and the rate is tripled at every such in terval, find the new Simple Interest(SI)

A) 632100 B) 689620
C) 602260 D) 647500
 
Answer & Explanation Answer: D) 647500

Explanation:
Let New SI be X

10000/16 = X/4(1*1+2*3+4*9+8*27)

10000/16=X/4(1+6+36+216)

X=647500

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Q:

The simple interest on a certain sum of money at the rate of 5% per annum for 8 years is Rs. 840 . Rate of interest for which the same amount of interest can be received on the same sum after 5 years is

A) 7% B) 8%
C) 9% D) 10%
 
Answer & Explanation Answer: B) 8%

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Q:

M borrowed some money for 1 year at certain simple interest. But the interest rate was increased to 2% which amounted to Rs.120. Find the principal amount.

A) Rs.4000 B) Rs.5000
C) Rs.6000 D) Rs.7000
 
Answer & Explanation Answer: C) Rs.6000

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