7.1 6 SIMPLE INTER.

EST

Sol uti on :
Sim ple Int ere st
Trick-I
= p X 1" X t _ 360() X 15 X 4
100 - 100 Inv est me nt rat io=
I II
=f 216 0

~
Total am oun t payable after 4 years
=· 360 0 + 216 0
,
=,
576 0
+ cos t of
'
I cow
Wh ich is equ al to 400 0
1.25 : 0.75
:. Co st of 1 co w= 57 60 -40 00 125 75 + 25
=' 1760 5 : ·3
: . (d) is cor rec t.· : . Inv est ment.i n 1st ban k
of t,
Q. 5l. Mr. Ram invested a total
1,00,000 in two ~e re nt banks for
ru ed period. Th e fln t ban k yie lds an
a
= 1,f~~X 5 = 62,500

ond ,
interest of 9o/e per annum and sec
11 •;. per annum. If the ·total int
erest
in 2nd ban k = 1,<;>~~
x 3 = 37,500
at the end of one yea r is 9.75o/e
per
in
annum, then the amount invested ( b) is correc~.
these banks are res pec tively:
Trick-II
(a) t 52, 500 , f 47, 500
GBC
(b) t 62, 500, t 37, ~00
To tal inte res t = 1,0 0,0 00 x 9.7 5%
(c) t 57, 500 , t 42, 500
=t 975 0
(d) t 67, 500, t 32, 500
(b) To tal-Int ere st (by Cal ~ul ato r) .
62, 500 X 9% =
37,500 x 11% = (G T but ton )
Press = f 9,7 50 (True)
: . (b) is cor rect.
 I I ,

When we borrow 'money from a }?ank or co-operative :society or· an individual

institution, for a period of time, w~ pay some extra money in addition to the money .
borrowed, to the lender for using his inQney. This extra money paid is called
Interest (I), the amount borrowed is called Principal (P) and the time period for
• I •

which m0ney is borrowed is called Time (t). The money with interest paid back to
the lender is called of Amount (A ·or S). In other words ·
Amount= Principal + Interest
' .
A = P+I
Simple Interest
The interest.computed on the principal only (i. e; not on interest earned) for the entire
period of borrowing is called SIMPLE INTEREST.
Type - I
Some Important Formulae.

P.r.t
(i) I= I00 [whenrin ¾]

(ii) I= p.r.t. [when r in decimal form]

