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 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:

What is the SI on Rs.7500/- at the rate of 10% per annum for 5 years?

A) 3750 B) 2750
C) 1750 D) 750
 
Answer & Explanation Answer: A) 3750

Explanation:

S.I=PNR/100

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4 5010
Q:

At what rate percent on simple interest will Rs.415 amount to Rs.514 in 4 years  ?

A) 4.58 % B) 5.96 %
C) 6.52 % D) 4.98 %
 
Answer & Explanation Answer: B) 5.96 %

Explanation:

Difference in amount = 514 - 415 = 99

99 = (415 x 4 x R)/100

R = 5.96%

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5 4993
Q:

On Rs. 3500 invested at a simple interest rate of 7 per cent per annum, Rs. 500 is obtained as interest in certain years. In order to earn Rs. 800 as interest on Rs. 4900 in the same number of years, what should be the rate of simple interest?

A) 8% B) 7.5%
C) 9% D) 8.5%
 
Answer & Explanation Answer: A) 8%

Explanation:

From the given data,

3500x7xt/100 = 500

=> t = 100/49 years

Now, in the second case

The interest per year = 49/100 x 800 = 392

 => 4900 x 1 x r/100 = 392

=> r = 8%

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10 4962
Q:

Gopal borrowed some money at 12% simple interest. If he had to pay back Rs. 1280 after 5 years, in order to clear off the loan. How much did he borrow?

A) Rs. 800 B) Rs. 620
C) Rs. 560 D) Rs. 480
 
Answer & Explanation Answer: A) Rs. 800

Explanation:

Let the principle amount be Rs. P

Interest rate = 12%

Total amount he paid after 5 years = Rs. 1280

ATQ, 

P + I = PTR100 + P1280 = PTR100 + 11280 = P5 x 12100 + 116P10 = 1280P = 80 x 10 = 800

 

Hence, the amount he borrowed = P = Rs. 800.

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13 4951
Q:

How long will it take $3000 to earn $60 interest at 6%?

A) 2months B) 3months
C) 4months D) 5months
 
Answer & Explanation Answer: C) 4months

Explanation:

t=I/pr

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3 4905
Q:

A certain amount earns simple interest of Rs. 2260 after 3 years. Had the interest been 1 % more how much more interest would it have earned ?

A) Rs. 175 B) Rs. 220.75
C) Rs. 126 D) Can't be determined
 
Answer & Explanation Answer: D) Can't be determined

Explanation:

Here given Interest earned = Rs. 2260

Time = 3 years

Rate of interest = ?

Principal Amount = ?

So, it can't be determined.

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18 4868
Q:

A sum of money at simple interest amounts to Rs. 415 in 2 years and to Rs. 514 in 4 years. The sum is ?

A) Rs. 316 B) Rs. 251
C) Rs. 154 D) Rs. 294
 
Answer & Explanation Answer: A) Rs. 316

Explanation:

S.I. for 2 years = (514 - 415) = Rs. 99
S.I. for 1 year = 99/2

Principal = (415 - 99) = Rs. 316.

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2 4824
Q:

A sapphire ring with a marked price of $1800 is offered to the purchaser on the following terms: $200 deposit and the balance to be paid over 24 equal monthly instalments with interest charged at 11.5% p.a. flat rate. Find the monthly repayments

A) $53 B) $42
C) $62 D) $82
 
Answer & Explanation Answer: D) $82

Explanation:

Total repayment amount = $1600 + $368
= $1968
= $82

regular payment= total amount/number of repayments

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1 4761