SIMPLE INTEREST & COMPOUND INTEREST

CONCEPT VIDEO:
https://www.youtube.com/watch?v=a91iLc15Uds https://www.youtube.com/watch?v=VOTJShmqdZ8
https://www.youtube.com/watch?v=YakjEwVq6-U

Simple Interest Formulas

Interest:
Extra money paid for using other’s money is called interest.

Simple Interest (S.I.):

(i). Simple Intereest =

(ii). P =

Compound Interest Formulas

Amount = P
3. When interest is compounded Half-yearly:

Amount = P
4. When interest is compounded Quarterly:

Amount = P

5. When interest is compounded Annually but time is in fraction, say 3 years.

Amount = P
6. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year respectively.

Then, Amount = P
7. Present worth of Rs. x due n years hence is given by:

Present Worth =

Difference between the compound interest and the simple interest

If the difference between the compound interest and the simple interest on a certain sum of money
at 5% per annum for 3 years is Rs. 1220. What is the sum?

Solution:

QUESTIONS WITH SOLUTIONS

Q2. If Rs. 12000 is lent at 10% p.a. (compound interest) compounded half yearly for one year. What is the equivalent simple
rate of interest for 1 year for same interest?

Q3. C.I. and S.I. for a certain sum at certain rate of interest for 2 years are Rs. 220 and Rs. 200. Find the principal amount.

Q4. A gave some amount at simple rate of interest of 10% p.a to B for 3 years and B gave this amount to C at the rate of 20%
p.a for 3 years. If the income of B was Rs. 1560 after 3 years, what amount A had given to B?

Q5. The simple interest charged on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What will be the
compound interest on the same amount at the same rate at the end of two years?

Q6. A sum of Rs. 7,700 is to be divided among three sisters Vidusha, Vimla and Vaishnavi in such a way that simple interest
on each part at 5% per annum after 1, 2 and 3 years, respectively remains equal. The share of Vidusha is more than that of
Vaishnavi by:

Q7. A sum of Rs. 91,000 is borrowed at 20% per annum compounded annually for two years. If it were borrowed at the rate
of 100/7% per annum simple interest for four years then, find the difference between C.I and S.I
Q8. A sum of money is accumulated at compound interest at a certain rate of interest. If simple interest instead of
compound interest were reckoned, the interest for the first two years would be diminished by Rs. 20 and that for the first
three years by Rs. 61. Find the sum.

Q9. A person takes a loan of Rs. 200 at 5% p.a compound interest. He returns Rs. 100 at the end of one year. How much
amount he would require to pay at the end of 2nd year in order to clear his dues.

Q10. Find the difference between simple and compound interest on Rs. 6000 for 1 year at 20% per but interest is calculated
on half yearly basis.

Q11. The simple interest on certain sum at 5% p.a for 9 months is Rs. 10 greater than the simple interest on the same sum
@ 3% p.a for 14 months. What is the sum of interest in both the cases (i.e., total sum of interest)?

Q12. Mr. Lala Ram has lent some money to Aaju at 6% p.a. and to Baaju at 8% p.a. At the end of the year he has gained the
overall interest at 7% per annum. In what ratio has he lent money to Aaju and Baaju?

Q13. Hari Lal and Hari Prasad have equal amounts. Hari Lal invested all his amount at 10% p.a compounded annually for 2
years and Hari Prasad invested 1/4th amount at 10% p.a compound interest (annually) and rest at r% per annum at simple
interest for the same 2 years period. The amount received by both at the end of 2 year is same. What is the value of r?

Q14. HDFC lends 1 million to HUDCO at 10% simple interest p.a. for 3 years and HUDCO lends the same amount to SAHARA
STATES HOUSING Corporation at 10% p.a. on compound interest for 3 years. What is the earning of HUDCO in this process?

Q15. A sum at r% p.a compound interest doubles in 3 years. In 9 years it will be k times of the original principal. What is the
value of k?

ANSWERS: https://www.bankersadda.com/p/dear-students-numerical-ability-or_13.html

1).Rs. 58,750 amounts to Rs. 79,900 in four years at simple interest. What is the rate of interest paid?

2).How much will a sum of Rs.12,0007 deposited at a rate of 9% per annum (simple interest) for 13
years amount to ?

