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:

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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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:

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 1590
Q:

An amount fetched a total simple interest of Rs. 3200 at the rate of 6.25 %/yr in 4 years. What is the amount (in Rs)?

A) 13800 B) 11800
C) 12800 D) 14800
 
Answer & Explanation Answer: C) 12800

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Q:

A sum of Rs 400 becomes Rs 448 at simple interest in 2 years. In how many years will the sum of Rs 550 amounts to Rs 682 at the same rate?

A) 2 B) 3
C) 3.5 D) 4
 
Answer & Explanation Answer: D) 4

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Q:

A sum fetched a total simple interest of Rs 5320 at the rate of 7% per year in 5 years. What is the sum?

A) Rs 18240 B) Rs 12160
C) Rs 15200 D) Rs 9120
 
Answer & Explanation Answer: C) Rs 15200

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Q:

A sum of Rs. 4000 is lent out in two parts, one at 8% simple interest and the other at 10% simple interest. If the annual interest is Rs. 352. The sum lent at 8% is

A) Rs. 2900 B) Rs. 2200
C) Rs. 2400 D) Rs. 3100
 
Answer & Explanation Answer: C) Rs. 2400

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Q:

For what sum will the simple interest at R% for 2 years will be R?

A) 100/2R B) 50/R
C) 100/R D) 200/R
 
Answer & Explanation Answer: C) 100/R

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