Money Simple Interest Pa Rt-1 R at I O: Let The Adventure Begin

9.5.
1
MONEY SIMPLE
INTEREST
PA RT- 1 R AT I O
LET THE ADVENTURE
BEGIN
9.5.1
Money Simple Interest
Part 1 Ratio
S PA R K X 5
Every great legend begins with a spark
Have you ever
wondered…
❓ When you park

your car in the
parking, you
When you stay
at a hotel, you
pay a rent.
pay a rent.
When you leave
your bag at a
counter, you
pay a rent.
But when you store your money at a bank, you get
the money back with some extra money!
X 5
Have you ever
wondered…
❓ Why does the
bank pay you to
keep your
What does the
bank do with
the money it
money? stores?
Have your family Do they return the

members ever exact same amount
taken a loan? –Car or something extra?
Loan, Home Loan,
Appliance Loan etc.
2
THINK x 20
A true master knows how to think through to a solution
PLAY
CONSTRUCTING THREE
TA L L E S T B U I L D I N G S O F
H O N G KO N G
？ 1. What is this
extra amount
that the bank
pays you or you
pay to the money
lender?
CONNECT
？
2. Do you have to
pay or receive
more of this
amount if you
take longer time?
C O N S T R U C T I N G T H R E E TA L L E S T B U I L D I N G S O F
H O N G KO N G
‘ P L AY E R S H E E T 1 ’
200
195
190
185
180
175
170
165
160
155
150
145
140
135
130
125
120
115
110
105
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
Gym
C O N S T R U C T I N G T H R E E TA L L E S T B U I L D I N G S O F
H O N G KO N G
‘ P L AY E R S H E E T 2 ’
BUILDING 1 BUILDING 2 BUILDING 3
Name: Name: Name:
Growth Rate: Growth Rate: Growth Rate:
Time: Time: Time:
Start Year: Start Year: Start Year:
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
P RAC T I C E
Master what you have learned and hone your skills in
return for prestige
EASY
1. Look at the transactions below. Identify the Lender and the
Borrower. X 4
a) Captain Spark lent b) Togo took 30 Gems from

5000 Gems to Roxy. his mother to buy a toy
can.
Lender Borrower Lender Borrower

c) Poha requested Togo to d) Captain Spark deposited

give him 10 Gems out 10,000 Gems in to Bank
of the money he had. of Spark as a fixed
deposit.

e) Spark Spaceship Pot Ltd f) Roxy bought a new

took a loan of 10,000 spaceship by taking a
Gems from the Space loan from the bank of
Fixico Corporation. 30,000 Gems.

2. Look at the following scenario. Could you identify whether the
transactions involve any interest? If yes, mention who pays and
who earns the interest? X 4
a) Togo received 100 Gems from his dad and kept them in piggy
bank for two years.
Interest earned or paid Earned by N A
Interest not earned or Paid by N A

paid
b) Captain Spark deposited 5000 Gems in the Royal Bank of Black
Island.
Interest earned or paid Earned by
Interest not earned or Paid by
paid
c) Poha borrowed 20 Gems from Togo. He returned 30 Gems after a
month.
paid
d) Roxy gave 600 Gems to the charity for lost aliens.
paid
e) Captain Spark purchased a supersonic drone for 50,000 Gems by
taking a loan from The Droners. X 4
paid
f) Poha borrowed 20 Gems from Togo. He returned 20 Gems after 2
months.
paid
g) Togo received 100 Gems from his dad. He deposited them in the
Bank of Spark.
paid
h) Captain Spark purchased a normal drone for 20,000 Gems by