3).The simple interest accrued in 2 years on a principal of Rs.24000 is one-eighth of the principal.
What is the rate of simple interest p.c.p.a?

4).Mr.Phanse invests an amount of Rs.24,200 at the rate of 4 p.c.p.a for 6 years to obtain a simple
interest. Later he invests the principal amount as well as the amount obtained as simple interest for
another 4 years at the same rate of interest. What amount of simple interest will he obtain as the end
of the last 4 years?

5).In how many years will Rs. 4400 amount to Rs. 5984 at 4 p.c.p.a simple interest?

6).What would be the compound interest obtained on an amount of Rs. 7,790 at the rate of 10 p.c.p.a.
after two years?

7).What is the difference between the simple and compound interest earned from a sum of Rs.13,033
at a rate of 13 percent per annum for a period of 3 years (rounded off to 2 digits after decimal)?

8).How much will a sum of Rs.7,250 amount to in a span of 2 years, at 6 p.c.p.a rate of compound
interest (Rounded off to the nearest integer)?
 9).A sum of Rs.3200 becomes Rs.3456 in two years at a certain rate of simple interest. What is the
rate of interest per annum?

10).A sum of Rs.2200 is invested at two different rates of interest. The difference between the
interests got after 4 years is Rs.202.40. What is the difference between the rates of interest?

1).Jackie invested Rs. 12000 in a bank at 15% p.a., C.I. He pays 40% of his income from interest to a
charitable trust every year. How much money does Jackie have after 4 years ?

2).A mobile phone can be purchased on cash payment of Rs. 7500. The same phone can also be
purchased by making a down payment of Rs. 1750 and rest can be paid in 3 equal installments of Rs.
2000 each for next 3 months. The rate of simple interest charged by the shopkeeper is

3).C.I and S.I on a certain amount of money for 2 years is Rs. 525 and Rs. 500 respectively. If the
amount is invested such that S.I is Rs. 4050 while no. of years is double the rate per cent per annum,
then find the time (in years) –

4).Abhimanyu deposited RS. 55935 in each of the two banks for 5 years. On one he got 20% p.a. S.I
while on the other he got 20% C.I p.a By how much % is the CI greater than the SI for the given
period?

5).A car depreciates at a certain rate. The current value of the car is estimated to be Rs. 32.768. Also,
the ratio of decrease in the value for 4th year and 5th year is 5 : 4. Find the value of the car 5 years
ago.

6).Basanti took a loan of Rs. 12,500 at 10% p.a. compounded annually, which is to be repaid in 3
equal installments, paid at the end of each year for 3 years. Find the value of each installment.

7).A certain sum of money lent out at simple interest amounts to Rs. 1380 in 3 years and Rs. 1500 in
5 years. Find the rate per cent, per annum.

8).The simple interest on a sum of money is 1/16 of the sum. If the number of years is numerically
equal to the rate percent per annum, then the rate percent per annum is

9).If x, y, z are three sums of money such that y is the simple interest on x and z is the simple
interest on y for the same time and at the same rate of interest, then we have

10).The difference between the interest received from two different banks on Rs. 500 for 2 years is Rs. 2.50. The difference

between their rate is:

1. A sum of money becomes four times in 20 years at simple interest. Find the rate of interest.

2. In 4 year, Rs. 6000 amounts to Rs. 8000. In what time at the same rate, will Rs. 525 amounts to Rs.
700?

3. Swathi borrowed some money at the rate of 6% per annum for the first three years, at the rate of 9% per annum for the next five
years and at the rate of 13% per annum for the period beyond eight years. If she pays a total interest of Rs.8160 at the end of eleven
years, how much money did she borrow?

4. If a certain sum at compound interest becomes double in 5 year, then in how many years, it will be 16 times at the same rate of
interest?

5. At simple interest, a sum becomes three times in 20 years. Find the time in which the sum will be double at the same rate of interest?
6. If the difference between the simple interest and compound interest on some amount at 20% pa for 3 years is 48, then what must be
the principal amount?

7. A sum of money invested at compound interest amounts to Rs. 800 in 3 years and Rs.882 in 5 years. What is the rate of interest?

