Simple Interest Quiz

A sum of `3680 is invested at 12.5% p.a. simple interest for 6 years. What will be the total amount payable on maturity?

• `6,420

• `6,440

• `6,480

• `6,460

Answer explanation

The simple interest is calculated as SI = PRT = 3680 * 12.5/100 * 6 = 2760. Total amount = Principal + SI = 3680 + 2760 = 6440. Thus, the total amount payable on maturity is `6,440.

A man invested Rs. 75, 000 at the rate of 17% per annum simple interest for 6 years. Find the amount he will receive after 6 years.

• `108,750

• `75,000

• `1,12,500

• `69,600

Answer explanation

The simple interest is calculated as SI = (Principal × Rate × Time) / 100. Here, SI = (75000 × 17 × 6) / 100 = 76500. The total amount after 6 years = Principal + SI = 75000 + 76500 = 108750.

If a sum of `2,000 amounts to `2,360 in 3 years at a certain rate of simple interest per annum, then will the same sum amount to in 5 years, if the rate of simple interest per annum remains the same?

• `2,605

• `2,650

• `2,600

• `2,500

Answer explanation

The interest for 3 years is 360, so the annual interest is 120. In 5 years, the total interest will be 600. Thus, the amount will be 2000 + 600 = 2600. Therefore, the correct answer is `2,600.

A sum of `5,800 is invested at 6% per annum simple interest. How much will the sum become after 4 years?

• 8,192

• 7,192

• 6,192

• 9,192

Answer explanation

To calculate the total amount after 4 years, use the formula: Total = Principal + (Principal × Rate × Time). Here, Total = 5800 + (5800 × 0.06 × 4) = 7192. Thus, the correct answer is 7,192.

The simple interest on a certain sum for 2.5 years at the rate of 9.5% p.a. is `3,553. What will be the amount payable on the same sum at 8.4% p.a. simple interest in 1.5 years?

• `13,950

• `14,855

• `13,855

• `13,850

Answer explanation

First, find the principal using the simple interest formula: SI = P * R * T. Here, SI = 3553, R = 9.5%, T = 2.5 years. Calculate P, then use it to find the amount at 8.4% for 1.5 years, resulting in `13,855.

A man deposits `8,000 at 10% rate of simple interest per annum. The total amount will be get at the end of 2 years is:

• `9,800

• `9,600

• `9,760

• `9,200

Answer explanation

The simple interest for 2 years is calculated as SI = PRT = 8000 * 0.10 * 2 = 1600. The total amount is A = Principal + SI = 8000 + 1600 = 9600. Thus, the correct answer is `9,600.

A sum of `1000 amounts to `1140 in 2 years at simple interest. If the interest rate is increased by 4%, the original sum would amount to:

• `1,160

• `1,180

• `1,220

• `1,200

Answer explanation

The original interest for 2 years is `140, giving a rate of 7% per annum. Increasing the rate by 4% to 11%, the new interest for 2 years is `220. Thus, the new amount is `1000 + `220 = `1220.

Bhawna borrowed `4,500 from a lender at the rate of 15% per annum simple interest on 26 March 2018 and cleared the loan on 7 June of the same year. What amount did she pay to clear her loan?

• `4,635

• `53,775

• `135

• `49,275

Answer explanation

Bhawna borrowed `4,500 at 15% per annum. The loan duration from 26 March to 7 June is 73 days. Simple interest = PRT/100 = 4500 * 15 * (73/365) = `135. Total amount paid = `4,500 + `135 = `4,635.

A man deposits `5000 in his bank account for 5 years to earn a simple interest of 12% per annum. What amount will he get after 5 years?

• `7,500

• `8,000

• `3,500

• `2,500

Answer explanation

To calculate the total amount after 5 years with simple interest, use the formula: Total Amount = Principal + (Principal × Rate × Time). Here, Total Amount = 5000 + (5000 × 0.12 × 5) = 8000. Thus, the correct answer is `8,000.

If `5000 becomes `5900 in one year, what will `8000 become at the end of 5 years at the same rate of simple interest?

• `15,200

• `15,000

• `16,000

• `16,200

Answer explanation

The interest for 5000 is 900 in one year, giving a rate of 18%. For 8000 over 5 years, the interest is 8000 * 0.18 * 5 = 7200. Thus, total amount = 8000 + 7200 = 15200. Hence, the answer is `15,200.