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 person borrows some money for 8 years at a rate of simple interest. If the ratio of principal and total interest is 5 : 8, then what is the rate ( inpercentage) of interest?

A) 10 B) 20
C) 25 D) 30
 
Answer & Explanation Answer: B) 20

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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 25000 after 2 years at the same rate?

A) Rs 4080 B) Rs 5100
C) Rs 3060 D) Rs 2040
 
Answer & Explanation Answer: D) Rs 2040

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Q:

Deksha borrowed Rs. 500 at 5% per annum S.I. What amount (in Rs.) will she pay to clear her debt after 4 years?

A) 150 B) 650
C) 600 D) 100
 
Answer & Explanation Answer: C) 600

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7 1084
Q:

The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 9% per annum is Rs 405. The sum is ______ .

A) Rs 50000 B) Rs 100000
C) Rs 200000 D) Rs 150000
 
Answer & Explanation Answer: A) Rs 50000

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0 1083
Q:

If the time increases by 5 years, then simple interest increases by Rs 3000 on a sum of Rs 5000. What is the rate (in percentage) of interest per annum?

A) 15 B) 12
C) 10 D) 6
 
Answer & Explanation Answer: B) 12

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4 1073
Q:

A sum of Rs. 3000 yields an interest of Rs. 1080 at 12% per annum simple interest in how many years ?

A) 4 Years B) 3 Years
C) 5 Years D) 2.5 Years
 
Answer & Explanation Answer: B) 3 Years

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Q:

A certain principal is invested in a scheme of compound interest. The amount obtained after 1 year is Rs 2400 and the amount obtained after 2 years is Rs 2880. What is the rate of interest (in percentage)?

A) 20 B) 15
C) 25 D) 10
 
Answer & Explanation Answer: A) 20

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1 1066
Q:

If a sum of money doubles itself in 8 yrs, then the interest rate in percentage is ?

A) 8 1⁄2% B) 10%
C) 10 1⁄2 % D) 12 1⁄2 %
 
Answer & Explanation Answer: D) 12 1⁄2 %

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