SI&CI - 1

SIMPLE INTEREST AND COMPOUND INTEREST

9. Rs 3000 invested at simple interest rate 6 percent
1. Sudha borrowed Rs 400 from her friend at the rate
per annum, Rs 900 is obtained as interest in certain
1 years. In order to earn Rs 1600 as interest on
of 12% per annum for 2 yr . The interest and the
2 Rs 4000 in the same number of years, what should
amount paid by her were be the rate of simple interest ?
(a) Rs 140, Rs 540 (b) Rs 130, Rs 530 (a) 7%
(c) Rs 125, Rs 525 (d) Rs 120, Rs 520 (b) 8%
2. A borrowed Rs 5000 from B at simple interest. (c) 9%
After 4 yr., B received Rs 1000 more than the (d) Data inadequate
amount given to B on loan. The rate of interest was 10. If x is the simple interest on y and y is the simple
(a) 5% (b) 25% interest on z, the rate % and the time being the same
(c) 20% (d) 4% in both cases, what is the relation between
x, y and z ?
3. Mukul invested an amount of Rs 12000 at the simple
interest rate of 10 percent and another amount at (a) x2 = yz (b) y2 = xz
the simple interest rate of 20 percent per annum. (c) z2 = xy (d) xyz = 1
The total interest earned at the end of one year on 11. A sum of money amounts to Rs 6690 after 3 yr and
the total amount invested became 14 percent per to Rs 10035 after 6 yr on compound interest. The
annum.The total amount invested was sum is
(a) Rs 22,000 (b) Rs 25,000 (a) Rs 4460 (b) Rs 3650
(c) Rs 20,000 (d) Rs 24,000 (c) Rs 4535 (d) Rs 2800
4. What annual instalment will discharge a debt of 12. Anu borrows a sum of Rs 1200 at the beginning of
Rs 47250 due 3 yr hence at the rate of 5% simple a year. After 4 months, Rs 1800 is borrowed at a
interest ? rate of interest double the previous one. At the end
(a) Rs 15500 (b) Rs 16000 of the year, the sum of interest on both the loan is
(c) Rs 15000 (d) Rs 14000 Rs 216. What is the first rate of interest per
annum ?
5. Arun borrowed a sum of money from Jayant at the
rate of 8% per annum simple interest for the first (a) 9% (b) 6%
4 yr, 10% per annum for the next 6 yr and 12% per (c) 8% (d) 12%
annum for the period beyond 10 yr if, he pays a 13. Seema invested an amount of Rs 16000 for two years
total of Rs 12160 as interest only at the end of 15 yr, at compound interest and received an amount of
how much money did he borrow ? Rs 17640 on maturity. What is the rate of interest ?
(a) Rs 8000 (b) Rs 10000 (a) 8% (b) 5%
(c) Rs 12000 (d) Rs 9000 (c) 4% (d) 3%
6. At what rate of interest per annum will a sum 14. Rs 7500 is borrowed at CI at the rate of 4% per
becomes 5 times in 20 yr at SI ? annum. What will be the amount to be paid after 6
(a) 20% (b) 16% months, if interest is compounded quaterly ?
(c) 25% (d) 10% (a) Rs 7650.75 (b) Rs 7230.25
7. Anish borrowed Rs 15000 at the rate of 12% and (c) Rs 7215.30 (d) Rs 7035.16
another amount at the rate of 15% for two yr. The 15. A merchant commences with a certain capital and
total interest paid by him was Rs 9000. How much gains annually at the rate of 25%. At the end of
did he borrow ? 3 yr his capital is worth Rs 10000. What was his
(a) Rs 32000 (b) Rs 33000 original capital ?
(c) Rs 30000 (d) Rs 63000 (a) Rs 5120 (b) Rs 5220
8. A person lent a certain sum of money at 4% simple (c) Rs 5210 (d) Rs 5130
interest and in 5 yr the interest amounted to
Rs 520 less than the sum lent. The sum lent was
(a) Rs 600 (b) Rs 650
(c) Rs 700 (d) Rs 750

