Tips and Tricks to solve Simple Interest Problems

  1. Principal:The money borrowed or lent out for a certain period is called the principal or the sum.
  2. Interest:Extra money paid for using other’s money is called interest.
  3. 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

    1. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:
    A. Rs. 650
    B. Rs. 690
    C. Rs. 698
    D. Rs. 700

    Answer: Option C

    Explanation:

    S.I. for 1 year = Rs. (854 – 815) = Rs. 39.

    S.I. for 3 years = Rs.(39 x 3) = Rs. 117.

     Principal = Rs. (815 – 117) = Rs. 698.

    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

     28x – 22x = 350800 – (13900 x 22)

     6x = 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

     28x – 22x = 350800 – (13900 x 22)

     6x = 45000

    x = 7500.

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

A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is the sum?

How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?

Reena 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?

A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes

Don't miss out!
Subscribe To Our Newsletter

Learn new things. Get an article everyday.

Invalid email address
Give it a try. You can unsubscribe at any time.

Leave a Reply

Your email address will not be published. Required fields are marked *