I X 100
(iii) r = - - -
pt

Ix IOO
. (iv) t=
pr

Ix 100
(v) P=
rt

7.1
 E
7 SIMPLE INTEREST
t:IIAPTEH
SIMPLE INTEREST
When we borrow 'money from a bank or co-operative society or an individual
institution, for a period of time, we pay some extra money in addition to the money .
borrowed, to the lender for using his mQney. This extra money paid is called
Interest (I), the amount borrowed is called Principal (P) and the time period for
which meney is borrowed is called Time (t). The money with interest paid back to
the lender is called of Amount (A or S). In other words
·Amount= Principal+ Interest
A =P+I
Simple Interest
The interest computed on the principal only (i.e. not on interest earned) for the entire
period of borrowing is called SIMPLE INTEREST.
Type- I
Some Important Formulae.
P.rJ
(i) I = [when r in %]
100
(ii) I = p.r.t. [when r in decimal fonn)
I x JOO
(iii) r = - -
pl
(iv) t = I x lOO
pr
(v) P c: l x lOO
n
7.1
 '
7.2 SlMPLE INTEREST
(vz) A =P+ I
(vii) I = A- P
(viil) A= P(1+~ )
100 .
Where.
A = Acc\llllulated amount
· [Final value of investment]
P = Principal.' [Initial value of an investment]
r = Rate of interest
t = time (years.)
I
I = Amount if.interest
Illustrative examples
Exa mpl e 1
How much interest will be earned on f 2000 at 6%
simple interest for 2 years.
. Prt 2000x6x 2
So/u t,on · I = - = - - - - = f 240
• 100 100 ·
Exa mpl e2
Sari ta deposited ~ 50,000 in a bank for2 years with the
interest rate of S.5% p.a. what
will be the final yalue oflnvestment ?
Solution: A= P ( 1+ ~ )-
1
= 50 000 [ I +-5.5x-2] =· f55 500
• 100 '
Calc ula tor Tricks:-
rate for 2 year s= 2 x 5.5 = 11%
Amount= 50000 + 11% button = f 55000
Exa mpl e 3
Find the rate ofinterest ifthe amount owed ofter 6 mon
ths is t I050 borrowed amount
being ~ I 000.
(a) 5% (b) 10% (c) 15% (d) None
So/11tion:
SI = t ( 1050 - 1000) = f 50.
.
.....-
, SIMPLE INTEREST 7.3
Jx lOO 50x l00x l2
r =. pt = l000 x6 = IO¾
Tricks: Go by choices
ths
For (b) A = l 000 + I000 x rate of interest of 6 mon
10
=1000+ tooox 2 (%)= ~1050
:. option (b) is correct
Calculator Tricks:- GBC
For option (b)
10 .
r=- =5 %
2
:. A= 1000 + 5% button (press)= I 050 (True)
Example4
. 1
s at the rate of 6% p.a. simple
Kapil deposited some amount in a bank for 7 2 year
interest.
pute initial deposit of KapiL.
Kapil received f 1,01 ,500 at the end of trye term. <;:om
(b) f 60,000 (c) f 80,000 (cl) None
(a) f 70,000
Solution: Tricks : Go by Choices
For option (a)
=70,000 + [6 x7.5] %
~ f 1,01,500 (True)
:. Option (a) is correct.
MORY BASED)
PAST EXAM QUESTIONS WITH SOLUTIONS (ME
Q<Cfs, 000 becomes f 10,000 in two Solu tion : Tricks
years at simp le inte rest . The amo unt 1 ~ I000
(b) S .I ./year = OOOO: SOOO -
that will become f 6,875 in 3 year s at
the same rate of inte rest is : JOOO x 100
r = - - - = 12.5%
!a)· f 4,850 (b) f 5,000 8000
(c) f 5,500 (d) f 5,275 Amt 6875
/No v. 2006} P = Amt at ~ 1 = I + 0. l25x 3 = f 5000
:. (b) is correct.
......._
 , SIMPLE INTEREST 7.3

I x I00 50 x l00 x 12
r == ' pt = 1000x 6 = 10¾

Tricks: Go by choices
for (b) A = 1000 + 1000 x rate of interest of 6 months

== 1000 + lOOO x l~ (%) =t 1050

:. option (b) is correct
Calculator Tricks:- GBC
For option (b)

r=
10 ;5%
2
:. A= 1000 + 5% button (press) = 1050 (True)
Example4
1
Kapil deposited some amount in a bank for 7 2 years at the rate of 6% p.a. simple
interest.
Kapil received f 1,01 ,500 at the end of t~e term. <;:ompute initial deposit of KapiL.
(a) ~ 70,000 (b) t 60,000 (c) ~ 80,000 (d) None

Solution: Tricks : Go by Choices

For option (a)
= 70,000 + [6 x7.5] %
~ f 1,01,500 (True)
:. Option (a) is correct.

PAST EXAM QUESTIONS WITH SOLUTIONS (MEMORY BASED)

Q<C'fs, 000 becomes f 10,000 in two Solution : Tricks

years at simple interes t. The amoun t 10000- 8000
(b) S.1./year = = t 1000
that will become f 6,875 in 3 years at 2
the same rate of interest is :
r = lOOOx lOO = l 2 _5%
!a) ~ 4,850 . (b) ~ 5,000 8000
(c) ~ 5,500 (d) t 5,275 Amt 6875
[Nov. 2006} p= Amt at t l = I + 0.125 x 3 = t 5000
:. (b) is correct.
 .7.4 SIMPLE INTEREST

