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:

Saathi deposited Rs. 825 in a bank that promised 8% simple interest per annum. If Saathi kept the money with the bank for 5 years, she will earn an interest of

A) Rs. 480 B) Rs. 280
C) Rs. 330 D) Rs. 290
 
Answer & Explanation Answer: C) Rs. 330

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Q:

Two equal sum are invested in two different schemes. One scheme gives simple interest and the other gives compound interest (annual compounding).The sum of interest obtained after 2 years from both the schemes is Rs 3717. If both scheme have 13% per annum interest rate, then what is the first year interest (in Rs) for simple interest scheme?

A) 900 B) 1200
C) 1500 D) 600
 
Answer & Explanation Answer: A) 900

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3 1097
Q:

At 8% simple interest per annum a sum of money becomes Rs. 300 in 2.5 years. What was the sum invested?

A) Rs. 275 B) Rs. 250
C) Rs. 240 D) Rs. 260
 
Answer & Explanation Answer: B) Rs. 250

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Q:

he difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 8% per annum is Rs 40. What is the sum?

A) Rs 12500 B) Rs 6250
C) Rs 25000 D) Rs 18750
 
Answer & Explanation Answer: B) Rs 6250

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2 1092
Q:

The effective annual rate of interest corresponding to a nominal rate of 7% per annum payable half­yearly is

A) 14 percent B) 14.25 percent
C) 7 percent D) 7.12 percent
 
Answer & Explanation Answer: D) 7.12 percent

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Q:

If the amount received at the end of 2nd and 3rd year at Compound Interest on a certain Principal is Rs 22472, and Rs 23820.32 respectively, what is the rate of interest?

A) 3 percent B) 6 percent
C) 12 percent D) 10 percent
 
Answer & Explanation Answer: B) 6 percent

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3 1069
Q:

Puneet lent out Rs 30000 in two parts, one at 5% and the other at 9% interest. The yearly average interest comes out to be 6%. What are the amounts (inRs) that are lent at 5% and 9% respectively?

 

A) 20000, 10000   B) 22500, 7500  
C) 18000, 12000   D) 21000, 9000
 
Answer & Explanation Answer: B) 22500, 7500  

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Q:

Simple interest on a sum for 10 years is equal to 5% of the principal. In how many years interest will be equal to the principal?

 

A) 100   B) 150
C) 200 D) 250
 
Answer & Explanation Answer: C) 200

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