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:

The simple and compound interest that can be earned in two years at the same rate is Rs 4000 and Rs 4180 respectively. What is the rate (percent per annum) of interest?

A) 18 B) 4.5
C) 9 D) 12
 
Answer & Explanation Answer: C) 9

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2 1517
Q:

How much simple interest will Rs. 4000 earn in 18 months at 12% per annum?

A) Rs.216 B) Rs.360
C) Rs.720 D) Rs.960
 
Answer & Explanation Answer: C) Rs.720

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4 1509
Q:

A sum of 2,000, invested at the rate of 8.5% simple interest per annum for 6years will yield an interest of

A) Rs. 935 B) Rs. 1020
C) Rs. 510 D) Rs. 1275
 
Answer & Explanation Answer: B) Rs. 1020

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4 1502
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 1500
Q:

A sum of Rs 15200 is divided into two parts. The simple interest on first part at the rate of 25% per annum is equal to the simple interest on second part at the rate of 13% per annum. What is the interest (in Rs) of each part?

A) 2500 B) 1300
C) 3250 D) 1625
 
Answer & Explanation Answer: B) 1300

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6 1498
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 1485
Q:

In 2 years at simple interest the principal increases by 8%. What will be the compound interest earned (in Rs) on Rs 10 lakhs in 2 years at the same rate?

A) 86000 B) 81600
C) 90000 D) 94000
 
Answer & Explanation Answer: B) 81600

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5 1475
Q:

The difference between the compound interest compounding half yearly for 1 year and the simple interest for 1 year on a certain sum of money lent out at 8% per annum is Rs 64. What is the sum (in Rs)?

A) 40000 B) 42000
C) 44000 D) 44800
 
Answer & Explanation Answer: A) 40000

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