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:

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

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Q:

R borrowed Rs. 1,200 at 13% per annum simple interest. What amount will R pay to clear the debt after 5 years?

A) Rs.1,860 B) Rs.1,800
C) Rs.1,980 D) Rs.2,000
 
Answer & Explanation Answer: C) Rs.1,980

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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

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Q:

If a sum of money doubles itself in 8 yrs, then the interest rate in percentage is ?

A) 8 1⁄2% B) 10%
C) 10 1⁄2 % D) 12 1⁄2 %
 
Answer & Explanation Answer: D) 12 1⁄2 %

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Q:

Alipta got some amount of money from her father. In how many years will the ratio of the money and the interest obtained from it be 10:3 at 6% simple interest per annum?

A) 7 years B) 3 years
C) 5 years D) 4 years
 
Answer & Explanation Answer: C) 5 years

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Q:

A person borrows some money for 8 years at a rate of simple interest. If the ratio of principal and total interest is 5 : 8, then what is the rate ( inpercentage) of interest?

A) 10 B) 20
C) 25 D) 30
 
Answer & Explanation Answer: B) 20

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Q:

Rs. x invested at 9% simple interest per annum for 5 years yields the same interest as that on Rs. y invested at 6.25% simple interest per annum for 8 years. Find x:y.

 

 

A) 16:15   B) 10:9  
C) 45:50   D) 5:8
 
Answer & Explanation Answer: B) 10:9  

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Q:

A sum of money (P) doubles in 10 years. How much would it be in 20 years at the same rate of simple interest?

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

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