Arithmetic Aptitude

Simple Interest

⛪ General Aptitude > Arithmetic Aptitude

Simple interest is a type of interest calculation where the interest is calculated based on the principal amount of a loan or deposit and the duration of the loan or deposit. It is calculated using the following formula:

Simple interest = (principal amount * interest rate * time period) / 100

For example, if you borrow $1000 at an annual interest rate of 5% for a period of 2 years, the simple interest would be calculated as follows:

Simple interest = ($1000 * 5 * 2) / 100 = $100

The total amount you would have to pay back (including the principal amount) would be $1000 + $100 = $1100.

Note that simple interest is different from compound interest, where the interest is calculated not only on the principal amount, but also on the accumulated interest of previous periods.

➲ Simple Interest - Quiz

Q 1: Ramesh put Rs. 1000 in Bank 1 for two years. He also put Rs. 1300 in Bank 2 for 1 years. In the end, he collected Rs. 330 in simple interest from both banks. What was the rate of interest?

  • A 15%
  • B 10%
  • C 20%
  • D 30%

Q 2: The simple interest on Rs. 4444 at 10% per annum for 6 months is ________.

  • A Rs. 222.20
  • B Rs. 206.32
  • C Rs. 220.10
  • D Rs. 122.20

Q 3: Find the simple interest on Rs. 6840 at 5% per annum for the period from Oct 2, 2003 to 14 Dec 2003.

  • A Rs. 68.40
  • B Rs. 67.50
  • C Rs. 62.40
  • D Rs. 96.35

Q 4: Ramu borrowed certain amount from a money-lender at 13 1 4 % per annum under simple interest which amounts to Rs. 5500 after 5 years. The money borrowed by Ramu is _____________ (approximately).

  • A Rs. 3008
  • B Rs. 3308
  • C Rs. 3002
  • D Rs. 3600

Q 5: A certain sum of money amounts to Rs. 1200 in 5 years and to Rs. 1500 in 8 years under simple interest. The sum and rate of interest are ________ and _________ respectively.

  • A \begin{equation}\text { Rs. } 700,15 \frac{2}{5} \%\end{equation}
  • B \begin{equation}\text { Rs. } 600,14 \%\end{equation}
  • C \begin{equation}\text { Rs. } 800,13 \%\end{equation}
  • D \begin{equation}\text { Rs. } 700,14 \frac{2}{7} \%\end{equation}

Q 6: A fruit vendor borrowed a total of Rs. 50000 from two money lenders. For one lender, he paid 10% per annum and the other at 12% per annum under simple interest. The total interest paid after one year was Rs. 5800. The amount he borrowed at 12% is __________.

  • A Rs. 32000
  • B Rs. 40000
  • C Rs. 10000
  • D Rs. 44000

Q 7: The simple interest on a particular quantity of money in four years equals 9/25 of the principal. The yearly interest rate is

  • A 10%
  • B 9%
  • C 8%
  • D 10.5%

Q 8: John borrows money from a friend at a simple interest rate of 6% per year. He returned Rs. 15600 to his friend. How long did John take to return the money if he borrowed Rs. 12000?

  • A 4 years
  • B 5 years
  • C 7 years
  • D 5.5 years

Q 9: Amir paid Rs. 960 in interest on a loan he took out 1 years ago at a basic interest rate of 6%. What was the amount he borrowed?

  • A 15000
  • B 16000
  • C 20000
  • D 10000

Q 10: Sanjay put some money in a bank at a 8% annual interest rate. He received Rs. 9000 after 10 years of simple interest. How much did he invested?

  • A 10000
  • B 5000
  • C 2000
  • D 1000