SIMPLE INTEREST

Q/QA - SMP_INT
Important Points/Facts n ( n  1)
1. If any person borrowed some money from the other for a Time = months
2
fixed period, then he has to pay some extra money to him
for the use of money lent. This extra money paid for using n ( n  1)
= year
other’s money is called interest. 2  12
Interest is the money paid by the borrower to the lender for EXERCISE - I
the use of money lent. The money borrowed is called 1. The simple, interest on a certain sum for 3 years at 14%
Principal of Sum. per annum is Rs. 235.20. The sum is –
2. The sum of the principal and interest is called the amount. (A) Rs. 480 (B) Rs. 560 (C) Rs. 650 (D) Rs. 720
2. A sum of money amounts to Rs. 702 in 2 years and Rs.
Amount = Principal + Interest
783 in 3 years. The rate per cent is
Or Interest = Amount – Principal (A) 12% per annum (B) 13% per annum
3. Interest is usually calculated at the rate of so many rupees (C) 14% per annum (D) 15% per annum
for every Rs. 100 of the money lent for a year. This is called 3. A money lender finds that due to a fall in the rate of interest
the rate per cent per annum. 1
“Per annum” means for a year. The work per annum are from 13% to 12 2 % his yearly income diminishes by Rs.
sometimes omitted. Thus 6 P.C. means Rs. 6 is interest on 104. His capital is –
Rs. 100 in one year. (A) Rs. 21400 (B) Rs. 20800 (C) Rs. 22300 (D) Rs. 24000
4. The interest is usually paid yearly, half yearly or quarterly 4. A sum of Rs. 2600 is lent out in two part in such a way that
as agreed upon between money lender and the borrower. the interest on one part at 10% for 5 years is equal to that
5. If the interest on a certain sum for a certain period is on another part at 9% for 6 years. The sum lent out at 10%
reckoned uniformly. It is called simple, interest, abbreviated is –
as S.I. when interest is calculated on the original principal (A) Rs. 1150 (B) Rs. 1250 (C) Rs. 1350 (D) Rs. 1450
for any length of time. It is called Simple interest.
9
This may be remembered in the symbolic form – 5. Simple interest on a certain sum at a certain rate is of
16
PTR the sum. If the number representing rate per cent and time
S.I. = in years be equal, then the time is –
100 1
1 1 1
Where, P = Principal, (A) 5 2 years (B) 6 2 years (C) 6 4 years (D) 7 2 years
T = Number of years 1 1
R = Rate% per annum. 6. A man invested 3 of his capital at 7%, at 8% and
4
6. When simple, interest is to be calculated between the two remainder at 10%. If his annual income is Rs. 561, the
dates, the day/date on which the money is paid back should capital is –
be included but not the day on which it is borrowed, i.e., in (A) Rs. 5400 (B) Rs. 6000 (C) Rs. 6600 (D) Rs. 7200
counting, the first day is omitted. 7. The simple interest on a sum of money at 8% per annum
Example : To reckon the period between 20th April to 20th for 6 years is half the sum. The sum is –
September, the 20th April shall be omitted and the required (A) Rs. 4800 (B) Rs. 6000
timewill be counted from 21st April to 20th September. (C) Rs. 8000 (D) Data inadequate
7. When the time is given in months and days, 12 months are 8. If the interest on Rs. 1200 be more than the interest on Rs.
reckoned to a year and 30 days to the month. But when the 1000 by Rs. 50 in 3 years the rate per cent is –
time is giving in days or in years and days, 365 days are
1 2 1 2
reckoned to a year. (A) 10 % (B) 6 % (C) 8 % (D) 9 %
8. If a sum of money is deposited for n months in a recurring 3 3 3 3

deposit, then

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1
 SIMPLE INTEREST
Q/QA - SMP_INT

