SIMPLE INTEREST

BY:
KOMAL KOTAK
MBA 3RD sem.
Principal:
The money borrowed or lent out for a certain
period

Interest:
Extra money paid for using other’s money.

Simple interest:
If the interest on a sum borrowed money for
a certain period is reckoned uniformly , then
it is called simple interest.
S.I = P*R * T/100
1]Find the simple interest on Rs 68000 at 16 2/3 % per
annum for 9 months…

Soln:- p=68000
R=50/3 % p.a
T=9 months
S.I = p × R × T ÷100
= 68000×50/3×9/12 ÷100
=8500
2] A sum of Rs 800 amounts to Rs 920 in 3 years
at S.I. If the interest is increased by 3% , it would
amount to how much????

Soln:-S.I= Rs( 920-800)= 120

P=800
T=3 yrs
R = (100× 120 ÷800×3)%
= 5%
New rate = (5+3)%=8%
New S.I=800 × 8 × 3 ÷ 100
=192 Rs.
3]Ali borrowed some money at rate of 6% p.a for
the first 2 yrs ,at the rate of 9% for the next 3 yrs,at
the rate of 14 % p.a for beyond 5 yrs. If he pays a
total interest of Rs 11400 at the end of 9 yrs. How
much money did he borrow?????

Soln:- let the sum borrowed be x Then,

( x*6*2/100)+ (x*9*3/100) + (x*14*4/100)
=11400
= 95x /100 = 11400
= 12000 Rs.
4]Prabhat took a certain amount as a loan from bank at
the rate of 8 % p.a S.I and gave the same amount to
ashish as a loan at the rate of 12% p.a If at the end of 12
yrs , he made a profit of Rs 320 in the deal , what was the
original amount????

Soln:- let the original amount be x.

T = 12
R1 = 8 %
R2 = 12 %
Profit =320
p=x
(P*T*R2)/100 - (P*T*R1)/100=320
X=2000/3
=666.67
5]A sum of Rs 1550 was lent partly at 5% & partly at
8% p.a .S.I . The total interest received after 3 yrs was
rs 300. the ratio of the money llent at 5 % to that lent
at 8% is??????

Soln:- let the sum be at 5% be x

At 8% be Rs (1550-x)
(x*5*3)/100 +((1500-x )*8*3 )/100=300
15x +1500*24 -24X +30000
X=800
Money at 5% =800
Money at 8% =800/(1550-800)
800/750 = 16/15
 Practice problem
An automobile financer claims to be lending money at S.I ,but he
includes interest every 6 mnths for calculating the principal.if he
is charging an interest of 10% , the effective rate of interest
becomes.
a) 10%
b) 10.25%
c) 10.5%
d) NOT
 Practice problem
X person borrows some money at the ratte of 6% p.a for the first 3
yrs , 9% for the next 5 yrs & 13% p.a for the period beyond 8 yrs. If
the total interest paid by him at the end of the 11 yrs is 8160 ,how
much money did he borrow ?????
a) 8000
b) 10000
c) 12000
d) 1500
 Practice problem
If 64 amounts to 83.20 in 2 years , what will be rs.
86 amount to in 4 yrs at the same rate of interest
per annum.
a) 114.80
b) 124.70
c) 137.60
d) NOT