*Principal:*The money borrowed or lent out for a certain period is called the*principal*or the*sum*.*Interest:*Extra money paid for using other’s money is called*interest*.- Simple Interest (S.I.):If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called
*simple interest*.Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then

(i). Simple Intereest = P x R x T 100 (ii). P = 100 x S.I. ; R = 100 x S.I. and T = 100 x S.I. . R x T P x T P x R Simple Interest – General Question

2. Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B? A. Rs. 6400 B. Rs. 6500 C. Rs. 7200 D. Rs. 7500 E. None of these Answer: Option A

Explanation:

Let the sum invested in Scheme A be Rs.

*x*and that in Scheme B be Rs. (13900 –*x*).Then, *x*x 14 x 2+ (13900 – *x*) x 11 x 2= 3508 100 100 28

*x*– 22*x*= 350800 – (13900 x 22)6

*x*= 45000*x*= 7500.So, sum invested in Scheme B = Rs. (13900 – 7500) = Rs. 6400.

2. Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B? A. Rs. 6400 B. Rs. 6500 C. Rs. 7200 D. Rs. 7500 E. None of these Answer: Option A

Explanation:

Let the sum invested in Scheme A be Rs.

*x*and that in Scheme B be Rs. (13900 –*x*).Then, *x*x 14 x 2+ (13900 – *x*) x 11 x 2= 3508 100 100 28

*x*– 22*x*= 350800 – (13900 x 22)6

*x*= 45000*x*= 7500.So, sum invested in Scheme B = Rs. (13900 – 7500) = Rs. 6400.