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 14% per annum is half the compound interest on Rs. 10000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 5000 B) Rs 1250
C) Rs 2000 D) Rs 2500
 
Answer & Explanation Answer: D) Rs 2500

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Q:

A sum becomes Rs 1392 in 2 years and Rs 1488 in 3 years at simple interest. What is the rate (in percentage) of interest per annum?

A) 8 B) 10
C) 12 D) 8.5
 
Answer & Explanation Answer: A) 8

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2 1307
Q:

A sum fetched a total simple interest of Rs 5320 at the rate of 7% per year in 5 years. What is the sum?

A) Rs 18240 B) Rs 12160
C) Rs 15200 D) Rs 9120
 
Answer & Explanation Answer: C) Rs 15200

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Q:

A sum becomes Rs 8800 in 4 years at simple interest at the yearly interest rate of 25% per annum. What is the sum (in Rs)?

 

A) 4400 B) 6600
C) 7040 D) 6400
 
Answer & Explanation Answer: A) 4400

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0 1305
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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3 1296
Q:

Simple interest on a sum for 18 months at 14% per annum is Rs 1365.What is the value (in Rs) of sum?

A) 6100 B) 7300
C) 8100 D) 6500
 
Answer & Explanation Answer: D) 6500

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4 1289
Q:

The simple interest on a sum for 5 years is Rs 16800. The rate of interest for the first 3 years is 8% per annum and for the next 2 years is 12% per annum. What is the value (in Rs) of sum?

A) 30000 B) 38000
C) 32000 D) 35000
 
Answer & Explanation Answer: D) 35000

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3 1288
Q:

Deepinder lent Rs 8200 to Jairaj for 16 years and Rs 4900 to Karna for 15 years on simple interest at the same rate of interest and received Rs 19446.5 in all from both of them as interest. The rate of interest per annum is:

A) 10 percent B) 10.5 percent
C) 9.5 percent D) 11 percent
 
Answer & Explanation Answer: C) 9.5 percent

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