using his cash deposited in the Bank of Spark.
paid
3. Let us revisit the transaction in the first question. Could you
identify what is the Principal amount?
X 4
a) Captain Spark lent 5000 Gems to Roxy.
Principal =
b) Togo took 30 Gems from his mother to buy a toy car.
Principal =
c) Poha requested Togo to give him 10 Gems out of the money he had.
Principal =
d) Captain Spark deposited 10,000 Gems in to Bank of Spark as a fixed deposit.
Principal =
e) Spark Spaceship Pvt. Ltd took a loan of 10,000 Gems from the Space
Fixico Corporation.
Principal =
f) Roxy bought a new spaceship by taking a loan worth 30,000 Gems
from the bank.
Principal =
Amount
4.
Money Deposited Money Earned
Principal Interest X 4
Look at the Interest diagram above. It is used to visualize the total
amount earned.
Amount = Principal + Interest
Draw the interest diagram for the situation below.
a) Captain Spark deposited 5000 Gems in the Bank of Spark. After
2 years, he received 5800 Gems.
Amount= 5800 Gems
5000 Gems 800 Gems
Principal Interest
b) Roxy borrowed 20,000 Gems from the Planet Spark Post and
returned 25,000 Gems after 4 years.
c) Steve Zuckerberg invested $50 million in a fixed deposit account.
Steve earned an interest of $1.3 million in 2 years. X 4
d) Togo kept all his money retrieved from his piggy bank into a
bank account. He deposited 120 Gems and received 140 Gems
after 2.5 years.
e) Captain Spark took a loan for 10,000 Gems from Black Lake
Ventures and returned 2,000 Gems after 1 year as interest and
the original amount borrowed.
f) Farmer Freddy borrowed Gems from the government to buy
seeds. He returned 5200 Gems after a year, he paid an interest of X 4
400 Gems.
5. Captain Spark is borrowing money from the bank of India. Roxy
created a picture to show the scenario. Label the picture with
following key words:
a) Lender e) Amount
b) Borrower f) Time period
c) Principal g) Rate of interest
d) Interest
Rs. 10,000
Rs 500 Rs 500 Rs = Rs. 1500

+ + 500
+ Rs. 11,500
Bank Captain Year 1 Year Year =
of Spark 2 3 Rs. 10,000
India
NORMAL
6. Roxy invested some money in different fixed deposit schemes.
Calculate the interest earned in 1 year for these schemes.
a) 200 Gems X 6
Rate = 5%
Interest for 1 year = P × r
100
= 200 × 5
100
= 10 Gems
b) 200 Gems
Rate = 10%
100
= ×
= Gems
c) 500 Gems
Rate = 10%
100
= 200 × 5
100
= 10 Gems
d) 500 Gems
Rate = 20%
Interest for 1 year = ×
X 6
= ×
= Gems
e) 1000 Gems
Rate = 7.5%
Interest for 1 year P × r
=
100
= 200 × 5
100
= 10 Gems
f) 1000 Gems
Rate = 15%
Interest for 1 year = ×
= ×
= Gems
7. Roxy invested 5000 Gems in 5 different schemes at the bank. She
received some interest in the first year. Help her find the total
interest using the yearly simple interest diagram.
X 6
Year 1 Year 2 Year 3 Year 4 Year 5
Interest 1 Interest 2 Interest 3 Interest 4 Interest 5
a) Interest in Year 1 = 250 Gems
Super Saver Plan
Time= 5 years
Year 1 Year 2 Year 3 Year 4 Year 5
250 Gems 250 Gems 250 Gems 250 Gems 250 Gems
Total Interest = Interest in Year 1 × Time in years
= 250 × 5
= 750 Gems
b) Monthly Multiply Interest in Year 1 = 200 Gems
Time= 6 years
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
200 Gems 200 Gems 200 Gems 200 Gems 200 Gems 200 Gems
Total Interest = Interest in Year 1 × Time in years
= _______ × ________
= _______ Gems
Interest in Year 1 = 350 Gems
c) Old Age Plan Time = 2.5 years
X 6
d) Interest in Year 1 = 180 Gems
Child Safety Plan
Time = 3 years and 6 months
e) Interest in Year 1 = 300 Gems
MediPlus Plan Time = 2 years and 3 months
8. Roxy made 3 investments. Help her find yearwise summary of
interest, total interest and amount. Also represent it using amount
diagram.
X 6
Principal = Rs. 100
Rate of interest = 10 % per annum
Time= 5 years
Total
Time Principal Interest Amount
Interest
Year 1 100 10 10 110
Year 2 100 10 20 120
Year 3 100 10 30 130
Year 4 100 10 40 140
Year 5 100 10 50 150
Amount Diagram
100 10 10 10 10 10
Principal Year 1 Year 2 Year 3 Year 4 Year 5
= Rs. 100 + Rs. 50
= Rs. 150

