Thursday 3 January 2013






SIMPLE INTEREST


http://guidance2bankexams.blogspot.in/

  • Interest is the money paid by the borrower to the lender for the use of money lent.



simple interest (SI) = (P*T*R) / 100

Here,
                  P = Principle
                  T = Time 
                  R = Rate of Interest


similarly,

               Principle (P) = (100*SI) / TR
          Time (T)          = (100*SI) / PR
          Rate(R)           = (100*SI) / PT



When

                Principle = 100,
            time        = T
            rate         = R % per annum          then,

SI = RT


                     
         Amount (A) = principal(P)+Simple Interest(SI)


                                                             A = P +SI




Problems :

1)    Find the simple interest on Rs. 7,500 in 4 years at 15% per annum ?

solution :          principle(P)               simple interest(SI)
                                  100                                      60
                               7500                                        ? 

Here, say principle(P) = 100

as we have seen above when P = 100 , simple interest(SI) = RT 

in the question SI = 15(Rate)*4(time) = 60

principle (P) = 7500 (given in problem)

simple interest (SI) = ? (this simple interest is for principle 7500)

previously what we got simple interest (60) is for principle (100)

make cancellation only either in horizontal or in vertical directions

we get, 75*60 = 4500 (is the required answer) 




now try to solve these

2)   Find the simple interest on Rs. 8000 in three years and six months at 12% per annum ?

answer : RS. 3360

3)   On what sum of money will be the simple interest be Rs. 2000 in 5 years at 8% per annum ?

answer : Rs. 5000

4)  On what sum of money will the simple interest be Rs. 2400 in two years and six months at 12% per annum?

answer : 8000




Model - 2


5)   In how many years will the sum of money become double at 4% per annum simple interest ?

solution :                                               T = (SI * 100) / (P *R)

                                here say P = 100

                                given,  A = 200

                                SI = A - P 

                                SI = 200 - 100

                                SI = 100

                     now by using formula,      T = (100*100) / (4*100)

                                                               T = 25 years

shortcut : 


                                   T = (100(times - 1)) / R

                                    T = ((100(2 - 1)) / 4

                                    T = 100 / 4

                                    T = 25 years



now try to solve these

6)    In how many years will the sum of money become twice at 10% per annum simple interest ?

answer :    10 years

7)   At what rate % per annum simple interest will a sum of money become 9/5th of itself in 5 years?

answer :    16                                                                        trick :     R = ((100(times - 1)) / T




Model - 3


8)    The difference between the simple interest received from tow different sources on Rs. 1,500 for 3 years is Rs. 1,350. The difference between their rates of interest is ?

solution :    Given,        SI 1 - SI 2 = 13.5

                                      R = (100 * SI) / (P * T) 

                   here,            R = r1 - r2

                                       SI = (SI 1 - SI 2)      difference in SI

                                      r1 - r2 = (13.5 * 100) / (1500 * 3)

                                      r1 - r2 = 13.5 / 45

                                      r1- r2 = 135 / 450

                                      r1 - r2 = 0.3 %



now try to solve these



9)    The difference between the simple interest received from tow different sources on Rs. 500 for 2 years is Rs. 2.50. The difference between their rates of interest is ?

answer :   0.25 %


10)    The simple interest on a certain sum at 5% per annum for 3 years and 4 years differ by Rs. 42. The sum is ?

solution:               
                             5 %       -------------------------  3 years        (SI = RT gives SI = 15)

                   same 5% for   ------------------------- 4 years         (SI = RT gives SI = 20)

                                                                                               ---------------------------------
                                                                                                     difference in SI = 5
                                                                                               --------------------------------


                                              SI                            P
                                              ----                         ----
                    (dif in SI)             5                            100    ( as discussed above)

                       (Given)            42                             ?
                                         
                                    
                                                 answer   :     Rs. 840 



now try to solve these

11)   The difference between the simple interest on a certain sum of money at 6% per annum for        10 years and 5% per annum for 2 years is Rs. 100. Find the sum ?

answer  :   Rs. 200





Model - 4

12)   A sum of money doubles itself in 7 years. In how may years will it become four fold?

solution:                 doubles ----------  7   years

                                thrice   ---------- 14     "

                             four fold ----------  21     "     (required answer) 

                                five     ----------- 28      "

                                 six   ------------- 35      "

shortcut   :            

                                                      7(4 - 1) = 21 years              (trick)

                                              here,         7 years   (given)

                                                             four fold  = ?  (21 years is required answer)


now try to solve these

13)   A sum of money becomes double itself in 5 years and 6 months at simple interest. In how many years will it become five fold ?

answer :           22 years


14)   A sum of money becomes thrice itself in 8 years at simple interest. In how many years will it become six times?

answer  :          20 years






Read COMPOUND INTEREST from here




http://guidance2bankexams.blogspot.com/2013/01/compound-interest-in-case-of-compound.html





Read Other TOPICS from here




http://guidance2bankexams.blogspot.com/2013/01/profit-and-loss-this-chapter-is-largely.html











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