Q.2. The rate of simple: interest on a (a) 20% (b) 18%

sum of money is 6% p.a. for fint 3
(c) 15% (d) 10%
yea~, s•;. p.a. for the next five years
and 10% p.a. for th_e period beyond 8 , /May2007J
yean. Ifthe simple interest accrued by Solution : (a) is correct.
. the sum for a period for 10 yean is t
Tricks:
'1,560. ·The sum is :
S.l. Per year= ·
(a), 1,500 (b) ,2,000
Amount for 3.75 yrs - Amount for 2yrs
(c) , 3,000 (d) _, 5,000
(3.75 - 2) yrs

Solution : (b) is correct.

1Feb. 2007) =, 900
p = 6300 - 2 X 900 = ' 4500
Single S.I For I yrs ,
_ 9QOx lOO = 20% ·
= (6 x 3+8x5+ l0x2)o/p = 78% r - 4500 x l
Tricks: Q.S. A person borrows f 5,000 for 2
p = Total S.l = 1560 = ~ 2000 years at 4o/e p.a. simple interest. He
S.l on Rsl 0.78
immediately lends to another person
(b) is com;ct
at 6.!_% p.'a. for2years. Find his gain
Q.3. A sum of money doubles itself in 4
IO years. Thenumberofyears itwould in the transaction per year:
treble itself is : (a) ~ 112.50 (b) t 125
(a) 25 years ·· (b) 15 years (c) ~ 225 (d) t 167 .50
(c) 20 years (d) None [Nov. 2007/
/Feb. 2007) Solution (a) % Gain =
Solution : (c) is correct. .l
6-% -4 =2.25%
Tricks: 4
S.I for 2 yrs. = .5000 x 2.25% x 2 =, 225
12
-=--
11
h -1
Xi -I S.I per yr. = 5000x2.25% =, 112.50
:. (a) is correct
t, 3-1
or
10 2
= _ 1 or. t , = 20 yrs. Q.6. Two,equal sums of money were
leot at simple interest at 11 •;. p.a. for
(c) is correct
· 1 l
Q.4. A certain sum of money amounts 3 yean and 4 yean respectively.
to ? 6,300 in two yean and ,815 in ,1 2 2
If the difference in interests for two
three years nine months at simple
interest. Find the rate of Jnterest per periods was~ 412.50, then eicb sum
annum: is:
 SIMPLE INTEREST 7.5
(a) f 3,250 (b) , 3,500
(c) , 3,750 (d) '4,350 (d) 132..
2
{Feh. 1008)
/Dec. 2008/
Solution : (c) Tricks : Differe nce in
Solution : (b) is correct
interest is due to time
,_ (x-l)xlO O
:. rate of interest for the whole Tric~:
1
t=----
r
duratio n= {11x4.5-=-llx3.5)= 11 %
= (2-l)xlO O =l2.5yr s
Total S.I 412.50 - 8
:. P = Interest on t 1 = 0.11 = f3750 Q.9. The time bywbic b a sum of money
(c) is correct . is 8 times of itself if it double itself in
.15 yean.
Q. 7. In how much time would th~
simple interes t on a certain sum be (a) 42 years (b) 43 years
0.125 times the princip al ~t 101/e per (c) 45 years (d) 46 years
annum? /June2 009J
I 3 Solution : (C) is correct
(a) 1- years . (b) 1- years
4 4 It is Compo und Interest Qts.

