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Simple interest questions evaluate a candidate’s ability to work with basic financial calculations, a skill essential for various fields, including banking, insurance, and management.
This blog provides a list of 20+ simple interest questions that are part of the quantitative aptitude section of competitive exams.
Simple interest questions often find their place in entrance exams, recruitment tests, and competitive assessments, making it imperative for students to grasp the fundamentals of this concept.
Table of Contents
What are Simple Interest Questions?
Simple Interest is a fundamental financial concept that calculates the interest accrued on a principal amount over a specified period. It is a straightforward method of determining the interest on a loan or investment, excluding any compounding. Simple Interest Questions usually involve calculations related to the principal amount, interest rate, and time duration.
Must Read: Classification Reasoning Questions | Verbal Reasoning
Simple Interest Formula
Simple Interest formula: Simple Interest (SI) = (P * R * T) / 100, where P is the principal amount, R is the rate of interest, and T is the time (in years).
Tips to Solve Simple Interest Questions
Here we have mentioned certain tips and tricks to solve simple interest questions:
- Convert Time Units: Ensure that the time is in the same unit as the rate of interest. If the rate is per annum, the time should be in years.
- Be Careful with Rates: Sometimes rates may be given in quarterly or half-yearly terms. Adjust the time and rate accordingly.
- Practice Mental Calculations: Develop the ability to quickly calculate percentages and perform simple arithmetic in your head.
Also Read: Questions of Syllogism Reasoning
40 + Simple Interest Questions and Answers
- The principal amount is Rs. 6000, and the interest rate is 5% per annum. Calculate the Simple Interest after 2 years.
a) Rs. 600
b) Rs. 500
c) Rs. 300
d) Rs. 200
Answer: (c) Rs. 300
- If the Simple Interest on a sum of money for 3 years at 8% per annum is Rs. 720, find the principal amount.
a) Rs. 2500
b) Rs. 3000
c) Rs. 3500
d) Rs. 4000
Answer: (b) Rs. 3000
- The principal amount is Rs. 8000, and the Simple Interest is Rs. 960. Find the rate of interest for 2 years.
a) 6%
b) 8%
c) 10%
d) 12%
Answer: (b) 8%
- Calculate the time required for a principal amount of Rs. 5000 to earn a Simple Interest of Rs. 750 at an annual interest rate of 5%.
a) 1 year
b) 1.5 years
c) 2 years
d) 2.5 years
Answer: (b) 1.5 years
- If the Simple Interest on a certain amount for 2 years at 12% per annum is Rs. 960, find the principal amount.
a) Rs. 3000
b) Rs. 3500
c) Rs. 4000
d) Rs. 4500
Answer: (a) Rs. 3000
- Principal amount is Rs. 7000, and the interest rate is 10% per annum. Calculate the Simple Interest after 4 years.
a) Rs. 2800
b) Rs. 3200
c) Rs. 3500
d) Rs. 4000
Answer: (a) Rs. 2800
- If the Simple Interest on a sum of money for 5 years at 6% per annum is Rs. 900, find the principal amount.
a) Rs. 1500
b) Rs. 2000
c) Rs. 2500
d) Rs. 3000
Answer: (c) Rs. 2500
- The principal amount is Rs. 10,000, and the Simple Interest is Rs. 1500. Find the rate of interest for 3 years.
a) 3%
b) 4%
c) 5%
d) 6%
Answer: (c) 5%
- Calculate the time required for a principal amount of Rs. 4000 to earn a Simple Interest of Rs. 600 at an annual interest rate of 4%.
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: (b) 2 years
- If the Simple Interest on a certain amount for 3 years at 15% per annum is Rs. 1350, find the principal amount.
a) Rs. 2000
b) Rs. 2500
c) Rs. 3000
d) Rs. 3500
Answer: (c) Rs. 3000
- Principal amount is Rs. 9000, and the interest rate is 8% per annum. Calculate the Simple Interest after 2 years.
a) Rs. 1440
b) Rs. 1600
c) Rs. 1800
d) Rs. 2000
Answer: (a) Rs. 1440
- If the Simple Interest on a sum of money for 4 years at 10% per annum is Rs. 800, find the principal amount.
a) Rs. 1500
b) Rs. 2000
c) Rs. 2500
d) Rs. 3000
Answer: (d) Rs. 3000
- The principal amount is Rs. 12,000, and the Simple Interest is Rs. 1800. Find the rate of interest for 5 years.
a) 2%
b) 3%
c) 4%
d) 5%
Answer: (a) 2%
- Calculate the time required for a principal amount of Rs. 6000 to earn a Simple Interest of Rs. 720 at an annual interest rate of 4%.
a) 1 year
b) 1.5 years
c) 2 years
d) 2.5 years
Answer: (c) 2 years
- If the Simple Interest on a certain amount for 3 years at 18% per annum is Rs. 1620, find the principal amount.
a) Rs. 3000
b) Rs. 3500
c) Rs. 4000
d) Rs. 4500
Answer: (d) Rs. 4500
- Principal amount is Rs. 15,000, and the interest rate is 12% per annum. Calculate the Simple Interest after 3 years.
a) Rs. 5400
b) Rs. 6400
c) Rs. 7200
d) Rs. 8000
Answer: (c) Rs. 7200
- If the Simple Interest on a sum of money for 2 years at 14% per annum is Rs. 1120, find the principal amount.
a) Rs. 2000
b) Rs. 2500
c) Rs. 3000
d) Rs. 3500
Answer: (b) Rs. 2500
- The principal amount is Rs. 8000, and the Simple Interest is Rs. 1600. Find the rate of interest for 4 years.
a) 1%
b) 2%
c) 3%
d) 4%
Answer: (d) 4%
- Calculate the time required for a principal amount of Rs. 10,000 to earn a Simple Interest of Rs. 1500 at an annual interest rate of 5%.
