299+ Solved Simple Interest Questions and Answers

Q:

If there is a total of 104 weekly instalments and a third deposit, find: the total cost of the computer

A) 3932.55	B) 4932
C) 5932	D) 6932

Answer & Explanation Answer: A) 3932.55

Explanation:

Total cost = deposit + loan + interest
= 1231.67 + 2463.33 + 237.55
= $3932.55

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Q:

You put $750 into a certificate of deposit. Your simple annual interest rate is 4%. You receive a check for the interest at the end of each year. How long will it take to earn $150 in interest?

A) 5years	B) 6years
C) 7years	D) 8years

Answer & Explanation Answer: A) 5years

Explanation:

I=prt

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Q:

The difference between Simple Interest and Compound Interest at the rate of 12% on the same amount for 3 years is Rs. 112.32. What is the principal amount if interest is compounded annually?

A) Rs. 25000	B) Rs. 2500
C) Rs. 50000	D) Rs. 5000

Answer & Explanation Answer: B) Rs. 2500

Explanation:

Let the principal amount be Rs. x
Calculating SI:
SI for 1 year at 12% rate is Rs (12/100)*x. For 3 years it will be Rs (36/100)*x ------ (1)
Calculating CI:
For 1st year, Interest = (12/100)*x
For 2nd year, interest = (12/100)*x + (12/100)*x + (144/10000)*x
For 3rd year, interest = (12/100)*x + (12/100)*x + (12/100)*x + (144/10000)*x + (144/10000)*x + (1728/1000000)*x. ------ (2)
Subtracting equation 2 and 1 and solving further,
312*144*x/1000000 = 112.32
X = Rs 2500.
Alternative way: Using formula for Difference
between CI and SI for 3 years

we can also use the above formula to find the value of P.

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Q:

You deposit $600 into a 6 month certificate of deposit. After 6 months the balance is $618. Find the simple annual interest rate.

A) 5%	B) 4%
C) 6%	D) 7%

Answer & Explanation Answer: C) 6%

Explanation:

I=prt

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Q:

What will be the ratio of simple interest earned by certain amount at the same rate of interestfor 4 years and 6 years ?

A) 1:2	B) 2:1
C) 2:3	D) 3:2

Answer & Explanation Answer: C) 2:3

Explanation:

Let p be the principle amount

And R% be the rate of interest

Then, required ratio = $(\frac{\frac{P \times 4 \times R}{100}}{\frac{P \times 6 \times R}{100}})$

$\Rightarrow \frac{4 P R}{6 P R}$ = 2:3

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Q:

A sum becomes Rs 2286 in 3 years and Rs 2448 in 4 years at simple interest. What is the rate (in percentage) of interest per annum?

A) 10	B) 9
C) 8	D) 11

Answer & Explanation Answer: B) 9

Explanation:

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Q:

A man lent a sum of money at the rate of simple interest of 4%. If the interest for 8 years is Rs 340 less than the principal, the principal is

A) Rs 500	B) Rs 520
C) Rs 540	D) Rs 560

Answer & Explanation Answer: A) Rs 500

Explanation:

Rate = 4%

Time = 8 years

Simple Interest = PTR/100

= 32P/100

Given, P –32P/100 = 34068

P = 34000

P = 500

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Q:

Simple Interest received by a person in 10 years on a principal of Rs 9500 is 130% of the principal. What is the rate of interest (in %) per annum?

A) 12	B) 13
C) 15	D) 19

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