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 sum of Rs 6800 for 18 months is Rs 2244. What is the rate (in percentage) of interest per annum?

A) 24 B) 18
C) 20 D) 22
 
Answer & Explanation Answer: D) 22

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Q:

The interest on Rs. 1250 for 6 years at the rate of 4% simple interest per annum will be

A) Rs. 360 B) Rs. 350
C) Rs. 375 D) Rs. 300
 
Answer & Explanation Answer: D) Rs. 300

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Q:

Saathi deposited Rs. 825 in a bank that promised 8% simple interest per annum. If Saathi kept the money with the bank for 5 years, she will earn an interest of

A) Rs. 480 B) Rs. 280
C) Rs. 330 D) Rs. 290
 
Answer & Explanation Answer: C) Rs. 330

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Q:

Manish lent out Rs 20000 in two parts. He put out first part at 6% and the second part at 8% interest. The yearly average interest comes out to be 6.4%.What are the amounts (in Rs) that were lent at 6% and 8% respectively?

 

A) 16000, 4000 B) 12000, 8000
C) 15000, 5000 D) 18000, 2000
 
Answer & Explanation Answer: A) 16000, 4000

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Q:

What is the ratio of simple interest earned on certain amount at the rate of 12% p.a. for 9 years and that for 12 years?

A) 1:2 B) 2:3
C) 3:4 D) 4:5
 
Answer & Explanation Answer: C) 3:4

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Q:

Rahi deposited Rs. 600 in a bank that promised 8% simple interest per annum. If Rahi kept the money with the bank for 5 years, she will earn an interest of

A) Rs. 240 B) Rs. 200
C) Rs. 280 D) Rs. 480
 
Answer & Explanation Answer: A) Rs. 240

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Q:

Sachin lent out Rs 60000 in two parts, first at 4% and the second at 10% interest. The yearly average interest comes out to be 6.4%. What are the amounts (in Rs) that were lent at 4% and 10% respectively?

 

A) 40000, 20000   B) 48000, 12000  
C) 36000, 24000   D) 32000, 28000
 
Answer & Explanation Answer: C) 36000, 24000  

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Q:

Ms. Sushmitha borrowed Rs. 900 at 6% per annum simple interest. What amount will she pay to clear her debt after 4 years?

A) 261 B) 1161
C) 1116 D) 216
 
Answer & Explanation Answer: C) 1116

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