Simple Interest solved Problems

Simple Interest

1. Sahil took a loan for 6 years at the rate of 5% per annum on Simple Interest. If the total interest paid was Rs. 1230. Find the principal?

Answer: 4100
Explanation:
Simple Interest = ( Princeple * Rate * Time ) / 100
Principle = ( Simple Interest * 100 ) / ( R * T )
P = ( 1230 * 100 ) / ( 6 * 5 )
P = 4100.

2. A person took some amount with some interest for 2 years, but increase the interest for 1%, he paid Rs.120 extra, then how much amount he took?

Answer: Rs. 6000
Explanation:
2 years = Rs. 120
year = 120 / 2
Rate of Interest = 1%
= ( 100 / 1 ) * ( 120 / 2 )
P = Rs. 6000.


3. A borrow took by a man, for every 5 years it will be doubled, then what is the rate of the interest?

Answer: 20%
Explanation:
Principle = 1
Interest = 1
Time = 5 years
Rate = ?
Interest = ( Principle * Time * Rate ) / 100
1 = ( 1 * 5 * R ) / 100
R = 20%.


4. What is the interest earned by Raj on an amount of Rs.15000 in 10 months at 5 p.c.per annum?

Answer: Rs. 625
Explanation:
Interest = ( Principle * Rate of interest * Time ) / 100
= ( 15000 * 10 * 5 ) / ( 100 * 12 )
= Rs. 625.


5. A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, Find the annual income?

Answer: Rs. 728
Explanation:
Market Value of a share = Rs. 9.50
Investment = Rs.4940
Number of shares = 4940 / 9.50
= 520
Face Value of a share = Rs. 10
Dividend = 14%
Dividend per share = ( 10 * 14 ) / 100
= Rs. 1.4
His annual income = 520 * 1.4
= Rs. 728.


6. What would be the simple interest obtained on an amount of Rs. 9850 at the rate of 7 p.c.per annum after 6 years?

Answer: Rs. 4137
Explanation:
SI = ( Principal * Time * Rate ) / 100
= ( 9850 * 7 * 6 ) / 100
= Rs. 4137.


7. Consider a sum of money at simple interest amounts to Rs. 955 in 4 years and to Rs. 1055 in 5 years. The sum is?

Answer: 555
Explanation:
Simple Interest for 1 year = Rs. ( 1055 - 955 )
= Rs. 100
Simple Interest for 5 year = Rs. ( 100 * 5 )
= Rs. 500
Principal = Rs. ( 1055 - 500 )
= Rs. 555.


8. Anusha deposits an amount of Rs. 65800 to obtain a simple interest at the rate of 14% per annum for 4 year. What total amount will Anusha get at the end of 4 year?

Answer: Rs. 102648
Explanation:
Given data
P = 65,800/-, R = 14%, T = 4yr
Simple Interest = ( 65800 * 14 * 4 ) / 100
= 36848
∴ Amount = P + SI
⇒ 65800 + 36848
= Rs. 102648.

9. Ms. Sanjana deposits an amount of Rs. 41700 to obtain a simple interest at the rate of 12 p.c.per annum for 6 years. What total amount will Ms. Sanjana get at the end of 6 years?

Answer: Rs. 71724
Explanation:
Simple Interest = ( Principal * Time * Rate ) / 100
= ( 41700 * 12 * 6 ) / 100
= Rs. 30024
Amount received by Sanjana = Rs. ( 41700 + 30024 )
= Rs. 71724


10. Manish borrowed some money at the rate of 6% p.a. for the first two years, at the rate of 9% p.a. for the next three years, and at the rate of 14% p.a. for the rest of the period. If he pays a total interest of Rs. 11,400 at the end of nine years how much money did he borrow?

Answer: 12000
Explanation:
Let the sum borrowed be x.
[ ( x * 6 * 2 ) / 100 ] + [ ( x * 9 * 3 ) / 100 ] + [ ( x * 14 * 4 ) / 100 ] = 11400
( 3x / 25 ) + ( 27x / 100 ) + ( 14x / 25 ) = 11400
95x / 100 = 11400
x = ( 11400 * 100 ) / 95
= 12000.