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 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 for 2 yrs and 9 months at the rate of 8% simple interest per annum became Rs.732 at the end of the period. What was the sum that was initially invested?

A) Rs. 575 B) Rs. 500
C) Rs. 600 D) Rs. 550
 
Answer & Explanation Answer: C) Rs. 600

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Q:

A sum of Rs 800 becomes Rs 1000 in 2 years at simple interest. What is the per annum rate of interest (in percent)?

 

A) 12.5   B)  25  
C)  8.5   D)  17
 
Answer & Explanation Answer: A) 12.5  

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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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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:

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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2 1081
Q:

A sum of money of Rs. 1000 is lent out in two parts in such a way that the interest on one part at 10% per annum for 5 years is equal to another at 5% for 10 years. Calculate the sum lent out at 5%.

A) Rs. 500 B) Rs. 800
C) Rs. 1000 D) Rs. 1200
 
Answer & Explanation Answer: A) Rs. 500

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