Sawaal

 Simple Interest Questions

Popular Latest Rated Important Formulae

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:

If J is the interest on K and K is the interest on L, the rate and time is the same on both the cases. What is the relation between J, K and L  ?

A) J x J = KL B) K x K= JL
C) L x L = JK D) JKL = 1
 
Answer & Explanation Answer: B) K x K= JL

Explanation:

Let the Time be 'N' and Rate be 'R' 

J = (K x NR)/100 K = (L x NR)/100 

J/K = NR/100 K/L = NR/100 

J/K = K/L 

K x K = JL

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: GATE , CAT , Bank Exams , AIEEE
Job Role: Bank PO , Bank Clerk

8 4744
Q:

A lady took loan from a bank at the rate of 12% p.a. simple interest. After 3 years she had to pay Rs. 5400 interest only for the period. The principal amount borrowed by her was :

A) Rs. 15,000 B) Rs. 1,50,000
C) Rs. 1500 D) Rs. 1,62,000
 
Answer & Explanation Answer: A) Rs. 15,000

Explanation:

Principal = Rs.(100 x 5400)/(12 x 3)= Rs. 15000.

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: AIEEE , Bank Exams , CAT , GATE , GRE
Job Role: Bank Clerk , Bank PO

3 4732
Q:

When $720 is invested for 36 months it earns $205.20 simple interest. Find the yearly interest rate.

A) 7.5% B) 8.5%
C) 9.5% D) 10.5%
 
Answer & Explanation Answer: C) 9.5%

Explanation:

r = (100 x I)/(P x T)

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

3 4714
Q:

Derrick's dad bought new tires for $900 using a credit card. His card has an interest rate of 19%. If he has no other charges on his card and does not pay off his balance at the end of the month, how much money will he owe after one month?

A) 11.25 B) 13.25
C) 14.25 D) 15.25
 
Answer & Explanation Answer: C) 14.25

Explanation:

I=prt

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

0 4656
Q:

The difference between the interests earned when Rs. P is invested for four years in a scheme offering 9% p.a. Simple interest and when the same sum (Rs P) is invested for two years in another scheme offering 12% p.a. simple interest, is Rs 480. What is the value of P?

A) 2000 B) 3500
C) 2500 D) 4000
 
Answer & Explanation Answer: D) 4000

Explanation:

p=(p*4*9)/100-(p*2*12)/100 = 480

=12p/100=480

p=4000

 

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest

1 4571
Q:

Jason decides to borrow money for a holiday. If a personal loan is taken over 4 years with equal quarterly repayments at 12% p.a. flat rate (simple interest), calculate the effective rate of interest.

A) 22,588 B) 32.588
C) 42.588 D) 43.588
 
Answer & Explanation Answer: A) 22,588

Explanation:

Flat rate = 12%
n = 4 × 4
= 16

Effective rate =2n/(n+1) × flat rate

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

1 4509
Q:

Praveena took a loan of Rs. 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest ?

A) 6 B) 7
C) 9 D) 11
 
Answer & Explanation Answer: A) 6

Explanation:

Let rate = R% and time = R years.

 

Then, (1200 x R x R) / 100 = 432

 

=> R = 6.

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: GATE , CAT , Bank Exams , AIEEE
Job Role: Bank PO , Bank Clerk

3 4505
Q:

An amount of 5,000 is invested at a fixed rate of 8 per cent per annum. What amount will be the value of the investment in five years time, if the interest is compounded every six months?

A) 7401.22 B) 3456
C) 4567 D) 7890
 
Answer & Explanation Answer: A) 7401.22

Explanation:

With slight modifications, the basic formula can be made to deal with compounding at intervals other than annually.

 

Since the compounding is done at six-monthly intervals, 4 per cent (half of 8 per cent) will be added to the value on each occasion.

 

Hence we use r = 0.04. Further, there will be ten additions of interest during the five years, and so n = 10. The formula now gives:

 

V = P(1 + r)10 = 5,000 x (1.04)10 = 7,401.22

 

Thus the value in this instance will be £7,401.22.

 

In a case such as this, the 8 per cent is called a nominal annual

 

rate, and we are actually referring to 4 per cent per six months.

Report Error

View Answer Report Error Discuss

Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

1 4480