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Simple Interest
1.Find the simple interest on Rs. 5200 for 2 years at 6% per annum.

Answer:Option 1

Explanation:

Solution:
P = PrincipalAmountT = TimeperiodR = RateofInterestI=P×T×R100I=5200×2×6100I=624.

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2.Rs. 1200 is lent out at 5% per annum simple interest for 3 years. Find the amount after 3 years.

Answer:Option 1

Explanation:

Solution:
A=P+IA=1200+(PTR100)A=[1200+(1200×5×3100)]Amount,A=Rs.1380

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3.Interest obtained on a sum of Rs. 5000 for 3 years is Rs. 1500. Find the rate percent.

Answer:Option 1

Explanation:

Solution:
LetrateisR%Wehave,I=PTR100Here,1500=5000×3×RThus,R=10%

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4.Find the difference between the simple interest and the compound interest at 5% per annum for 2 years on principal of Rs. 2000.

Answer:Option 1

Explanation:

Solution:
ThedifferencebetweencompoundinterestandsimpleinterestovertwoyearsisgivenbyPr21002orP(r100)2Here,Principal(P)=Rs.2000Rate(r)=5%Nowdifference,D=(2000×5×5)(100×100)D=Rs.5

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5.Find the rate of interest if the amount after 2 years of simple interest on a capital of Rs. 1200 is Rs. 1440.

Answer:Option 1

Explanation:

Solution:
Amount,A=Rs.1440Principal,P=Rs.1200Interest,I=Rs.(14401200)=240R=(240×100)(1200×2)=10%Alternatively,Wecangothroughathoughtprocessi.e.120020%(240in2years)>1400Thatmeans10%riseineachyear

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6.What is the difference between the simple interest on a principal of Rs. 500 being calculated at 5% per annum for 3 years and 4% per annum for 4 years?

Answer:Option 1

Explanation:

Solution:
I1=PT1R1100I1=(500×3×5)100=Rs.75I1=PT2R2100I2=(500×4×4)100=Rs.60Difference=Rs.5Alternatively,Theinterestiscalculatedsimplyandthenitwillhaveariseof15%in1stcaseand16%in2ndcase.Difference=1%on500=Rs.5Otherwise,50015%>575(1stcase)50016%>580(2ndcase)WecanseecleardifferenceofRs.5

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7.What is the simple interest on a sum of Rs. 700 if the rate of interest for the first 3 years is 8% per annum and for the last 2 years is 7.5% per annum?

Answer:Option 1

Explanation:

Solution:
1stcase:I1=700×3×8100=Rs.1682ndcase:I2=700×2×7.5100=Rs.105Thentotalinterestforfiveyears=(I1+I2)=Rs.273Alternatively,Asinterestiscalculatedassimpleinterestsowecanaddupratesforallgiven5yearsandcalculateiteasilyi.e.Forthefiveyearsrate=(8×3+7.5×2)=39%Now,70039%>973Interest=Rs.273Thethoughtcangothisway,weinternallycalculated10%of700=(70010)=70.Then,39%of700=(40%1%)of700=(2807)=273

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8.Find the principal if the interest compounded at the rate of 10% per annum for two years is Rs. 420.

Answer:Option 1

Explanation:

Solution:
Given,Compoundrate,R=10%perannumTime=2yearsCIRs.420LetPbetherequiredprincipalA=(P+CI)Amount,A={P×[1+(R100)]n}(P+CI)={P×[1+10100]2}(P+420)=P×[1110]2P1.21P=4200.21P=420Hence,P=4200.21=Rs.2000

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9.In what time will Rs. 3300 becomes Rs. 3399 at 6% per annum interest compounded half-yearly?

Answer:Option 1

Explanation:

Solution:
P=Rs.3300A=Rs.3399R=6%perannumLetthetimebenyears.Compoundinterestistakenhalf - yearly.A=P×[1+(R2×100)]2n3399=3300(1+3100)2n(1.03)2n=33993300(1.03)2n=(1.03)1Thus,2n=1yearn=12year=6months

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10.Rahul purchased a Maruti van for Rs. 1, 96,000 and the rate of depreciation is 14(2/7) % per annum. Find the value of the van after two years.

Answer:Option 1

Explanation:

Solution:
ValueofmarutiVan,V0=Rs.196000Rateofdepreciation,r=14(27)%=1007%;Time,t=2yearsLetV1isthevalueafterdepreciation.V1=V0×[1(r100)]tV1=196000×[1((1007)100)]2V1=196000×(67)2V1=(196000×36)49V1=Rs.144000

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