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:

Ram lent Rs. 6,000/- to Shiva for 3 years and Rs. 8,000/- to Krishna for 5 years at the same rate of simple interest per annum. He got a total interest of Rs. 5,220 from both. Find the rate of interest per annum.

A) 6% B) 7%
C) 8% D) 9%
 
Answer & Explanation Answer: D) 9%

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

6 1795
Q:

For an amount, simple interest at the rate of interest of 12% per annum for 6 years is Rs 25920. What will be the compound interest (in Rs) on same amount at the rate of interest of 8% per annum compounding annually for 2 years?

A) 4326.3 B) 5563.4
C) 5888.6 D) 5990.4
 
Answer & Explanation Answer: D) 5990.4

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

0 1793
Q:

On a certain Principal if the Simple interest for two years is Rs 4800 and Compound interest for the two years is Rs 5088, what is the rate of Interest?

A) 6 percent B) 24 percent
C) 12 percent D) 18 percent
 
Answer & Explanation Answer: C) 12 percent

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

2 1765
Q:

Both S.I. and C.I. is calculated with a similar rate of 10% per annum on a sum of rupees. If C.I. is calculated yearly for two years, then for what period must S.I. be evaluated such that S.I. = C.I.?

A) 4.2 years B) 2.1 years
C) 1.1 years D) 1.4 years
 
Answer & Explanation Answer: B) 2.1 years

Explanation:

Let time period of S.I. be T years.

Then for a principal amount, say P,

ATQ, as, S.I. = C.I. for rate =10%p.a. and

time for C.I. = 2(P x 10 x T)/100 = P{[ (100+10)/100 ]2-1}T/10 = [ 110/100 ]2–1 = [(11/10)2–1] = (121-100)/100T/10 = 21/100T = 21/10 = 2.1 years

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO , Bank Clerk

1 1764
Q:

A sum of Rs 2000 becomes Rs 3645 in 2 years at a certain rate of compound interest. What will be the sum (in Rs) after 4 years?

A) 5942.125 B) 6643.0125
C) 7243.0125 D) 7498.125
 
Answer & Explanation Answer: B) 6643.0125

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

2 1739
Q:

The difference between simple interest on a certain sum at the rate of 6% per annum for 5 years and 6 years is 25.8. What is the sum (in Rs)?

 

A) 480 B)  430
C) 258 D) 516
 
Answer & Explanation Answer: B)  430

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

3 1731
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

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

0 1706
Q:

Each question contains Quantity I and Quantity II. Read the contents clearly and answer your questions accordingly.

Quantity I: The Sl on a certain sum of money for 3 years at 5% per annum is Rs 4800. Then the principle is?

Quantity II: The Cl on a certain sum of money for 2 years at 6% per annum is Rs. 3708. Then the principle is?

A) Quantity I > Quantity II B) Quantity I ≥ Quantity II
C) Quantity I < Quantity II D) Quantity I < Quantity II
 
Answer & Explanation Answer: A) Quantity I > Quantity II

Explanation:

Quantity I=15% of Principle=4800 

Principle=Rs.32000

Quantity II=12.36% of Principle =3708 

Principle=Rs.30000

Hence Quantity I > Quantity II 

 

 

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest

1 1702