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:

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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Q:

Rs. x invested at 8% simple interest per annum for 5 years yields the same interest as that on Rs. y invested at 7.5% simple interest per annum for 6years. Find x : y.

A) 40:45 B) 5:6
C) 16:15 D) 9:8
 
Answer & Explanation Answer: D) 9:8

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3 1106
Q:

Simple interest on a certain sum of money for 3 years at 16% per annum is half the compound interest on Rs. 12000 for 2 years at 10% per annum. The sum placed on simple interest is

A) Rs 5250 B) Rs 1325
C) Rs 2100 D) Rs 2625
 
Answer & Explanation Answer: D) Rs 2625

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Q:

Simple interest on a sum of Rs 67400 for 14 months is Rs 4718. What is the rate (in percentage) of interest per annum?

A) 5.5 B) 6
C) 8 D) 7
 
Answer & Explanation Answer: B) 6

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Q:

A sum of Rs 4000 becomes Rs 7000 in 6 years at simple interest. If the rate of interest becomes double of itself, then what will be the amount (in Rs) after 6 years?

 

A)  8500 B)  9000
C)  8000 D) 10000
 
Answer & Explanation Answer: D) 10000

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6 1073
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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Q:

At 6% simple interest per annum a sum of money became Rs. 834 in 6.5 years. The sum initially invested was

A) Rs. 600 B) Rs. 626
C) Rs. 675 D) Rs. 650
 
Answer & Explanation Answer: A) Rs. 600

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Q:

The simple and compound interest that can be earned in two years at the same rate is Rs 1500 and Rs 1575 respectively. What is the rate (% per annum) of interest?

A) 8 B) 10
C) 12 D) 5
 
Answer & Explanation Answer: B) 10

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