This quiz works best with JavaScript enabled. Home > Unit V Mathematical Reasoning And Aptitude > Simple Interest – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Simple Interest Quiz 1 (10 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A couple took out a $ 5,000 loan from the bank. The loan had a simple interest rate of 7.5% per year. By the end of the loan, the couple had paid $ 2,250 in interest. What was the length of the couple's loan? A) 4 years. B) 5 years. C) 6 years. D) 7 years. Show Answer Correct Answer: C) 6 years. 2. If the simple interest on a certain sum of money for 6 years is three-fifth of the sum, find the rate of interest per annum. A) 10%. B) 12%. C) 5%. D) 20%. Show Answer Correct Answer: A) 10%. 3. Beyonce went to the mall and saw a massage chair that she would have to take a loan out for $ 6500 to purchase. The bank said that she could get a simple interest rate of 8% for 5 years. What is the total amount that Beyonce will pay for the chair? A) $ 2600. B) $ 910. C) $ 9100. D) $ 260. Show Answer Correct Answer: C) $ 9100. 4. Rita deposited Rs.1200 in a savings bank. The bank offered 12% simple interest per annum. How much interest does she earn in 5 years? A) Rs 960. B) Rs 1920. C) Rs 720. D) Rs 480. Show Answer Correct Answer: C) Rs 720. 5. Mali deposited $ 5, 000 in a bank account that will pay him 4% simple interest annually. If Mali deposits no more than the initial $ 5, 000, how much money will be in the account at the end of five years? (The formula for simple interest is I=prt or interest = principal x rate x time. Use a decimal to express the interest when using that formula.) A) $ 200. B) $ 1, 000. C) $ 5, 000. D) $ 6, 000. Show Answer Correct Answer: D) $ 6, 000. 6. True of False: Before you can calculate INTEREST your time must be in MONTHS! A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 7. How much interest do you earn on a 4 year investment that earns 3.2% interest if you invest $ 23,000? A) $ 29.40. B) $ 294.00. C) $ 294,400.00. D) $ 2,944.00. Show Answer Correct Answer: D) $ 2,944.00. 8. The "principal" can be described as ..... A) The interest of the money collected. B) The starting amount of money. C) The time it took the money to grow. D) The bank where money is invested. Show Answer Correct Answer: B) The starting amount of money. 9. The simple interest formula is i = P r tWhat does the t represent? A) Principle. B) Interest Rate. C) Number of times interest is compounded. D) Number of years. Show Answer Correct Answer: D) Number of years. 10. Travisinvests $ 25,000 in a savings account that pays 2.75% simple interest. How much interest does he earn each year? A) $ 787.50. B) $ 625. C) $ 657.50. D) $ 687.50. Show Answer Correct Answer: D) $ 687.50. Next →Related QuizzesSimple Interest Quiz 2Simple Interest Quiz 3Simple Interest Quiz 4Simple Interest Quiz 5Simple Interest Quiz 6Simple Interest Quiz 7Simple Interest Quiz 8Simple Interest Quiz 9Simple Interest Quiz 10Simple Interest Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books