6/16/2019 Simple Interest - Solved Examples - Set 2

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Important Formulas 6. A person borrows Rs.5000 for 2 years at 4% p.a. simple interest. He immediately

More Formulas lends it to another person at 61⁄4% p.a for 2 years. Find his gain in the transaction per
year.
Solved Examples - Set 1

Solved Examples - Set 2 A. Rs. 167.50 B. Rs. 150

Solved Examples - Set 3 {KEYWORD:Solar

C. Rs.225 D. Rs. 112.50
Solved Examples - Set 4 Energy News}
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Solved Examples - Set 5
Here is the answer and explanation
Solved Examples - Set 6

Solved Examples - Set 7 Answer : Option D

Solved Examples - Set 8 Explanation :

Solved Examples - Set 9 ------------------------------------------------------------------------------ Find out about Big

Solved Examples - Set 10 Solution 1
Developments in Solar
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Energy -Nikkei
The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest
Business-
PRT 5000 × 4 × 2
Simple interest that he needs to pay =  = = 400
100 100

He also lends it at 61⁄4% p.a for 2 years

25
5000 × × 2
PRT 4
Simple interest that he gets =  = = 625
100 100

His overall gain in 2 years = Rs.625 - Rs.400 = Rs.225

techon.nikkeibp.co.jp/

225
His overall gain in 1 year =   = Rs.112.5
2

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Solution 2
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The person borrows Rs. 5000 for 2 years at 4% p.a. simple interest

He also lends it at 61⁄4% p.a for 2 years

1 1
6 % − 4% = 2 %
4 4

So his gain in the transaction for 1 year

= The simple interest he gets for Rs.5000 for 1 year at 2 1⁄4% per annum

9
5000 × × 1
PRT 4
= = = 112.5
100 100

7. What will be the ratio of simple interest earned by certain amount at the same rate of
interest for 5 years and that for 15 years?

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6/16/2019 Simple Interest - Solved Examples - Set 2
A. 3 : 2 B. 1 : 3

C. 2 : 3 D. 3 : 1

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Answer : Option B

Explanation :

------------------------------------------------------------------------------------
Solution 1
------------------------------------------------------------------------------------
Let Principal = P

Rate of Interest = R%

PR × 5
( )
100 5 1
Required Ratio =  = = = 1 : 3
PR × 15 15 3
( )
100

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Solution 2
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PRT
Simple Interest = 
100

Here Principal(P) and Rate of Interest (R) are constants

Hence, Simple Interest ∝ T

Simple Interest for 5 years T1 5 1

Required Ratio =  = = = = 1 : 3
Simple Interest for 15 years T2 15 3

8. A sum of money amounts to Rs.9800 after 5 years and Rs.12005 after 8 years at the
same rate of simple interest. The rate of interest per annum is

A. 15% B. 12%

C. 8% D. 5%

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Answer : Option B

Explanation :

Simple Interest for 3 years = (Rs.12005 - Rs.9800) = Rs.2205

2205
Simple Interest for 5 years =  × 5 = Rs.3675
3

Principal(P) = (Rs.9800 - Rs.3675) = Rs.6125

100 × SI 100 × 3675

R =  = = 12%
PT 6125 × 5

9. A certain amount earns simple interest of Rs. 1200 after 10 years. Had the interest
been 2% more, how much more interest would it have earned?

A. Rs. 25 B. None of these

C. Rs. 120 D. Cannot be determined

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6/16/2019 Simple Interest - Solved Examples - Set 2
Here is the answer and explanation

Answer : Option D

Explanation :

Since we do not have the principal and rate of interest, we can not find out the required
details.

10. A man took loan from a bank at the rate of 8% p.a. simple interest. After 4 years he
had to pay Rs. 6200 interest only for the period. The principal amount borrowed by him
was:

A. Rs.17322 B. Rs.20245

C. Rs.18230 D. Rs.19375

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Answer : Option D

Explanation :

Principal(P) = ?

Time(T) = 4 years

Simple Interest(SI) = Rs.6200

R = 8%

100 × SI 100 × 6200

P =  = = Rs.19375
RT 8 × 4

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10

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