Simple Interest Quiz

Find the simple interest from 5 February 2017 to 19 April 2017 for an amount of `5000 at the rate of 6.25% annual interest.

• ` 62.50

• ` 48.50

• ` 64

• ` 80

Answer explanation

The time from 5 February to 19 April is 74 days. Using the formula for simple interest: SI = (P * R * T) / 100, where P = 5000, R = 6.25, and T = 74/365, we calculate SI = 62.50. Thus, the correct answer is `62.50.

The interest earned on ` 3680 at 4% simple interest per annum for 2.5 years will be.

• `368

• `92

• `184

• `274

Answer explanation

The formula for simple interest is I = PRT. Here, P = 3680, R = 4/100, and T = 2.5. Thus, I = 3680 * (4/100) * 2.5 = 368. Therefore, the interest earned is `368.

What will be the interest received in 2 years and 3 months on `2500 at the rate of 6% per annum?

• ` 423.50

• ` 445

• ` 337.50

• ` 375

Answer explanation

To calculate interest, use the formula: Interest = Principal × Rate × Time. Here, Time is 2.25 years (2 years and 3 months). So, Interest = 2500 × 0.06 × 2.25 = 337.50. Thus, the correct answer is `337.50.

How much interest will be received on the amount of `1600 in 10 years, if the rate of interest is 7.25% per annum?

• ` 1240

• ` 1160

• ` 1220

• ` 1180

Answer explanation

To calculate interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = 1600 × 0.0725 × 10 = 1160. Thus, the interest received in 10 years is `1160, making it the correct choice.

Divide `6,600 into two parts such that the simple interest received on the first part at the rate of 10% per annum for 3 years is equal to the simple interest received on the second part at 9% per annum for 4 years.

• `3600, 3000

• `4000, 2600

• `5000, 1600

• `6000, 600

Answer explanation

Let the two parts be x and 6600-x. The interest equations are: 0.1*x*3 = 0.09*(6600-x)*4. Solving gives x = 3600 and 6600-x = 3000. Thus, the correct parts are `3600 and `3000.

Sarathi deposited `3125 in a bank on which 8% simple interest was payable annually by the bank. If Sarathi kept the money in the bank for 5 years, how much interest will be earned?

• ` 1,290

• ` 1,250

• ` 1,240

• ` 1,280

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Principal = 3125, Rate = 8% (0.08), Time = 5 years. Thus, Interest = 3125 × 0.08 × 5 = 1250. The correct answer is ` 1,250.

What will be the interest on `4600 in 5 years at the rate of 4.5% per annual simple interest?

• ` 1,020

• ` 1,025

• ` 1,035

• ` 1,045

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = 4600 × 0.045 × 5 = 1035. Thus, the correct answer is ` 1,035.

An amount of ` 3250 at the rate of 5.25% per annum simple interest will earn an interest of ------ for 8 years.

• ` 1,425

• ` 1,395

• ` 1,365

• ` 1,465

Answer explanation

To calculate simple interest, use the formula: Interest = Principal × Rate × Time. Here, Interest = 3250 × 0.0525 × 8 = 1365. Thus, the interest earned is ` 1,365.

Find the total simple interest on ` 500 at 7% per annum, on ` 700 and 10% per annum and on `1000 at 4% per annum for 3 years.

• 435

• 500

• 700

• 1000

Answer explanation

Total simple interest = (P * R * T) / 100. For `500 at 7% for 3 years: 105, for `700 at 10%: 210, for `1000 at 4%: 120. Total = 105 + 210 + 120 = 435. Thus, the correct answer is 435.

Rita invested a sum of money at the rate of 2.5% rate for 4 years. Sita invested the same amount at the same rate for 6 years. What is the ratio of the simple interest earned by Sita to that earned by Rita?

• 3 : 2

• 2 : 3

• 1 : 3

• 1 : 4

Answer explanation

Simple interest (SI) = Principal × Rate × Time. For Rita: SI = P × 0.025 × 4. For Sita: SI = P × 0.025 × 6. The ratio of Sita's SI to Rita's SI = (P × 0.025 × 6) / (P × 0.025 × 4) = 6/4 = 3/2.