Introduction to Simple Interest

Q. In what time will $\$2500$ lent at 2% per annum on simple interest earn as much interest as $\$3000$ will earn in 5 years at 5% per annum on simple interest?

1. $25$ years
2. $5$ years
3. $10$ years
4. $15$ years

Q. How many years does it take to double the sum of money at a simple interest rate of 5 percent per annum?
years

Q. The percentage of the principal charged by the lender is called as the rate of the interest.

1. True
2. False

Q. The mathematical formula for calculating simple interest is
$SI=P\times R\times T$
where as. $R$ = Percentage Rate of interest.

1. True
2. False

Q. If a principal amount of $\$350$ is lent for a time of $2.5$ years earns an interest of $\$140$, then the percentage rate of interest is $\%$.

Q. The time in which the principal amount of $\$500$ dollars lent at a rate of $7.5$ per annum earns an interest of $\$150$ dollars is years.

Q. Sam has to invest some money in a bank offering Simple Interest at $10\text{\%}$ rate of interest, how much principal amount should Sam invest for two years to get $\$250$ as interest?

1. 250

Q. Which of the following is the correct formula to calculate the total amount in simple interest?

1. Principal amount $-$ Simple interest
2. Principal amount $\times$ Simple interest
3. Principal amount $+$ Simple interest
4. Principal amount $÷$ Simple interest

Q. The time in which the principal amount of $\$500$ dollars lent at a rate of $7.5$ per annum earns an interest of $\$150$ dollars is years.

Q. The interest earned on investing $\$1000$ for a period of $2$ years at a simple rate of interest of $10\text{\%}$ is

1. $\$200$
2. $\$400$
3. $\$100$