SI, CI WS Solution

CDC Department
University
Simple & Compound Interest
SRM
1. Simple interest on an amount after 36 months at the rate of 3% per quarter is

720. The amount is
1) 4000
2) 2000
Exp: SI = PRT =720=

100
3) 6000
P 3
100
36
4
4) 4800
= P=2000
Note: R is 3% per quarter, so 36 months is 36/4.

2. An amount becomes 8,800 in four years at 15% p.a. What is that amount?
1) 5,500
2)7,500
3) 5,800
4) 6,400
Exp: Amount becomes 8800, So Principal+ SI=8800,

P+SI=
P=
P+
PRT
RT
4 15
3 8
=P 1+
=P 1+
=P 1+ = P=8800
100
100
100
5 5
) (
) ( )
8800 5
=5500
8
3. Amir took a loan of 900 at the rate of 12% per year for 8 months. How much does
he need to pay at the end of 8 months?
1) 952
2) 852
900 12
Exp: SI=
100
8
12
3) 872
4) 972
=72 (Time usually calculate per year, so 8 months= 8/12)
Amount paid= Principal+ SI= 900+72=972

4. The simple interest on a sum of money will be 900 after 3 years. In the next 3
years if principal is doubled, then what will be the total interest at the end of the 6 th
year?
1) 900
2) 1800
3) 2700
4) 3600
Exp: SI after 3 years 900. We know that SI always constant every year.
After 3rd year the principal is double. So, SI also doubles, then next 3 years
900*2=1800
Total after 6 years 900+1800=2700
CDC Department
University
SRM
5. If 40000 is given as loan for a period of 3 years with interest rates 5%,
7% and 9% for the 1st, 2nd and 3rd years respectively, what is the total
amount that needs to be paid in the end?
1) 23500
2) 24200
3) 18000
4) 24000
Exp:
6. Ganesh borrowed some money at the rate of 5% p.a. for the first three years, 7%
p.a. for the next 5 years and 9% p.a. for the period beyond eight years. If the total
interest paid by him at the end of 14 years is 6240, how much money did he
borrow?
1) 6300
3) 6200
4) 6000
( P 1005 3 + P 71005 + P1009 6 )=6240
Exp:
2) 6180
15 35 54
6240 100
+
+
=6240= P=
=6000
( 100
100 100 )
104
7. A sum of money becomes 1120 in 4 years and 1360 in 7 years at SI. How much
money is deposited?
1) 900
2) 700
3) 800
4) 1200
Exp: We know that SI always constant every year

So, Difference 7year 4 year is 3 year= 1360-1120= 240 is SI of money in 3 years
Then SI for 1 year is 240/3= 80, for 4 years 4*80= 320
A sum of money becomes 1120 in 4 years, Principal = Amount SI= 1120-320=800
8. Arun borrows 1500 from two money lenders. He pays interest at the rate of 12%
per annum for one loan and at the rate of 14% pa for the other. How much does he
borrow at 12% pa if the total interest paid at the end of the year is 186?
1) 1200
2) 1125
3) 1250
4) 1800
Exp: Let assume two amounts is X at 12% and 1500-X at 14%.
SI =
12 X
100
and
SI =
Total interest is 186=
( 1500X ) 14
14 X
=210
100
100
12 X
100 +
210
14 X
100 =
2X
24 100
=24, X =
=1200
100
2
CDC Department
University
SRM
9. A sum amounts to 3 times itself at SI in 5 years. In what time will it become 5

times itself?
1) 5 years
2) 15 years 3) 10 years
4) 7.5 years
Exp: Let Principal is P, then Amount =3P in 5 years. So, SI for 5 years is Amount-P=
3P-P=2P
Then 2P
P R 5
, Rate of interest is 40% per year.
100
So, 5 times means Amount=5P, then SI=4P
4 P=
Then,
P 40 T
, Time =10 years.
100
Short cut {based on SI only}: Let p=100, Amt=300 in 5 years so SI=200

100
SI=200, Amt=
300
5 years
SI= 400,
Amt=500
10 years
SI=600, Amt=
700
15 years
SI=800, Amt= 900
Principa
20 years
l
SI is constant value, so it doubles in 5 yr means, 4 times in next 5 yrs.
10. What will be the compound interest on 15000 for 2 years at 12% per annum?
1) 3604
Exp:
2) 3816
1+ R/100
CI =P
CI =15000(1+
3) 3836
4) 3800
and CI=Principal + Interest
12 2
112 2
) =15000(
) =18816
100
100
Then, Interest Amt = 18816-15000=3816

11. Compound interest on a certain amount for 2 years at the rate of 5% is 102.5.
Find the amount.
1) 500
2) 725
Exp: Interest= CI-P=>
P{(1+
3) 850
5 2
) 1 }=102.5
100
Simplify, P{(1.051.05)-1}=102.5 => P(1.1025-1)=102.5
4) 1000
CDC Department
University
SRM
P=102.5/ 0.1025= 1000

12. An amount of 10000 is taken as loan by Ajmal at compound interest charging
8% p.a. for 1st year and 9% p.a. for the 2nd year. How much is the total to be paid
by Ajmal after 2 years?
1) 16000
2) 14772
3) 12000
4) 11772
108 109
Exp: CI Amount= 10000( 100 100 ) = 11772

13. A sum of 40000 is invested for 18 months at 20% p.a. on compound interest. If
the interest is compounded half yearly, what will be the interest to be paid?
1) 13240
2) 13080
3) 13530
4) 13540
)
R /2 2 n
20/ 2 2 ( 18
(1+
)
=40000(1+
) 12
Exp: CI Amt calculate half yearly = P
100
100
Amount= 53240, interest= 53240-40000= 13240.

