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:

There is 40% increase in an amount in 10 years at simple interest. What will be the compound interest of Rs 25000 after 2 years at the same rate?

A) Rs 4080 B) Rs 5100
C) Rs 3060 D) Rs 2040
 
Answer & Explanation Answer: D) Rs 2040

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

0 797
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

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams , CAT

2 791
Q:

The simple interest on a sum for 5 years is Rs 16800. The rate of interest for the first 3 years is 8% per annum and for the next 2 years is 12% per annum. What is the value (in Rs) of sum?

A) 30000 B) 38000
C) 32000 D) 35000
 
Answer & Explanation Answer: D) 35000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

3 787
Q:

Deepinder lent Rs 8200 to Jairaj for 16 years and Rs 4900 to Karna for 15 years on simple interest at the same rate of interest and received Rs 19446.5 in all from both of them as interest. The rate of interest per annum is:

A) 10 percent B) 10.5 percent
C) 9.5 percent D) 11 percent
 
Answer & Explanation Answer: C) 9.5 percent

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

3 771
Q:

A sum fetched a total simple interest of Rs. 8100 at the rate of 6% per year in 9 years. What is the sum?

A) Rs 15000 B) Rs 18000
C) Rs 12000 D) Rs 9000
 
Answer & Explanation Answer: A) Rs 15000

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

1 771
Q:

A sum of Rs. 3000 yields an interest of Rs. 1080 at 12% per annum simple interest in how many years ?

A) 4 Years B) 3 Years
C) 5 Years D) 2.5 Years
 
Answer & Explanation Answer: B) 3 Years

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

2 763
Q:

Simple interest on a certain sum of money for 3 years at 14% per annum is half the compound interest on Rs. 10000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 5000 B) Rs 1250
C) Rs 2000 D) Rs 2500
 
Answer & Explanation Answer: D) Rs 2500

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

2 761
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

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams

0 759