2. Find the simple interest on the Rs at 25/4% per annum for the period from 4th Feb 2005 to 18th April 2005

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Eric Lucas
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1 Simple Interest Ques ons Answers 1. Find the simple interest on Rs 7000 at 50/3 % for 9 months Rs Rs. 975 Rs. 875 Rs. 775 Answer: Op on C S.I. = P R T100 So, by pu ng the values in the above formula, our result will be. Required result = =875 [Please note that we have divided by 12 as we converted 9 months in a year format] 2. Find the simple interest on the Rs at 25/4% per annum for the period from 4th Feb 2005 to 18th April 2005 Rs 25 Rs 30 Rs 35

2 Rs 40 Answer: Op on A One thing which is tricky in this ques on is to calculate the number of days. Always remember that the day on which money is deposited is not counted while the day on which money is withdrawn is counted. So lets calculate the number of days now, Time = ( ) days = 73/365 years = 1/5 years P = 2000 R = 25/4% S.I. = = =25 3. Sachin borrows Rs for 2 years at 4% p.a. simple interest. He immediately lends money to Rahul at 25/4% p.a. for 2 years. Find the gain of one year by Sachin Answer: Op on C

3 Two things need to give a en on in this ques on, First we need to calculate gain for 1 year only. Second, where we take money at some interest and lends at other, then we use to subtract each other to get result in this type of ques on. Lets solve this Simple Interest ques on now. Gain in 2 year = [( ) ( )]=( )=225 So gain for 1 year = 2252= If A lends Rs to B at 10% p.a. and B lends the same sum to C at 11.5% p.a., then the gain of B (in Rs.) in a period of 3 years is Rs Rs Rs Rs Answer: Op on D We need to calculate the profit of B. It will be, SI on the rate B lends - SI on the rate B gets Gain of B=157.50=

4 5. Sahil took a loan for 6 years at the rate of 5% per annum on Simple Interest, If the total interest paid was Rs. 1230, the principal was Answer: Op on A S.I.=P R T100=>P=S.I. 100R T By applying above formula we can easily solve this ques on, as we are already having the simple interest. =>P= =>P=4100

5 6. There was simple interest of Rs on a principal amount at the rate of 9%p.a. in 5 years. Find the principal amount Rs 7925 Rs 8925 Rs 7926 Rs 7925 Answer: Op on B P=S.I. 100R T So by pu ng values from our ques on we can get the answer P= = Find the rate at Simple interest, at which a sum becomes four mes of itself in 15 years. 10% 20%

6 30% 40% Answer: Op on B Let sum be x and rate be r% then, (x*r*15)/100 = 3x [important to note here is that simple interest will be 3x not 4x, beause 3x+x = 4x] => r = 20% 8. At 5% per annum simple interest, Rahul borrowed Rs What amount will he pay to clear the debt a er 4 years Answer: Op on D We need to calculate the total amount to be paid by him a er 4 years, So it will be Principal + simple interest. So,

7 => =>Rs If a sum of money doubles itself in 8 years at simple interest, the ratepercent per annum is Answer: Op on B Let sum = x then Simple Interest = x Rate = (100 * x) / (x * 8) = A sum of Rs 12,500 amounts to Rs. 15,500 in the 4 years at the rate of simple interest. Find the rate percent 6 % 7 % 8 %

8 9 % Answer: Op on A S.I.=P R T100=>R=S.I. 100P T So, S.I = = =>R= =6% 11. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum

9 Answer: Op on B Let the present worth be Rs.x Then,S.I.= Rs.(132 - x) = (x*5*2/100) = x = 10x = x = 110x = x= Reema took a loan of Rs 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest. 5% 6% 7% 8% Answer: Op on B Let rate = R% then Time = R years.

10 =>1200 R R100=432=>R2=36=>R=6% 13. The simple interest on a certain sum of money at the rate of 5% p.a. for 8 years is Rs At what rate of intrest the same amount of interest can be received on the same sum a er 5 years. 5% 6% 7% 8% Answer: Op on D Here firstly we need to calculate the principal amount, then we can calculate the new rate. P=S.I. 100R TP= P=2100Required Rate = R=8%

11 14. A man took a loan at rate of 12% per annum simple interest. A er 3 years he had to pay 5400 interest. The principal amount borrowed by him was. Rs Rs Rs Rs Answer: Op on B S.I.=P R T100=>P=S.I. 100R T=>P= =Rs A sum of money at simple interest amounts to Rs in 2 years and to Rs in 5 years. What is the principal amount Answer: Op on C SI for 3 year = = 360

12 SI for 2 year 360/3 * 2 = 240 principal = = At what rate percent per annum will the simple interest on a sum of money be 2/5 of the amount in 10 years 1% 2% 3% 4% Answer: Op on D Let sum = x Time = 10 years. S.I Rate = 2x /5, [as per ques on] =( (100 * 2x) / (x*5*10))% => Rate = 4% 17. Rs. 800 becomes Rs. 956 in 3 years at a certain rate of simple interest. If the rate of interest is increased by 4%, what amount will Rs. 800 become in 3 years. Rs 1052

13 Rs 1152 Rs 1252 Rs 1352 Answer: Op on A S.I. = = Rs 156 R= R=612% New Rate = 612+4=212% New S.I. = =252 Now amount will be = In how many years Rs 150 will produce the same interest at 8% as Rs. 800 produce in 3 years at 9/2%

14 Answer: Op on B Clue: Firstly we need to calculate the SI with prinical 800,Time 3 years and Rate 9/2%, it will be Rs. 108 Then we can get the Time as Time = (100*108)/(150*8) = What will the ra o of simple interest earned by certain amount at the same rate of interest for 6 years and that for 9 years. 1:2 2:1 2:2 2:3 Answer: Op on D Let the principal be P and rate be R then

15 ra o = [(P R 6100)(P R 9100)]=6PR9PR=2:3 20. A financier claims to be lending money at simple interest, But he includes the interest every six months for calcula ng the principal. If he is charging an interest of 10%, the effec ve rate of interest becomes % 10% 9.25% 9% Answer: Op on A Let the sum is 100. As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below: SI for first Six Months = (100*10*1)/(100*2) = Rs. 5 Important: now sum will become = 105 SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25

16 So amount at the end of year will be ( ) = Effec ve rate = = 10.25

SIMPLE & COMPOUND INTEREST

SIMPLE & COMPOUND INTEREST INTEREST It is money paid by borrower for using the lender's money for a specified period of time. Denoted by I. PRINCIPAL The original sum borrowed. Denoted by P. TIME Time