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Chapter-17

Simple Interest

Lender and Borrower uniformly on the original principal throughout the

K KUNDAN

loan period, it is called simple interest.

Generally in transactions involving large sums of To explain the meaning of simple interest let

money such as buying a house or a car etc we us suppose that you have borrowed a sum of Rs

borrow money either from a bank or an individual 100 at 10% per annum for 2 years from Mr X. This

or some other agency. The bank or an individual means that at the end of 2 years you would pay Rs

or some other agency from which we borrow money 20 as interest in addition to the principal. Now

is called the lender and the person or a company suppose you had borrowed Rs 100 for 1 year only

who borrows money is called the borrower. The from Mr X. Then you would have to return Rs 100

money borrowed is known as the loan. The amount + Rs 10 = Rs 110 at the end of the year. Mr X has

of loan may be big or small depending upon the Rs 110 now. If Mr X lends this sum again to you

requirement of the borrower. for 1 more year at the same rate, then at the end of

When a borrower borrows some money from a one year he would get his Rs 110 back together

lender, he or she also makes a promise to return it with the interest on this sum. The interest on Rs

after a specified period of time. At the end of the 110 at the rate of 10% per annum would be Rs

specified period, the borrower has not only to pay

the money which he had borrowed but also to pay 10

110 = Rs 11. Hence, Mr X would be having

some additional money for using lenders money. 100

Rs 110 + Rs 11 = Rs 121 at the end of 2 years.

Some Important Terms

Clearly, this amount differs from the amount in

In borrowing and lending money the following the first case. This happens because in the second

terms are commonly used: case the interest is charged on the interest which

(i) Principal: The money borrowed by a borrower he got from you at the end of first year. When the

from the money-lender is known as the principal. interest is charged in this manner, it is known as

(ii) Interest: The additional money paid by the compound interest (We will discuss Compound

borrower to the lender for having used his (her) Interest in detail in the next chapter). If t he

money is called interest. interest is calculated on principal only, it is known

(iii) Amount: The total money paid by t he as simple interest.

borrower to the lender at the end of the specified In this chapter the term interest will be used

period is called the amount. in the sense of simple interest only.

Thus, Amount = Principal + Interest

K KUNDAN

or, A = P + I; Methods for Finding Simple Interest

where, A stands for the Amount, P for Principal

and I for Interest. (i) By Unitary Method:

(iv) Rate: The interest paid for keeping Rs 100

In this method, by using rate per cent per annum

for one year is known as the rate per cent per

(interest on Rs 100 for 1 year) we calculate simple

annum.

interest on the given sum for given period of time.

If the money is borrowed at the rate of 12% per

For example, suppose a man lends Rs 500 at

annum, then the interest paid for keeping Rs 100

10% per annum for 2 years. If we want to find the

for one year is Rs 12.

interest he earns we shall proceed as follows:

Clearly, the interest we pay is proportionate to

Principal = Rs 500, Rate = 10%, Time = 2 years.

the money that we borrow and also to the period of

time for which we keep the money ie the more the

Interest on Rs 100 for one year = Rs 10

money and the time, the more the interest. Interest 10

is also proportionate to the rate of interest agreed Interest on Re 1 for one year = Rs

100

upon by the lending and the borrowing parties.

Interest on Rs 500 for one year

Thus, interest varies directly as principal, time

and rate. 10

= Rs 500

(v) Simple Interest: If interest is calculated 100

Simple Interest 317

We have, Principal (P) = Rs 7300, Rate

500 10 2

= Rs = Rs 100 (R) = 10% per annum and Time (T) = 15th

100 May 2000 to 8th October 2000.

Thus, we say that Rs 100 is the interest on Rs Number of days

500 for 2 years at 10% per annum. This interest = May + June + July + August +

is called Simple Interest. It is abbreviated as SI. Septermber + October

= 16 + 30 + 31 + 31 + 30 + 8

(ii) By Formula: = 146 days

We shall find the simple interest on the sum of Rs

146 2

P invested at R% per annum for T years, from the Time (T) = year = year

above method as given below: 365 5

K KUNDAN

Interest on Rs 100 for 1 year = Rs R

PRT 7300 10 2

Now, SI = = Rs

R 100 100 5

Interest on Re 1 for 1 year = Rs

100 = Rs 292

In this context, you should remember the

RT following:

Interest on Re 1 for T years = Rs

100 73, 146, 219 and 292 days are respectively

Interest on Rs P for T years

1 2 3 4

R , , and of a year.

P R T 5 5 5 5

= Rs P T = Rs

100 100 ( i i) From the above example, it is clear that one

Thus, the simple interest (SI) on Rs P at the should know the number of days in each

rate of R% per annum for T years is given by month.

Mo n t h Number of Days

PRT January 31

SI = ie

100 February 28 or 29*

March 31

Principal Rate Time

Simple Interest = Apr il 30

100 May 31

For example, in the above example, we have June 30

P = Rs 500, R = 10% and T = 2 years July 31

August 31

PRT 500 10 2

SI = = = Rs 100 September 30

100 100 October 31

From this formula, we have November 30

100 SI December 31

(i) P = * February is always of 28 days except the

RT Leap Year. In the Leap Year the month

100 SI February contains 29 days.

(ii) R = Leap Year: Every year which is exactly

K KUNDAN

PT

divisible by 4 such as 1988, 1992, 1996

100 SI etc. is called a leap year.

(iii) T = Also every 4th century is a leap year. The

PR

other centuries, although divisible by 4, are

Important Points not leap years. Thus, for a century to be a

leap year, it should be exactly divisible by

( i ) In the above formulae, time T is in years. If 400. For example,

the time is given in months or days, then (1) 400, 800, 1200, etc are leap years since

we convert it into years by dividing by 12 they are exactly divisible by 400.

or 365 according as the time is given in (2) 700, 600, 500 etc are not leap years

months or days. since they are not exactly divisible by

Note that for counting the number of 400.

days we do not count the day on which ( i ii ) To find Amount, we can also use formula

the money is deposited but we count the as given below:

day of withdrawal. Amount = Principal + Interest

For example, if we have to find the simple

interest on Rs 7300 from 15th may 2000 to PRT RT

A= P = P 1

8th October 2000 at 10% per annum, then 100 100

318 Concept of Arithmetic

Rate Time

or, Amount = Principal 1 we have,

100 P = Principal = Rs 1000

For example, suppose we hav e to f ind R = Rate = 10 paise per rupee per

Amount if the Principal is Rs 800, rate is annum

6% per annum and the time is 4 years. = 100 10 paise per cent per

64 annum

Amount = Rs 800 1 = Rs 10 per cent per annum

100

= 10 per cent per annum

6 and T = Time = 219 days

= Rs 800 1

25 219 3

K KUNDAN

= year = year

31 365 5

= Rs 800

25

3

= Rs (32 31) = Rs 992 PRT 1000 10

SI = = Rs 5

( iv) If the interest is paise per rupee not rupees 100 100

per cent, then we convert it into per cent

by multiplying it by 100.

