alleryStart learning →Simple interest is charged on which amount?
AThe previous year's amount
BPrincipal plus past interest
CThe final maturity amount
DOnly the original principal
Answer & Solution
Correct answer: D. Only the original principal
It excludes the effect of compounding, so only the principal earns interest.
Keep practising Simple & Compound Interest
Browse all Simple & Compound Interest questions for SSC CGL, or explore more Quantitative Aptitude topics.
Related questions
What principal grows to Rs 9,261 in 3 years at 5% compounded annually?CI on a sum at 10% for 2 years is Rs 2,310. What is the sum?At simple interest, a sum equals its interest after 5 years. Rate?Simple interest is one quarter of the sum, and the rate equals the years. Rate?A loan is cleared by two equal yearly instalments of Rs 1,210 at 10% CI. Loan amount?At 20% annually on Rs 1,000 for 2 years, how much more is CI than SI?Rs 5,000 earns 10% in year one and 20% in year two as compound interest. Final amount?A rate of 9% per annum means how much interest on each Rs 100 in a year?