STUDY NOTES FOR SSC AND OTHER EXAMS

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 STUDY NOTES FOR SSC AND OTHER EXAMS
INTRODUCTION
Simple and Compound Interest is an important segment
of Arithmetic section under Quantitative Aptitude.
In this study note, we will discuss the concepts of
Simple Interest and talk about how to solve and
approach the questions based on this topic.
Simple Interest
So students hope you are doing good your studies
In last two study notes we have discussed about
percentage and profit and loss. This week its turn of
simple interest.
What is Simple Interest?
If a person X borrows some money from another person
Y for a certain period, then after that specified period, X
(borrower) has to return the borrowed money with some
additional money. This additional money that X
(borrower) has to pay is called Interest. The actual
borrowed money is called Principal or Sum. The
Principle and interest together is called amount, and the
time for which X the borrower has been used the
borrowed money is called the time. The interest that X
has to pay for every 100 rupees each year is called rate
percent per annum.
If the interest on a sum borrowed for a certain period is
reckoned uniformly, then it is called Simple
Interest and it is denoted by S.I.
Simple interest can be simply defined as the interest that
is paid only on the principal amount. Unlike compound
interest, simple interest does not consider “interest on
interest” concept and the value is obtained by
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multiplying the interest rate by the principal amount and
the number of days that elapse between payments.
So,
=> Simple Interest (S.I.) = (P × I × T) / 100
Where,
P = Principal Amount
I = Interest Rate
T = Time Period
To be able to solve S.I questions easily, one has to get
acquainted with certain terms and definitions. Some of
such important terms are mentioned below.
Note- Generally if C.I. is not mention, then we
assume S.I.
Simple Interest Tooltip1: The Definitions Principal
(P): The original sum of money loaned/deposited. Also
known as capital.
Interest (I): The amount of money that you pay to
borrow
Time (T): The duration for which the money is
borrowed/deposited.
Rate of Interest (R): The percent of interest that you
pay for money borrowed, or earn for money deposited
Simple Interest Tooltip 2: The Formula
Where:
P: Principal (original amount)
R: Rate of Interest (in %)
T: Time period (yearly, half-yearly etc.)
Amount Due at the end of the time period, A = P
(original amount) + SI
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 STUDY NOTES FOR SSC AND OTHER EXAMS
Solution:
In this question, the principal amount is given as Rs.
If you have a close look, Simple Interest is nothing else 5000, the time period is 5 years and the rate of interest is
but an application of the concept of percentages. 10% per annum.
Terms Related to Simple Interest The basic formula for Simple interest is = (P × I × T) /
 Principal Amount: 100.

Principal (sum) can be defined as the cash obtained or => S.I. = (5000 × 10 × 5) / 100

loaned out for a specific period. In other terms, it can be = Rs. 2500.

defined as the face value of a debt security or the Q.2. How much would a person repay after 5 years if he

original investment amount. It is indicated by P. borrowed Rs. 15000 at the rate of 25% per annum?

 Amount: Solution:

An amount (A) is just the sum of the principal amount By repayment, it can be understood that the “amount”

and the interest of a loan. This is the total amount that is has to be calculated. In this problem, following are the

due at the end of a loan period. available data:

Amount = P + S.I. Principal = Rs. 15000

=> A = P + (P × I × T / 100) Interest Rate = 25%

Time and Rate of Interest: Time Period = 5 years

Time period (T) is simply the term for which cash is So, S.I. = (15000 × 25 × 5) /100

deposited or borrowed. This can be either quarterly, half => S.I. = 18750.

yearly, annually, etc. The rate of interest (R or I) is that Now, Amount = P + S.I.

percent of interest that one pays for the borrowed money So, Repayment Amount (A) = 15000 + 18750

or earns from the deposited money. = 33750.

