299+ Solved Simple Interest Questions and Answers

Q:

The difference between the interests earned when Rs. P is invested for four years in a scheme offering 9% p.a. Simple interest and when the same sum (Rs P) is invested for two years in another scheme offering 12% p.a. simple interest, is Rs 480. What is the value of P?

A) 2000	B) 3500
C) 2500	D) 4000

Answer & Explanation Answer: D) 4000

Explanation:

p=(p*4*9)/100-(p*2*12)/100 = 480

=12p/100=480

p=4000

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Q:

A sum of Rs. 10,000 is lent partly at 6% and the remaining at 10% p.a. If the yearly interest on the average is 9.2%, the money lent at 10% is:-

A) Rs. 8000	B) Rs. 8500
C) Rs. 5000	D) Rs. 2000

Answer & Explanation Answer: A) Rs. 8000

Explanation:

Let the amount at 6% be x
Amount at 10% be (10000 –x)
At 9.2 % interest, SI = 10000 X 9.2 X 1/100 = 920
Amount = 10920
⇒ 6x/100 + (10000 – x)10/100 = 920
⇒ 6x – 10x + 100000 = 92000
⇒ 4x = 8000
⇒ x = 2000
Money lent at 10 % = 10000 – 2000 = 8000

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Q:

Find the simple interest charged on borrowing $325 for 5 years at 3% p.a. (per annum or per year) interest.

A) 59	B) 46
C) 48.75	D) 34.75

Answer & Explanation Answer: C) 48.75

Explanation:

I= $\frac{P T R}{100}$

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Q:

A bank offers 9% p.a. simple interest on an investment. At the end of 4 years the interest earned was $215. How much was invested?

A) 597.22	B) 345
C) 456	D) 378

Answer & Explanation Answer: A) 597.22

Explanation:

I = (p x r x t)/100

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Q:

Find the principal which yields $25,000 when invested at 3% annually for 20 years.

A) 13841.89	B) 14821
C) 13468	D) 57389

Answer & Explanation Answer: A) 13841.89

Explanation:

$P = \frac{F}{{(1 + i)}^{n}}$

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Q:

If there is a total of 104 weekly instalments and a thirddeposit, find the interest charged

A) 237.55	B) 337
C) 443	D) 334

Answer & Explanation Answer: A) 237.55

Explanation:

Cash price = $3695

Deposit =1/3 of $3695 = $1231.67

Loan amount = $3695.00 − $1231.67 = $2463.33

Total cost of loan = $25.97 × 104= $2700.88

Interest charged = total amount − loan
I = A − P
= 2700.88 − 2463.33
= 237.55

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Q:

loan of $15 000 is taken out. If the interest rate on the loan is 7%, how much interest is due and what is the amount repaid if the loan was taken out on April 7 and is due in seven months

A) 13615.52	B) 14615.52
C) 15615.52	D) 16615.52

Answer & Explanation Answer: C) 15615.52

Explanation:

I = prt = [15000 × 0.07 × (214/365) ]=615.52

Future value, S = P + I = $15 000 + $615.52 = $15 615.52

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Q:

A man invested an amount at the rate of 10% p.a. on compound interest and after two years he again invested half of the initial amount. If man got Rs. 457.2 Rs. as interest after three years, find the amount received by man after three years, if he invested same amount on simple interest at rate of 15% p.a.?

A) 1740 Rs.	B) 1760 Rs.
C) 1720 Rs.	D) 1780 Rs.

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