b) Principal = Rs. 500
Rate of interest = 7 % per annum
Time= 4 years
X 6
Total
Interest
Year 1
Year 2
Year 3
Year 4
Amount Diagram
=
c) Principal = Rs. 1450
Rate of interest = 10% per annum
Time= 5 years
X 6
Total
Interest
Year 1
Year 2
Year 3
Year 4
Year 5
Amount Diagram
=
9. Banker for a day! You have been made responsible for working at a
bank and calculating the simple interest payable on fixed deposits.
Calculate the same.
X 6
Principal = Rs. 8500
a)
Rate = 6.7% per annum
Time = 4 years
S.I. = P x t x r
100
= 8500 × 4 × 6.7
100
= Rs. 2278
Principal = Rs. 10,500
b)
Time = 5.5 years
S.I. = P x t x r
100
=

=
c)
Time = 3.5 years
X 6
S.I. =

d)
Time = 4.5 years
S.I. =

10. Captain Spark is confused! The rate of interest for his Fixed Deposit
accounts is in ‘per annum’, but most of his investments are not for
an exact year or multiples of a year.
X 6
Help your Captain calculate the interest by converting the time
period into years.
a) 2 Years 6 Months b) 3 Years 4 Months
6
6 Months Year 4 Months Year
= 12 =
1
= Year = Year
2
2 Years 1 3 Years
2 + Year + Year
6 Months = 4 Months=
2
5
= Years = Years
2
OR 2.5 Years OR Years

c) 6 Years 3 Months d) 7 Years 9 Months
X 6
= Years = Years
OR Years OR Years

e) 200 days f) 180 days
X 6
200
200 days = Year 180 days = Year
365
40
= Year = Year
73
= 0.55 Year = Year
g) 465 days h) 500 days
= Year = Year
11. While calculating Simple Interest, if the rate of interest is not in
‘per annum’, the time period is changed to the unit same as the rate.
Convert the time period of the problems accordingly.
a) Rate = 5% per X 6
month
Time = 3 years
Unit of Rate = Month
Unit of time = Year
Time = 3 x 12 Months
= 36 Months
b) Rate = 6.3% per half year
Time = 4 years
Unit of Rate = ____________
Unit of time = ____________
Time = x _____________
= _____________
c) Rate = 3.8% per quarter
Time = 2 years
Unit of Rate = ____________
Unit of time = ____________
Time = x _____________
= _____________
d) Rate = 0.03% per day
Time = 3 years
Unit of Rate = __________
X 6
Unit of time = __________
Time = x _____________
= _____________
e) Rate = 12% biannually
Time = 4 years
Unit of Rate = ____________
Unit of time = ____________
Time = x _____________
= _____________
f) Rate = 4.2% semiannually
Time = 2.5 years
Unit of Rate = ____________
Unit of time = ____________
Time = x _____________
= _____________
SUPER
12. Find the missing information in the following questions.
a) Simple Interest = Rs. 1440
Principal = Rs. 6400 X 8
Time = 3 years
Rate = ?
SI = P × t × r
100
r = SI × 100
P × t
= 1440 × 100
6400 × 3
= 7.5 % per annum
b) Simple Interest = Rs. 1620
Principal = ?
Time = 4.5 years
Rate = 8% per annum
SI = P × t × r
100
P = SI × 100
r × t
=
c) Simple Interest = Rs. 4433
Time = ?
X 8
SI = P × t × r
100
t = SI × 100
P × r
d) Simple Interest = Rs. 165
Time = ?
Rate = 8% per annum
Time =
e) Principal = Rs. 105,000
Amount = Rs. 109,200
Time = 4 years
Rate = ?
X 8
Rate =
f) Simple Interest = 3528 gems
Amount = 13,328 Gems
Time = ?
Rate = 12% per annum
Time =
13. Solve the following word problems.
a) A man deposited Rs. 12,500 in the bank at an interest rate of
8.5% per quarter. If the money was kept with the bank for 2
years, how much interest did the man earn and what was the
final amount he pocketed? X 8
b) A sum of money was deposited at a bank at the rate of 3.2% per
month. It was withdrawn after 2 years and 3 months. If the
interest earned was Rs. 50,400, then what was the sum deposited?
c) A sum of Rs. 14,500 was deposited at a bank at the rate of 2.5%
per quarter. If the amount received at the end of the deposit was
Rs. 14,862.5, what was the time for which the amount had been
deposited?
X 8
d) A woman earned an interest of Rs. 7550 in the first year of her
fixed deposit at a bank. She eventually earned total interest of Rs.
22,650. For how much time did she keep the money in the bank?
e) Roxy deposited 4800 Gems with a bank for 100 days at the rate of
7.8% per annum. What was the final amount received by Roxy at
the end of the time period?
X 8
14. Captain Spark is planning to make multiple investments. Show
the investment through a diagram and calculate the final amount
received by our brave Captain.
a) Principal = 10,000 Gems
Half the money invested at 8% per annum for 3 years and the
other half invested at 6.8% per annum for 4 years. What is the
final amount received at the end of 4 years?
5,000 Gems (8%, 3 Years)
50%
10,000 Gems