Simple Interest
S.I. = PRT/100
Where
S.I. = Simple interest
T = Time
R = Rate percentage
Q.1. What would be the simple interest on Rs. 5000 after 5 Concept 1.

years if the rate of interest is 10% per annum? S.I. on a certain sum is n times of principal find R% or
T, if both are equal numerically

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 STUDY NOTES FOR SSC AND OTHER EXAMS
Given S.I. = nP Eg. What annual payment discharge a debt of Rs. 12900,
Or, R = T = (n × 100) ^ 1/2 due in 4 yrs. At 5% rate
Concept 2. A.P. = (200 × 12900) / [4(200 + 5 × 3)] = 3000
At what R% p.a., will a sum of money becomes n times Alternative
in T years 100 + 105 + 110 + 115 = 12900
R = [(n – 1) × 100]/T 430 = 12900
Concept 3. 100 = 12900/(430) × 100 = 3000
A certain sum, becomes m times in T1 years and n Concept 6.
times in how many years (i) If the Amount are same
Required Time = (n – 1) × T1 /(m – 1) i.e.A1 = A2 = A3 = ……………….An, after T1, T2,
Note- T3…………………….Tn years,
Generally if C.I. is not mention, then we assume S.I. The ratio of Principal
Concept 4. P1: P2: P3…………… Pn = 1/(100 + R1T1):
If a certain sum in T1 years is A1 on S.I and in T2 (100+ R2T2): 1/ (100 + RnTn)
years on S.I is A2. (ii) If S.I. are same after T1, T2, T3……………
P + T1 S.I. = A1 ……… (1) In years the ratio
P + T2 S.I. = A2 …….. (2) P1: P2: P3……………..Pn = 1/R1T1 : 1/R2T2 :
R% = [(A2 – A1) × 100] / (T1 A2 – T2 A1) 1/R3T3………………1/RnTn
P = [(A2 T1 – A1 T2) / (T1 – T2)] Basics of Simple Interest
Eg. A sum of money become 756 in 2 years & 875 in
PRT
3(1/2) yr. Find R% and S.I. Simple Interest (SI) =
100
P + 2 S.I. = 756 ………….. (i) Amount: Amount is total sum of Principal and simple
P + 3.5 S.I. = 875
Interest.
R% = [(875 – 756) × 100] / [2 × 875 – 3.5 × 756] =13%
Where P = Principal,
Also find the S.I. by solving eq. (i)
R (%) = Rate of interest per annum,
1.5 S.I. = 117
T = time period (in years)
S.I. = Rs.78
SI  100 SI  100 SI  100
So, ;R  ;T 
Concept 5. RT PT PR

The annual payment that will discharge a debt of Rs.A, Example :

due in T years at R% p.a., on S.I. What will be the rate of interest if the principal is Rs.
Annual Payment= (200 A) / [T{200+R(T – 1)}] 2500 and simple interest for 3 years is Rs. 375?

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 STUDY NOTES FOR SSC AND OTHER EXAMS
Solution: R2 = 100/9 (using, R=T)
Given, Principal = 2500, T = 3yrs, SI = 375 R = (10/3)%
SI  100 We can also say the time period is (10/3)years.
So, R =
PT Short approach: Whenever Interest is in multiple of
Without formula:
Principal and Rate of Interest and Time period is equal.
Simple interest for 3 years is 375,
Then, R = T = 100  multiple of P
Interest for 1 years is Rs. 125
Now we can calculate rate of Interest = R = T = 100 1/ 9  = 10 / 3

Interest for 1 year Annual Instalments for Simple Interest:

 100
Pr incipal Let's discuss a real example to
125 understand instalment concepts:
=  100  5%
2500
A person deposit Rs.140 to bank every year up to 5 yrs .
Example :
The bank gives him 5% rate of interest simple annually.
If the principal is 100 Rs. Difference of Simple Interest
And at the end of 5 yrs he get total amount of Rs.770
for 4 yrs and 6 yrs is Rs 8. Calculate the rate of simple
So, 140 is the instalment, time is 5 years rate of interest
interest.
is 5% and the amount or debt is Rs.770
Solution: In simple interest questions, interest always
This Instalment is also known as annual payment. Debt
remains same for a year if the principal, rate of interest
is total amount, so don’t confuse between these two
is constant for the same.
terms.
Let Interest for 4 yrs is I then interest for 6 yrs is (I + 8)
100A
interest for 2 years is Rs. 8 Installment =
 t  1
100  rt 
interest for 1 year = 4  2 

rate of interest = (4/100) × 100 = 4% Where A = debt, r = rate of interest and t =

