Simple Interest – General Questions


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11. 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 is:

A. 5%
B. 8%
C. 12%
D. 15%

Correct Answer: C. 12%

Answer Explanation:

rate of interest per annum

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12. What will be the ratio of simple interest earned by a certain amount at the same rate of interest for 6 years and that for 9 years?

A. 1 : 3
B. 1 : 4
C. 2 : 3
D. Data inadequate
E. None of these

Correct Answer: C. 2 : 3

Answer Explanation:

the ratio of simple interest

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13. A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?

A. Rs. 35
B. Rs. 245
C. Rs. 350
D. Cannot be determined
E. None of these

Correct Answer: D. Cannot be determined

Answer Explanation:

We need to know the S.I., principal and time to find the rate.
Since the principal is not given, so data is inadequate.

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14. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to another person at 6 1/2% p.a for 2 years. Find his gain in the transaction per year.

A. Rs. 112.50
B. Rs. 125
C. Rs. 225
D. Rs. 167.50

Correct Answer: A. Rs. 112.50

Answer Explanation:

his gain in the transaction per year

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