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:

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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23 1900
Q:

A sum fetched a total simple interest of Rs.5,400 at the rate of 12.5 %/yr in 4 years. What is the sum (in Rs)?

A) 11800 B) 12800
C) 9800 D) 10800
 
Answer & Explanation Answer: D) 10800

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3 1890
Q:

A sum amounts to Rs 7727.104 at the rate of 12% per annum compounded annually after three years. What is the value of principal (in Rs)?

A) 5000 B) 5200
C) 5350 D) 5500
 
Answer & Explanation Answer: D) 5500

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0 1887
Q:

A sum of Rs. 1200 is lent to be paid back in 5 equal annual installments of Rs. 264 each. The rate of interest per annum is

A) 6% B) 8%
C) 2% D) 4%
 
Answer & Explanation Answer: C) 2%

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3 1885
Q:

Ganesh invested an amount of Rs x in a fixed deposit scheme offering 5% per annum for 1st year and 15% per annum for 2nd year and received an amount of Rs 9660 after two years. What is the value of x (in Rs)?

A) 9000 B) 8000
C) 8500 D) 8200
 
Answer & Explanation Answer: B) 8000

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0 1876
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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1 1858
Q:

The amount of simple interest accrued on an amount of Rs 28,500 in seven years is Rs 23,940 What is the rate of interest p.c.p.a ?

A) 10.5 B) 12.5
C) 11 D) 12
 
Answer & Explanation Answer: D) 12

Explanation:

Simple Interest = S.I= pnr/100 Given, S.I = 23940 , p = 28500 , n = 7 thus, r = 100x23940/28500x7 = 12

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4 1836
Q:

If in 3 years at simple interest the principal increases by 18%, what will be the compound interest (in Rs) earned on Rs. 25,000 in 3 years at the same rate?

A) 4775.4 B) 5774.4
C) 4557.4 D) 5575.4
 
Answer & Explanation Answer: A) 4775.4

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3 1796