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 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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3 1505
Q:

If in 2 years at simple interest the principal increases by 18%, what will be the compound interest (in Rs) earned on Rs 7000 in 3 years at the same rate?

A) 1865.2 B) 2065.2
C) 1965.2 D) 1765.2
 
Answer & Explanation Answer: B) 2065.2

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1 1504
Q:

Simple interest on a certain sum of money for 3 years at 14% per annum is half the compound interest on Rs. 10000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 5000 B) Rs 1250
C) Rs 2000 D) Rs 2500
 
Answer & Explanation Answer: D) Rs 2500

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2 1504
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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2 1496
Q:

Deepinder lent Rs 8200 to Jairaj for 16 years and Rs 4900 to Karna for 15 years on simple interest at the same rate of interest and received Rs 19446.5 in all from both of them as interest. The rate of interest per annum is:

A) 10 percent B) 10.5 percent
C) 9.5 percent D) 11 percent
 
Answer & Explanation Answer: C) 9.5 percent

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4 1490
Q:

he difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 8% per annum is Rs 40. What is the sum?

A) Rs 12500 B) Rs 6250
C) Rs 25000 D) Rs 18750
 
Answer & Explanation Answer: B) Rs 6250

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2 1474
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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6 1474
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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