Direction
6.

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. 3% B. 4%
C. 6% D. None of these
Answer: Option C
Explanation: S.I. = (15500 - 12500) = 3000.

Rate = (100 x 3000)/(12500x4)% = 6%


7.

A person takes a loan of 200 at 5% simple interest. He returns 100 at the end of 1 year. In order to clear his dues at the end of 2 years, he would pay:

A. 105 B. 110
C. 115 D. 115.50
Answer: Option C
Explanation:

Amount to be paid =

Simple Interest Questions and Answers

 

= 115


8.

An automobile 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 becomes:

A. 10% B. 10.25%
C. 10.5% D. None of these
Answer: Option B
Explanation: Simple Interest Questions and Answers

9.

A sum of 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of 362.50 more is lent but at the rate twice the former. At the end of the year, 33.50 is earned as interest from both the loans. What was the original rate of interest?

A. 3.6% B. 4.5%
C. 5% D. None of these
Answer: Option D
Explanation:

Simple Interest Questions and Answers


10.

A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Dollar 5400 interest only for the period. The principal amount borrowed by him was:

A. Dollar 2000 B. Dollar 10,000
C. Dollar 15,000 D. Dollar 20,000
Answer: Option C
Explanation: Principal = Dollar (100 x 5400)/(12x3) = Dollar 15000.