Simple interest

  1. The sum required to earn a monthly interest of Rs 400 at 10 % per annum at simple interest is
    1. Rs 2000
    2. Rs 12000
    3. Rs 24000
    4. Rs 48000
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    Simple Interest =(Principal × Rate × Time)/100

    Correct Option: D

    Total interest needed in a year = Rs 400 × 12
    = Rs 4800
    Principal = (100 × SI)/R × T
    where, R = Rate
    T = Time
    SI= Simple Interest

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  1. In what time will the simple interest on Rs 400 at 10% per annum be the same as the simple interest on Rs 1000 for 4 year at 4 % per annum?
    1. 2 yrs
    2. 3 yrs
    3. 4 yrs
    4. 6 yrs
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    Simple Interest = (Principal × Rate × Time)/100

    Correct Option: C

    Here , P= Rs 1000
    T= 4 yrs
    R= 4 %
    where, P= Principal
    T= Time
    R= Rate
    Since , Simple Interest on Rs 1000=(1000 × 4 × 4)/100
    = Rs 160

    now, simple interest=Rs 160
    P = Rs 400
    R = 10 %
    then, T=(100 × SI)/P × R
    = (100 × 160)/(400 × 10)
    = 4 yr

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  1. At what rate percent per annum will a sum of money double in 8 yr?
    1. 12 %
    2. 12.5 %
    3. 13 %
    4. 15 %
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    Amount A = 2 × P
    where , P = Principal

    Rate R = (100 × SI)/(P × T)
    where , SI= Simple Interest
    T= Time

    Correct Option: B

    Let Sum = P, Then SI=P
    As Amount A = 2 × P
    where , P = Principal

    Rate R = (100 × SI)/(P × T)
    = (100 × P)/(P × 8) %
    = 12.5 %
    where , SI= Simple Interest
    T= Time

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  1. The amount instalment will discharge on debit of Rs 3220 due in 4 year at 10 % simple interest?
    1. 500
    2. 600
    3. 700
    4. None of these
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    Let the amount instalment be Rs ' x '
    Then According to question,
    (Amount of 'x' for 3 yrs) + (Amount of 'x' for 2 yrs) + (Amount of 'x' for 1 yrs) + x =3220

    Correct Option: C

    Let the amount instalment be Rs ' x '
    Then According to question,
    (Amount of 'x' for 3 yrs) + (Amount of 'x' for 2 yrs) + (Amount of 'x' for 1 yrs) + x =3220
    or, [x+(x × 10 × 3)/100] + [x+(x × 10 × 2)/100] + [x+(x × 10 × 1)/100] + x=3220
    ⇒ 4x+ (30x/100)+(20x/100)+(10x/100)=3220
    ⇒ 460x=322000
    ⇒ x=Rs 700

    ∴ Each Instalment= Rs 700

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  1. A certain sum amounts to Rs 1586 in 2 year and Rs 1729 in 3 year. Find the rate and the sum.
    1. 8 %
    2. 9 %
    3. 10 %
    4. 11 %
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    Simple Interest in 1 year= Rs (1729 - 1586)
    = Rs 143

    And R= (100 × SI)/(P × T)
    where, R = rate
    SI= Simple Interest
    P = Principal
    T= Time

    Correct Option: D

    Simple Interest in 1 year= Rs (1729 - 1586)
    = Rs 143
    now, SI in 2 year = Rs 286

    Principal P= Rs(1586 - 286)
    = 1300
    And R= (100 × SI)/(P × T)
    = (100 × 143)/(1300 × 1)
    = 11 %
    where, R = rate
    SI= Simple Interest
    P = Principal
    T= Time

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