14. Rohit has given a loan to Sohit an amount of 20000 at an interest rate 8 % p.a.
for a period of 30 months. If interest charged is at compound interest, how much
does Sohit need to pay in the end?
1) 23000
Exp:
2) 24000.36 3) 24261.12
20000
108 108 104
100 100 100
4) 25020.54
= 24261.12
(1+ 1008 )= 108

100
(Note:
For 6 months R= 8/2=4%.... so 104/100

15. A sum of money invested at CI amounts to 800 in 3 years, 882 in 5 years. Find
the rate of interest?
1) 2.5%
Exp:
Solve
2) 5%
3) 4%
4) 6.66%
R
R
P 1+
=800 1.P 1+
=882 2.
100
100
2 1
=>
1+
R
882 441 21
=
=
=
So , Cancel t h e squarebot h side .
100
800 400 20
( )
CDC Department
University
SRM
100+ R 21
= solve R=5
100
20
16. On a given amount the compound interest at the end of first year was 81 and
the second year was 88.29. How much money was invested?
1) 900
Exp:
2) 996
P 1+
3) 880
4) Cannot be determined
R 1
R 2
=81 1.P 1+
=88.29 2.
100
100
solve R=9 per annum .

(1+ 100R )= 88.79
81
Solve 2 1 =>
P{ 1+
Interest on CI for 1 year =
9
1}=81
100
Solve P=Rs. 900

Note: These kinds of problems go with options
17. A sum of 5000 is invested for 3 years at 5% p.a. on compound interest.
Income Tax at the rate of 20% on the interest earned was deducted at the
end of each year. The amount at the end of 3rd year?
1) 5624.32 2) 5630.50
3) 5620.54
4) 5608.30
Exp:
Interest for 1 year
5% of 5000= 250
5% of 5200= 260
5% of 5208= 260.4
Amount= 5000+ 200+ 208
Tax
20% of 250=50
20% of 260=52
20% of 260.4=52.08
+ 208.32= 5616.32
Amount
250-50=200
260-52=208
260.4-52.08= 208.32
18. A sum of money doubles itself at CI in 9 years. In how many years will it become
16 times itself?
Exp:
R 9
R n
P 1+
=2 P 1, P 1+
=16 P 2
100
100
CDC Department
University
Solve 2 1=>
1+
SRM
R n
R 9 16 24
1+
= =
100
100
2 2
) (
n
=4. So ,n=36 years .{Power values are equal }
9
Short cut {based on CI only}: Let P = 100, after 9 years 200. Final amount =
1600
100
Basic
200
9 years
400
18 years
800
27 years
1600
36 years
19. What is the difference between compound interest and simple interest for the
sum of 20000 over a 2 year period, if CI is calculated at 20% p.a. and SI is
calculated at 23% p.a.?
1) 200
2) 125
Exp: SI for 2 years,
CI for 2 years,
3) 250
20000
20000 1+
4) 400
23
2=9200
100
2
20
=28800. Interest is 8800
100
Diff is 9200-8800=400
20. If the difference between the simple interest and compound interest on some
amount at 10% pa for 3 years is 372, then what must be the principal amount?
1) 12400
2) 12000
3) 14800
4) 18000
Exp: Diff b/w CI & SI is PCIPSI=P((1+R/100)^n (1+nR/100))
10 3
3 10
(1+
) (1+
)} =
P{
100
100
P=372/0.031= 12000
P{(1.1)31.3 }=372= P(1.3311.3)=0.031 P=372

SI, CI WS Solution

Uploaded by

Copyright:

Available Formats

SI, CI WS Solution

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SI, CI WS Solution

Uploaded by

Copyright:

Available Formats

CDC Department

Simple & Compound Interest

1. Simple interest on an amount after 36 months at the rate of 3% per quarter is

Exp: SI = PRT =720=

Note: R is 3% per quarter, so 36 months is 36/4.

Exp: Amount becomes 8800, So Principal+ SI=8800,

=72 (Time usually calculate per year, so 8 months= 8/12)

Amount paid= Principal+ SI= 900+72=972

Simple & Compound Interest

( P 1005 3 + P 71005 + P1009 6 )=6240

Exp: We know that SI always constant every year

Exp: Let assume two amounts is X at 12% and 1500-X at 14%.

Total interest is 186=

Simple & Compound Interest

9. A sum amounts to 3 times itself at SI in 5 years. In what time will it become 5

So, 5 times means Amount=5P, then SI=4P

Short cut {based on SI only}: Let p=100, Amt=300 in 5 years so SI=200

SI=800, Amt= 900

and CI=Principal + Interest

Then, Interest Amt = 18816-15000=3816

Exp: Interest= CI-P=>

Simplify, P{(1.051.05)-1}=102.5 => P(1.1025-1)=102.5

Simple & Compound Interest

P=102.5/ 0.1025= 1000

Exp: CI Amount= 10000( 100 100 ) = 11772

Amount= 53240, interest= 53240-40000= 13240.

108 108 104

100 100 100

(1+ 1008 )= 108

For 6 months R= 8/2=4%.... so 104/100

Simple & Compound Interest

solve R=9 per annum .

Interest on CI for 1 year =

Solve P=Rs. 900

Simple & Compound Interest

Exp: SI for 2 years,

Exp: Diff b/w CI & SI is PCIPSI=P((1+R/100)^n (1+nR/100))

P{(1.1)31.3 }=372= P(1.3311.3)=0.031 P=372

You might also like