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Simple Interest Questions Answers

  • 8. At 5% per annum simple interest, Rahul borrowed Rs. 500. What amount will he pay to clear the debt after 4 years

    1. 750
    2. 700
    3. 650
    4. 600
    Answer And Explanation

    Answer: Option D

    Explanation:

    We need to calculate the total amount to be paid by him after 4 years, So it will be Principal + simple interest.

    So,
    \begin{aligned}
    => 500 + \frac{500*5*4}{100}
    => Rs. 600
    \end{aligned}

  • 9. If a sum of money doubles itself in 8 years at simple interest, the ratepercent per annum is

    1. 12
    2. 12.5
    3. 13
    4. 13.5
    Answer And Explanation

    Answer: Option B

    Explanation:

    Let sum = x then Simple Interest = x

    Rate = (100 * x) / (x * 8) = 12.5

  • 10. A sum of Rs 12,500 amounts to Rs. 15,500 in the 4 years at the rate of simple interest. Find the rate percent

    1. 6 %
    2. 7 %
    3. 8 %
    4. 9 %
    Answer And Explanation

    Answer: Option A

    Explanation:

    \begin{aligned}
    \text{S.I.} = \frac{P*R*T}{100} \\
    => R = \frac{S.I. * 100}{P*T}
    \end{aligned}

    So, S.I = 15500 - 12500 = 3000.

    \begin{aligned}
    => R = \frac{3000 * 100}{12500*4} = 6\%
    \end{aligned}

  • 11. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum

    1. 110
    2. 120
    3. 130
    4. 140
    Answer And Explanation

    Answer: Option B

    Explanation:

    Let the present worth be Rs.x
    Then,S.I.= Rs.(132 - x)

    =› (x*5*2/100) = 132 - x

    =› 10x = 13200 - 100x

    =› 110x = 13200

    x= 120

  • 12. Reema took a loan of Rs 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest.

    1. 5%
    2. 6%
    3. 7%
    4. 8%
    Answer And Explanation

    Answer: Option B

    Explanation:

    Let rate = R% then Time = R years.
    \begin{aligned}
    => \frac{1200*R*R}{100}=432 \\
    => R^2 = 36 \\
    => R = 6\%

    \end{aligned}

  • 13. The simple interest on a certain sum of money at the rate of 5% p.a. for 8 years is Rs. 840. At what rate of intrest the same amount of interest can be received on the same sum after 5 years.

    1. 5%
    2. 6%
    3. 7%
    4. 8%
    Answer And Explanation

    Answer: Option D

    Explanation:

    Here firstly we need to calculate the principal amount, then we can calculate the new rate.

    \begin{aligned}
    P = \frac{S.I. * 100}{R*T} \\
    P = \frac{840 * 100}{5*8} \\
    P = 2100 \\

    \text{Required Rate = } \frac{840 * 100}{5*2100} \\
    R = 8\%\\

    \end{aligned}

  • 14. A man took a loan at rate of 12% per annum simple interest. After 3 years he had to pay 5400 interest. The principal amount borrowed by him was.

    1. Rs 14000
    2. Rs 15000
    3. Rs 16000
    4. Rs 17000
    Answer And Explanation

    Answer: Option B

    Explanation:

    \begin{aligned}
    \text{S.I.} = \frac{P*R*T}{100} \\
    => P = \frac{S.I. * 100}{R*T} \\
    => P = \frac{5400 * 100}{12*3} = Rs 15000
    \end{aligned}