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:

A certain sum of money becomes double of itself in 15 years at a rate of simple interest. In how many years will it become 5 times of itself at the same rate of simple interest

A) 45 B) 37.5
C) 75 D) 60
 
Answer & Explanation Answer: D) 60

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Q:

A man purchased a cycle for Rs.3000/- and agreed to pay 12% on the amount as interest. He repaid principal and interest in 12 equal monthly installments. Find the amount of each installment.

A) Rs. 260 B) Rs. 240
C) Rs. 280 D) Rs. 300
 
Answer & Explanation Answer: C) Rs. 280

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Q:

A sum of money invested at simple interest becomes 13/10 of itself in 2 years and 6 months. What is the rate (in percentage) of interest per annum?

 

A) 10 B) 15
C) 12 D) 18
 
Answer & Explanation Answer: C) 12

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Q:

Simple interest on a sum of Rs 67400 for 14 months is Rs 4718. What is the rate (in percentage) of interest per annum?

A) 5.5 B) 6
C) 8 D) 7
 
Answer & Explanation Answer: B) 6

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Q:

M borrowed some money for 1 year at certain simple interest. But the interest rate was increased to 2% which amounted to Rs.120. Find the principal amount.

A) Rs.4000 B) Rs.5000
C) Rs.6000 D) Rs.7000
 
Answer & Explanation Answer: C) Rs.6000

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Q:

Simple interest on a certain sum of money for 3 years at 18% per annum is half the compound interest on Rs. 9000 for 2 years at 10% per annum. The sum placed on simple interest is:

A) Rs 3500 B) Rs 875
C) Rs 1750 D) Rs 1400
 
Answer & Explanation Answer: C) Rs 1750

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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 8. The sum is ______.

A) Rs 10000 B) Rs 20000
C) Rs 5000 D) Rs 15000
 
Answer & Explanation Answer: C) Rs 5000

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Q:

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound interest on Rs 1200 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 525 B) Rs 1050
C) Rs 260 D) Rs 420
 
Answer & Explanation Answer: A) Rs 525

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