Simple Interest

Study Material (PDF)
Self Assesment
Study Material (PDF)
Self Assesment

Click on each question to see answer & solution.

Question No: #1

If simple interest for 5 years is `\frac{1}{5}` of principal, what is the annual simple interest rate -
(a) 4%, (b) 5%, (c) 10%, (d) 25%
Ans: (a) 4%
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Question No: #2

If a capital doubles in 20 years, the annual simple interest rate -
(a) 5%, (b) 10%, (c) 15%, (d) 20%

Question No: #3

If simple interest in 1 month on 1 rupee is 1 paise, the annual interest rate will be -
(a) 1%, (b) 6%, (c) 8%, (d) 12%
Ans: (d) 12%
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Question No: #4

If the simple interest on Rs. `p` is Rs. `q` and simple interest on Rs. `q` is Rs. `r` (both time and annual simple interest rate are equal), which of the following relations is correct?
(a) `pqr=1`, (b) `p^2 = qr`, (c) `q^2 = pr`, (d) `r^2 = pq`
Ans: (c) `q^2 = pr`
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Question No: #5

If the ratio of principal and interest is `25:24` in `x` years at a simple interest rate of 12% per annum, the value of `x` will be -
(a) 5, (b) 8, (c) 10, (d) 12.
Ans: (b) 8
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Question No: #6

In how many years will the ratio of interest to principal be 3:2 at a simple interest rate of 10% per annum -
(a) 12 years, (b) 15 years, (c) 16 years, (d) 18 years
Ans: (b) 15 years
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Question No: #7

If the ratio of a principal to its annual amount is 25:27, the rate of interest is -
(a) 5%, (b) 6%, (c) 7%, (d) 8%

Question No: #8

If the total interest on a capital for `n` years at the rate of `r`% simple interest per annum is Rs. `\frac{Pnr}{25}`, then capital is -
(a) Rs. `2P`, (b) Rs. `4P`, (c) Rs. `P/2`, (d) Rs. `P/4`

Question No: #9

State true or false.
i) If amount of certain principal for `n` years, at simple interest rate `r`% per annum is Rs. `m`, the principal will be Rs. `\frac{25m}{(25+n)}`
ii) If the original and annual simple interest rates are the same, the interest varies over time in simple proportion.
Ans: i) False; ii) True
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Question No: #10

If the monthly interest is Rs. 1 at the simple interest rate of 5% per annum, find the capital.
Ans: Rs. 240
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