Example : If the amount is (10/9) times of Principal and time period
rate of interest and time both are numerically equal. Example :
Then, what is the rate of interest per annum? What annual payment will discharge a debt of Rs.848 in
Solution: Let Principal is P. Given, numerically R = T 4 years at 4% per annum simple interest?
Interest = Amount – principal Solution: Given, A = 848, r = 4% and t = 4 yrs
I = (10/9)P – P Using formula: Annual payment
I = P/9 (Interest is in the multiples of Principal) 100  848
= = 200
 4  1
Now, I =[(P×R×T)/100] 100  4  4  4  
 2 
P/9 = (P× R× T)/100

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 STUDY NOTES FOR SSC AND OTHER EXAMS
In case if you forget formula then how to approach this Rs.400 at 5% per annum simple interest from V. He
question. returns the amount with interest after 2 yrs. V returns to
Let installment is X. There are 4 installments and rate of A 2% of the total amount returned. How much did A
interest is also 4% receive?
Debt (A) = four installments + (r%) × installments × (0 Solution: After 2 years, amount returned to V = 400 +
+ 1 + 2 + … (t – 1)) (400 × 5 × 2)/100 = Rs.440
So, 848 = 4X + (4%)(X)(0 + 1 + 2 + 3) Amount returned to A = 2% of 440 = 8.8
848 = 4X + 24X/100 Example : Rs.4000 is divided into two parts such that if
848 = 4X + 24X/100 one part be invested at 3% and the other at 5%, the
848 = 424X/100 annual interest from both the investments is Rs.144.
X = 200 Find each part.
Some Important examples based on Simple Interest. Solution: Let the amount lent at 3% rate be Rs.X, then
Example : A sum amounts to Rs. 702 in 2 years and Rs. amount lent at 5% rate is 4000 – X
783 in 3 years. Calculate the sum, rate of interest and the So, 3% of X + 5% of (4000 – X) = 144
amount after 5 years? 5% of 4000 – 2% of X = 144
Solution: 200 – 2% of X = 144
Amount for 2 years (A2) = 702 2% of X = 56
Amount for 3 years (A3)= 783 X = (56/2)×100
Interest for 1 year (I) = 783 – 702 = 81 X = 2800
So Sum = A2 – 2I = 702 – 2×81 = 702 – 162 = 540 And 4000 – X = 1200.
rate of interest = (81/540)×100 = 15% How to solve this Question by Alligation Method:
Amount after 5 years = Sum + 5I First we will calculate net rate of interest for Rs. 144 on
= 540+ 5 × 81= 945 4000
Example : A sum of money doubles itself in 3 yrs at a So, net rate = (144/4000)× 100 = 3.6%
simple interest. In how many yrs will it amount to 8 Apply alligation:
times itself?
Solution: Doubles in 3 yrs
3 times in 3× 2 = 6 yrs
4 times in 3× 3 = 9 yrs
8 times in 3× 7 = 21yrs
Example : A and V are friends. A borrowed a sum of

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 STUDY NOTES FOR SSC AND OTHER EXAMS
Simple Interest (SI)
If the interest on a sum borrowed for certain period is
calculated uniformly, it is called simple interest (SI).
(Fixed percentage of principal)
What is Principal (Sum)
Principal (or the sum) is the money borrowed or lent out
for a certain period. It is denoted by P.
What is Amount?
The Addition of Simple Interest and Principle is called
the Amount.
A = S.I + P (Principal)
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 calculated on the basis of Principle.
Time
This is the duration for which money is lend / borrowed.
Rate of Interest
It is the rate at which the interest is charge on principal.
What is Per annum means?
"Rate of interest R% per annum" means that the interest
for one year on a sum. If not stated explicitly, rate of
interest is assumed to be for one year.
Formulas Need to Remember
S.I = [( P × R × T )/( 100 )].
Where P = Principle, R = Rate of per annul, T
= Number of years
From the above formula, we can derive the
followings
P = (100 × SI)/ RT
R = (100 × SI)/ PT
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T = (100 × SI)/ PR
Some Tricks to solve easily
Trick 1:- If a sum of money becomes “n” times in “T
years” at simple interest, then the rate of interest per
annum can be given be
Trick 2:- If an amount P1 is lent out at simple interest
of R1% per annum and another amount P2 at simple
interest rate of R2% per annum, then the rate of interest
for the whole sum can be given by
Trick 3:- A sum of money at simple interest n1 itself in
t1 year. It will become n2 times of itself in (If Rate is
constant)
Trick 4:- In what time will the simple interest be “n” of
the principal at “r %” per annum:-
rt =n × 100
Trick 5:- If a certain sum of money is lent out in n parts
in such a manner that equal sum of money is obtained at
simple interest on each part where interest rates are R1,
R2, ... , Rn respectively and time periods are T1, T2, ...
, Tn respectively, then the ratio in which the sum will be
divided in n parts can be given by
Important Short Tricks to solve Simple Interest
Questions
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 STUDY NOTES FOR SSC AND OTHER EXAMS
Interest is the money paid by the borrower to the lender and 30 days to the month. The day on which the money
for the use of money lent. The sum lent is called the is paid back should be include be but not the day on
Principal. Interest is usually calculated at the rate of so which it is borrowed, i.e., in counting, the first day is
many rupees for every Rs.100 of the money lent for a omitted.
year. This is called the rate per cent per annum. ‘Per Ex. Find the simple interest on Rs.306. 25 from March 3rd to
annum’ means for a year. The words ‘per annum’ are 3
July 27th at 3 per annum.
4
sometimes omitted. Thus, 6 p.c. means that Rs.6 is the
Solution:
interest on Rs.100 in one year.
1 146 15 1
The sum of the principal and interest is called the Interest = Rs. 306   
4 365 4 100
amount. The interest is usually paid yearly, half-yearly
147
= Rs. = Rs. 4.59
or quarterly as agreed upon. 32

