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:

At 6% simple interest per annum a sum of money became Rs. 834 in 6.5 years. The sum initially invested was

A) Rs. 600 B) Rs. 626
C) Rs. 675 D) Rs. 650
 
Answer & Explanation Answer: A) Rs. 600

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Q:

A certain principal is invested in a scheme of compound interest. The amount obtained after 1 year is Rs 2400 and the amount obtained after 2 years is Rs 2880. What is the rate of interest (in percentage)?

A) 20 B) 15
C) 25 D) 10
 
Answer & Explanation Answer: A) 20

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Q:

The simple interest on a certain sum of money invested at a certain rate for 2 years amounts to Rs. 1200. The compound interest on the same sum of money invested at the same rate of interest for 2 years amounts to Rs. 1290. What was the principal?

A) Rs. 12000 B) Rs. 16000
C) Rs. 6000 D) Rs. 4000
 
Answer & Explanation Answer: D) Rs. 4000

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Q:

A sum of money invested at simple interest becomes 13/10 of itself in 2 years and 6 months. What is the rate (in percentage) of interest per annum?

 

A) 10 B) 15
C) 12 D) 18
 
Answer & Explanation Answer: C) 12

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Q:

Simple interest on a certain sum of money for 3 years at 16% per annum is half the compound interest on Rs. 12000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 5250 B) Rs 1325
C) Rs 2100 D) Rs 2625
 
Answer & Explanation Answer: D) Rs 2625

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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:

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 12% per annum is Rs 72. What is the value of given sum (in Rs)?

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

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