3 Tricks : 2'2 = gl5

I (d) 2- years
(c) 2- years
4 4 or 2~2 =(23 ) 15 : t2 = 45yrs.
{June 2008) Q.10. What is the rate of simple inter..
Solution : (a) is correct · est if a sum of money amoun t f 2,784
in 4 yean and fl,688 in 3 years ?
. . ½ 0.125 (a) 1% p.a. (b) 4% p.a.
Tricks : t = _f_ = - - = 1.25 yrs
r% · · 0.10
(c) 5% p.a. · (d) 8% p.a.
p.rJ
Detail: S .I =.- - {June 1009}
100
Solution : (b) is correct
. 0.125P = P.lOxt
or, 100 . Difference in S.I
SJ. pa= o·" . .
1uerence 10 tune
ort= 0.125x1 0=1.25 yrs
S/ 2 -S/ 1 2784-2 688
:. (a) is correct = = =f 96
Q.8. Find the numbe rs of years in
'2 -11 4-3

which a sum double s itself at the rate Principal = f (2688- 3 x 96) =~ 2:400
of 8°/o per annum .
r= /x lOO = 96x l00 =4%
px~ 2400xl
(a} n! (b) 12_!__
2 2
 "'4111

7.6 SIMPLE INTEREST

Q.11 . If a simp le in,e rest on a sum of Solu tion : (b) is correct.

money at 6% p.a. for 7 yea n is equa l to
twic e of simp le inte rest on anot her 80 x l00
TrICks
j
:
,-
- (1800 - 1400) X 3
sum for 9 yea n at 5•;. p.a. The ratio
will be: = 6.67 %
(a ) 2:15 (b) 7:15
(c) 15:7 (d) 1:7
Q.14. The S.I. on a sum of mon ey is i9
of tbe prin cipa l and the No. of year s is
{Jun e 2011] equa l to the rate . of inte rest per an-
Solu tion : (c) is corr ect num . Find the rate of inte rest per an-
p . 6.7 = x P2 .9.5 · num ?
2
I 100 }()() (a) 5% (b) 20/3 %
(c) 22/7%
or .!j_ = 2 x 9 x 5 = ~ ⇒ .!j_ =~ (d) ~%
P2 6x 7 7 P2 7 /Jun e 2012/
Tric ks:- GBC Solu tion : (b)
Q.12 . By mist ake a cler k, calc ulate d 2
the simp le inte rest on prin cipa l for 5 p.r.r 4 ( r )
SJ.= 100 ⇒ _9 P· = p. IO
mon ths at6~50/o p.a. instead of6 mon ths
at 5.5¾ p.a. If the erro r in calc ulati on r 2 20
:.- =- : . r = - %
was ~ 25.4 0. The orig inal sum of prin- 10 3 3
cipa l was_ _ Q.15. Sim ple inter est on ,2,0 00 (or 5
(a) , 60,6 90 (b) f 60,960 mon ths at t6•/• p.a. is_ _ _.
(c) , 90,6 60 (d) f 90,690 (a) ~133.33 (b) fl33 .26
Solu tion : (b) is correct (c) f 134.00 (d) fl32 .09
P= 25.40 / Jline 2012, Dec. 2012/
5.5 6 6.5 5 Solution : (a)
- x- - - x-
100 12 100 12
= 25.40 x 1200
5 .5x 6-6 .5 x 5
=,
60 960
SJ.= 2000 x ~ x ~
1 1 =, 133.33
' Q.16. How muc h inve stme nt is re-
Q.13 . If the Sim ple Inte rest on f 1,400 quir ed to yield an Ana ual inco me of
for 3 yea n is less than the simp le f 420 at 70/. p.a. Sim ple inte rest.
inte rest on f 1,800 for the sam e peri od
(a) f 6,00 0 (b) f 6,42 0
by ~ 80, then the rate of inte rest ls:
(c) , 5,580 (d) f 5,000
(a) 5.67% (b) 6.67 %
(c) 7.20 % (d) 5.00 % /Dec. 2012/
.
[Dec. 10JJJ Solu tion : (a) P = -420x
--
l00
= f 6000
7x l
 SIMPLE INTEREST 7.7
Calculator Trkks II GBC : Q.19.1 n what tlme will a sum of money
p = 420 + 7% button = , 6000 double itself at 6.25% p.11. at simple
Q.17. Mr. X invests , 90,~ In post Interest
office at 7.5% p.a. simple interest. (a) S yrs (b) 8 year
While c.alculating the rate was wrongly (c) t2 yrs (d) 16 yrs
taken as 5.7•;. p.a. The difference In
amounts at maturity is, 9,774. Find /Dec. 2013)
the period for which the sum was Solution ·: (d) is correct.
innsted. Tricks:
(a) 7 years (b) 5.8 years (2-l)x lOO
t=--- = 16years
(c) 6 years (d) 8 years 6.25
[Dec. 2012/ Q.20. What principal will amount to
,370 in 6 years at 8~/o p.a. at simple
Solution : (c) Tricks
interest
9774xl00
(a) f 210 (b) f 250
t = 90.500x(7.5-5.7) = 6 yrs
· (c) ,310 (d) , 350
Q.18. If the sum of money when com-
{Dec. 2013/
pounded annually become fll40 in -
2 years and tl 710 in 3 years at rate of Solution : (b) is correct
interest 370
.Tricks : p = 1+ 6 X 0.08 '- 250
(a) 30% (b) 40%
(d) Calculator Tricks :- GBC
(c) 50% 60%
/June 20131 (b)Amt= 250 + (6 x 8)% ~utton press =
370
Solution : (c) Interest in 3ra
· Q.21; If a sum triples in 15 yrs at
yr = ~ I 7 10 - ' 1140 Simple rate ofinterest then the rate of
= ~ 570 Interest per annum will be
Tricks Note : For 3rd yr ; it will be like (a) 13.0% (b) 13.3%
S.I (c) 13.5% (d) 18%
r = :. / x lOO = 570x l00 =SO%
{June 2014/
P1 I 140x l Solution : (b) is correct
Tricks II Go by choices. _ (3-l)xlOO _ 1 %
For (c) A = 1140 + 50% (Calculator) Tricks r - l x l5 - 3.3

