Simple Interest Practice objective type question -

Find the simple interest on 2,000 at 8% per annum for the period from for 2 and half years?
a. 400
b. 450
c. 500
c. 470

Answer: a. 400
Solution: $2000 \times \frac{8}{100} \times \frac{25}{10} = 400$

If the simple interest on Rs 100 for 1 month is Rs 1 , then the rate per cent per annum will be?
a. 6%
b. 8%
c. 10%
d. 12%

Answer: d. 12%
Solution: According to the question:
$1 = \frac{100 \times r \times 1}{100} \Rightarrow r = 12$

A borrowed an amount of Rs.4,00,000 from the bank to start a for home loan. How much simple interest will she pay at the rate of 7% per annum after 2 years?
a. Rs. 50,000
b. Rs. 52,000
c. Rs. 54,000
d. Rs. 56,000

Answer: d. Rs. 56,000
Solution: $S . I = \frac{4, 00, 00 \times 7 \times 2}{100} = 56,000 u s i n g f o r m u l a : S . I = \frac{P r i n c i p a l \times R a t e \times T i m e}{100}$

In what time will Rs. 8,000, at 2.5% per annum, produce the same interest as Rs. 3, 000 does in 5 years at 4 % simple interest ?
a. 2 years
b. 3 years
c. 4 years
d. 5 years

Answer: b. 3 years
Solution: Rate of Interest at 3000 will be:
$S . I = \frac{3000 \times 5 \times 4}{100} = 600$
Let the Time take at 8000 be t
According to the question:
$00 = \frac{8000 \times 2.5 \times t}{100} \Rightarrow t = \frac{600 \times 100 \times 10}{8000 \times 25} = 3$

How much simple interest will Rs. 8,000 earn in 18 months at 12% per annum?
a. Rs. 1110
b. Rs. 1220
c. Rs. 1330
d. Rs. 1440

Answer: d. Rs. 1440
Solution: $S . I = \frac{8000 \times 1.5 \times 12}{100} = 1440$

If the simple interest on Rs. 600 for 2 years is Rs. 84, the rate of interest per annum is?
a. 6%
b. 7%
c. 8%
d. 9%

Answer: b. 7%
Solution: According to the question:
$84 = \frac{600 \times r \times 2}{100} \Rightarrow u s i n g formula : S . I = \frac{principal \times rate \times time}{100}$
r=7

The rate of simple interest for which Rs. 7,000 will amount to Rs. 8,260 in 3 years is?
a. 6%
b. 7%
c. 8%
d. 9%

Answer: a. 6%
Solution: Simple interest = 8260-7000= 1260
let the rate of interest be r
According to the question:
$1260 = \frac{7000 \times r \times 3}{100} = 6 \Rightarrow u s i n g formula : S . I = \frac{principal \times rate \times time}{100}$

A sum of money becomes 6/5 of itself in 3 years at a certain rate of simple interest. The rate per annum is?
a. $6 \frac{1}{3} %$
b. $6 \frac{2}{3} %$
c. $6 \frac{4}{3} %$
d. $5 \frac{1}{2} %$

Answer: b. $6 \frac{2}{3} %$
Solution: Let the principal amount be p.
$\frac{6 p}{5} - p \Rightarrow \frac{6 p - 5 p}{5} = \frac{p}{5}$
$\frac{p}{5} = \frac{p \times r \times 3}{100} \Rightarrow u s i n g formula : S . I = \frac{principal \times rate \times time}{100}$
$r = \frac{p \times 100}{5 \times p \times 3} = \frac{20}{3} = 6 \frac{2}{3}$

A sum of money at simple interest double itself in 15 years. It will become 5 times of itself in how many years?
a. 10 years
b. 20 years
c. 30 years
d. 40 years

Answer: c. 30 years
Solution: Let the sum of interest be p:
According to the question:
$p = \frac{p \times r \times 15}{100} \Rightarrow u s i n g formula : S . I = \frac{principal \times rate \times time}{100}$
$r = \frac{100}{15} = \frac{20}{3}$
It will become 5 times of itself in :
Simple interest of 5 years will be = 5p-p=4p
$4 p = \frac{p \times 20 \times t}{100 \times 3}$
$t = \frac{4 \times 100 \times 3}{20} = 60 years$

In how much time, will a sum of money become double of itself at 12% per annum simple interest?
a. 8 yrs. 6 months
b. 6 yrs. 9 months
c. 8 yrs. 4 months
d. 7 yrs. 6 months

Answer: c. 8 yrs. 4 months
Solution: Let the principal amount be p.
The simple interest will be 2p-p=p
Let the time take be t
$p = \frac{p \times 12 \times t}{100} \Rightarrow u s i n g formula : S . I = \frac{principal \times rate \times time}{100}$
$t = \frac{100}{12} = \frac{25}{3} = 8 \frac{1}{3}$
Which is equal to 8 years and 4 months

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Pariksha buddy

Simple Interest Practice objective type question

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