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# Simple Interest Questions and Answers

## Questions & Answers on Simple Interest

### Definition of Simple Interest

** Simple InterestWhen 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}

Read More: Formulas

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Read More: Practice Simple & Compound Interest

**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.