6/15/2018 Quant Booster on Simple Interest for Teaching Exams

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Quant Booster on Simple Interest for Teaching Exams

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To make the chapter easy for you all, we are providing you all some Important
Short Tricks to solve Simple Interest Questions which will surely make the chapter
easy for you all.
Important Short Tricks to solve Simple Interest Questions:
Interest is the money paid by the borrower to the lender for the use of money lent.
The sum lent is called the Principal. Interest is usually calculated at the rate of so
many rupees for every Rs.100 of the money lent for a year. This is called the rate
per cent per annum.
‘Per annum’ means for a year. The words ‘per annum’ are sometimes omitted. Thus,
6 p.c. means that Rs.6 is the interest on Rs.100 in one year.
The sum of the principal and interest is called the amount. The interest is usually
paid yearly, half-yearly or quarterly as agreed upon.
Interest is of two kinds, Simple and Compound. When interest is calculated on the
original principal for any length of time it is called simple interest. Compound
interest is de ned in the next chapter.
To nd Simple Interest, multiply the principal by the number of years and by the
rate percent and divide the result by 100.
This may be remembered in the symbolic form

Where I = Interest, p = principle, t = number of years, r = % rate

Ex. 1. Find the simple interest on Rs.400 for 5 years at 6 percent.
Solution:

Interest for a number of days

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6/15/2018 Quant Booster on Simple Interest for Teaching Exams

When the time is given in days or in years and days, 365 days are reckoned to a
year. But when the time is given in months and days, 12 months are reckoned
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year and 30 days to the month. The day on which the money is paid back should be
include be but not the day of which it is borrowed, ie, in counting, the rst day is
omitted.
Ex. 2. Find the simple interest on Rs.306. 25 from March 3 rd to July 27 th at

 per annum.
Solution:
Interest = Rs. 

 = Rs. 4.59
To nd principal:-
Since I = 

              
Ex.3. What sum of money will produce Rs.143 interest in 3(1/4)  years at 2.50 p.c.
simple interest?
Solution:
Let the required sum be Rs. P. Then
Rs P = 

To nd rate %:-
Since I = 

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6/15/2018 Quant Booster on Simple Interest for Teaching Exams

              
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Ex. 4. A sum of Rs.468.75 was lent out at simple interest and at the end of 1 year 8
months the total amount was Rs500. Find the rate of interest per cent annum.
Solution:
Here, P =Rs468.75, t =

 or 

I = Rs.(500-468.75) = Rs.31.25
rate p.c. = 

To nd Time:-
Since, I = P t r / 100                        

Ex. 5. In what time will Rs.8500 amount to Rs.15767.50 at

 per cent per annum?

Solution:
Here , interest = Rs.15767.50 – Rs.8500 =Rs.7267.50

Miscellaneous Examples of Simple Interest:

Ex.6: The simple interest on a sum of money is 1/9 th of the principal, and the
number of years is equal to the rate per cent per annum. Find the rate per cent.
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6/15/2018 Quant Booster on Simple Interest for Teaching Exams

Solution:
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Let principal = P, time = t year, rate = t
Then,    

           
Hence, rate =

 %
Direct formula:
Rate = time =

 %
Ex. 7: The rate of interest for the rst 2 yrs is 3% per annum, for the next 3 years is
8% per annum and for the period beyond 5 years 10% per annum.To fetch an
interest of 1520 in six years, money did he deposit?
Solution
Let his deposit be = Rs 100
Interest for rst 2 yrs = Rs 6
Interest for next 3 yrs = Rs 24
Interest for the last year = Rs 10
Total interest = Rs 40
When interest is Rs 40, deposited amount is Rs 100
when interest is Rs 1520, deposited amount =

 = Rs 3800
Direct formula:
Principle = Interest*100/r 1 t 1 +r 2 t 2 +r 3 t 3 … =

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6/15/2018 Quant Booster on Simple Interest for Teaching Exams

 =Rs 3800
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 Ex.8: A sum of money doubles itself in 10 years at simple interest. What PRACTICE
is the rateSEARCH
of interest?
Solution:
Let the sum be Rs 100
After 10 years it becomes Rs 200
Interest = 200 - 100 = 100
Then, rate = 

 = 

Direct formula:
Time × Rate = 100 (Multiple numbers of principal – 1)
Or, Rate = 

Using the above formula rate = 

Ex.9: A sum was put at a certain rate for 2 yrs. Had it been put at 3% higher rate, it
would have fetched Rs 300 more. Find the sum.
Solution:
Let the sum be Rs x and the original rate be y% per annum. Then, new rate = (y+3) %
per annum

xy +3x – xy =15,000 or, x =5000

Thus, the sum =Rs 5000
Direct Methods:- 

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6/15/2018 Quant Booster on Simple Interest for Teaching Exams

 = 
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Thanks 
Team gradeup
GradeUp Team

221 upvotes 60 comments

Tags : Teaching Exams CTET Mathematics

Posted by:

Ashish
May 28 Teaching Exams

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Navi Saini Sep 28

Thanks sir
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