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 for 5 years is equal to 20% of the principal. In how many years interest will be equal to the principal?

A) 20 B) 25
C) 15 D) 16
 
Answer & Explanation Answer: B) 25

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2 1539
Q:

The difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum payable yearly is

A) Rs.30 B) Rs.31
C) Rs.33 D) Rs.32
 
Answer & Explanation Answer: D) Rs.32

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1 1525
Q:

The difference between compound interest and simple interest on a sum for 2 year at 20% per annum is Rs 200. If the interest is compounded half yearly, then what is the difference (in Rs) between compound and simple interest for 1st year?

A) 50 B) 75
C) 100 D) 150
 
Answer & Explanation Answer: A) 50

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3 1523
Q:

A sum becomes Rs 10000 in 10 years on simple interest at the rate of 10% per annum. What is the total interest (in Rs) of the 10 years?

A) 4000 B) 5000
C) 2500 D) 4500
 
Answer & Explanation Answer: B) 5000

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2 1515
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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4 1506
Q:

There is 40% increase in an amount in 10 years at simple interest. What will be the compound interest of Rs. 30000 after 3 years at the same rate?

A) Rs 3745.92 B) Rs 7491.84
C) Rs 9364.8 D) Rs 5618.88
 
Answer & Explanation Answer: A) Rs 3745.92

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0 1495
Q:

In simple interest rate per annum a certain sum amounts to Rs. 5,182 in 2 years and Rs. 5,832 in 3 years. The principal in rupees is

A) Rs. 2882 B) Rs. 5000
C) Rs. 3882 D) Rs. 4000
 
Answer & Explanation Answer: C) Rs. 3882

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0 1494
Q:

If the time increases by 7 years, then simple interest increases by Rs 8400 on a sum of Rs 6000. What is the rate (in percentage) of interest per annum?

A) 18 B) 12
C) 20 D) 24
 
Answer & Explanation Answer: C) 20

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