50% 5,000 Gems (6.8%, 4 Years) X 8
b) Principal = 16,000 Gems
First investment of complete amount at 4.25% per annum for
3.5 years. After that, the complete amount is invested at
2.8% per quarter for another 3.5 years. What is the amount
X 8
received at the end of 7 years?
c) Total money with Captain Spark = 3600 Gems
2000 Gems were lent out to a friend at the rate of 11% per
annum for 3 years. The remaining money was invested in a fixed
deposit at the rate of 6% per annum for 3 years. What was the
final amount received?
d) Principal = 4800 Gems
Time = 6 Years
Rate = 8% per annum. After every 2 years, the rate of interest
is reduced by 1% per annum.
X 8
Find the amount received at the end of the tenure.
OLYMPIAD
15. Find the change in simple interest when the following changes are X 10
made. Also draw the interest diagram to illustrate.
a) Time period is doubled.
b) Interest rate is tripled.
c) The Principal is halved.
d) The value of the interest rate remains the same, but the unit
rate changed from annual to quarterly. X 10
16. A sum of money doubles itself in 10 years at simple interest. What
is the rate of interest?
SHARE x 10
Share your achievements on the Anchorwat News Network
What were you supposed to learn in this module?
What did you learn in this module?
1.

2.

3.
4.
What still confuses you?

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9.5.

❓ When you park

Have your family Do they return the

BUILDING 1 BUILDING 2 BUILDING 3

Name: Name: Name:

Growth Rate: Growth Rate: Growth Rate:

Time: Time: Time:

Start Year: Start Year: Start Year:

a) Captain Spark lent b) Togo took 30 Gems from

c) Poha requested Togo to d) Captain Spark deposited

Lender Borrower Lender Borrower

e) Spark Spaceship Pot Ltd f) Roxy bought a new

Lender Borrower Lender Borrower

Interest earned or paid Earned by N A

Interest not earned or Paid by N A

h) Captain Spark purchased a normal drone for 20,000 Gems by

Rs 500 Rs 500 Rs = Rs. 1500

Year 1 Year 2 Year 3 Year 4 Year 5

Interest 1 Interest 2 Interest 3 Interest 4 Interest 5

Year 1 Year 2 Year 3 Year 4 Year 5

250 Gems 250 Gems 250 Gems 250 Gems 250 Gems

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

200 Gems 200 Gems 200 Gems 200 Gems 200 Gems 200 Gems

OR 2.5 Years OR Years

OR Years OR Years

= 0.55 Year = Year

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