Qunat: Simple Interest part 1

Basic Formula:
Interest = P x R xT
                   100

Questions:

1. A sum of money lent at simple interest amounts to rs 880/- in 2 years and to rs 920/-

    in 3 years. The sum of money (in rupees) is 

    a) 700                 b)760

    c) 784                 d) 800      e) none of theses

2. A person borrows rs 5000/- for 2 yrs at 4% per annum simple interest. He immediately

    lends it to another person at 6.25% per annum for 2 years. His gain in the transaction is.

    a) 112.5                 b)450

    c) 225                    d) 150     e) none of theses

3. Rs 800 becomes rs 956 in 3 years at a certain rate of simple interest. If the rate of interest

    is increased by 4%, what amount will rs 800 becomes in 3 years.

    a) 1020.80           b) 1025

    c) 1052                d) 1050     e) none of theses

4. In what time will rs 8000, at 3% per annum produce the same interest as rs 6000 does in

    5 yrs at 5% interest per annum

    a) 5 yrs                 b) 6 yrs

    c) 3 yrs                 d) 4 yrs      e) none of theses

5. The principal which gives rs 1/- interest per day at the rate of 5% interest per annum is
     a) 5000                b)7300
     c) 36500              d) 3650      e) none of theses

Answers:

1. d
2. c
3. e
4. a
5. b