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Simple Interest Questions and Answers

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121.

The difference between the simple interest received from two different sources on Rs. 1500 for 3 years is Rs. 13.50. The difference between their rates of interest is?

Answer: C

\[ \text{SI} = \frac{P \times R \times T}{100} \]

The sum and the period are common, so only the gap in rates produces the difference.

\[ \frac{1500 \times \Delta R \times 3}{100} = 13.50 \]

\[ 45\,\Delta R = 13.50 \quad\Longrightarrow\quad \Delta R = 0.3\% \]

Neither rate needs to be known individually - only their difference enters the calculation.

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122.

In how much time would the simple interest on a certain sum be 0.125 times the principal at 10% per annum?

Answer: A

\[ \text{SI} = \frac{P \times R \times T}{100} \]

\[ 0.125P = \frac{P \times 10 \times T}{100} = 0.1PT \]

\[ T = \frac{0.125}{0.1} = 1.25 = 1\tfrac{1}{4} \text{ years} \]

At 10% a year, interest of 12.5% of the sum takes a year and a quarter.

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