Interest is of two kinds, Simple and Compound. When To find principal:-

interest is calculated on the original principal for any Since I =
ptr 100I
100 tr
length of time it is called simple interest. Compound
Ex. What sum of money will produce Rs.143 interest in
interest is defined in the next chapter.
1 1
To find Simple Interest, multiply the principal by the 3 years at 2 p.c. simple interest?
4 2
number of years and by the rate per cent and divide
Solution:
the result by 100.
Let the required sum be Rs. P. Then
This may be remembered in the symbolic form
100  143 100  143  4  2
P 
ptr 1 1 13  5
SI  3 2
100 4 2
Where I = Interest, p = principle, t = number of years, r = Rs.1760
= % rate To find rate %:-
Ex. Find the simple interest on Rs.400 for 5 years at 6 ptr 100I
Since I =
100 tr
per cent.
Ex. A sum of Rs.468.75 was lent out at simple interest and
Solution:
at the end of 1 year 8 months the total amount was
400  5  6
SI 
100 Rs.500. Find the rate of interest per cent annum.
Interest for a number of days Solution:
When the time is given in days or in years and days, 365 2 5
Here, P = Rs.468.75, t = 1 or years
3 3
days are reckoned to a year. But when the time is given
I = Rs.(500 – 468.75) = Rs.31.25
in months and days, 12 months are reckoned to a year

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 STUDY NOTES FOR SSC AND OTHER EXAMS
100  31.25 3125 3 Interest for the last year = Rs 10
Rate p.c. =   4
5 46875 5
468.75  Total interest = Rs 40
3
To find Time:- When interest is Rs 40, deposited amount is Rs 100

100I
When interest is Rs 1520, deposited amount
Since, I = P t r 100 t
Pr 100
=  1250 = Rs 3800
Ex. In what time will Rs.8500 amount to Rs.15767.50 at 4
Direct formula:
1
4 per cent per annum?
2 Principle = Interest × 100/r1t1 + r2t2 + r3t3 …
Solution: 1520  100 1520 100
= 
Here, interest = Rs.15767.50 – Rs.8500 =Rs.7267.50 2  3  3  8  1  10 40

7267.50  100
= Rs. 3800
t = 19 years
8500  4.5 Ex. A sum of money doubles itself in 10 years at simple
Miscellaneous Examples on Simple Interest:- interest. What is the rate of interest?
Ex. The simple interest on a sum of money is 1/9th of the Solution:
principal, and the number of years is equal to the rate Let the sum be Rs 100
per cent per annum. Find the rate per cent. After 10 years it becomes Rs 200
Solution: Interest = 200 - 100 = 100
Let principal = P, time = t year, rate = t 100I 100  100
Then, rate =   10%
Pt 100  10
100 10
Then, t 2  t Direct formula:
9 3
1 Time × Rate = 100 (Multiple number of principal –1)
Hence, rate = 3 %
3
multiple number of principal - 1
Direct formula: Or, Rate = 100 
time