The following example will illustrate the = Rs 60

computation of simple interest. Now, Amount = Principal + SI

Find the simple int er est and amount = Rs 1000 + Rs 60

when, principal = Rs 1000, rate = 10 paise = Rs 1060

Solved Examples

Ex. 1(i): Find the simple interest on Rs 2400 at Ex.1(iii): A man borrowed Rs 8500 at 12% per

the rate of 10% per annum for 3 years. annum for 3 years. Find the amount he

had to pay after 3 years.

PRT

Soln: Simple Interest = Soln: Principal = Rs 8500

100 Rate = 12% per annum

Time = 3 years

2400 10 3

= = Rs 720

100 PRT 8500 12 3

SI = = Rs

Ex.1(ii): Ajay deposited Rs 6000 in post office 100 100

for 6 months. If the post office pays = Rs 3060

1 Amount to be paid after 3 years

interest at 5 % per annum, find the = Rs 8500 + Rs 3060 = Rs 11560

2

Alternative Method:

interest Ajay got after 6 months.

K KUNDAN

Soln: Here, Principal = Rs 6000 RT

Amount = A = P 1

1 100

Time = 6 months = year

2 12 3

1 = Rs 8500 1

100

Rate = 5 % per annum

2

8500 34

11 = Rs = Rs 11560

= % per annum 25

2

Ex.2(i): Find the simple interest on Rs 800 at

PRT 6000 11 1 t he r ate of 5% per annum fr om 2

SI = = Rs

100 100 2 2 January 1980 to 26 May 1980.

= Rs 165 Soln: Here Principal (P) = Rs 800;

Ajay got Rs 165 as int er est on his Rate (R) = 5% per annum

deposit. Time (T) = From 2 January 1980 to 26

Note: The rate of interest is per annum. May 1980.

Therefore, the time must be expressed in = January + February + March

years. + April + May

Simple Interest 319

146 100

= 146 days = years = Rs

365 136

When amount is Rs 9520, principal

2

= years 100

5 9520 = Rs 7000

= Rs

Since, the year 1980 is exactly divisible 136

by 4, it is a leap year. Therefore, the month Note: From the above example, we see that

of February will be of 29 days.

A 100

PRT 800 5 2 Principal =

100 R T

SI = = Rs

K KUNDAN

100 100 5 Ex. 4(i):At what rate per cent per annum will

= Rs 16 Rs 300 produce Rs 18 as interest in 2

Ex.2(ii): Find the simple interest on Rs 500 at years?

t he r ate of 4% per annum fr om 21

100 SI 100 18

January 1900 to 4 April 1900. Soln: Rate = = = 3%

Soln: P = Rs 500, R = 5% per annum PT 300 2

T = From 21 January 1900 to 4 April Ex.4(ii): At what rate per cent per annum will

1900 Rs 800 amounts to Rs 1000 in 2 years?

= January + February + March + April Soln: Let the required rate per cent be R% per

= 10 + 28 + 31 + 4 annum.

We have,

73 1 Principal (P) = Rs 800,

= 73 days = year = year

365 5 Amount = Rs 1000

Since 1900 is div isible by 4 but not SI = Amount Principal

divisible by 400, therefore, it is not a leap = Rs 1000 Rs 800 = Rs 200.

year . Hence, t he mont h of Febr uar y Time (T) = 2 years.

consists of 28 days.

SI 100

Now, R

PRT 500 4 1 PT

SI = = Rs = Rs 4

100 100 5

200 100 25

Ex. 3(i):What sum lent out at 10% per annum R = % % 12.5%

800 2 2

simple interest would produce Rs 150

as interest in 5 years? Hence, required rate per cent = 12.5% per

Soln: We have, SI = Rs 150, R = Rate per cent = annum.

10% per annum and T = Time = 5 years. Ex.5(i): In what time will Rs 250 produce Rs

We have to find the principal. 125 as interest at the rate of 10% per

annum?

SI 100

Now, Principal = 100 SI 125 100

RT Soln: Time = = = 5 years

PR 250 10

150 100

K KUNDAN

Ex.5(ii): In what time will Rs 8500 amount to

Principal = Rs

10 5 Rs 15767.50 at 9% per annum simple

= Rs 300. interest?

Hence, required sum = Rs 300. Soln: Amount = Rs 15767.50

Ex. 3(ii): What sum will amount to Rs 9520 at Principal = Rs 8500

9% per annum in 4 years at simple SI = Rs 15767.50 Rs 8500 = Rs 7267.50

interest? Rate = 9% per annum

Soln: Rate = 9% , Time = 4 years and Amount 100 SI 7267.50 100

= Rs 9520. Time = =

PR 8500 9

Let principal be Rs 100.

Then simple interest 1

= 9 years

100 9 4 2

= Rs = Rs 36

Ex. 6: A person deposits Rs 4200 in a bank

100

at the rate of 8% per annum interest

Amount = Rs 100 + Rs 36 = Rs 136

and Rs 1400 in a post office at the rate

Now,

of 6% per annum interest. At what rate

When amount is Rs 136, principal per cent will he get interest on his total

= Rs 100

deposits?

320 Concept of Arithmetic

Soln: Let the time be equal and he deposits his Amount in 5 years = Rs (100 2)

money with the bank and the post office = Rs 200

for 1 year. Interest = Rs (200 100) = Rs 100

PRT SI 100 100 100

Interest of bank = Rate = = = 20%

100 PT 100 5

Now in T years Amount = Rs (3 100)

4200 8 1

= Rs = Rs 336 = Rs 300

100 Interest in T years = Rs 300 Rs 100

= Rs 200

PRT

and interest of post office = SI 100 200 100

100

Time = T = =

K KUNDAN

PR 100 20

1400 6 1

= Rs = Rs 84 = 10 years

100 Ex. 8: What sum lent out at 6.25% per annum

Total interest = Rs 336 + Rs 84 produces the same simple interest in 2

= Rs 420 and years as Rs 1500 lent out at 5% produce

Total deposits = Rs 4200 + Rs 1400 in 1 year and 4 months?

= Rs 5600 Soln: Let t he r equired sum of money be

Rs P.

100 SI 420 100 1

Rate = = = 7 % When this sum is lent out at 6.25% per

PT 5600 1 2 annum for 2 years, we have,

Ex.7(i): In how many years will a sum of money

doubl e i tself at 18.75% per annum 25

P 2

simple interest? 4

SI = Rs

Soln: Let the principal be Rs P. Then, Amount 100

= Rs 2P.

We have, Principal = Rs P,

Amount = Rs 2P P

SI = Rs .....(i)

SI = Amount Principal 8

= Rs 2P - Rs P = Rs P

R = rate per cent PRT

= 18.75% per annum. Using : SI 100 , where

Let the required time be T years. Then, R 6.25% 25

% and T 2 years

SI 100 4

T =

PR For the computation of SI on Rs 1500 at

5% per annum lent out for 1 year 4

P 100

T = years months, we have,

P 18.75 P = Rs 1500, R = 5% per annum and

16 16 4

= years = 5 years 4 months Time (T) = years = years

3 12 3

K KUNDAN

Ex.7(ii): At what rate per cent per annum will a

Soln:

sum treble itself in 16 years?

