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 400 becomes Rs 448 at simple interest in 2 years. In how many years will the sum of Rs 550 amounts to Rs 682 at the same rate?

A) 2 B) 3
C) 3.5 D) 4
 
Answer & Explanation Answer: D) 4

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Q:

A sum becomes Rs 10000 in 10 years on simple interest at the rate of 10% per annum. What is the total interest (in Rs) of the 10 years?

A) 4000 B) 5000
C) 2500 D) 4500
 
Answer & Explanation Answer: B) 5000

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2 1311
Q:

The difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum payable yearly is

A) Rs.30 B) Rs.31
C) Rs.33 D) Rs.32
 
Answer & Explanation Answer: D) Rs.32

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1 1308
Q:

An equal sum is invested in two different schemes. One scheme gives simple interest and the other gives compound interest (annual compounding). The sum of interest obtained after 2 years from both the schemes is Rs 2961. If both schemes have 23% per annum interest rate, then what is the first year interest (in Rs)of simple interest scheme?

A) 500 B) 1100
C) 700 D) 900
 
Answer & Explanation Answer: C) 700

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Q:

Sachin lent out Rs 60000 in two parts, first at 4% and the second at 10% interest. The yearly average interest comes out to be 6.4%. What are the amounts (in Rs) that were lent at 4% and 10% respectively?

 

A) 40000, 20000   B) 48000, 12000  
C) 36000, 24000   D) 32000, 28000
 
Answer & Explanation Answer: C) 36000, 24000  

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4 1299
Q:

The difference between the compound interest compounding half yearly for 1 year and the simple interest for 1 year on a certain sum of money lent out at 8% per annum is Rs 64. What is the sum (in Rs)?

A) 40000 B) 42000
C) 44000 D) 44800
 
Answer & Explanation Answer: A) 40000

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Q:

The difference between compound interest and simple interest on a sum for 2 year at 20% per annum is Rs 200. If the interest is compounded half yearly, then what is the difference (in Rs) between compound and simple interest for 1st year?

A) 50 B) 75
C) 100 D) 150
 
Answer & Explanation Answer: A) 50

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Q:

A certain sum of money becomes 4 times of itself in 30 years at a rate of simple interest. In how many years it will become double of itself at the same rate of simple interest?

A) 20 B) 15
C) 10 D) 12
 
Answer & Explanation Answer: C) 10

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