1 10 1 100  2  1
Rate = time = 100  3 Using the above formula rate =  10%
9 3 3% 10

Ex. The rate of interest for the first 2 yrs is 3% per annum, Ex. A sum was put at a certain rate for 2 yrs. Had it been put
for the next 3 years is 8% per annum and for the period at 3% higher rate, it would have fetched Rs 300 more.
beyond 5 years 10% per annum. To fetch an interest of Find the sum.
1520 in six years, money did he deposit? Solution:
Solution Let the sum be Rs x and the original rate be y% per
Let his deposit be = Rs 100 annum. Then, new rate = (y+3) % per annum
Interest for first 2 yrs = Rs 6 x  y  3  2 x  y  2
  300
100 100
Interest for next 3 yrs = Rs 24

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 STUDY NOTES FOR SSC AND OTHER EXAMS
xy + 3x – xy = 15,000 or x =5000 Let the first part be x then second part be
Thus, the sum = Rs.5000 (850 – x)
Direct Formula: (x × 6 × 2)/100 = [(850 – x) × 12 × 4]/100
more Interest×100 300  100 x = 850 × 4 – 4x
Sum = =  5000
Time  More rate 23
5x = 850 × 4
Ex. The simple interest on a certain sum of money at 4% per
x = 680
annum for 4 yrs is Rs 80 more than the interest on the
Then second part 850-680=Rs 170.
same sum for 3 yrs at 5% per annum. Find the sum.
2. A certain sum of money amounts to Rs.1300 in 2 years
Solution:
and to Rs. 1525 in 3.5 years. Find the sum and the rate
Let the sum be Rs.x, then, at 4% rate for 4 yrs the
of interest.
x44 4x
simple interest = = Rs. A) Rs.850, 10% B) Rs.900, 12%
100 25
C) Rs.800, 13% D) Rs.1000, 15%
x53
At 5% rate for 3 yrs the simple interest =
100 Solution: (D)

= Rs
3x 1525 – 1300 = 225 for 1.5 years (3.5 – 2)
20
So for one year 225/1.5 = 150
Now, we have,
then for 2 yrs interest is 150 +150 = 300
4x 3x 16x  15x
  80 or,  80 Then principal 1300 – 300 = 1000
25 20 100
Or, x= Rs 8000 Now 150/1000 × 100 = 15%

For this type of question 3. A person borrows Rs. 3000 for 2 years at 5% p.a. simple
interest. He immediately lends it to another person at 6
Difference  100 80  100
Sum =  = Rs 8000
r1t1  r2 t 2  4435 ¼ %p.a for 2 years. Find his gain in the transaction per
year.
IMPORTANT QUESTION FOR
A) Rs.42 B) Rs.39.25
SSC CGL AND SSC CHSC C) Rs.35 D) Rs.37.5
Solution: (D)
1. Out of a sum of Rs.850, a part was lent at 6% SI and the
Gain in 2 years = [(3000 × 25/4 × 2/100)-
other at 12% SI. If the interest on the first part after 2
(3000 × 2 × 5)/100)] 375 – 300 = 75.
years is equal to the interest on the second part after 4
Gain in 1year = 75/2 = 37.5
years, then the second sum is
4. If the simple interest on a certain sum of money is 4/25
A) Rs.350 B) Rs.280
of the sum and the rate per cent equals the number
C) Rs.170 D) Rs.220
Solution: (C)
years, then the rate of interest per annum is:

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 STUDY NOTES FOR SSC AND OTHER EXAMS
A) 4% B) 5% 94P/100 = 5640
C) 8% D) 10% =>P = 6000.
Solution: (A) 7. A financier lend money at simple interest, but he
Let the principal be Rs x. includes the interest every six months for calculating the
Then the SI = 4/25x principal. If he is changing an interest of 10%, the
Rate of interest = Time effective rate of interest becomes?
r = (100 × 4/25x)/(x × r) A) 10% B) 11.5%
r2 = 400/25 C) 10.25% D) 12%
r = 20/5 = 4% E) None
5. A sum was put at simple interest at a certain rate for 5 Solution: (C)
years. Had it been put at 2% higher rate, it would have Let the sum be Rs. 100. Then,
fetched Rs. 450 more. Find the sum? S.I. for first 6 months = (100 × 10 × 1/2)/ 100] = Rs.5
A) Rs 4500 B) Rs 3200 Next 6 months 10% of 5 is Rs 2 is added.
C) Rs 3800 D) Rs 4200 S.I. for last 6 months =Rs. [(102 × 10 × 1/2)/100]
Solution: (B) = Rs.5.25
P × (r + 2) × 5/100 – (P × r × 5)/100 = 450 So, amount at the end of 1 year = Rs. (100 + 5 + 5.25)
5P (r + 2 – r)/100 = 450 = Rs.110.25
P = Rs.4500. R = (110.25 – 100) = 10.25%
6. Stephanie borrowed some money at 6% for the first 4 8. Raghu purchases a coat for Rs.2400 cash or for Rs.1000
years, 8% for the next 6 years and 11% for the period cash down payments and two monthly installments of
beyond 2 years. If the total interest paid by her at the Rs.800 each. Find the rate of interest.
end of eleven years is Rs 5640, how much money did A) 80% B) 100%
she borrow? C) 110% D) 120%
A) Rs 10000 B) Rs 6000 Solution: (D)
C) Rs 8000 D) Rs 9000 Amount as a principal for 2 month
Solution: (B) = 2400 – 1000 = 1400
Let the sum be P. Then, At the rate of r% per annum after 2 months,
(P × 6 × 4)/100 + (P × 8 × 6)/100 + (P × 11 × 2)/100 = Rs.1400 will amount to Rs.1400 +
5640. {(1400 × r × 2)/100 × 12}
24P/100 + 48P/100 + 22P/100 = 5640. Total amount for 2 installments at the end of second
month

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 STUDY NOTES FOR SSC AND OTHER EXAMS
Rs.800 + (800 + {(800 × r × 1)/100 × 12}) C) 22 D) 18
Then, 1400 + (2800 × r)/1200 = 1600 + (800 × r)/1200 Solution: (B)
R = 120% 2900 = p + p × (4/100) × 4, p = 2500
9. A borrows 5000 at simple interest. At the end of 3 years, 5000 = 2500 + 2500 × (4/100) × t
he again borrows 3000 and finally pays 2340 as interest 5000 = 2500 + 100t
after 6 years from the time he made the first borrowing. t = 25
Find the rate of interest per annum. 12. A certain sum is invested for certain time. It amounts to
A) 4% B) 5.5% Rs.600 at 10% per annum. But when invested at 5% per
C) 6% D) 4.5% annum, it amounts to Rs.400. Find the time.
E) None A) 40 years B) 75 years
Solution: (C) C) 50 years D) 60 years
Let r be the rate of interest Solution: (A)
(5000 × 3x)/100 + (8000 × 3x)/100 = 2340 600 – P = (P × 10 × t)/100 — (I)
150x + 240x = 2340 => 6000 – 10P = Pt
x=6 400 – P = (P × 5 × t)/100 —- (II)
10. Arnav fixes the rate of interest 5% per annum for first 3 => 8000 – 20P = Pt
years and for the next 4 years 6 percent per annum and Equate (I) and (II), 6000 – 10P = 8000 – 20P
for the period beyond 7 years, 7 percent per annum. If =>P = 200
Mr. Kumar lent out Rs.2500 for 11 years, find the total Substitute P in (I) then
interest earned by him? 400 = (200 × 5 × t)/100
A) 1650 B) 1565 => t = 40 yrs.
C) 1840 D) 1675 13. A lent Rs.8000 to B for 2 years and Rs.6000 to C for 4
Solution: (D) years on simple interest at the same rate of interest and
5% for 3 years = 15% received Rs.1840 in all from both of them as interest.
6% for 4 years = 24% The rate of interest per annum is
7.5% for 4 years = 28% A) 4.6% B) 8.4%
67% of 2500 = 1675 C) 6.3% D) 10%
11. A certain sum of money amounts to rupees 2900 at 4% Solution: (A)
per annum in 4 years. In how many years will it amount Rate of interest be r%
to rupees 5000 at the same rate? Then
A) 30 B) 25 (8000 × 2 × R)/100 + (6000 × 4 × R)/100 = 1840

