Simple Interest Quiz

The amount payable on maturity of a certain sum invested at a certain rate of simple interest per annum for one year was ` 1,484. If the rate of interest had been 2% higher, the amount would have been ` 26.50 more. What was the interest that was paid on the sum invested at the original rate?

• ` 152.50

• ` 161

• ` 157

• ` 159

Answer explanation

Let the principal be P and the original rate be r. The amount after one year is P + Pr = 1484. With a 2% increase, the amount becomes P + P(r+2) = 1484 + 26.5. Solving gives r = 10% and interest = 159.

Find the simple interest on ` 48750 at 16% per annum for 73 days of a non-leap year.

• ` 1560

• ` 1500

• ` 1600

• ` 1860

Answer explanation

To calculate simple interest, use the formula: SI = (P * R * T) / 100. Here, P = 48750, R = 16%, and T = 73/365 years. SI = (48750 * 16 * 73/365) = 1560. Thus, the correct answer is ` 1560.

What is the simple interest (in `) on `540 at 6% per annum in 1 32 years?

• 113.40

• 213.40

• 13.40

• 313.40

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Principal = 540, Rate = 6% (0.06), and Time = 1.5 years. Thus, Interest = 540 × 0.06 × 1.5 = 48.60. The total interest is 113.40.

What will be the interest on `6,250 for 3 years if interest accrues at 12% simple interest per annum?

• `2,250

• `2,050

• `2,450

• `2,150

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = 6250 × 0.12 × 3 = 2250. Thus, the interest on `6,250 for 3 years is `2,250.

The simple interest on `1280 at 5% p.a. for 3 years is:

• `195

• `180

• `192

• `480

Answer explanation

To calculate simple interest, use the formula: SI = (P * R * T) / 100. Here, P = 1280, R = 5, and T = 3. Thus, SI = (1280 * 5 * 3) / 100 = 192. Therefore, the correct answer is `192.

Rani borrowed an amount of `2,00,000 from the bank to start a business, How much simple interest will she pay at the rate of 7% per annum after 2 years?

• `28,500

• `28,000

• `24,000

• `26,000

Answer explanation

To calculate simple interest, use the formula: SI = (Principal × Rate × Time) / 100. Here, SI = (2,00,000 × 7 × 2) / 100 = 28,000. Thus, Rani will pay `28,000 as simple interest after 2 years.

A sum, when invested at 12½% simple interest per annum, amounts to ` 8,250 after 2 years. What is the simple interest?

• `1,650

• `1,820

• `1,700

• `1,910

Answer explanation

To find the simple interest, use the formula: SI = Amount - Principal. First, calculate the principal: Principal = Amount / (1 + rt) = 8250 / (1 + 0.125 * 2) = 8250 / 1.25 = 6600. Then, SI = 8250 - 6600 = 1650.

If the principal amount is `13,000, then the simple interest for 4 years at a rate of 5% per annum is ______.

• ` 2,600

• ` 5,200

• ` 2,750

• ` 1,300

Answer explanation

To calculate simple interest, use the formula: SI = (Principal × Rate × Time) / 100. Here, SI = (13000 × 5 × 4) / 100 = 2600. Thus, the simple interest for 4 years is `2,600.

Find the simple interest on Rs. 2,000 at 8.25% per annum for the period from 7 February 2022 to 20 April 2022.

• Rs. 35

• Rs. 31

• Rs. 37

• Rs. 33

Answer explanation

The period from 7 February 2022 to 20 April 2022 is 72 days. Simple interest = Principal × Rate × Time/100. Here, SI = 2000 × 8.25 × (72/36500) = Rs. 33. Thus, the correct answer is Rs. 33.

The compound interest on a sum of money at 5% per annum for 3 years is ` 6305 Find the simple interest (in `) for the same sum at the same rate of interest for the same number of years.

• `4,000

• `6,000

• `5,000

• `3,600

Answer explanation

To find the principal, use the compound interest formula: CI = P(1 + r)^n - P. Here, CI = 6305, r = 0.05, n = 3. Solving gives P = 5000. For simple interest, SI = P * r * n = 5000 * 0.05 * 3 = 750. Thus, SI = 6000.