Let the sum be Rs P. Then,

amount = Rs 3P.

SI = Rs (3P P =) Rs 2P.

We have, Time (T) = 16 years.

We have to find the value of R.

Now, R =

100 SI

1500 5

SI = Rs

= Rs 100

100

4

3

.....(ii)

As given in the question that SI is the

same in both the cases.

PT P

= 100

100 2P 8

R = % = 12.5%

or, P = 800.

P 16

Ex.7(iii): A sum of money doubles itself in 5 Hence, the required sum = Rs 800.

years. In how many years will it treble Ex. 9: The simple interest on a sum of money

itself? 1

Soln: Suppose the sum of money is Rs 100. is of the principal and the number

4

Simple Interest 321

of years is equal to the rate per cent When the amount is Rs 150, then the

per annum. Find the rate per cent. sum = Rs 100

Soln: Let the Principal be Rs 100. When the amount is Re 1, the sum

1 100

Interest = of Rs 100 = Rs 25 = Re

4 150

When the amount is Rs 7500, the sum

Suppose rate per cent = x%

time = x years 100 7500

= Rs = Rs 5000

PRT 150

Now, SI = Alternative Method:

100

Let the sum be Rs x.

100 x x

K KUNDAN

or, 25 = x

100 Interest = Rs

2

or, x2 = 25

Amount = Principal + Interest

x = 5%

Ex. 10: A sum of money lent out at si mple x 3x

interest amounts to Rs 2200 in one year = Rs x = Rs

2 2

and Rs 2800 in 4 years. Find the sum

Now, according to the question,

of money and the rate of interest.

Soln: We have, Amount in 4 years 3x

= 7500

= (Principal + SI for 4 years) = Rs 2800 2

Amount in 1 year 7500 2

= (Principal + SI for 1 year) x = = Rs 5000

3

= Rs 2200

On subtracting, we get Principal = Rs 5000 and Interest

SI for 3 years = Rs (2800 - 2200) = Rs 600 5000

= Rs = Rs 2500

600 2

SI for 1 year = Rs = Rs 200.

3 SI 100 2500 100 1

But, Principal Rate = = = 12 %

PT 5000 4 2

= Amount in 1 year - SI for 1 year

Principal = Rs 2200 Rs 200 Ex. 12: A sum of money invested at 20% per

= Rs 2000. annum simple interest amounts to Rs

Now, Principal (P) = Rs 2000, 1

650 in 1 years. What will it amount

SI = Rs 200 and Time (T) = 1 year. 2

to in 2 years at 12% per annum simple

SI 100 interest?

R =

PT Soln: Let the given sum of money be Rs 100.

When it is invested at 20% per annum

200 100

R = % = 10%

2000 1 1

for 1 years, we have

2

K KUNDAN

Hence, Principal = Rs 2000 and rate

= 10% per annum.

Ex. 11: A sum of money amount to Rs 7500 in 3

100 20

4 years. If the simple interest is half PRT 2

SI = = Rs 30

of the sum, then find the sum of money 100 100

and the rate of interest.

Soln: Suppose the sum of money is Rs 100.

Amount = Principal + SI

Simple interest = Half of the sum

= Rs 100 + Rs 30 = Rs 130.

= Rs 50

Now,

Interest on Rs 100 for 4 years = Rs 50 If amount is Rs 130, then principal

Interest on Rs 100 for 1 year

= Rs 100

50 1

= Rs = Rs 12 100

4 2 If amount is Re 1, then principal = Re

130

1 If amount is Rs 650, then principal

Rate = 12 %

2

Now, Rs 100 in 4 years amounts to 100

= Rs 650 = Rs 500.

Rs (100 + 50) = Rs 150 130

322 Concept of Arithmetic

Rs 500. = Rs (3100 - 1600)

When this sum of money is invested at = Rs 1500

12% per annum for 2 years, we have Hence, ratio of money lent

= 1600 : 1500 = 16:15

PRT

SI = Ex. 15: Divide Rs 1550 into two parts such that

100 if one part be lent out at 15% per annum

and the other at 24% per annum, the

500 12 2

SI = Rs = Rs 120. total yearly income is Rs 300.

100 Soln: Let the first part be Rs x.

Amount = Principal + SI Then the second part = Rs (1550 x).

= Rs 500 + Rs 120 = Rs 620. Now, SI on Rs x at 15% per annum for 1

K KUNDAN

Hence, the given sum of money amounts year

to Rs 620.

Ex. 13: A money-lender lends Rs 3600 to Ram x 15 1 3x

= Rs = Rs

for 2 years and Rs 2400 to Shyam for 100 20

3 years. If he gets Rs 864 as interest SI on Rs (1550 - x) at 24% per annum for

find the rate of interest per annum. 1 year

Soln: Let the rate of interst be x% per annum

Interest on Rs 3600 for 2 years 1550 x 24 1

= Rs

100

3600 x 2

= Rs = Rs 72x

1550 x 6

100

= Rs

and the interest on Rs 2400 for 3 years 25

2400 x 3 9300 6x

= Rs = Rs 72x = Rs

100 25

Total interest = Rs (72x + 72x)

3x 9300 6x

= Rs 144x Total SI = Rs

Now, according to the question, 20 25

144x = 864 But, total SI = Rs 300. (Giv en in t he

question)

864

x = = 6% 3x 9300 6x

144 300

Ex. 14: A sum of Rs 3100 was lent partly at 20 25

5% and partly at 8% interest. Total or, 15x + 4 (9300 6x) = 300 100

interest received after 3 years was Rs [Multiplying both sides by the

600. Find the ratio of the money lent LCM of 20 and 25 ie 100]

at 5% and 8%. or, 15x + 37200 24x = 30000

Soln: Suppose money lent at 5% = Rs x or, 9x = 30000 37200

Money lent at 8% = Rs (3100 - x) or, 9x = 7200

Time (T) = 3 years

7200

K KUNDAN

Interest in the first case or, x = = 800

9

x 53 15x

= = Rs So the first part = Rs 800 and the second

100 100 part = Rs (1550 800) = Rs 750.

Interest in the second case Ex. 16: Divide Rs 4350 in two parts so that

3100 x 8 3 the simple interest on the first when

= Rs deposited for one year at 9% per annum

100

and that on the second when deposited

24 (3100 x ) for two years at 10% per annum in a

= Rs

100 bank are the same.

Now according to the question, Soln: Let the first part be Rs x.

Then the second part = Rs (4350 - x).

5x 243100 x For the f irst part, we hav e Principal

600

100 100 = Rs x, rate of interest = 9% per annum

or, 15x + 74400 24x = 60000 and Time = 1 year

or, 9x = 14400

x 9 1 9x

14400 SI = Rs = Rs

or, x = = Rs 1600 100 100

9

Simple Interest 323

For the second part, we have Am an, find the rat e of interest per

Principal = Rs (4350 - x), rate of interest annum.