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 STUDY NOTES FOR SSC AND OTHER EXAMS
160R + 240R = 1840 Then substitute 4(9/8 R2) + 6R2 = 84
400R = 1840 => R2 = 8
R = 4.6 % p.a 16. R borrowed a sum of RS. 6000 from T at the rate of
14. A Man lends Rs.1540 for five years and Rs.1800 for 14% for 2 years. She then added some more money to
four years. If he gets Rs.1788 as interest on both the borrowed sum and lent it to S at the rate of 18% of
amounts, what is the rate of interest? simple interest for the same time. If R gained Rs.650 in
A) 10% B) 12% the whole transaction, then what sum did he lend to S?
C) 15% D) 8% A) Rs.6427.12 B) Rs.8015.41
Solution: (B) C) Rs.6472.22 D) Rs.7541.2
Let the interest rate be r% Solution: (C)
We know that, Let the money lent to S be Rs.x
S.I = PTR/100 Therefore,
=> (1540 × 5 × r)/100 + (1800 × 4 × r)/100 x × (18/100) × 2 – 6000 × (14/100) × 2 = 650
= 1788 => x = 6472.22
=> r = 178800/14900 = 12% 17. The rate of interest on a sum of money is 4% per annum
15. Two persons P and Q borrowed Rs.40, 000/- and Rs.60, for the first 2 years, 6% per annum for the period next 4
000/- respectively from R at different rates of simple years, 8% per annum for the period beyond 6 years. If
interest. The interest payable by P at the end of the first the simple interest accrued by the sum for a total period
four years and that payable by Q at the end of the first of 9 years is Rs.1680, what is the sum?
three years is the same. If the total interest payable by P A) Rs.3000 B) Rs.5000
and Q for one year is Rs.8, 400/- then at what rate did Q C) Rs.4700 D) Rs.5500
borrow the money from R? Solution: (A)
A) 8 B) 10 SI at the rate of 4% for 2 years,
C) 12 D) 9 = (P × 4 × 2)/100 = 8P/100
Solution: (B) SI at the rate of 6% for 4 years,
40000 × 4 × R1/100 = 60000 × 3 × R2/100 (P × 6 × 4)/100 = 24P/100
R1 = (9/8) R2 SI for the next 3 years
1 year interest SI = (P × 8 × 3)/100 = 24P/100
(40000 × 1 × R1)/100 + (60000 × 1 × R2)/100 = 8400 Total SI = 8P/100 + 24P/100 + 24P/100
4R2 + 6R2 = 84 =>P = (1680 × 100)/56 = 3000

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 STUDY NOTES FOR SSC AND OTHER EXAMS
18. S has lent some money to A at 6% per annum and B at Solution: (D)
8% per annum. At the end of the year he has gain the 2 1
R = 14 % =
7 7
overall interest at 7% per annum. In what ratio has he
S.I remains same in all years so…
lent the money to A and B? (P)7 + 1 + 1 + 1 = 10(A),
A) 3:8 B) 1:2 10-7 = 3S.I
10 = 14500
C) 2:5 D) 1:1
1 = 1450
Solution: (D) 3 = 4350
6 8 21. If the principal become 6 fold on S.I in 10 years then
7 find in how many years it will be 12 fold?
1 1 A) 24 years B) 22 years
= 1: 1 C) 12 years D) 20 years
19. What is the ratio of the simple interest earned by certain
Solution: (B)
amount for 4 years and 8 years at the same rate of P …………………..6P
interest? 6P – P = 5P interest
5P = 10 years
A) 3:2 B) 2:1
P = 2 years
C) 1:2 D) 4:3 11 P = 22 years
Solution: (C) 22. A sum becomes triple in 6 years at S.I. The same sum
Ratio = 4PR / 8PR = 1 : 2 will become 19 times in how many years?
A) 50 years B) 48 years
20. If a principal becomes amount of Rs.14500 at 14 2 % C) 54 years D) 57 years
7 Solution: (C)
rate of interest in 3years at simple interest. Find the S.I
SI = A – P => A = 3P as sum triples
on principal?
SI = 3P – P = 2P in 6 years
A) Rs.4250 B) Rs.4300
In 19 times SI = 18 P—54 years (2: 6 hence 18 = 54)
C) Rs.4400 D) Rs.4350

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 STUDY NOTES FOR SSC AND OTHER EXAMS

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