=~ 1710 Calculator Tricks :- GBC

: . (c) is correct (b) r = 15 x 13.333% = 200%
A = l + 200% (button)= 3
:. (b) is correct
 7
7.8 SIMPLE INTEREST

Q.22. A certain sum of money wa1 Solution : (b) is correct. .

invested at simple rate of iateresf for . l 1 1
three yean. If it was Invested at 7•;. Tricks: Pt : P 2 : P 3 = - :- :~
r 1t 1 r 2 t 2 r3 3
hig--er, the interest have been , . 88~
more, then sum ~as been invested at 1 1 I
= - :- ·-
that rate was 2x6 8x3 · 6x 6
(a) , 12,600 (b) f 6~800 = [..!..._l : ..!..] x 72 LCM of denomi-
12 . 24 36
(c) ., 4,200 (d) , 2~800
. nators
[Dec. 2014}
=6:3:2
Solution : (c) i~ correct So, Smallest principal
S.I = f 882 for r = 7% 44000 x 2 = t8000
=
t =·3 years. 6+ 3+2
' Q.25. No. of years a sum of money
p = I x 100 = 882 x 100 = f 4200 . becomes 4 times itself at 12% p.a. at
rt 7x3
simple interest:
Calculat or Tricks :- GBC (b) 2 1
(a) 20
Q.23. A sum of money will be doubled (d) 30
(c) 25
itself in 8 yean at S.I. In how many
{D~c. 2015}
years the sum 1fill be tripled itself?
. '
.
(a) 20 years (b) 12 years · · . Solution : (c) is correct

