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SIMPLE INTEREST

* Money is not free and it costs to borrow the money. Normally, the borrower has to pay an extra amount in addition to the amount he had borrowed. i.e, To repay the loan, the borrower has to pay the sum borrowed and the interest.
 Lender and Borrower
* The person giving the money is called the lender and the person taking the money is the borrower.
 Principal (sum)
* Principal (or the sum) is the money borrowed or lent out for a certain period. It is denoted by P.
 Interest
* Interest is the extra money paid by the borrower to the owner (lender) as a form of compensation for the use of the money borrowed.
Simple Interest (SI)
* If the interest on a sum borrowed for certain period is calculated uniformly, it is called simple interest(SI).
 Amount (A)
The total of the sum borrowed and the interest is called the amount and is denoted by A
The statement "rate of interest 10% per annum" means that the interest for one year on a sum of Rs.100 is Rs.10. If not stated explicitly, rate of interest is assumed to be for one year.
Let Principal = P, Rate = R% per annum and Time = T years. Then
                            
From the above formula , we can derive the followings

Some more...

1. Simple interest accrued on an amount in eight years @ 11 p.c.p.a. is Rs.57,200. What was the principal amount?
A) Rs.72,000      B) Rs.82,000
C) Rs.75,000      D) Rs.65,000

Ans: D


2. A principal at simple interest of 12% per annum amounts to Rs.23,392 after 3 years. What was the original principal?
A) Rs.17,200        B) Rs.17,600
C) Rs.18,400        D) Rs.16,600

Ans: A


3. In what time would Rs.4,500 @ 4 p.c.p.ayield the same simple interest as Rs.3,600 @ 8 p.c.p.a. in 6 years?

Ans: B

4. Rs.12000 was lent partly @ 10% and partly @ 14% simple interest. The total interest received after 4 years is Rs.5400. What is the amount lent @ 10% SI? (In Rs.)
A) 8200     B) 8000        C) 9000       D) 8250

Ans: D


5. A sum of Rs.10,000 is lent partly at 8% and remaining at 10% per annum. If the yearly interest on the average is 9.2%, the two parts are....
A) Rs.4,000 & Rs.6000
B) Rs.4,500 & Rs.5500
C) Rs.5000 & Rs.5000
D) Rs.5500 & Rs.4500

Ans: A

6. Two equal sums of money were lent at simple interest at 11% p.a for 3 years and 4 years respectively. If the difference in interest for two periods was Rs.242, then each sum is...
A) Rs.1100   B) Rs.2200
C) Rs.3300    D) Rs.4400

Ans: B


7. A sum of money invested at simple interest rate, becomes thrice its original value in 8 years, then in how many years will it become seven times of its original value at the same rate of interest?
A) 24 B) 16 C) 18 D) 28

Ans: A


8. Sujata lent a certain amount of money at 12% simple interest and after 8 years she received an interest amount of, Rs.640 less than the amount she had lent. How much money did she lend? (In Rs.)
A) 16,000 B) 32,000 C) 24,000 D) 18,000

Ans: A

years at a certain rate of interest on simple interest. How much will Rs.4000 amount to at the same rate of interest in 2 years on SI?

A) Rs.5000        B) Rs.4800         C) Rs.4600        D) Rs.5600

Ans: D
 

10. Akira invested certain amounts in three schemes A, B and C in the ratio of 2 : 3 : 4 respectively. If the schemes offered interest @ 20 p.c.p.a. 16 p.c.p.a. and 15 p.c.p.a. respectively, what will be the respective ratio of the amounts after one year?
A) 10 : 8 : 5                        B) 12 : 14 : 15
C) Cannot be determined    D) 60 : 87 : 115

Ans: D


11. Mr. Nair’s monthly salary is Rs.22,500. He took a loan of Rs.30,000 on simple interest for 3 years at the rate of 5 p.c.p.a. The amount that he will be paying as simple interest in 3 years is what percent of his monthly salary?
A) 10       B) 18        C) 20         D) 25

Ans: C


12. Kishore invested Rs.2,800 in a scheme which offers simple interest at 15% p.a for two years. He invested the amount that he received after 2 years in another scheme that offers simple interest at a rate of 20% p.a. for two years. What is the simple interest that he got from the second scheme?
A) Rs.1,485           B) Rs.1,538
C) Rs.1,374           D) Rs.1,456

Ans: D


13. A man invests half his capital at the rate of 10% per annum, one-third at 9% and the rest at 12% per annum. The average rate of interest per annum, which he gets, is....
A) 9%       B) 10%        C) 10.5%          D) 12%

Ans: B


14. A lends Rs.2500 to B and a certain sum to C at the same time at 7% annual simple interest. If after 4 years, A altogether receives Rs.1120 as interest from B and C, the sum lent to C is....
A) Rs.700         B) Rs.6500
C) Rs.4000       D) Rs.1500

Ans: D


15. A borrowed a certain amount from B at a rate of 7.5% simple interest per annum. A then invested the same amount in a scheme which offered 12% simple intrest per annum. At the end of 2 years A made a profit of Rs.585. How much did A borrow from B?
A) Rs.6,500            B) Rs.8,000
C) Rs.8,500            D) Rs.6,200

Ans: A


16. A certain sum was invested in scheme A for a certain number of years. Scheme A offers simple interest at a certain rate of interest (p.c.p.a.). If the numerical values of the rate of interest and the number of years for
which the sum is invested are equal and the interest earned is  of the principal, what is the rate of interest (p.c.p.a) offered by scheme A?

Ans: C

Explanations

Posted Date : 16-04-2022

గమనిక : ప్రతిభ.ఈనాడు.నెట్‌లో కనిపించే వ్యాపార ప్రకటనలు వివిధ దేశాల్లోని వ్యాపారులు, సంస్థల నుంచి వస్తాయి. మరి కొన్ని ప్రకటనలు పాఠకుల అభిరుచి మేరకు కృత్రిమ మేధస్సు సాంకేతికత సాయంతో ప్రదర్శితమవుతుంటాయి. ఆ ప్రకటనల్లోని ఉత్పత్తులను లేదా సేవలను పాఠకులు స్వయంగా విచారించుకొని, జాగ్రత్తగా పరిశీలించి కొనుక్కోవాలి లేదా వినియోగించుకోవాలి. వాటి నాణ్యత లేదా లోపాలతో ఈనాడు యాజమాన్యానికి ఎలాంటి సంబంధం లేదు. ఈ విషయంలో ఉత్తర ప్రత్యుత్తరాలకు, ఈ-మెయిల్స్ కి, ఇంకా ఇతర రూపాల్లో సమాచార మార్పిడికి తావు లేదు. ఫిర్యాదులు స్వీకరించడం కుదరదు. పాఠకులు గమనించి, సహకరించాలని మనవి.

 

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