1. Principal :The money borrowed or lent out for a certain period is called the principal or the sum.
2. Interest :Extra money paid for using other’s money is called interest.
3. Simple Interest (S.I.) :If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.
Let the principal = P, Rate = R% per annum (p.a) and Time = T years. Then ,
1. S.I. = (P x R x T )/ 100)
2. P = (100 x S.I.) / R x T)
3. R = (100 x S.I) / P x T)
4. T = (100 x S.I.) / P x R)
1. In how much time will a sum become double of itself at 12.5% per annum simple interest?
2 . A sum of money become 8/5 of itself in 5years at a creation rate of simple interest. Find the rate.
3. karim deposit a sum of Rs9000 in a bank after 2year he withdraw Rs 4000 and at the end of 5years,
he received R7640 . Find the rate
4. Divide Rs 3000 into two parts so that the simple interest on the first part for 4 years at 8% per
annum is equal to the simple interest on the second part for 2years at 9% per annum.
5. Divide Rs 6000 into two parts so that the simple interest on the second part for 11/2 years at 10%
per annum.
6. Divide 3600 into two parts such that if one part be lent at 9% per annum and other at 10% per
annum .The total annual income is Rs 333.
7. Minakshi deposited a sum of Rs 8000 in a bank. After one year she withdraws Rs 2000. At the end
of 3yrs. She received Rs 7800. Find the rate?
8. Hari and Ajit borrowed Rs 8000 and Rs 6250 respectively at same rate of interest for 3 years. If Hari paid an interest of Rs 735 more than Ajit . Find the rate?
9. A merchant borrowed Rs 25000 from two money tenders. For one loan he paid 12% per annum
simple interest and for the other he paid 14% per annum. The total interest paid by him in one year was
Rs 3260. How much did he borrow at each rate?
10. Kanti borrowed some money from bank at 8% per annum simple interest and lent the entire
Amount to Satish on the same day at 12% per annum. after 3 years, He gained Rs 420. Find the sum.
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