# Simple Interest with Explanation

Q1. The simple interest on Rs. 1820 from March 9, 2005, to May 21, 2005, at 7.5% rate will be:

 A. Rs. 28.50 B. Rs. 27.30 C. Rs. 23.80 D. Rs. 30

Q2. The time in years and the rate of interest in percent are equal. If a simple interest on a certain amount is of the the principal, then find the time for which the principal is lent out?

 A. 7 years B. 6.5 years C. 7.5 years D. 5.5 years

Q3. The simple interest on the sum of money at a rate of 5% p.a. for 8 years is Rs. 840. What must be the rate of interest to get the same amount of interest on the same sum after 5 years?

 A. 8% B. 9% C. 7% D. 10%

Q4. Mike agrees to pay interest at a rate of 6% per annum for the first two years, for the next three years at the rate of 9% per annum, and for the period beyond five years at the rate of 14% per annum. At the end of 9 years, he pays Rs. 11,400 as a total interest. What is the sum of money he borrowed?

 A. Rs. 10,000 B. Rs. 14,000 C. Rs. 15,000 D. Rs. 12,000

Q5. Govind decides to invest 1,00,000 in two types of shares. The first gives an interest of 9% per annum and the second, 11% per annum. Determine the amount invested in each share if the total interest at the end of 1 year is 9 %?

 A. Rs. 62,500; Rs. 37,500 B. Rs. 52,500; Rs. 47,500 C. Rs. 82,500; Rs. 17,500 D. Rs. 72,500; Rs. 27,500

Q6. In 10 years, A wants simple interest to be of the amount. So, what should be the rate percent per annum?

 A. 5.66% B. 5% C. 4% D. 6%

Q7. If a sum grows to Rs. 504 in 4 years at 5% per annum then how much will the same amount grow to in 2.5 years at 10% per annum?

 A. Rs. 525 B. Rs. 450 C. Rs. 550 D. Rs. 420   