Simple Interest Questions and Answers


question divider line

Home > Numerical Tests > Simple Interest > Simple Interest Questions

question divider line

When it comes to basics of finance you have to learn about simple interest! Simple interest will affect you loans and investments and understanding this concept will make you money or lose you money.

In effect simple interest is a return on your investment or a price you have to pay for borrowing money from someone.

Let's say you invest 100 and earn 5% simple interest. After the investment period has ended you have made 100*0.05=5. Simple interest is the simplest of ideas in finance and one of the greatest.

To get a bit more deeper into interest please look at our compounded interest section here to learn more about interest and the formulas used to calculate it: Compound Interest Formula


A sum of money at simple interest amounts to 815 in 3 years and to 854 in 4 years. The sum is:


A. 650
B. 690
C. 698
D. 700

Answer & Explanation:

Answer: Option C

Explanation: S.I. for 1 year = (854 - 815) = 39.

S.I. for 3 years = (39 x 3) = 117.

Principal = (815 - 117) = 698.



question divider line

Mr. Thomas invested an amount of 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be 3508, what was the amount invested in Scheme B?


A. 6400
B. 6500
C. 7200
D. 7500

Answer & Explanation:

Answer: Option A

Explanation: Let the sum invested in Scheme A be x and that in Scheme B be (13900 - x).

Then, (x x 14 x 2)/100 + ((13900 - x) x 11 x 2)/100 = 3508

28x - 22x = 350800 - (13900 x 22)

6x = 45000

x = 7500.

So, sum invested in Scheme B = (13900 - 7500) = 6400.



question divider line
question divider line

A sum fetched a total simple interest of 4016.25 at the rate of 9 %.p.a. in 5 years. What is the sum?


A. 4462.50
B. 8032.50
C. 8925
D. None of these

Answer & Explanation:

Answer: Option C

Explanation: Principal = (100 x 4016.25)/(9 x 5)

= 401625/45

= 8925.



question divider line

How much time will it take for an amount of 450 to yield 81 as interest at 4.5% per annum of simple interest?


A. 3.5 years
B. 4 years
C. 4.5 years
D. 5 years

Answer & Explanation:

Answer: Option B

Explanation: Time = (100 x 81)/(450 x 4.5) years = 4 years.



question divider line

Reena took a loan of 1200 with simple interest for as many years as the rate of interest. If she paid 432 as interest at the end of the loan period, what was the rate of interest?


A. 3.6
B. 6
C. 18
D. Cannot be determined

Answer & Explanation:

Answer: Option B

Explanation: Let rate = R% and time = R years.

Then, (1200 x R x R)/100 = 432

12R² = 432

R² = 36

R = 6.



question divider line

Page 1   | Page 2   | Page 3  

question divider line

More educational and fun tests below.




Questions or comments? Please discuss below.




Copyright © The Online Test Centre - Since 2005 | Terms and Conditions & Privacy Policy | Blog


The largest provider of tests on the web. We have thousands of questions covering

 

numerical and verbal aptitude tests, diagrammatic and logic tests, reasoning tests,

 

puzzles, general knowledge test questions and GMAT test advice and questions.

 

No login required. All tests are free. All the tests you need when you need them.