Simple Interest Test Questions With Answers
How quickly you can solve simple interest practice problems? Take these simple interest test questions with answers and check your problem-solving skills. This test involves using the simple interest formula, i.e., SI = P × R × T, to find principal P, amount A, Rate R, Time in years, and Simple Interest SI. Let's begin the quiz and learn about the same topic. The quiz will not be hard for you if your basic concept is good regarding simple interests.
- 1.
Mr. Smith deposited $40, 000 in a bank and earned simple interest at 7 % per annum for two years. Calculate the interest earned at the end of the period.
- A.
$ 4000
- B.
$2800
- C.
$5600
- D.
$3400
- E.
$200
Correct Answer
C. $5600Explanation
Interest is PRT/100, 40000 X 7 X 2 /100 = 5600Rate this question:
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- 2.
Principal + Interest = ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Correct Answer
Amount, amountExplanation
P + I = A ( amount) accruingRate this question:
- 3.
How much simple interest is due on a loan of US$120 for two years if the annual rate of interest is 5 ½ %.
- A.
$12
- B.
$13.20
- C.
$26.40
- D.
$26
- E.
$33
Correct Answer
B. $13.20Explanation
I = PRT/100 P= 120, R= 5.5%, Time = 2 years, Warning if time in months always express it iterms of years, by put the month value over 12Rate this question:
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- 4.
A man wishes to invest $1500. He can invest in uLintplus Investment club, which pays simple interest of 8%for 3 years. What is the amount in his account after 3 years?
- A.
$18321
- B.
$1860
- C.
$1830
- D.
$1524
- E.
$5024
Correct Answer
B. $1860Explanation
I = 1500 X 8 X 3/100 I = $360 Amount = Principal + Interest A = 1500 + 360 1860Rate this question:
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- 5.
Calculate the time T for $1000 to become$1300 at a rate of 5 %
- A.
3 years
- B.
6 years
- C.
9 years
- D.
6. 5 months
- E.
10 years
Correct Answer
B. 6 yearsExplanation
Time T = SI X 100/P X R
Amount = P + I
1300 = 1000 + I
I =300
Substitute in formula
T = 300 X 100 / 1000 X 5
= 6 yearsRate this question:
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- 6.
Find the sum that amounts to $2040 in 6 months at 4 %
- A.
$ 200
- B.
$2000
- C.
$1300
- D.
$2400
- E.
$1020
Correct Answer
B. $2000Explanation
P = I X 100/R X T
A (amount) =$2040
p = A- I
I = 2040 - P
I = PRT/100
2040- P = PX4X6/100X12
2040 - p =P/50
2040 = P + p /50
2040 = 51P/50
P= $2000Rate this question:
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- 7.
When you borrow money from the bank you pay
Correct Answer
interest
Simple InterestExplanation
When you borrow money from the bank, you are required to pay interest. Interest is the additional amount of money that the bank charges for lending you the money. It is a percentage of the borrowed amount and is added to the total repayment amount. Simple interest is a straightforward method of calculating interest, where the interest is calculated only on the initial borrowed amount and does not take into account any additional factors such as compounding.Rate this question:
- 8.
The amount of money borrowed or invested is called
Correct Answer
Principal, principalExplanation
The amount of money borrowed or invested is referred to as the principal. This is the initial sum of money that is either borrowed from a lender or invested by an individual. The principal amount is the basis on which interest or returns are calculated. It is an essential concept in finance and plays a significant role in various financial transactions such as loans, mortgages, and investments.Rate this question:
- 9.
.............................the percent charged or earned
Correct Answer
Rate of interest
RateExplanation
The term "rate of interest" refers to the percentage charged or earned in relation to a loan or investment. It is commonly used to calculate the amount of interest that will be accrued over a specific period of time. The word "rate" in this context is synonymous with "percentage" and is used to indicate the proportion or fraction of the principal amount. Therefore, the correct answer is "Rate of interest" as it accurately describes the concept of the percent charged or earned.Rate this question:
- 10.
A sum of money at SI amounts to Rs. 815 in 3 year and Rs. 854 in 4 years. What is the sum?
- A.
Rs. 690
- B.
Rs. 698
- C.
Rs. 700
- D.
Rs. 750
- E.
Rs. 780
Correct Answer
B. Rs. 698Explanation
S.I. for 1 year will be Rs. (854 - 815) = Rs. 39
S.I. for 3 years will be Rs.(39 x 3) = Rs. 117
Hence, Principal = Rs. (815 - 117) = Rs. 698Rate this question:
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Current Version
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Aug 21, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 07, 2009Quiz Created by
Rugeokin
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