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:

Deepanshu lent Rs. 8400 to Jaipal for 15 years and Rs. 5100 to Kareem for 14 years on simple interest at the same rate of interest and received Rs. 17766 in all from both of them as interest. The rate of interest per annum is

A) 9.5 percent B) 10 percent
C) 10.5 percent D) 9 percent
 
Answer & Explanation Answer: D) 9 percent

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3 1813
Q:

Simple interest on a sum for six months at 5% per annum is Rs 65.5.What is the value (in Rs) of sum ?

A) 2600 B) 2620
C) 1320 D) 2880
 
Answer & Explanation Answer: B) 2620

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3 1807
Q:

An equal sum is invested in two different schemes. One scheme gives simple interest and the other gives compound interest (annual compounding). The sum of interest obtained after 2 years from both the schemes is Rs 2961. If both schemes have 23% per annum interest rate, then what is the first year interest (in Rs)of simple interest scheme?

A) 500 B) 1100
C) 700 D) 900
 
Answer & Explanation Answer: C) 700

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3 1795
Q:

If a certain sum of money doubles itself in 7 years 8 months at simple interest, then what will be the yearly rate of interest (in %)?

A) 18 3/4 B) 13 1/23
C) 26 2/23 D) 30
 
Answer & Explanation Answer: B) 13 1/23

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0 1788
Q:

What is the rate of interest if simple interest earned on a certain sum for the 3rd year is Rs 1,750 and compound interest earned for 2 years is Rs 3622.5?

A) 8 B) 9
C) 10 D) 7
 
Answer & Explanation Answer: D) 7

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2 1738
Q:

A sum fetched a total simple interest of Rs. 7056 at the rate of 8 percent per year in 7 years. What is the sum?

A) Rs 12600 B) Rs 15120
C) Rs 10080 D) Rs 7560
 
Answer & Explanation Answer: A) Rs 12600

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2 1738
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 1717
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 1703