= 10% per annum and Time = 2 years. Soln: We have, sum borrowed by Amit = Rs 3000

Sum borrowed by Aman = Rs 2500

(4350 x ) 10 2

SI = Rs Difference of sum

100 = Rs 3000 - Rs 2500 = Rs 500

It is given that Amit paid Rs 175 more

204350 x

= Rs interest than Aman. Therefore,

100

It is given that the interest earned on two 1

SI on Rs 500 for 2 years is Rs 175

parts are same. 2

9x 204350 x Now, Principal = Rs 500,

K KUNDAN

100 100 5

Time = years and SI = Rs 175

or, 9x = 20 (4350 - x) 2

[Multiplying both sides by 100]

or, 9x = 87000 20x 100 SI 100 175

Rate = % = 14%

or, 20x + 9x = 87000 PT 5

500

[Transposing 20x on LHS] 2

or, 29x = 87000 Hence, rate of interest is 14% per annum.

87000 Ex. 18: If Rs 640 amounts to Rs 784 in 2 years

or, x = = 3000. 6 months, what will Rs 860 amount to

29

in 4 years at the same rate per cent

First part = Rs 30000 per annum?

Second part = Rs (4350 - 3000) Soln: Let the rate per cent be R% per annum.

= Rs 1350. We have, Principal P = Rs 640

Hence, the two parts are of Rs 3000 and Amount = Rs 784 and

Rs 1350. Time = T = 2 years 6 months

Alternative Method:

Let SI in each case be Re 1. Then, 1 5

= 2 years = years.

P1 = Principal in first case 2 2

100 1 100 SI = Amount - Principal

= Rs = Rs = Rs 784 Rs 640 = Rs 144

9 1 9

SI 100

100 SI Now, R =

PT

Using : P R T

P2 = Principal in second case 144 100

R = % = 9%

5

100 1 640

= Rs = Rs 5 2

10 2

Now, if Rs 860 are invested at the same

100 rate for 4 years. Then,

K KUNDAN

P1 : P2 = : 5 = 20 : 9

9 860 9 4

SI = Rs = Rs 309.60

100

20

So, first part = Rs 4350

29 PRT

= Rs 3000 and Using : SI 100 , P Rs 860,

20 R 9% and T 4 years

second part = Rs 4350

29 Amount = Principal + SI

= Rs 1350. = Rs 860 + Rs 309.60

Hence, the two parts are of Rs 3000 and = Rs 1169.60.

Rs 1350. Ex. 19: The simple interest on a certain sum

Ex. 17: Aman and Amit borrowed Rs 2500 and for 2.5 years at 12% per annum is Rs

Rs 3000 respectively at the same rate 40 less than the simple interest on the

same sum for 3.5 year s at 10% per

1 annum. Find the sum.

of simple interest for 2 years. If

2 Soln: Let the required sum be Rs P.

Amit paid Rs 175 more interest than Case: I. W hen, Pr incipal = Rs P,

324 Concept of Arithmetic

Rat e = 12% per annum and Time Soln: Yearly interest on Rs 1500 at the rate

= 2.5 years. of 10% per annum

In this case, we have SI

PRT 1500 10 1

P 12 2.5 3P = = Rs

100 100

= Rs = Rs

100 10 = Rs 150

Case: II. W hen, Pr incipal = Rs P, and the yearly interest on Rs 1000 at the

Rat e = 10% per annum and rate of 8% per annum

Time = 3.5 years.

In this case, we have 1000 8 1

= Rs = Rs 80

100

P 10 3.5 7P

SI = Rs = Rs Total yearly interest received by both

K KUNDAN

100 20 the sums = Rs 150 + Rs 80 = Rs 230

It is given that the SI in the first case is Both sums = Rs 1500 + Rs 1000 = Rs 2500

Rs 40 less than the SI in the second case. Remaining sum = Rs 4000 Rs 2500

7P 3P = Rs 1500

40 Now,

20 10 Yearly interest on Rs 4000 at the rate of

7P 6P 9.125%

or, 40

20 4000 9.125 1

= Rs = Rs 365

100

P

or, = 40 Remaining interest

20

= Rs 365 Rs 230 = Rs 135

or, P = 40 20 = 800 He wants Rs 135 as a interest on the

Hence, the required sum = Rs 800. remaining sum Rs 1500.

Alternative Method:

Let the principal be Rs 100. SI 100 135 100

Rate = = = 9%

Case I: When, Rate = 12% per annum and PT 1500 1

Time = 2.5 years. In this case, we have

2

P Ex. 21: A man lends of his capital at the

SI = Rs = Rs 30 5

20

Case II: When, Rate 10% per annum and 3

rate of 8% per annum, of his capital

Time = 3.5 years. In this case we have 8

100 12 3.5 at the rate of 10% per annum and the

SI = Rs = Rs 35 r em ai ni ng at the rat e of 12% per

100

annum. If his annual income is Rs 965,

Difference in the simple interests in the then find his capital.

two cases = Rs (35 - 30) = Rs 5 Soln: Suppose the capital = Rs 100

Now,

If the difference is Rs 5, the principal 2

of Rs 100 = Rs 40

K KUNDAN

= Rs 100 5

If the difference is Re 1, the principal

3 75

100 of Rs 100 = Rs = Rs 37.50

= Rs 8 2

5 Remaining capital

If the difference is Rs 40, the principal = Rs (100 40 37.50) = Rs 22.50

Annual interest on Rs 40 at the rate of

100

= Rs 40 = Rs 800

5 40 8 1

8% = Rs = Rs 3.20

Hence, the required sum = Rs 800 100

Ex. 20: A person has Rs 4000. He lends Rs Annual interest on Rs 37.50 at the rate of

1500 at the rate of 10% per annum and

Rs 1000 at the rate of 8% per annum 37.50 10 1

10% = Rs = Rs 3.75

interest. At what rate of interest would 100

he lend the remaining amount so that Annual interest on Rs 22.50 at the rate of

his t ot al yearl y income shoul d be

9.125% of the total sum. 22.50 12 1

12% = Rs = Rs 2.70

100

Simple Interest 325

y t r 100 y

= Rs (3.20 + 3.75 + 2.70) = Rs 9.65 or, z x

100 r t

When annual income is Rs 9.65, then

capital = Rs 100 [Putting the value of x

W hen annual income is Re 1, then from equation (i)]

00 y2 = zx (proved)

capital = Rs Ex. 24: Divide Rs 2379 into three parts so that

9.65

their amount after 2, 3 and 4 years

When annual income is Rs 965, then

may be equal, the rate of interest being

00 5% per annum.

capital = Rs 965 = Rs 10000

9.65 Soln: Let t he sum in f irst , second and

t hir d case be Rs x, Rs y and Rs z

Ex. 22: Divide Rs 2000 into two sums such that,

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respectively.

if the first be put out at simple interest

Now, according to the question,

1 The amount in first case of Rs x.

for 6 years at 3 per cent, and the

2

x 25 11x

1 = Rs x = Rs

second for 3 years at 4 per cent, the 100 10

2

i nter est of t he fi rst sum woul d be The amount in second case of Rs y

double that of the second.

