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 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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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 1475
Q:

If the time increases by 5 years, then simple interest increases by Rs 3000 on a sum of Rs 5000. What is the rate (in percentage) of interest per annum?

A) 15 B) 12
C) 10 D) 6
 
Answer & Explanation Answer: B) 12

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4 1474
Q:

The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?

A) 8 B) 10
C) 12 D) 5
 
Answer & Explanation Answer: B) 10

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Q:

A sum of Rs. 3000 yields an interest of Rs. 1080 at 12% per annum simple interest in how many years ?

A) 4 Years B) 3 Years
C) 5 Years D) 2.5 Years
 
Answer & Explanation Answer: B) 3 Years

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2 1453
Q:

R borrowed Rs. 1,200 at 13% per annum simple interest. What amount will R pay to clear the debt after 5 years?

A) Rs.1,860 B) Rs.1,800
C) Rs.1,980 D) Rs.2,000
 
Answer & Explanation Answer: C) Rs.1,980

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Q:

Alipta got some amount of money from her father. In how many years will the ratio of the money and the interest obtained from it be 10:3 at 6% simple interest per annum?

A) 7 years B) 3 years
C) 5 years D) 4 years
 
Answer & Explanation Answer: C) 5 years

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3 1451
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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