(c) 16 years (d) None . (4 - l)xlOO

Tricks· t = ~.....a...- -= 25 yrs.
{J11ne 2015} • lx l2
Solution : (c) is correct. Q.26. Ir a penon lends , 6,000 for 4
yean and, 8,000 for3 years at S.I. The
l2 3-1 total laterest earned is f 2400 then the
Tricks : = _
8 2 1 rate of laterest ls......
t 2 = 16 yrs.' (a) 5% (b) 6%
Q.24. A sum of 44,000 Is divided lato (c) 7% (d) 8%
3 parts such that the corrnpo■dlag
/Dtc. 2016/
interest earned after 2 yean, 3 yean
and 6 years may be equal at the nte of Sol■doa : (a) is co'rrecL
simple interest are~;. p.a. 8o/. p.a. & Trieu: Go by choices.
6o/o p.a., respectively. Then tlle small- For (a) ;
est part of the sum ~ be.
Total SI = 6000x 4x5% + 8000x3
(a) f 4,000 (b) f 8,000
x5%
(c) f 10,000 (d) f 12,000
= '2400
· /J11nt 201 SJ
So, (a) is correct.
\
SIMPLE INTEREST 7.9
Q.27. In simple interest, a certain sum
So, Interest Gain ·
becomes ~ 97,920 in 3 years, and
~ 1,15,200 in 5 yean, then the rate of 5000 X 2 X 2.25
= - - -- = t 225.
interest is: 100
Q.29. A certain money doubles its~lfin
(~) 10% (b) 11.2%
~O years when deposited on simple
(c) 12% · (d) 13.6% interest. It would triple itself in
[June 2018] (a) 30 years · (b) 20 years
Solution : (c) (c) 25 years (d) 15 years
Tricks: 1
[Nov. 2018]
s.r p.a.= I, 15, 200-97,
5-3
920
Solution : (b)
/

Tricks : See Simple Interest (Quicker

=t8640 BMLRS)
Principal = 97,920 - 3 yrs interest =
ti = Xi -1
97 ,~20 - 3 X . 8640 = ?72,000
t1 X 1 -1

r = 8640x10? = 12 % t 3-1
72000 ⇒ ....1..
10
=--
2-1
~ t, =20yrs.
-
Calculator Tricks :
Q.30. A certain sum of money Q was
Amounts = 72000 + (12x3 = 36)_% deposited for 5 year and 4 months at
button=~ 97,920 (True) 4.5•/• simple Interest and amounted to
So, option (C) is correct. , 248, then the value_of Q Is
Q.28. A person borrows , 5,000 for (a ) , 240 (b) , 200
2 years at 4% per annual simple (c) , 220 (d),210
interest. He immediately · 1end1 to
' /Nov. 1018/
another person at 6¼%. Per annual Solution: (b)
for 2 years find his gain In the trans- 4 16
t = 5 :(I'S 4 months = 5 + = yrs
action . 12 3
(a) ~ 112.50 (b) , 225 ,
(c) ~ 125 (d) ' 107.50 A=Q(1+ I~)
[Mq1018J
Solution : (b) • = Q[ l +4.5
248 - x -16]
or 100 3

Interest Gain = ( 6: -4) . Q = 248x300 = Rs. 200

·· 372
I
= 2 - = 2.25%
4
7.12 SIMPLE INTEREST
'1-~V\ - .
Q.38. If the diffe_rence between inter- Tricks : GBC
es~ received by two penons A and Bo~ For (c) _S ,I. for 2 yrs.
the same sum of. ,rsoo
for 3 years is ~
18. Then what is the difference be- = f 1000.
tween the two rates of interest. :. SJ for 1 yr. = f 500. i.e. (1000+ 2)
(a) 1% (b) 2.5~
CJ for 1st yr. = S.I of 1st yr.= f 500:
(c) 3% (d) 0.4% . '
CJ for _2nd yr.= S.I for 1st yr+ Interest
[Dec. lOJ 9J on this SJ
Solution : (d)
5 3
Principal same ; time same but interest · =500+ 0<1>< xl = Rs. 515.
100
differ by~ 18.
It means rate differs.
:. Total C.l =_500 +.515 1015 [True) ='
Calculator Tricks for C.I_
IxlOO
. r=--
pxr · CJ. = 500 + (500 + 5% b_u tton)
Here; r = difference between rates. =, 1015 (True)
·. r=l8xl00=0.4% Q.40. What sum of money will pro--
·· 1500x3 duce , 42,800 as an interest in 3 yean
Detail : Let their rates are r 1 and r2 and 3 months at
2.5°/e p.a simple
interest?
. 1500Xfj · 3 ~ 1500xr2 ·3 = lB
100 100 (a) , 3,78,000 (b) , 5,26,769

