Simple Interest Questions Answers

Simple Interest Questions Answers (MCQ) listings with explanations includes questions of calculating Rate of interest, Principal, Time etc which are important for many competitive exams.

21) A financier claims to be lending money at simple interest, But he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becom

  • 1) 10.25%
  • 2) 10%
  • 3) 9.25%
  • 4) 9%
View Answer View Explanation
Ans.   A
Explanation :
Let the sum is 100. As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below: SI for first Six Months = (100*10*1)/(100*2) = Rs. 5 Important: now sum will become 100+5 = 105 SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25 So amount at the end of year will be (100+5+5.25) = 110.25 Effective rate = 110.25 - 100 = 10.25

22) A sum of money amounts to Rs 9800 after 5 years and Rs 12005 after 8 years at the same rate of simple interest. The rate of interest per annum

  • 1) 9%
  • 2) 10%
  • 3) 11%
  • 4) 12%
View Answer View Explanation
Ans.   D
Explanation :
We can get SI of 3 years = 12005 - 9800 = 2205 SI for 5 years = (2205/3)*5 = 3675 [so that we can get principal amount after deducting SI] Principal = 12005 - 3675 = 6125 So Rate = (100*3675)/(6125*5) = 12%
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