8. Simple interest for the sum of Rs.1500 is Rs.50 in 4 years and Rs.80 in 8 years. Find the rate of SI?

9. Simple interest on an amount after 24 months at the rate of 2% per quarter is 960. What is the amount?

10. At what rate percent per annum will a sum of money double in 8 years?

1. A person invested Rs 28000 at a simple interest rate of 8% per annum in such a way that his two

sons Amit and Rakesh whose ages are 13 years and 14 years respectively will receive equal

amount of money when they attain the age of 21 years. What is the share of Amit?

2. Ankit invested a total of Rs 10000 in two schemes A and B. Out of the total money he

invested certain amount in scheme A which offers simple interest at the rate of 8% per

annum for 2 years and the remaining amount in scheme B which offers interest at the rate of

12% per annum for 2 years. At the end of 2 years he found that the interest received from

scheme B is Rs 340 more than the interest received from scheme A then find his investment

in scheme B?

3. Simple interest received on a certain sum at an interest rate of 12% per annum after 2 years

is Rs 852 then find the amount of compound interest that will be received on the same

amount of money at the rate 8% per annum after 1 year when the interest is being

calculated half yearly?

4. An amount at the rate of 10% per annum becomes Rs 150 more at compound interest than

that of simple interest after 4 years. What is the principal?

5. The difference between the amount of compound interest and simple interest received on a

sum of Rs 25000 after 2 years is Rs 640 then what is the rate of interest?

6. A sum of money becomes Rs 13400 in 5 years and 18500 in 8 years at the same rate of

interest then what is the approximate rate of interest?

7. A person invested Rs 25500 in two schemes A and B which offers interest at the rate of 5%

and 12% per annum respectively. If the total interest received by the person from these

schemes is Rs 2295 then find the part of money invested in scheme B? (Approximately)

8. Mohit will receive Rs 760 more as interest after 2 years at 20% rate of interest when the

interest is being calculated half yearly than it is being calculated yearly. What is the

approximate sum invested by Mohit?

interest at the rate of 5% and 8% respectively in such a way that the interest received after

2 years from scheme P is Rs 400 more than the interest received from scheme Q after 2

years then find the approximate sum to be invested in scheme P?

10.Rohit invested Rs 19500 in a bank which offers interest at a rate of 7% per annum for 5

years but due to urgent need he withdrew his investment after 3 years then find the amount

he received after 3 years if the bank charges Rs 840 as penalty for early withdrawal?

1) A certain sum of money at certain rate of interest becomes 2100 in 2 years at simple rate of interest and 2250 in 5
years. Find the rate of interest .
2) 600 amounts to ₹ 735 in 5 years at a certain rate of simple interest. If the rate of interest is increased by 2%, what will
be the amount then ?
3) A certain sum is invested for certain time. It amounts to 3500 at 10% per annum. But when invested at 8% per annum,
it amounts to 3000,then find the time.
4) A person invested some amount at the rate of 12% simple interest and a certain amount at the rate of 10% simple
interest for 1 year. He received yearly interest of Rs. 130. But if he had interchanged the amount invested , he would
have received Rs. 4 more as interest. How much did he invest at 12% simple interest
5) The simple interest on a certain sum of money for 2.5 years at 12% per annum is Rs. 40 less than the simple interest on
the same sum for 3.5 years at 10% per anuum. Find the sum ?
6) Simple interest on a principal of 2 years is Rs 108.80 and compound interest on same principal for same time period
and same rate of interest is Rs 115.60. Find rate of interest?
7) A man invested a certain sum of money in Scheme A, at simple interest at a rate of 15% per annum After 2 years the
amount received by him is reinvested in scheme B at 20% per annum in compound interest. If the interest received by
him from scheme B at the end of 2 years is Rs. 2860, then find the sum invested by man in the beginning?
8) The respective ratio of the sums invested for 2 years each , in scheme A offering 20% per annum compound interest
and in scheme B offering 9% simple interest is 1 : 3. Difference between the interest earned from both the scheme is
Rs.
1200. How much amount was invested in scheme A?
ANSWERS: https://youtu.be/x124i2zu_Yg

Additional video & pdf:

http://www.governmentadda.com/wp-content/uploads/2017/11/simple-interest-Compound-
Interestgovernmentadda.com_.pdf

https://www.youtube.com/watch?v=92_VMQJGZ0Y