9. The simple interest on a sum of money will be Rs. 600 after 8. A lent Rs. 600 to B for 2 years and Rs. 150 to C for 4
10 years. If the principal is trebled after 5 years, what will years and received altogether from both Rs.90 as simple
be the total interest at the end of the tenth year? interest. The rate of interest is –
(A) Rs. 600 (B) Rs. 900 (A) 4% (B) 5% (C) 10% (D) 12%
(C) Rs. 1200 (D) Data inadequate 9. Rs. 800 amounts to Rs. 920 in 3 years at simple, interest.
10. A man derives his income from the investment of Rs. 4150 If the interest rate is increased by 3%. It would amount to
at a certain rate of interest and Rs.3500 at 1 percent higher how much?
This whole income for 4 years is Rs. 1211. Finds the rates (A) Rs. 1056 (B) Rs. 1112 (C) Rs. 1182 (D) Rs. 992
of interest 10. A man lends Rs. 10000 in four parts. If he gets 8% on Rs.
1 1 1 1 1 1
(A) 3 %, 4 % (B) 2 %, 3 % 2000. 7 2 % on Rs. 4000 and 8 2 % on Rs. 1400. What
2 2 2 2
1 1
per cent must he get for the remainder. If the average
(C) 4 %, 5 % (D) None of these interest is 8.13%?
2 2
1 1
EXERCISE - II (A) 7% (B) 9% (C) 94 % (D) 10 2 %
1. If Rs. 64 amount to Rs. 83.20 in 2 years. What will Rs. 86
11. In how many years will a sum of money double itself at
amount to in 4 years at the same rate per cent per annum?
12% per annum?
(A) Rs. 137.60 (B) Rs. 124.70 (C) Rs.114.80 (D) Rs. 127.40
(A) 6 years 9 months (B) 8 years 4 months
2. A sum of money amounts to Rs. 850 in 3 years and Rs. 925
(C) 7 years 6 months (D) 8 years 6 months
in 4 years. The sum is –
12. A sum was put at simple interest at a certain rate for 2
(A) Rs. 600 (B) Rs. 575
years. Had it been put at 1 % higher rate, it would have
(C) Rs.625 (D) Data inadequate
fetched Rs. 24 more. The sum is –
1 (A) Rs. 600 (B) Rs. 800 (C) Rs.1200 (D) Rs. 480
3. The simple interest on a sum of money is 9 of the principal
13. The simple interest at x% for x years will be Rs. x on a
and the number of years is equal to the rate percent per sum of –
annum is –
 100   100 
1 1 3 (A) Rs. x (B) Rs. 100x (C) Rs.  (D) Rs.  x 2 

(A) 3 (B) (C) 3 3 (D) x   
3 10
4. A sum of money will double itself in 16 years at simple 14. A sum of money become (8/5) of itself in 5 years at a
interest with yearly rate of – certain rate of interest. The rate percent per annum is –
(A) 5% (B) 8% (C) 10% (D) 12%
1
(A) 10% (B) 6 4 % (C) 8% (D) 16% 15. The rate of interest on a sum of money is 4% per annum
5. If the amount of Rs. 360 in 3 years is Rs. 511.20. What will for the first 2 years, 6% per annum for the next 4 years
be the amount of Rs. 700 in 5 years? and 8% per annum for the period beyond 6 years. If the
(A) Rs. 1190 (B) Rs. 1230 (C) Rs. 1060 (D) Rs. 1225 simple interest accrued by the sum for a total period of 9
6. A sum of Rs. 2540 is lent out into two parts. One at 12% years is Rs. 1120. What is the sum?
1
(A) Rs. 1500 (B) Rs. 2000 (C) Rs. 2500 (D) Rs. 4000
and another one at 12 2 %. If the total annual income is Rs. 16. The difference between the interests received from two
311.60, the money lent at 12% is – different banks on Rs. 500 for 2 years is Rs. 2.50 The
(A) Rs. 1180 (B) Rs. 1360 (C) Rs. 1240 (D) Rs.1340 difference between their rates is –
7. A sum of money put at simple interest trebles itself in 15 (A) 1% (B) 0.5% (C) 2.5% (D) 0.25%
years The rate per cent per annum is – 17. What annual payment will discharge a debt of Rs. 580
1 2 2 due in 5 years, the rate being 8% per annum?
(A) 13 3 % (B) 16 3 % (C) 12 3 % (D) 20% (A) Rs. 166.40 (B) Rs.65.60 (C) Rs.100 (D) Rs.120

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2
 SIMPLE INTEREST
Q/QA - SMP_INT
18. Two equal amounts of money are deposited in two banks, = Rs. 151.20
1
each at 15% per annum for 32 years and 5years. If the 100  151 .20
 Rate = = 14%
difference between their interest is Rs.144, each sum is– 360  3
19. If x is the simple interest on y and y is the simple interest  S.I. on Rs. 700 for 5 years
on z, the rate % and the time being the same in both cases,  700  5  14 
what is the relation between x, y and z ? = Rs.  100

