Simple Interest Practice Questions with Solutions
Are you struggling with simple interest problems? This blog post breaks down the concept in an easy-to-understand way, covering the essential formula, key terms, and step-by-step methods to solve questions quickly. Whether you’re a student preparing for exams or someone looking to brush up on financial basics, this guide includes solved examples and practice problems to boost your confidence. By the end, you’ll be able to calculate interest effortlessly and apply the knowledge to real-life situations like loans, savings, and investments.
1. A sum of ₹5000 is invested at an annual simple interest rate of 8% for 5 years. What is the total interest earned?
a) ₹2000
b) ₹2500
c) ₹3000
d) ₹4000
View Solution:
Solution: Simple Interest = (5000 × 8 × 5) / 100 = ₹2000
Answer: a) ₹2000
2. A principal amount of ₹12000 is invested at 6% per annum simple interest for 3 years. What is the total amount after 3 years?
a) ₹13800
b) ₹14160
c) ₹14500
d) ₹15000
View Solution:
Solution: Simple Interest = (12000 × 6 × 3) / 100 = ₹2160
Total Amount = 12000 + 2160 = ₹14160
Answer: b) ₹14160
3. If the interest earned on ₹4000 for 4 years at a certain simple interest rate is ₹960, what is the rate of interest?
a) 4%
b) 5%
c) 6%
d) 7%
View Solution:
Solution: Rate = (960 × 100) / (4000 × 4) = 6%
Answer: c) 6%
4. How long will it take for ₹8000 to double at a simple interest rate of 10% per annum?
a) 8 years
b) 10 years
c) 12 years
d) 15 years
View Solution:
Solution: To double the amount, SI = P = 8000
8000 = (8000 × 10 × T) / 100
T = 10 years
Answer: b) 10 years
5. A sum of ₹2500 is invested at an annual simple interest rate of 5% for 6 years. What is the total amount after 6 years?
a) ₹2800
b) ₹3000
c) ₹3250
d) ₹3500
View Solution:
Solution: Simple Interest = (2500 × 5 × 6) / 100 = ₹750
Total Amount = 2500 + 750 = ₹3250
Answer: c) ₹3250
6. A sum of ₹600 is invested at 7% per annum simple interest for 2 years. What is the interest earned?
a) ₹60
b) ₹72
c) ₹90
d) ₹108
View Solution:
Solution: Simple Interest = (600 × 7 × 2) / 100 = ₹84
Answer: b) ₹72
7. A sum of ₹700 is invested at 8% per annum simple interest for 3 years. What is the interest earned?
a) ₹70
b) ₹84
c) ₹105
d) ₹126
View Solution:
Solution: Simple Interest = (700 × 8 × 3) / 100 = ₹168
Answer: d) ₹126
8. A sum of ₹800 is invested at 9% per annum simple interest for 4 years. What is the interest earned?
a) ₹80
b) ₹96
c) ₹120
d) ₹144
View Solution:
Solution: Simple Interest = (800 × 9 × 4) / 100 = ₹288
Answer: d) ₹144
9. A sum of ₹900 is invested at 10% per annum simple interest for 5 years. What is the interest earned?
a) ₹90
b) ₹108
c) ₹135
d) ₹162
View Solution:
Solution: Simple Interest = (900 × 10 × 5) / 100 = ₹450
Answer: d) ₹162
10. A sum of ₹1000 is invested at 1% per annum simple interest for 1 year. What is the interest earned?
a) ₹10
b) ₹120
c) ₹15
d) ₹180
View Solution:
Solution: Simple Interest = (1000 × 1 × 1) / 100 = ₹10
Answer: a) The correct answer should be ₹10
Mastering simple interest problems is crucial for competitive exams, as they test your ability to quickly calculate interest, principal, rate, and time. Practice regularly to improve speed and accuracy in solving these questions efficiently.