,•~Pd\
.J,d\N x3 ·
(c) , 4,22,000 (d} , 2,24,000
or JOO (1j - r2 ) =18 /Dec.1010/
Solution : time= t = 3 years & 3 months
18
or 1j -r2 =--=0.4% 3
~ 15x3 =3 + - = 3.25 years
J''T"' 12
Q .39. If the compound laterest on a
Formula
certain sum for 2 yean at 3o/e p.a. is,
1()1 S. What would be the simple inter- p = lx 100 = 42,800x 100
est on the sum at the same rate and t Xr (3.25) X (2.5)
same time is
(a) 1005 (b) 1010
=_' 5,26,769.23 =, 5,26,769/-
(b) is correct.
(c) 1000 (d) 1003
Calculator Trick.I
.., [Dec. 2019}
P = 42,800 + 2.5% button + (3.25)
Solution : (c)
='5,26,769
 .-

SIMPLE INTEREST
7.13
Q.41. A certain sum amo unte d to, 575 Tric
ks
at 5o/e in a time in which , 750
amounted to, 840 at 4•1•. If the rate of Remainder
interest is simple, find the sum -
(a) 525 (b) 550
Single rate of interest
(c) 515 (d) 500
[J11n. 2021) = (1x.!.+sx.!.+1ox2-)%
Solution: (d) is correct S.I. = A - P = 840 3 4 12
- 750 ='90
[Do by using calculator]
= 8.5%
t= Ix 100 = 90 x 100 _ 3years Annual income= Annual interest= f 561
p.r. 750 x4 -
ITRICKS I Capital = Interest + rate of interest

Then use GBC (Go by choices) with = 561 + 8.5% (button)

calculator. = , 6600
[ :. 1 year interest rate = 5% :. ~ is correct
:. 3 years interest rate = 3 X 5 = 1sro] ® /Certain sum amounts to f 1S748
la j yean at simple interest at r•/• p.a.
(a) A= 525 + (3 x 5)% = 603.75.it575 The same sum amounts to f 16,510 at
(a) wrong (r+2)•/• p.L simple interest in the same
Amo unt, 603.75 is more than 575 time. Wha t Is the value of r?
So, principal must be less than,
525. (a) ~10% (b) 8%
(c) 12% (d) 6%
For option (c)
/J•"Y 2011/
A = 515 + (3 x 5)% = 592.25 ~ 51S Solu tion : (b) is correct
So option (d)
Due to increase in interest by 2% in
A = 500 + 15% = S75 (True)
3 years
(d) is correct.
Interest increase
@ A man Invested oae-tlalrd or his • 165 I0 - 15748
capital at 7•;. one fourtll at&•/• u d tbe
remainder at lOo/e. If tile aa■ual bl-
Cl '
162
come ls , 561. The capital II • J x lOO _ 762 xl00 = t
So, P • r. t - 2 x 3 12' 700
(a) , 4,400 (b) ' 5,50 0
Jnen apply tricks GBC
(c) , 6,600 (d) , 5,80 0
(a)A • 12700 + (3 x 10% = 30%) button
/JM . 2021} ~ 15748
Solution : (c) is correct
 SIMPLE INTERES T
7.14