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: (b) 2 years
- If the Simple Interest on a certain amount for 3 years at 20% per annum is Rs. 1800, find the principal amount.
a) Rs. 2000
b) Rs. 2500
c) Rs. 3000
d) Rs. 3500
Answer: (c) Rs. 3000
- Principal amount is Rs. 5000, and the interest rate is 15% per annum. Calculate the Simple Interest after 4 years.
a) Rs. 3000
b) Rs. 3600
c) Rs. 4500
d) Rs. 6000
Answer: (b) Rs. 3600
Must Read
22. If the principal is $4000, rate of interest is 6%, and Simple Interest is $240, what is the time period?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: b
23. What is the rate of interest if the principal is $5000, time is 2 years, and Simple Interest is $800?
a) 8%
b) 10%
c) 12%
d) 15%
Answer: b
25. If the principal is Rs 3000, the rate of interest is 5%, and the time period is 2 years, what is the Simple Interest?
a) Rs 300
b) Rs 400
c) Rs 500
d) Rs 600
Answer: a
26. What is the period required for a principal of Rs 2500 at 8% interest to generate a Simple Interest of Rs 400?
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: b
27. If the Simple Interest is Rs 1200, the principal is Rs 15000, and the time is 3 years, what is the rate of interest?
a) 4%
b) 6%
c) 8%
d) 10%
Answer: a
28. For what time should a principal of Rs 4000 be invested at 6% interest to get a Simple Interest of Rs 720?
a) 1-year
b) 2 years
c) 3 years
d) 4 years
Answer: c
29. If the rate of interest is 12%, the time is 2 years, and Simple Interest is Rs 600, what is the principal amount?
a) Rs 2000
b) Rs 2500
c) Rs 3000
d) Rs 3500
Answer: c
30. What will be the total amount after 2 years for a principal of Rs 5000 at a 10% interest rate?
a) Rs 5500
b) Rs 6000
c) Rs 6500
d) Rs 7000
Answer: b
31. If the principal is Rs 2000, the rate of interest is 8%, and Simple Interest is Rs 320, what is the time period?
a) 1.5 years
b) 2 years
c) 2.5 years
d) 3 years
Answer: b
32. What is the rate of interest if the principal is Rs 3000, time is 2 years, and Simple Interest is Rs 540?
a) 6%
b) 8%
c) 9%
d) 10%
Answer: b
33. If the Simple Interest is Rs 150, and the principal is Rs 2500, what is the time period?
a) 2 years
b) 3 years
c) 4 years
d) 5 years
Answer: a
34. If the principal is Rs 4000, the rate of interest is 5%, and the time period is 3 years, what is the Simple Interest?
a) Rs 600
b) Rs 700
c) Rs 800
d) Rs 900
Answer: a
35. What is the Simple Interest for a principal of Rs 3500 at 7% interest rate for 4 years?
a) Rs 770
b) Rs 840
c) Rs 910
d) Rs 980
Answer: b
36. If the principal is Rs 6000, the rate of interest is 4%, and the time period is 2 years, what is the Simple Interest?
a) Rs 480
b) Rs 500
c) Rs 520
d) Rs 540
Answer: a
37. If the Simple Interest is Rs 180, the principal is Rs 3000, and the time is 3 years, what is the rate of interest?
a) 4%
b) 6%
c) 8%
d) 10%
Answer: b
38. For what time should a principal of Rs 4500 be invested at 9% interest to get a Simple Interest of Rs 720?
a) 1.5 years
b) 2 years
c) 2.5 years
d) 3 years
Answer: b
39. If the rate of interest is 10%, the time is 2 years, and Simple Interest is Rs 800, what is the principal amount?
a) Rs 3500
b) Rs 4000
c) Rs 4500
d) Rs 5000
Answer: c
40. What is the Simple Interest for a principal of Rs 3200, rate of interest of 6%, and period of 3 years?
a) Rs 576
b) Rs 600
c) Rs 624
d) Rs 648
Answer: a
FAQs
During an exam, focus on keywords such as “principal,” “rate,” and “time.” These elements are crucial for solving Simple Interest problems. Identifying them promptly will help you use your time efficiently and solve the question accurately.
Prioritize questions based on difficulty and time consumption. Start with questions that you find easier and can solve quickly. Allocate specific time limits to each question to ensure you cover the entire set. If a question is particularly challenging, it might be more beneficial to skip and return to it if time allows. Managing time effectively is key to successfully tackling Simple Interest questions in an exam.
Regular practice enhances problem-solving speed and accuracy, building confidence in tackling Simple Interest questions, a common topic in quantitative aptitude exams.
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