Simple Interest Formula
S.I=[( P X N X R )/ 100 )].
Here,
P = Principle.
R = Rate per annum.
N= Number of years.
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| simple interest formula and problems |
How to Calculate Simple Interest
What is Interest?
When borrowed a quantity of money from other for the
personal or commercial purpose we pay some additional money to him after a
certain period of time is called Interest. So we can also call this Interest
as<b> Simple Interest. This type of problem is given in Quantitative
Aptitude which is a very essential paper in banking exam.
What is Principle?
The money borrowed for a certain time period called<b>
Principle or Sum.
What is Amount?
Addition of Simple Interest and Principle is called the
amount.
Amount = Principle + Interest.
Simple Interest Formula & Problems 1
A sum of money at
simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The
sum is:
S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698.
Simple Interest Formula & Problems 2
Mr. Thomas invested
an amount of Rs. 13,900 divided in two different schemes A and B at the simple
interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of
simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme
B?
Let the sum invested in Scheme A be Rs. x and that in Scheme
B be Rs. (13900 - x).
(Xx14x2/100)+[(13900-x)x11x2/100]=3508
=>28x - 22x = 350800 - (13900 x 22)
=>6x = 45000
x = 7500.
So, sum invested in Scheme B = Rs. (13900 - 7500) = Rs.
6400.
Simple Interest Formula & Problems 3
A sum fetched a total
simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is
the sum?
Principal
= Rs. [(100 x 4016.25)/(9x5)]
= Rs. (401625/45)
= Rs. 8925.
Simple Interest Formula & Problems 4
How much time will it
take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of
simple interest?
Time = [(100 x 81)/(450x4.5)] = 4
years.
Simple Interest Formula & Problems 5
A sum of money gets doubled at 12% per annum.
Then find the time?
solution:
time= 100(n-1)/R
=100(2-1)/12
=100/12
= 25/3 years
Simple Interest Formula & Problems 6
A person borrows x $ say $ 5000 for t years say 2 years at r1%
say 4% per annum on simple interest. He uses his smartness and lends it to
another person at bigger rate r2 % say 6.25% per annum for the same time. then his
total gain in this transaction will be
={PT(r2-r1)}/100
= {5000*2(6.25-4)}/100
= 100*2.25
= $ 225
Simple Interest Formula & Problems 7
The rate of interest
on a sum of money is 4% per annum for the first 2 years, 6% per annum for the
next 4 years and 8% per annum for the period beyond 6 years. If the simple
interest accrued by the sum for the total period of 9 years is Rs 1120. What is
the sum?
Ans= 2000
Simple Interest Formula & Problems 8
Two equal amount of
money was deposited in two banks, each at 15% per annum, 3.5 years and 5 years
respectively. If the difference between the interests is Rs 144, each sum is:
Ans= 640
Simple Interest Formula & Problems 9
If Rs. 64 Amount to
Rs. 83.20 in 2 years, what will Rs. 86 amount to in 4 years at the same rate
percent per annum?
Ans = 51.60
Simple Interest Formula & Problems 10
If Rs. 750 amounts to
Rs. 1000 in 5 years, What will it become in 10 years at S.I?
Ans = 1250
Simple Interest Formula & Problems 11
How long will it take
for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at
12.5% pa simple interest?
Ans = 56
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Simple Interest Formula / Problems for Competitive Exams