y 35 23y

Soln: Let the first part be Rs x, then = Rs y = Rs

second part be Rs (2000 x). 100 20

The amount in third case of Rs z

x 67 21x

Interest on first part = = Rs z 45 6y

100 2 100

= Rs z = Rs

Interest on second part 100 5

Again, according to the question,

2000 x 3 9

2000 x 27

= = 11x 23y 6y

100 2 200 k

According to the question, 10 20 5

21x 2 2000 x 27 10k 20k 5k

x = ; y = ; and z =

100 200 11 23 6

or, 21x + 27x = 2000 27

10k 20k 5k

x: y : z= : :

2000 27 11 23 6

or, x

48

20k 20k 20k 1 1 1

x = 1125 = : : = : :

Hence, first part = Rs 1125 and 22 23 24 22 23 24

the second part = Rs (2000 1125) 22 23 24 22 23 24 22 23 24

= Rs 875. = : :

Ex. 23: x, y, z are three sums of money such 22 23 24

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that y is the simple interest on x, and = 276 : 264 : 253

z is the simple interest on y for the Dividing Rs 2379 into three parts in

same time and rate. Show that y2 = zx. the ratio 276 : 264 : 253, we get

Soln: Let the rate be r per cent per annum and 276

the time be t years. x= 2379

276 264 253

Now, according to the question,

x t r 276

y = 2379 = Rs 828

100 793

100y 264

or, x ....(i) y = 2379 = Rs 792

t r 793

Again,

y t r 253

z z = 2379 = Rs 759

100 793

Hence, t he t hr ee par t s ar e Rs 828,

y t r

or, x zx Rs 792 and Rs 759.

100

[Multiplying both sides by x]

326 Concept of Arithmetic

debt of Rs 770 due in 5 years, the rate = Rs 480x + Rs 600x + Rs 600

of interest being 5 per cent per annum? = Rs 1080x + Rs 600

Soln: Let Rs P be the annual payment. Total interest paid = Rs 9240 (Given in

The amount of Rs P in 4 years at 5% the question)

1080x + 600 = 9240

4 5 120P

= P 1 or, 1080x = 9240 600 = 8640

100 100

8640

The amount of Rs P in 3 years at 5% or, x = = 8

1080

5 3 115P

= P 1 First rate is 8% and second is 9%.

100 100 Ex. 27: A sum of money was lent at simple

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The amount of Rs P in 2 years at 5%

1

5 2 110P int erest at 11% per annum for 3

2

= P 1

100 100

1

The amount of Rs P in 1 year at 5% years and 4 years respectively. If the

2

5 1 105P difference in interest for two periods

= P 1

100 100 was Rs 412.50, then find the sum?

These four amounts together with the last Soln: Suppose the Principal (P) = Rs 100;

annual payment of Rs P will discharge Rate = 11%

the debt of Rs 770. 1

If the Time (T) = 3 years

120P 115P 110P 105P 2

P 770

100 100 100 100

100 11 7 77

Then SI = Rs = Rs

550P 100 2 2

or, 770

100

1

If the time (T) = 4 years

770 100 2

or, P = = 140.

550

100 11 9 99

Hence annual payment = Rs 140. Then, SI = Rs = Rs

100 2 2

Note: W e hav e a separ ate chapter on

Instalment in which various types of 99 77

questions have been discussed in detail. Difference in SI = Rs

2 2

Ex. 26: A man borrowed Rs 16000 at certain

rate of interest and Rs 20000 at 1% 22

= Rs = Rs 11

higher than the first. He paid Rs 9240 2

as interest in 3 years. Find the two If the difference is Rs 11, Principal

rates at which he borrowed the money. = Rs 100

Soln: Interest on Rs 20000 at 1% for 3 years If the difference is Rs 412.50, Principal

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20000 1 3 100

= Rs = Rs 600 = Rs 412.50 = Rs 3750.

100 11

Interest on Rs 16000 + Rs 20000 at Ex. 28: A sum of money amounts to Rs 944 in

equal rate for 3 years 3 years at a simple interest. If the rate

= Rs 9240 Rs 600 = Rs 8640 of interest be raised by 25 per cent, the

sum am ount s t o Rs 980 duri ng t he

8640 100 same period. Find the sum and the rate

Rate = = 8%

36000 3 of interest.

First rate = 8% and Soln: Let the rate be R

second rate = (8 + 1) = 9% The amount in 3 years = Rs 944

Alternative Method: Let the Principal be P

Let the first rate be x% and the second be Then interest = Rs (944 - P)

(x + 1)%. PRT

Then total interest on Rs 16000 and Rs But SI =

100

20000 in 3 years

PR3

16000 x 3 20000 (x 1) 3 or, 944 P = .... (1)

= Rs + Rs 100

100 100

Simple Interest 327

The rate per cent is increased by its 25%

7000 3 r 4000 2 r

Then the rate per cent =

100 100

25 5R

=R R or, 1450 = 210r + 80r

100 4

1450

Amount after three years = Rs 980 r = = 5%

Interest after three years 290

= Rs (980 - P) Ex. 31: A person invested some amount at the

rate of 12% simple interest and some

R other amount at the rate of 10% simple

P 5 3

980 P = 4 ..... (2) interest. He received yearly interest of

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100 Rs 130. But if he had interchanged the

Dividing equation (1) by equation (2), we am ount s i nvest ed, he woul d hav e

get received Rs 4 more as interest. How

much amount did he invest at different

4 944 P rates?

5 980 P Soln: Suppose the person invested Rs x at the

or, 3920 4P = 4720 5P rate of 12% simple interest and Rs y at

or, 5P 4P = 4720 3920 the rate of 10% simple interest.

or, P = 800

12x 10y

Putting the value of P in equation (1) Then, yearly interest = .

We get, 100 100

944 800 = = 130

100 100 100

or, 14400 = 2400R or, 12x + 10y = 13000

or, 6x + 5y = 6500 .... (i)

14400 If the invested amounts are interchanged,

or, R = = 6%

2400 then yearly interest increases by Rs 4.

Rate = 6% 10 x 12y

Ex. 29: The simple interest on a sum of money = 134

100 100

will be Rs 300 after 5 years. In the next

5 years principal is trebled, what will or, 10x + 12y = 13400

be the total interest at the end of the or, 5x + 6y = 6700 .... (ii)

10th year? Subtracting (ii) from (i), we get

Soln: Simple interest for 5 years = Rs 300 x y = 200 .... (iii)

Now, when pr incipal is tr ebled, t he Adding (ii) to (i), we get

simple interest for 5 years will also be 11x + 11y = 13200

t reble t he simple int er est on original or, x + y = 1200 .... (iv)

principal for the same period. Thus SI for Adding (iii) and (iv), we get

last 5 years when principal is trebled 2x = 1000

K KUNDAN

= 3 300 = Rs 900 x = 500.

Total SI for 10 years = Rs (300 + 900) Putting x = 500 in (iii), we get y = 700.

