Simple Interest Questions and Answers

Questions & Answers on Simple Interest

Simple Interest Questions and Answers

Definition of Simple Interest

Simple Interest
When a person borrows money from someone for a specific period, then the borrower has to pay some extra money called Interest on the money borrowed for that period”.
The money borrowed is called “Principal” .
The total sum of money including the principal is known as the “Amount.”
If the interest on the specific sum borrowed for a certain period is calculated uniformly, then it is called “Simple Interest.” To solve simple interest questions and answers, one need to memorize the formulas.

Simple Interest formula:

Suppose, principle = P, rate of interest(%) = R, total time = T.

Hence, Simple Interest = \frac{P\times R\times T}{100}

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Read More:  Practice Simple & Compound Interest

Formula of Simple Interest Problems

Practice Questions on Simple Interest

Example 1:

The Interest received at 15% per annum simple interest after 3 yrs is Rs. 630. What was the principal (in Rs)?

Options:

a. Rs. 1200
b. Rs. 1750
c. Rs. 1400
d. Rs. 2000

Explanation:

I = \frac{P\times R\times T}{100}
630 = \frac{P\times 15\times 3}{100}

P = Rs. 1,400

Hence, Option C is correct.

Example 2:

A sum of money becomes 9 times in 20 years. Find the 10 times of rate of interest.

Options:

a. 350%
b.
45%
c. 400%
d. 250%

Explanation:

According to the formula,

\text{ Rate } = \frac{100(n – 1)}{T} = \frac{100(9 – 1)}{20} = \frac{800}{20} = 40%

∴ 10 times of 40% = 400%

Hence, option C is correct.

Question 1

Time: 00:00:00
If the amount is Rs. 625. Calculate its simple interest at 13/2% per annum for two and a half years.

110.65

110.65

105.85

105.85

101.56

101.56

None of the above

None of the above

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Question 2

Time: 00:00:00
Calculate the simple interest at 9% annually for the period from 21st august 1993 to 21st august 1994 on the amount of Rs. 800.

75

75

74.5

74.5

72

72

70.5

70.5

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Question 3

Time: 00:00:00
The simple interest for the period of 3 years at 19/2 % annually amounts to Rs. 159.60. Find the principal amount.

580

580

590

590

650

650

560

560

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Question 4

Time: 00:00:00
Find in how many years a person will get 87 as simple interest at 4% p.a. on Rs. 725.

2.5

2.5

3

3

4.25

4.25

9.6

9.6

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Question 5

Time: 00:00:00
9/16 of the amount is its simple interest. Calculate the annual rate and period, if both are equal.

15/2 and 15/2

15/2 and 15/2

15/2 and 17/2

15/2 and 17/2

17/2 and 19/2

17/2 and 19/2

None of the above

None of the above

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Question 6

Time: 00:00:00
A certain amount was kept to acquire simple interest for 2 years at some rate. Had it put at a higher rate of 3%, it would have made Rs. 72 more. Calculate the sum.

1230

1230

1200

1200

1275

1275

1369

1369

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Question 7

Time: 00:00:00
A certain sum of money is changed to 678 in 2 years and 736.50 in 3.5 years. Calculate the sum of money and the rate of interest.

550 and 5.5%

550 and 5.5%

650 and 4.5%

650 and 4.5%

600 and 6.5%

600 and 6.5%

None of the above

None of the above

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Question 8

Time: 00:00:00
Calculate the rate per annum, if the money doubles in 10 years.

5.6%

5.6%

22/5%

22/5%

33/2%

33/2%

10%

10%

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Question 9

Time: 00:00:00
If Rs. 5600 amount to Rs. 6678 in 3.5 years. What will Rs. 9400 amount to in 21/4 years at a similar rate per annum?

12114.25

12114.25

13225.65

13225.65

14289.65

14289.65

12555.55

12555.55

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Question 10

Time: 00:00:00
A sum of money is changed to Rs 767 in 3 years and 806 in 4 years. Calculate the sum.

600

600

650

650

700

700

675

675

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Question 11

Time: 00:00:00
A man lends Rs. 10000 in four different parts. If he gets 8% on Rs. 2000, 7.5 on Rs. 4000, and 8.5 on Rs. 1400. Find the percentage he will receive on the remaining amount, if the annual average interest he gets is 8.13%?

10.5%

10.5%

7%

7%

9.25%

9.25%

9%

9%