Are you looking eagerly everywhere to find a Practice Test on Simple Interest with Solutions? You have come the right way we have curated the Solved Examples explaining how to calculate Simple Interest. We have listed the Formula to Calculate Simple Interest in the coming modules. Check out the Step by Step Solution provided for the Problems finding the Related Terms like Interest, Time Duration, Principal, etc. Assess your preparation standard using the Simple Interest Practice Test available and improve on the areas you are lagging.
Simple Interest Formula Questions | Word Problems on Simple Interest
1. Find the Principal when
(a) S.I. = 100 Rate = 5% per annum Time = 2 years
(b) S.I = 1200 Rate = 2% per annum Time = 10 Months
Solution:
(a) Formula to Calculate the Simple Interest SI = PTR/100
Rearranging the basic formula we get P = SI*100/T*R
= 100*100/2*5
= 1000
Prinicipal = Rs. 1000
(b) S.I = 1200 Rate = 2% per annum Time = 10 Months
Simple Interest in Months = (P × n × R)/ (12 ×100)
Rearranging we have the P as under
1200 = (P*10*2)/(12*100)
(1200*1200) = 20P
P = 1440000/20
= Rs. 72, 000
2. Shubash deposited Rs. 10000 at simple interest for 2 years. Had the interest been 2%, how much amount he would have got?
Solution:
P = 10000
R = 2%
T = 2 Years
Simple Interest = PTR/100
= 10000*2*2/100
= 400
Amount = Principal + Interest
= 10000+400
= 10400
Shubash gains an amount of 10400 after 2 years.
3. A sum fetched a total simple interest of Rs. 4000 at the rate of 10 %.p.a. in 5 years. What is the sum?
Solution:
Formula for SI = PTR/100
Rearranging we have P = SI*100/(TR)
= 4000*100/(10*5)
= 40000/5
= 8000
Sum taken is Rs. 8000
4. At what rate percent annum will a sum of money double itself in 5 years?
Solution:
We know A = P(1+TR/100)
From given data Amount doubles in 5 years
2P = P(1+R*5/100)
2-1= 5R/100
100 = 5R
R = 20%
Sum of the amount doubles in 5 years at a rate of 20%.
5. What will be the ratio of simple interest earned by a certain amount at the same rate of interest for 5 years and that for 10 years?
Solution:
Let the Principal in both the cases be P and Rate of Interest be R %
From given data
Ratio of Simple Interest = (P*5*R)/100 : (P*10*R)/100
= 5:10
= 1:2
6. The simple interest on a certain sum for 6 months at 8% per annum is Rs. 150 less than the simple interest on the same sum for 15 months at 5% per annum. The sum is?
Solution:
Consider the sum to be x
From the given info we have the equation as under
(x*5*15/(100*12)) – (x*8*6/(100*12)) = 150
(75x-48x)/1200 = 150
27x = 1200*150
x = (1200*150)/27
= Rs. 6666.667
Therefore, the Sum is Rs. 6666.667
7. A sum of money at simple interest amounts to Rs. 875 in 3 years and to Rs. 900 in 4 years. The sum is?
Solution:
From given data Simple Interest per 1 Year = 900 – 875
= Rs. 25
SI for 3 Years = (25*3) = 75
Principal = Amount – Interest
= 875 – 75
= Rs. 800
Therefore the Sum is Rs. 800
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