= Rs 1200 Thus, the person invested Rs 500 at the

Ex. 30: Ramesh borrows Rs 7000 from a bank rate of 12% per year and Rs 700 at the

at SI. After 3 years he paid Rs 3000 to rate of 10% per year.

the bank and at the end of 5 years from Ex. 32: The rate of interest for the first 2 years

the date of borrowing he paid Rs 5450 is 3% per annum, for the next 3 years

to the bank to settle the account. Find is 8% per annum and for the period

the rate of interest. beyond 5 years 10% per annum. If a

Soln: Any sum that is paid back to the bank man gets Rs 1520 as a simple interest

before the last instalment is deducted from for 6 years, how much money did he

the principal and not from the interest. deposit?

Thus, Soln: Let the deposit be Rs 100.

Total interest = Interest on Rs 7000 for 3 Interest for first 2 years at 3% simple

years + Interest on (Rs 7000 - Rs 3000 =) 100 3 2

Rs 4000 for 2 years. interest = Rs = Rs 6

100

328 Concept of Arithmetic

= Rs 40

100 8 2

interest = Rs = Rs 24 When inter est is Rs 40, deposited

100 amount is Rs 100.

Interest for the last year at 10% simple When interest is Rs 1520, deposited

100 10 1 100

interest = Rs = Rs 10 amount = Rs 1520 = Rs 3800

100 40

Practice Exercise

K KUNDAN

1.

2.

Rishi deposit ed Rs 20000 in a f inancial

institution on 28th March, 2000 and closes

his account on 21st August, 2000. If the

institution pays an interest of 9% per annum,

what amount does Rishi get?

One can borrow money from a bank for setting

up a dairy or a poultry farm. Vijay set up a

poultry farm and had to invest Rs 8888 for

9. The simple interest on Rs 1650 will be less

than the interest on Rs 1800 at 4% simple

interest by Rs 30. Find the time.

10. If simple interest on Rs 1800 exceeds the

interest on Rs 1650 in 3 years by Rs 45. Find

the rate per cent per annum.

11. A farmer borrowed Rs 2400 at 12% interest

1

this purpose. Under the rules for loan, the per annum. At the end of 2 year s, he

bank loans at the most 75% of the tot al 2

investment and the person concerned has to cleared his account by paying Rs 1200 and a

inv est t he r emaining 25% of t he t ot al cow. Find the cost of the cow.

investment. The rate of simple interest is 12. Two equal amounts of money are deposited

in two banks each at 15% per annum for 3.5

1 year s and 5 year s respect ively. If t he

12 % per annum. Vijay borrowed as much

2 difference between their interests is Rs 144,

money from the bank as he could under the find each sum.

13. The difference between the interest received

1

rules. After 1 years, he cleared the loan. from two different banks on Rs 500 for 2 years

2 is Rs 2.5. Find the difference between their

How much money did he return to the bank? rates.

3. In how much time will the simple interest 14. A sum was put at SI at a certain rate for 2

on a certain sum be 0.125 times the principal years. Had it been put at 3% higher rate, it

at 10% per annum? would have fetched Rs 300 more. Find the

sum.

1

4. The simple interest on a sum of money is 15. A person lent a certain sum of money at 4%

9 simple interest and in 8 years the interest

of the principal, and the number of years is amounted to Rs 340 less than the sum lent.

equal to the rate per cent per annum. Find Find the sum lent.

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the rate per cent. 16. Arun and Ramu are friends. Arun borrowed a

5. A sum of money doubles itself in 4 years at a sum of Rs 400 at 5% per annum simple interest

simple interest. In how many years will it fr om Ramu. He ret urns the amount with

amount to 8 times itself? interest after 2 years. Ramu returns to Arun

1 2% of the total amount returned. How much

6. A money lender wants of t he amount did Arun receive?

5

17. A person wants to divide a sum of Rs 375000

loaned every year as interest. What is the rate between his son and daughter aged 12 years

of interest? If a farmer borrows Rs 5000 for 1 and 14 years respectively so that when they

year f rom the money lender, what is t he attain the age of 18 years, the amounts to be

amount that he has to pay back altogether? received by each at 5% simple interest per

7. If Rs 450 amounts to Rs 540 at 10% simple annum will be the same. Find the share of

interest, find the principal that amounts to each.

Rs 708 at 9% simple interest in the same 18. Divide Rs 7053 into three parts so that the

period. amount after 2, 3 and 4 years respectively

8. A sum of money lent out at simple interest may be equal. The rates of interest being 4%

amounts to Rs 1440 in 2 years and Rs 2040 in per annum.

7 years. Find the rate of interest per annum. 19. A sum of money at simple interest amounts to

Simple Interest 329

Rs 9440 in 3 years. If the rate of interest is was the original sum borrowed?

increased by 25% , the same sum of money 24. A boy aged 10 years is left with Rs 50000

amounts to Rs 9800 in the same time. Find which is under trust. The trustees invest the

the sum and the rate of interest. money at 4% per annum and pay the minor

20. A person deposited Rs 8000 in a bank. After boy a sum of Rs 1200 for his pocket money at

2 years he withdrew Rs 3000 and at the end the end of each year. The expenses of trust

of 4 years he received an amount of Rs 6800. come out to be Rs 300 per annum. Find the

Find the rate of simple interest. amount that will be handed over to the minor

21. When the rate of interest in a bank is increased boy after he attains the age of 18 years.

from 5% to 6% per annum, a person deposits 25. A man deposits some money in a savings bank

Rs 1000 more into his account. If the annual and at the end of one year earns Rs 15 as

interest now received by him is Rs 110 more interest. He put in another Rs 85 and deposits

K KUNDAN

than that before, find his original deposit. the money for another one year. After the

22. A man derives his income from the investment expiry of this period he gets Rs 420 as the

of Rs 4150 at a certain rate of interest and Rs sum total of the principal and the interest.

3500 at 1 per cent higher than the first. His What amount was originally deposited and

whole income for 4 years is Rs 1211. Find what rate of interest the bank paid?

the rates of interest. 26. Naresh borrowed Rs 28000 from a bank at

23. A sum of money was borrowed at 6% per simple interest. After three years he paid back

annum simple interest. At the end of first Rs 12000 to bank and after two more years

year Rs 6800 was paid off and the rate of he paid back 21800 and settled the account.

interest on the balance was reduced to 5% Find the rate of interest charged by the bank.

per annum. If the interest for the second year 27. At what rate per cent per annum of simple

11 interest, will a sum of money double itself in

was of the interest for the first year, what 12 years?

20

1. Here Principal P = Rs 20000 and 2. Total investment = Rs 8888

Rate R = 9% per annum. Total loan received by Vijay = 75% of Rs 8888

In calculating the time, we count the number

75

of days, excluding t he date on which the = Rs 8888 = Rs 6666.

money was deposited and including the date 100

on which the money was withdrawn.

1

Thus, we have Now, Principal (P) = Rs 6666, Rate (R) = 12 %

Number of days = 3 days (March) + 30 days 2

(April) + 31 days (May) + 30 days (June) + 31

1

days (July) + 21 days (Aug) = 146 per annum and Time (T) = 1 years

2

146 2

Time = 146 days = year = year.