 
(A) x2 = yz (B) y2 = xz (C) z2= xy (D) xyz = 1 = Rs. 490
1  Required amount = Rs. (700+490) = Rs. 1190
20. If the rate of interest rises from 6 to 8% a man’s annual
2 6.(A) Let money lent at 12% = Rs. x
income increase by Rs. 4050. Find the capital. 1
(A) Rs. 270000 (B) Rs. 370000 Then, money lent at 12 2 % = Rs. (2540 - x)
(C) Rs.300000 (D) None of these x  12  1 25 1
EXERCISE - II (ANSWER)   2540  x    = 311.60
100 2 100
1.(A) S.I. on Rs. 64 for 2 years = Rs. 19.20
3 x 2540  x
 100  19 .20    = 311.60
Rate =  25 8
 64  2 
= 15%
 24x + 25(2540 - x) = 200  311 .60
 86  4  15   x = 63500 - 62320
 S.I. on Rs. 86 for 4 years = Rs.  100 
  = 1180
= Rs. 51.60 7.(A) Let principal = P.
 Amount of Rs. 86 = Rs. (86+51.60) Then S.I. = 2P
= 137.60 Also Time = 15 years
2.(C) S.I. for 1 year = Rs. (925-850) = Rs.75
100  2 P 200
S.I. for 3 years = Rs. 75  3  = Rs. 225  Required rate = =
P  15 15
 Sum = Rs. (850 - 225) = Rs. 625 1
3.(C) Let principal = Rs. P = 13 % per annum
3
P 8.(B) Let rate = x% per annum
Then S.I. =
9
600  x  2 150  x  4
Let Rate = R% per annum Then + = 90
and time = R years 100 100

P PRR  18x = 90
Then, = 100  x = 5%
9
100 9.(D) Principal = Rs. 800
R2 = S.I. = Rs. (920-800) = Rs. 120
9
and Time = 3 years
10 1
 R = 3 = 3 3 % per annum Original rate =
100  120
= 5%
 800  3
4.(B) Let principal = Rs. P then S.I = Rs. P
New rate = 8%
100  P 10 0 1
Then, Rate = = =6 %  800  8  3 
P  16 16 4 Now, S.I. = Rs.  100
 = Rs. 192
 
5.(A) S.I. for 3 Years = Rs. (511.20-360) Amount = Rs. (800+192) = Rs. 992

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 SIMPLE INTEREST
Q/QA - SMP_INT

2000  8  1  15 1  16.(D) Let the rates be x% and y%, Then

10.(B)  +  4000  2  100 
100   500  x  2 500  y  2
 = 2.5
100 100
 17 1   2600  x  1 
+  1400  2  100  +    10 (x - y) = 2.5
   100 
 Required difference x - y = 0.25%
 10000  8 .13  1  17.(C) Let the annual installment be Rs. x
= 
 100    x  4  8    x  3  8 
 160 + 300 + 119 + 26x = 813 Then,  x    +  x   
  100    100  
 26x = 234
 x = 9%   x  2  8     x 18 
+ x     + x    +x = 580
11.(B) Let principal = Rs. P Then, S.I. = Rs P, Rate = 12%   100     100 
33 x 31 x 29 x 27 x
 100  P       x = 580
Time =  P  12  years 25 25 25 25
 
 (120 + 25) x = 580  25
25
= years  x = 100
3
18.(C) Let Each sum be Rs. P. Then
= 8 years 4 months
12.(C) Let sum = Rs. x P  15  5 P  15  7
 100

100  2
= 144
and original rate = y% per annum
x  ( y  1)  2 x y2 3 21
Then, - = 24  P P = 144
100 100 4 40
 x = 1200 9P
 100  x   100 
 40
= 144
13.(C) Sum =  x  x  = Rs.  
   x  144  40
14.(D) Let Sum = Rs. x  P= = Rs.640
9
 8x 
Then amount = Rs   yrt
 5  19.(B)  x =
100
 8x   3x 
 S.I. = Rs.   x = Rs.  
 5   5  z  r t
 y =
100
 3x 
 100  
 5  x y
 Required rate = 

x5 

%= 12%  y
=
  z
 y2 = xz
15.(B) Let sum = Rs. x
20.(A) Due to the rise in the rate of interest, annual income
x 4 2 x6 4 x8 3
Then,   = 1120  1 1
100 100 100 increase by Rs.  8  6 2  = Rs. 1 , when the capital
  2
 56x = 112000
is Rs. 100.
112000
 x= = Rs. 2000 100  2  4050
56 Thus, the required capital =
3
= Rs. 270000

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