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 sum fetched a total simple interest of Rs 1200 at the rate of 7.5%/yr in 4 years. What is the sum (in Rs)?

A) 4000 B) 6000
C) 8000 D) 7500
 
Answer & Explanation Answer: A) 4000

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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. 30000 after 3 years at the same rate?

A) Rs 3745.92 B) Rs 7491.84
C) Rs 9364.8 D) Rs 5618.88
 
Answer & Explanation Answer: A) Rs 3745.92

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Q:

Dalajit lent Rs 10800 to Jaabir for 3 years and Rs 7500 to Kabir for 2 years on simple interest at the same rate of interest and received Rs 1422 in all from both of them as interest. The rate of interest per annum is

A) 3.5 percent B) 4 percent
C) 3 percent D) 4.5 percent
 
Answer & Explanation Answer: C) 3 percent

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Q:

A certain sum of money becomes 4 times of itself in 30 years at a rate of simple interest. In how many years it will become double of itself at the same rate of simple interest?

A) 20 B) 15
C) 10 D) 12
 
Answer & Explanation Answer: C) 10

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Q:

A sum becomes Rs 10000 in 10 years on simple interest at the rate of 10% per annum. What is the total interest (in Rs) of the 10 years?

A) 4000 B) 5000
C) 2500 D) 4500
 
Answer & Explanation Answer: B) 5000

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Q:

The difference between compound interest and simple interest on a sum for 2 year at 20% per annum is Rs 200. If the interest is compounded half yearly, then what is the difference (in Rs) between compound and simple interest for 1st year?

A) 50 B) 75
C) 100 D) 150
 
Answer & Explanation Answer: A) 50

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Q:

For what sum will the simple interest at R% for 2 years will be R?

A) 100/2R B) 50/R
C) 100/R D) 200/R
 
Answer & Explanation Answer: C) 100/R

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Q:

The difference between simple interest on a certain sum at the rate of 6% per annum for 5 years and 6 years is 25.8. What is the sum (in Rs)?

 

A) 480 B)  430
C) 258 D) 516
 
Answer & Explanation Answer: B)  430

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