Simple Interest Questions and Answers

Exercise

Simple Interest Exercise 1
Simple Interest Exercise 2

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Q 1

A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?


A)  

Rs. 35

B)  

Rs. 245

C)  

Rs. 350

D)  

Cannot be determined


Correct Option - D

Explanation

We need to know the S.I., principal and time to find the rate.

Since the principal is not given, so data is inadequate.

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Q 2

A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:


A)  

5%

B)  

8%

C)  

12%

D)  

15%


Correct Option - C

Explanation


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Q 3

A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?


A)  

3%

B)  

4%

C)  

5%

D)  

6%


Correct Option - D

Explanation


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Q 4

An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:


A)  

10%

B)  

10.25%

C)  

10.5%

D)  

None of these


Correct Option - B

Explanation


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Q 5

A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:


A)  

Rs. 2000

B)  

Rs. 10000

C)  

Rs. 15000

D)  

Rs. 20000


Correct Option - C

Explanation


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Q 6

How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?


A)  

3.5 years

B)  

4 years

C)  

4.5 years

D)  

5 years


Correct Option - B

Explanation


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Q 7

A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:


A)  

Rs. 650

B)  

Rs. 690

C)  

Rs. 698

D)  

Rs. 700


Correct Option - C

Explanation


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