So (a) ~ro ng or p = 144 x lOO = ~ 640

22.S
(b) A 12700 + (3 x 8% = 24% ) button
(b) is correct .
=.f 15748 (True)
Q.~ m of money in simple inter-.
. So (b~ rre ct ~¥ . · .est doubles itself in 7 yea n. How many
1
Q•.it<: Two ·equal amounts of mon ey years will it
take to triple itself?
are deposited 'in two banks ~ch at (a) End of 12 years
15o/e p.a. S.I. fix 3.5 year -in the bank (b) End of 14 years
and fix 5 yea n respectively. The clif- (c) End of 18 y~
ference betw een •be interest amo unt
(d) End of 16 years · {lhc . 2021}
~
from the bank is' 144. Find the su~
Solution : (b)
(a) f 620 (b) f 640
Tricks
(c) f ·820 (d) t 840
A certain sum of money becomes xI
{Jt1n. 2021}
times int, years and ,s times in 1i years at
Solu tion : (b) is correct same rate of S.I. The relationship is
Let Each deposit = P t2 Xi -1
Tric ks
-;; = Xi- I

Rate of interest for 3.5 years

= 3.5 X ] 5 = 52.5% pas .,.
~~~ = !=: = t, = 7 • 2=14ycars.
Q.46. Sim ple Interest on a sum or
Rateofinterestfor5years ~ 5 x 15 =75% money is amount to f 59,000 in 3 yean
paS.I. and t 62,000 ln 4 yea n at same nte or
Difference in rate of interest Inte rest . What are tbe prlntlpal
amo unt and rate or interest?
= 75 - 52.5% = 22.5% pa SJ .
(a) , 50,000, 6%
:. P = Interest difference + Rate of inter-
(b) '45 ,00 0, S.S%
est difference
(c) 'SS,000, 5%
= 144 + 22.5% (button)= f 640. /Dtt.1011/
(d) '52,000, 7%
Detail each Solutlon : (a)
Let Principal money = P Tricks · '
From Question
P -15x 5 _ P · 15x3.5 = 144
S.I. Pa =
62
CXX> -
4- 3
59000 =, 3,000/-

100 100
Principal
p
or [75 - 52.5) = 144 P= 59000 -3 x SI Pa
100
=- 59000-3 x 3000 =,so,OOo 1•
-
SIMPLE INTEREST 7.15
Rate of Interest
Tricks
IX 100 3000xlOO
=r= A 15250
PJ 50,00 0x I
PV = P = l + _!!_ = l -f 52.5
= 6% 100 100
Q.4{A n amoun t is lent at R1/e simple = 15250
interest for R yean and the s~ple 1525
interest amount w~s one fourth of the = f 19,000
princi pal amou nt. Then it is
:: (c) is correct
. 1/ .
Q,49. The annua l rate of simple inter-
(a) 5 (b) 6
est is 12.5%. In how many yean does
(c) 5½ (d) 6½
t~e princi pal d~uble? •
·{Dec. 2021/ , (a~ 11
years (h) 9 years
Solution : (a)
(c) 8 years (d) 7 years
Let Principal = P
{J11ne2022J
1 Solution : Tricks
Interest = - P
4
t = (m - 1) 100 .
IxlOO r
:. rate= - -
. P.t (2- I)x lOO_ ,
12.5 - 8 yrs.
_!__ p X }()()25
or R = _-4,:....___ __ Calcu lator Tricks
PxR
(2-1) + 12.5% button = 8 yrs
or; R2 = 25 ⇒.R =· 5%
~
Q.e. . J(*
An mvestor is saving to pay off
(c) is correct. ·

an obligation off 15,250 which will be Q.'-A farme r borrowed f 3600 ~t the
due in seven years, if .the· invest or is rate of15% simple interest perAnnum.
earning 7.5% simple intere s( rate per At the end of 4 yean. He cleare d this
annum, be must depos it f _ _ _ to accou ~t by paying f 4000 and a cow.
meet the obligation. The cost of the cow is :
(a) 8,000 (b) 9,000 (a) t (b) f 1200
1000
(c) 10,000 (d) 11,000 (c) _f 1550 (d) t 1760
/J11ne2022J /Dec. 2022/
Solution : FY = f 15 250 Soluti on: Giv~n :
'
S.I rate for l yr = 7.5% Let P = Prin_ciple = f 3600
:. S.I for 7 yrs = 7 x 7.5 r = rate of.interest = 15%
=== 52.5 % t = time = 4 years