K KUNDAN

365 5 25 3

PRT 6666

Now, interest on Rs 100 for one year = Rs 9 SI = = Rs 2 2

100 100

2 2

Interest on Rs 100 for year = Rs 9 6666 3

5 5

= Rs = Rs 1249.875

16

2 Amount = Principal + SI

Interest on Rs 20000 for year

5 = Rs 6666 + Rs 1249.875

= Rs 7915.875.

2 1

= Rs 9 20000 = Rs 720. Hence, Vijay returned Rs 7915.875 to the

5 100 bank.

Interest = Rs 720. 3. Let the principal be Rs P.

Now, Amount = Principal + Interest We have, Principal = Rs P, SI = 0.125 P and

= Rs 20000 + Rs 720 R = 10% per annum.

= Rs 20720. We have to find the time T.

Thus, the man receives Rs 20720 on 21st

SI 100

August 2000. Now, T =

PR

330 Concept of Arithmetic

0.125P 100

T = years Principal = Rs 450

P 10 SI = Rs 540 Rs 450 = Rs 90

Rate = 10%

12.5P 2.5

= years = years = 1.25 years. SI 100 90 100

10P 2

Time = = = 2 years

4. Let Principal = P, time = R years, rate = T PR 540 10

PTT P Now, in second case, amount = Rs 708

Then Rate = 9% and Time = 2 years

100 9 Let the principal be Rs 100

2 100 PRT 100 9 2

T Then, SI = = = Rs 18

K KUNDAN

9 100 100

10 1 Amount = Principal + Simple Interest

T = 3 = Rs 100 + Rs 18 = Rs 118

9 3

When amount is Rs 118, principal

1 = Rs 100

rate = 3 %

3 100

When amount is Re 1, principal = Rs

5. Let the sum of money be Rs 100. 118

Amount in 4 years = 100 2 = Rs 200 When amount is Rs 708, principal

Simple interest = Rs 200 Rs 100

100 708

= Rs 100 = Rs = Rs 600

118

SI 100 100 100 Note: When, amount, rate per cent per annum

Rate = = = 25% and time is given, to find sum we can apply

PT 100 4

Now, amount in T years = Rs 100 8 the formula as given below:

= Rs 800 100 Amount

Interest in T years Sum = 100 R T

= Rs (800 100) = Rs 700

In the above case,

SI 100 700 100

Time = T = = = 28 years 100 708 100 708

PR 100 25

Sum = Rs = Rs

Alternative Method: 100 (2 9) 100 18

A sum of money doubles in 4 years.

3 times in 4 2 = 8 years 100 708

= Rs = Rs 600

4 times in 4 3 = 12 years 118

... ... ... ... ... ... 8. According to the question,

... ... ... ... ... ... Principal + SI for 2 years = 1440 ....... (i)

... ... ... ... ... ... Principal + SI for 7 years = 2040 ....... (ii)

8 times in 4 7 = 28 years Subtracting (i) from (ii), we have

1 SI for 5 years = Rs 600

SI for 1 year = Rs 120

K KUNDAN

6. Since t he money lender wants of the

5

From (i), we have

amount loaned every year as interest. So, if Principal + 120 2 = 1440

money lender gives a loan of Rs 100, then or, Principal = 1200

1 100 SI 100 120

interest after one year = Rs 100 = Rs 20. Rate of interest = 10%

5 PT 1200 1

Thus, the rate of interest is 20% per annum. 9. We may consider that Rs (1800 - 1650) gives

Now, interest on Rs 100 for one year = Rs 20. interest of Rs 30 at 4% per annum.

20 30 100

Interest on Re 1 for one year = Re Time = = 5 years.

100 150 4

Hence, interest on Rs 5000 for one year 10. First principal = Rs 1800

Second principal = Rs 1650

20

= Rs 5000 = Rs 1000 Difference = Rs 1800 Rs 1650 = Rs 150

100 Rs 45 in SI on Rs 150 in 3 years.

Amount to be paid = Principal + Interest

= Rs 5000 + Rs 1000 = Rs 6000 SI 100 45 100

Rate % = = = 10%

PT 150 3

Simple Interest 331

Rate of Interest R = 12% per annum and or, x = 5000

Thus, the sum = Rs 5000

1 5

Time T = 2 years = years 15. Let the sum be Rs x.

2 2 Now, according to the question,

ie Interest on Rs 100 for one year = Rs 12 x 84

x 340

5 100

Interest on Rs 100 for years

2 8x

or, x 340

5 25

= Rs 12 = Rs 30. or, 8x = 25x 25 340

2

or, 17x = 25 340

K KUNDAN

5 30 340 25

Interest on Re 1 for years = Re

x = = Rs 500

2 100 17

5 Sum lent = Rs 500

Hence, interest on Rs 2400 for years 16. Here, borrowed sum = Rs 400

2

Rate of interest = 5% per annum

30 Time = 2 years

= Rs 2400 = Rs 720

100 400 5 2

Amount = Principal + Interest SI = Rs = Rs 40

100

= Rs 2400 + Rs 720 = Rs 3120.

After 2 years amount returned to Ramu

It is given that the farmer cleared his account

= Principal + SI

by paying Rs 1200 and a cow.

= Rs (400 + 40) = Rs 440

Therefore, Amount = Rs 1200 + Cost of the

Amount returned to Arun = 2% of Rs 440

cow

or, Rs 3120 = Rs 1200 + Cost of the cow 2

or, Cost of the cow = Rs 3120 Rs 1200 = 440 = Rs 8.80

100

= Rs 1920.

17. The son aged 12 years will attain the age of

12. Let the sum be Rs x, then

18 years after (18 12 =) 6 years.

x 15 5 x 15 7 The daughter aged 14 years will attain the

144

100 200 age of 18 years after (18 14 =) 4 years.

Let the sum allotted to the son be Rs x

or, 150x 105x = 144 200

Sum allotted to the daughter

144 200 = Rs (375000 x)

x = = Rs 640 Then, according to the question,

45

Amount of Rs x for 6 years at 5% rate of

500 2 r1 interest

13. I1 10 r1

100 = Amount of Rs (375000 x) for 4 years at 5%

rate of interest.

500 2 r2

K KUNDAN

I2 10 r2 x 65 (375000 x ) 4 5

100 x (375000 x )

100 100

I1 I 2 10 r1 10 r2 = 2.5 3x 1

or, x (375000 x ) 1

2.5 10 5

or, r1 r2 = 0.25%

10 13x 6

or, (375000 x )

14. Let the sum be Rs x and the original rate be 10 5

y% per annum. Then, new rate = (y + 3)%

per annum. 13x

or, 6 (375000 x )

Now, according to the question, 2

x (y 3) 2 x (y ) 2 or, 13x = 4500000 12x

300 or, 13x + 12x = 4500000

100 100

2xy 6x 2xy 4500000

or, 300 or, x = = 180000

100 25

Sum allotted to the son = Rs 180000 and

xy 3x xy the sum allotted to the daughter

or, 300

50 = Rs (375000 180000) = Rs 195000

332 Concept of Arithmetic

18. Let the sum in first, second and third case be Dividing equation (1) by equation (2), we get

Rs x, y and z respectively.

