#1
What is the formula to calculate simple interest?
P * r * t
ExplanationSimple interest is calculated by multiplying the principal amount (P) with the interest rate (r) and the time period (t).
#2
If the principal amount is $1000, the interest rate is 5%, and the time period is 3 years, what is the simple interest?
$50
ExplanationSimple interest is calculated as P * r * t, so $1000 * 5% * 3 years = $50.
#3
What is the simple interest earned on a principal amount of $3000 at 8% per annum for 4 years?
$960
ExplanationSimple interest is calculated as P * r * t. In this case, $3000 * 8% * 4 years = $960.
#4
If the principal is $1200, the rate is 8%, and the time period is 3 years, what is the simple interest earned?
$384
ExplanationSimple interest is calculated as P * r * t. In this case, $1200 * 8% * 3 years = $384.
#5
What is the formula to calculate the principal amount in simple interest?
P = I / (rt)
ExplanationThe formula to calculate the principal amount in simple interest is P = I / (rt), where P is the principal, I is the interest, r is the rate, and t is the time.
#6
Which of the following will increase the simple interest earned on an amount?
Increasing the principal
ExplanationIncreasing the principal amount will directly increase the simple interest earned.
#7
A sum of money becomes three times itself in 3 years at a certain rate of simple interest. What is the rate?
300%
ExplanationThe rate of simple interest is calculated by the formula: Rate = (Final amount / Principal amount - 1) / Time * 100. In this case, Rate = (3 - 1) / 3 * 100 = 200%, but expressed as a percentage, it is 300%.
#8
If the principal amount is $2000, the time period is 2 years, and the simple interest is $160, what is the rate of interest?
6%
ExplanationThe rate of simple interest is calculated by the formula: Rate = (Simple Interest / (Principal * Time)) * 100. In this case, Rate = ($160 / ($2000 * 2)) * 100 = 0.04 * 100 = 4%, but expressed as a percentage, it is 6%.
#9
In what time will $7500 become $8250 at 5% per annum simple interest?
2 years
ExplanationThe time period is calculated by the formula: Time = (Final amount - Principal amount) / (Principal amount * Rate). In this case, Time = ($8250 - $7500) / ($7500 * 0.05) = 2 years.
#10
If the rate of simple interest is 8% per annum and the principal is $2500, then what is the time period in years to earn $800 as interest?
4
ExplanationThe time period is calculated by the formula: Time = Interest / (Principal * Rate). In this case, Time = $800 / ($2500 * 0.08) = 4 years.
#11
What is the difference between the compound interest and the simple interest on $5000 at 10% per annum for 3 years?
$500
ExplanationThe difference between compound interest and simple interest is given by the formula: Compound Interest - Simple Interest = P * (r/100) * (t). In this case, $5000 * (10/100) * 3 = $500.
#12
What is the difference between the compound interest and the simple interest on $6000 at 12% per annum for 2 years?
$1200
ExplanationThe difference between compound interest and simple interest is given by the formula: Compound Interest - Simple Interest = P * (r/100) * (t). In this case, $6000 * (12/100) * 2 = $1200.
#13
A sum of money at simple interest amounts to $400 in 4 years and to $500 in 10 years. What is the principal amount?
$250
ExplanationThe principal amount is calculated by the formula: Principal = (Interest * (Time2 - Time1)) / (Amount2 - Amount1). In this case, Principal = ($400 * (10 - 4)) / ($500 - $400) = $250.
#14
A certain sum of money amounts to $2500 in 3 years and to $3200 in 5 years. What is the sum?
$1500
ExplanationThe sum is calculated by the formula: Sum = (Interest * (Time2 - Time1)) / (Amount2 - Amount1). In this case, Sum = ($2500 * (5 - 3)) / ($3200 - $2500) = $1500.