Simple Interest

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Principal: The money borrowed for a certain period is called the principal or the sum.

Interest: Some extra money paid for using other’s money is called interest.

Simple Interest (S.I.): When the sum borrowed for a certain period is computed uniformly, then it is called simple interest.

Formula for Simple Interest:

Let Principal = P, Rate = R% per annum, Time = T

$$Simple\ Interest(S.I) ={{PTR}\over{100}}$$

$$P ={{100×S.I}\over{RT}}$$, $$R ={{100×S.I}\over{PT}}$$, $$T ={{100×S.I}\over{RP}}$$

1 A sum of ₹ 12,500 amounts to ₹ 15,500 in 4 years at the rate of simple interest. What is the rate of interest? 

A
6%
B
9%
C
8%
D
2%

2 What principal will amount to ₹ 16000 in 6 years at 10% simple interest?

A
11000
B
12000
C
10000
D
13000

3 A sum of money doubles it'self in 8 years. What is the rate of interest?

A
11.50%
B
12.50%
C
13.50%
D
14.50%

4 What will the ratio of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years:

A
1 : 3
B
4 : 3
C
2 : 3
D
5 : 3

5 A certain amount of money amounts to ₹ 720 in 2 years and to ₹ 870 in 4($$\frac{1}{2}$$) years. Find the rate of interest if S.l. is reckoned:

A
10%
B
12%
C
14%
D
16%

6 Nalini borrowed ₹ 1075 from her friend at 7% per annum. She returned the amount after 7 years. How much amount did she pay?

A
1501.75
B
1601.75
C
1701.75
D
1801.75

7 If the difference between Cl and Sl earned on a certain amount at 15% pa at the end of 3 years is ₹3200, find out the principal:

A
₹45050
B
₹45150
C
₹45350
D
₹45450

8 A sum of ₹ 800 is lent at the rate of 4% per annum. Find the interest at the end of 6 years:

A
192
B
172
C
182
D
202

9 A sum at simple interest of 13($$\frac{1}{2}$$)% per annum amounts to ₹ 3080 in 4 years. Find the sum:

A
₹ 2200
B
₹ 2200
C
₹ 2100
D
₹ 2000

10 The simple interest on a sum of money is 1/9 of the principal and the number of years is equal to the rate percent per annum. The rate percent per annum is:

A
10/3%
B
11/3%
C
13/3%
D
14/3%