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 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

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3 1431
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

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2 1428
Q:

If the time increases by 5 years, then simple interest increases by Rs 3000 on a sum of Rs 5000. What is the rate (in percentage) of interest per annum?

A) 15 B) 12
C) 10 D) 6
 
Answer & Explanation Answer: B) 12

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4 1428
Q:

The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?

A) 8 B) 10
C) 12 D) 5
 
Answer & Explanation Answer: B) 10

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2 1415
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

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2 1414
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 9% per annum is Rs 405. The sum is ______ .

A) Rs 50000 B) Rs 100000
C) Rs 200000 D) Rs 150000
 
Answer & Explanation Answer: A) Rs 50000

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0 1409
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Rs. 1. The sum (in Rs.) is:

A) 620 B) 630
C) 640 D) 625
 
Answer & Explanation Answer: D) 625

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2 1406
Q:

There is 40% increase in an amount in 8 years at simple interest. What will be the compound interest of Rs. 10000 after 3 years at the same rate?

A) Rs 1576.25 B) Rs 6305
C) Rs 7881.25 D) Rs 4728.75
 
Answer & Explanation Answer: A) Rs 1576.25

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4 1399