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SIMPLE INTEREST
BY:
KOMAL KOTAK
MBA 3RD sem.
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Principal:
The money borrowed orlent out foracertainperiod
Interest:
Extra money paid forusing others money.
Simple interest:
Ifthe interest ona sum borrowed money foracertainperiod is reckoned uniformly , then
itis called simple interest.
S.I = P*R * T/100
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1]Find the simple interest on Rs 68000 at 16 2/3 % perannum for 9 months
Soln:- p=68000
R=50/3 % p.aT=9 months
S.I = p R T 100
= 6800050/39/12 100
=8500
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2] A sum of Rs 800 amounts to Rs 920 in 3
years at S.I. If the interest is increased by 3% ,
it would amount to how much????
Soln:-S.I= Rs( 920-800)= 120
P=800T=3 yrs
R = (100 120 8003)%
= 5%New rate = (5+3)%=8%
New S.I=800 8 3 100
=192 Rs.
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3]Ali borrowed some money at rate of 6% p.a
for the first 2 yrs ,at the rate of 9% for the next 3
yrs,at the rate of 14 % p.a for beyond 5 yrs. If
he pays a total interest of Rs 11400 at the end of
9 yrs. How much money did he borrow?????
Soln:- let the sum borrowed be x Then,
( x*6*2/100)+ (x*9*3/100) + (x*14*4/100)
=11400
= 95x /100 = 11400
= 12000 Rs.
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4]Prabhat took a certain amount as a loan from bank
at the rate of 8 % p.a S.I and gave the same amount to
ashish as a loan at the rate of 12% p.a If at the end of
12 yrs , he made a profit of Rs 320 in the deal , what
was the original amount????
Soln:- let the original amount be x.
T = 12
R1 = 8 %
R2 = 12 %
Profit =320
p=x
(P*T*R2)/100 - (P*T*R1)/100=320
X=2000/3
=666.67
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5]A sum of Rs 1550 was lent partly at 5% & partly
at 8% p.a .S.I . The total interest received after 3yrs was rs 300. the ratio of the money llent at 5 %
to that lent at 8% is??????
Soln:- let the sum be at 5% be xAt 8% be Rs (1550-x)
(x*5*3)/100 +((1500-x )*8*3 )/100=300
15x +1500*24 -24X +30000
X=800Money at 5% =800
Money at 8% =800/(1550-800)
800/750 = 16/15
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Practice problemAn automobile financer claims to be lending money at S.I ,buthe includes interest every 6 mnths for calculating the
principal.if he is charging an interest of 10% , the effective rate
of interest becomes.
a) 10%
b) 10.25%
c) 10.5%
d) NOT
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Practice problemX person borrows some money at the ratte of 6% p.a for the first
3 yrs , 9% for the next 5 yrs & 13% p.a for the period beyond 8
yrs. If the total interest paid by him at the end of the 11 yrs is8160 ,how much money did he borrow ?????
a) 8000
b) 10000
c) 12000d) 1500
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Practice problemIf 64 amounts to 83.20 in 2 years , what will be rs.
86 amount to in 4 yrs at the same rate of interest per
annum.
a) 114.80
b)124.70
c) 137.60
d)NOT
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