4 9440 P

Now, according to the question,

The amount in first case of Rs x 5 9800 P

P = 8000

x 2 4 27x

= Rs x = Rs Putting the value of P in equation (1), we get

100 25 R = 6%.

The amount in second case of Rs y Alternative Method:

Let the principal be Rs P and the rate of

y 3 4 28y

= Rs y = Rs interest be R%

100 25 In first case, applying the SI formulae

The amount in third case of Rs z

RT

K KUNDAN

z 44 29z A = P 1

100

= Rs z = Rs

100 25

3R

Again, according to the question, 9440 = P 1

100

27x 28y 29z

k 9440 100

25 25 25 or, P

100 3R

25k 25k 25k In second case

x= , y = and z =

27 28 29

5R 3

25k 25k 25k 1 1 1 9800 = P 1

: : : : 4 100

x: y : z = =

27 28 29 27 28 29

or, x : y : z 400 15R

or, 9800 P

400

27 28 29 27 28 29 27 28 29

= : :

27 28 29 9800 400

or, P

or, 812 : 783 : 756 400 15R

But the principal in both the cases is same.

812

Now x = 7053 = Rs 2436 So computing the principal in both the cases,

812 783 756 we get

783 9440 100 9800 400

y = 7053 = Rs 2349

812 783 756 100 3R 400 15R

756 944 980 4

z = 7053 = Rs 2268. or,

812 783 756 100 3R 400 15R

19. Let the rate be R.

or, 944 400 15R 980 4100 3R

The amount in 3 years = Rs 9440.

Let the principal be P. or 944 400 944 15R 980 400 980 12R

Then, interest = Rs (9440 P)

K KUNDAN

or, 377600 14160R 392000 11760R

PRT or, 14160R 11760R 392000 377600

But SI =

100

or, 2400R 14400

PR3

or, (9440 P) = ....(1) 14400

100 or, R = 6%

2400

In the second case,

The required rate percentage is 6% .

The rate per cent is increased by its 25%.

2 0 . Let the rate of interest be R% per annum.

25 5R Since Rs 8000 were with the bank for 2 years

Then, the rate per cent = R R

and the balance ie Rs (8000 - 3000) = Rs 5000

100 4

Amount after three years = Rs 9800 were with the bank for 4 years. Therefore,

Interest after three years = Rs (9800 P) Total SI earned = SI on Rs 8000 for 2 years +

SI on Rs 5000 for 4 years

5R

P 3 8000 R 2 5000 R 4

or, (9800 P) = 4 ....(2) = Rs + Rs

100 100

100

= Rs 160R + Rs 200R = 360 R

Simple Interest 333

= Rs 1800 Simple Interest at 6% for one year

360 R = 1800 6 1 x 6x

1800 100 100

R = = 5

360

6x 106x

Hence, required rate of interest = 5% per Amount = x

annum. 100 100

Alternative Method: Principal for second year after return of Rs

We have, interest received 6800

= Rs (3000 + 6800 - 8000) = Rs 1800 106x

(SI on Rs 8000 for 2 years) + (SI on Rs 5000 6800

for 4 years) = Rs 1800 100

K KUNDAN

or, (SI on Rs (8000 2) for 1 year) + (SI on Rs Simple interest at 5% on this amount

(5000 4) for 1 year) = Rs 1800 106 x 5

or, (SI on Rs 16000 for 1 year) + (SI on Rs 6800

20000 for 1 year) = Rs 1800 100 100

or, SI on Rs 36000 for 1 year = Rs 1800 Now according to the question,

or SI on Rs 100 for 1 year 6x 11 106 x 5

6800

1800 100 20 100 100

= Rs 100 = Rs 5

36000

66x 106x 6800 5

Hence, required rate of interest or, 5

2000 10000 100

= 5% per annum.

21. Let the original deposit be Rs P. 6800 5 106x 5 66x

Then, simple interest on Rs P for one year at or,

100 10000 2000

(6 5)% = 1% per annum + SI on Rs 1000 for

one year at 6% per annum = Rs 110. 530x 66x 530x 330x

or, 340 =

P 1 1 1000 6 1 10000 2000 10000

or, 110

100 100 200x

P or, 340

60 110 10000

or,

100

340 10000

P or, x 17000

or, 110 60 200

100

the required amount is Rs 17000.

P 24. Principal in this case = Rs 50000

or, = 50 Rate of interest per annum = 4%

100

So, interest for one year

or, P = 50 100 = 5000

Hence, original deposit = Rs 5000. 4

= 50000 = Rs 2000

2 2 . Let the first rate be x% and the second be 100

(x + 1)%.

K KUNDAN

Expenditure per annum = Pocket money of

Then total interest on Rs 4150 and Rs 3500 the boy + expenses of trust

in 4 years = Rs (1200 + 300) = Rs 1500

4150 x 4 3500 (x 1) 4 Net earnings per annum

= Rs + Rs = Rs 2000 Rs 1500 = Rs 500

100 100

Time after which boy will attain the age of 18

= Rs 166x + Rs 140 (x + 1) years = 8 years

= Rs (306x + 140) Total income at the end of 8 years

Total income = Rs 1211 = 8 500 = Rs 4000

306x + 140 = 1211 Total amount given to the boy at the end of 18

or, 306x = 1211 140 = 1071 years = Rs 50000 + Rs 4000 = Rs 54000.

1071 7 1 25. Let the Principal be P and the Rate R%

or, x = 3 %

306 2 2 P R 1

15

1 100

First rate is 3 % and the second rate is

2 PR

or, = 15

1 1 100

3 % 1 4 % . PR = 1500

2 2

334 Concept of Arithmetic

= Rs (P + 100) annum.

After 3 years

R

Amount = (P + 100) 1 Principal = Rs (28000 12000) = Rs 16000

100 Interest charged by the bank

= Rs (12000 + 21800 28000)

PR

or, 420 = P + + 100 + R = Rs 5800

100 According to the question,

1500 28000 3 x 16000 2 x

or, 420 = P + + 100 + R = 5800

100 100 100

= P + 15 + 100 + R [ PR = 1500] or, 840x + 320x = 5800

K KUNDAN

or, P + R = 305 or, 1160x = 5800

or, (P R)2 (P R)2 4PR (305) 2 4 1500 5800

or, x = = 5

2

or, (P R) 93025 6000 87025 1160

Rate of interest = 5% per annum.

or, (P R)2 87025 295 27. Let the principal be Rs P

Now, P + R = 305 .....(i) Amount = Rs 2P

P R = 295 .....(ii) SI = Rs (2P P) = Rs P

Now, on adding equations (i) and (ii), we have, SI 100 P 100

2P = 600 Rate = Principal Time P 12

600

or, P = = 300 25 1

2 = 8

On putting the value of P in either equation 3 3

(i) or in equation (ii), we have, 1

R = 5 Hence the required rate per cent = = 8 %.

3

Principal = Rs 300 and Rate = 5%.

K KUNDAN

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