Einstein Classes, Unit No. 102, 103, Vardhman Ring Road Plaza, Vikas Puri Extn., Outer Ring Road
New Delhi – 110 018, Ph. : 9312629035, 8527112111
 SI&CI - 2
16. Rs 25000 is borrowed at CI at the rate of 3% for
the first year, 4% for the second year and 5% for
the third year. The amount to be paid after 3 yr will
be
(a) Rs 28119 (b) Rs 29118
(c) Rs 28129 (d) Rs 28117
17. The compound interest on Rs 2000 at 5% per
annum, compounded yearly for 2½ yr is
(a) Rs 260.12 (b) Rs 214.25
(c) Rs 250.25 (d) Rs 210.10
18. At what rate percent will the compound interest,
does a sum of money become four fold in 2 yr ?
(a) 150% (b) 100%
(c) 200% (d) 75%
19. The simple interest on a certain sum of money for
2 yr at 5% per annum is Rs 100. The compound
interest at the same rate and for the same time will
be
(a) Rs 102.50 (b) Rs 103
(c) Rs 103.50 (d) Rs 102.25
20. The simple interest on a certain sum of money for
2 yr at 6% per annum is Rs 300. The compound
interest at the same rate for the same time will be
(a) Rs 310 (b) Rs 308
(c) Rs 307 (d) Rs 309

Einstein Classes, Unit No. 102, 103, Vardhman Ring Road Plaza, Vikas Puri Extn., Outer Ring Road
New Delhi – 110 018, Ph. : 9312629035, 8527112111
 SI&CI - 3
ANSWERS
1. d 2. a 3. c 4. c 5. a 6. a 7. b
8. b 9. b 10. b 11. a 12. b 13. b 14. a
15. a 16. a 17. a 18. b 19. a 20. d

SOLUTIONS

400  5  12 P  4 5
1. SI   Rs 120 8. ( P  520) 
2  100 100
A = P + SI = (400 + 120) = Rs 520  100P – 52000 = 20P  80P = 52000
P = Rs 650
5000  R  4
2. 1000 
100 3000  T  6
9.  900
100
1000  100
 R  5%
5000  4 900
 T  5 yr
3. Let the total amount invested be Rs x. 180

x  14 1200  10 ( x  12000)  20 yRT 100x

Then,   10. x  RT  ...(i)
100 100 100 100 y
 0.14x = 1200 + 0.2x – 2400
zRT 100y
 x = Rs 20000 and y  RT  ...(ii)
100 z
 x 2 5   x  1 5  From Eqs. (i) and (ii), we get
4. x  x   x  47250
 100   100 
100x 100y
  y 2  xz
 x = Rs 15000 y z
5. Interest for 4 yr @ 8% + interest for 6 yr @ 11. Let the sum be Rs P.
10% + interest for 5 yr @ 12%
3
= 32 + 60 + 60 = 152%  R 
Then, P 1    6690 ...(i)
 100 
P  152
 12160   P  Rs 8000
100 6
 R 
and P 1    10035 ...(ii)
n1  100 
6. R  100
t
On dividing Eq. (ii) by (i), we get
51 3
  100  20%  R  10035 3
20 1    
 100  6690 2
15000  12  2 P  15  2
7.    9000
100 100 3
From Eq. (i), P   6690 or P  Rs 4460
2
P  30
  (9000 – 3600)  5400
100
 P = Rs 18000
 Total sum borrowed = Rs (18000 + 15000)
= Rs 33000

Einstein Classes, Unit No. 102, 103, Vardhman Ring Road Plaza, Vikas Puri Extn., Outer Ring Road
New Delhi – 110 018, Ph. : 9312629035, 8527112111
 SI&CI - 4
12. Let the rate of interest be R%. 2
 R   R/2
Then, interest earned from Rs 1200 at the end of 17. A  P 1    1  
the year  100   100 

1200R 2
  Rs 12 R  105   205 
100  2000   
 100   100 
Again, interest earned from Rs 1800 at the end of
the year = Rs 2260.12
 CI = Rs (2260.12 – 2000) = Rs 260.12
1800 8
   2R  Rs 24 R 2 2
100 12  R   R 
18. 4  1    ( 2) 2   1  
So, total interest earned = 36 R,  100   100 
which equals 216  R = 100%
216 P 2 5
 R  6% 19. 100   P = Rs 1000
36 100
n 2
A  R  17640  R  105 105
13.  1   or  1   CI = 1000    1000
P  100  16000  100  100 100
= Rs 102.50
2 2
17640  R   21 
  1     P  2 6
16000  100   20  20. 300   Rs 2500
100
R 21 106 106
or 1  A  2500    Rs 2809
100 20 100 100
 R = 5%  CI = 2809 – 2500 = Rs 309
1
4
 4  2
14. A  75001  
 100 

7500  101  101


100  100
= Rs 7650.75
15. Let his initial capital be Rs x.

125 125 125

Then, x     10000
100 100 100
3
5
x     10000
4

10000  4  4  4
x
5 5 5
x = Rs 5120

25000  103  104  105

16. A  Rs 28119
100  100  100

Einstein Classes, Unit No. 102, 103, Vardhman Ring Road Plaza, Vikas Puri Extn., Outer Ring Road
New Delhi – 110 018, Ph. : 9312629035, 8527112111