Simple Interest

1.Find the simple interest and maturity amount on

a) Rs. 5,000 for 4 yeas at 8% p.a.

b) Rs. 7,000 for 3 years at 6% p.a.

c) Rs. 4,500 for 6 years at 14.5% p.a.

d) Rs. 3,500 for 4 years at 12 2/3 % p.a.

e) Rs. 22,000 for 6 years and 9 months at 18 % p.a.

f) Rs. 45,000 for 3 years and 2 months at 6.2 % p.a.

g) Rs. 1,35,000 for 4 years and 7 months at 11 1/3 % p.a.

h) Rs. 55,000 for 8 years and 9 months at 3 % p.m.

i) Rs. 62,000 for 2 years and 4 months at 1.5% p.m.

j) Rs. 18,000 for 73 days at 2 1/3 % p.m.

k) Rs. 92,000 for 292 days at 14% p.a.

l) Rs. 5,000 from May 2 to July 14 at 7% p.a.

m) Rs. 12,000 from 10th January to 11th March in a leap year at 6% p.a.

n) Rs. 42,000 from 6 th January 2004 to 7th July 2004 at 13.5% p.a.

2) An amount given on simple interest of 9% per year becomes Rs. 7620 after 3 years. What was the
principal amount?

3) An amount given on simple interest of 12% per annum becomes Rs. 86,400 after 5 years. What was
the principal amount?

4) An amount given on simple interest of 1% per month becomes Rs. 44,000 after 10 years. What was
the principal amount?

5) An amount given on simple interest of 2% per month becomes Rs. 87,680 after 146 days. What was
the principal amount?

6) An amount given on simple interest of 11.5% per annum becomes Rs. 56,100 after 3years and 6
months. What was the principal amount?

7) In how many years do an amount becomes 3 times itself at 5% simple interest?

8) In how many years do an amount doubles itself at 8% simple interest?

9) At what rate of interest will Rs. 15,000 become Rs. 25,500 in 10 years?

10) At what rate of interest will Rs. 6500 becomes Rs.9100 in 8 years?
11) The interest on a certain sum of money at the end of 3 ½ years amounts to 7/8 of the sum itself.
What rate percent was charged?

12) If the rate of interest is reduced from % 7 ½ to 5 ½ % per year, find the decrease in a half yearly
interest on Rs. 10,000.

13) If the rate of interest is reduced from 6 2/5 % to 3 3/5 % per year, find the decrease in a half yearly
interest on Rs. 12,500.

14) A man borrows Rs. 1,00,000 on S.I. at the rate of 10% per annum. After 4 years he pays back Rs.
70,000, how much he has to pay after 10 years to clear the loan?

15) A man borrows Rs. 25,000 on S.I. at the rate of 13.5% per annum. After 4 years and 3 months he
pays back Rs. 15,737.50, how much he has to pay after 9 years to clear the loan?

16) Divide Rs. 50,000 into two parts such that simple interest on one at 8% per annum for 5 years may
be double to that on the other at 6 % per annum for 6 years.

17) Divide Rs. 1,00,000 into two parts such that simple interest on one at 10 % per annum for 10 years
may be double to that on the other at 7 % per annum for 15 years.

18) Divide Rs. 20,000 into two parts such that simple interest on one at 8.5% per annum for 6 years may
be triple to that on the other at 6.5 % per annum for 10 years.

19) A certain sum lent at simple interest amounts to Rs. 1320 in 4 years and the same sum amounts to A
Rs. 1400 in 5 years. Find the sum and rate of interest.

20) What will be the amount in 6 years at 7% per annum simple interest of a sum whose amount in 2
years at the same 7% per annum rate of interest is Rs. 19,380.

21) What sum of money lent at simple interest of 3.5 % per annum for 5 years will produce same
amount as Rs. 3,000 lent at 5% per annum, for 4.5 years?

22) A sum of Rs. 2,40,000 is lent in 2 parts, I part is lent at 6% for 4 years and II part is lent at 9% per
annum for 3 years. If the total income earned is Rs. 61,800 find the sums lent at each rate.

23) In what time will the simple interest on any sum of money at 3 ¾ % per annum be 0.09375 of the
principal?

24) A man lent equal sums of money at 5 ½ % and 4% per annum respectively for a period of 3 years. If
he earned Rs. 72 more from the money lent out at 5 ½ %. Find the sum of money lent at 4 %.

Compound Interest

1. Calculate the amount and compound interest on Rs. 15,000 for 1 year at 12 % per annum
compounded half-yearly.
2. Calculate the amount and compound interest on Rs. 18,250 for 1 year at 8% per annum
compounded quarterly.
3. Calculate the amount and compound interest on Rs. 24,000 in 3 years, when the rates of interest for
successive years are 10%, 12%, and 15% respectively.
4. Calculate the amount and compound interest on Rs. 23,450 in 4 years, when the rates of interest for
successive years are 6% p.a., 8% p.a., 10% p.a. and 12% p.a. respectively.
5. Divide Rs. 54,000 between A and B so that when their shares are lent out, the amount that A
receives in 3 years is the same as what B receives in 6 years. The interest is compounded annually at
the rate of 6% per annum.
6. Divide Rs. 81,000 between A and B so that when their shares are lent out, the amount that A
receives in 5 years is the same as what B receives in 10 years. The interest is compounded annually
at the rate of 8% per annum.
7. What principal invested today will amount to Rs. 22,039.92 in 5 years at 8% per annum compound
interest?
8. What principal invested today will amount to Rs. 33,788.47 in 10 years at 6.5% per annum
compound interest?
9. At what rate percent per annum will a sum of Rs. 15,000 become Rs. 25,000 if the loan given for 5
years attracts compound interest?
10. At what rate percent per annum will a sum of Rs. 85,000 doubles itself if the investment for 7 years
attracts compound interest?
11. If the compound interest on certain sum after 2 years is Rs. 6741 and Rs. 212.87, after 3 years. What
is the rate of interest?
12. In how many years will Rs. 21,000 amount to Rs. 28,142.01 at 5 % per annum compound interest?
13. In how many years will Rs. 16,500 amount to Rs. 19,332.37 at 2% per annum compound interest.
14. In what time a sum will double itself at 13% per annum compounded interest, when the interest is
computed half yearly.
15. A sum is lent on compound interest at 12% p.a. calculated quarterly is doubled in a given time. Find
the time period.
16. A sum invested at a certain rate of compound interest doubles itself in 6 years. In how many years
will it become eight times of the sum?
17. The simple interest on a certain sum at certain rate is Rs. 480 for 2 years and the compound interest
on the same sum and at same rate for 2 years is Rs. 508.80. Find the sum and the rate of interest.
18. Find the difference between the compound interests compounded yearly and half-yearly on Rs.
4,00,000 for 2 years at 10% rate of interest per annum.
19. Calculate the compound interest of Rs. 52,000 at 11% per annum for 3 years if the interest is
calculated half yearly. What difference will it make if interest is calculated quarterly.
20. A loan of Rs. 10,200 to be repaid in two equal annual installments. If the rate of compound interest
is 7.5% per annum, find the installment amount.
21. A loan of Rs. 1,00,000 to be repaid in two equal annual installments. If the rate of compound
interest is 12.5% per annum, find the installment amount.
22. A person takes a loan from a moneylender. He pays back the loan in two equal annual installments
of Rs. 982. If the rate of compound interest is 6% per annum, find the loan.
23. A person takes a loan from a moneylender. He pays back the loan in two equal annual installments
of Rs. 1677.69. If the rate of compound interest is 7.8% per annum, find the loan.
24. A banker borrows a certain sum at 11% p.a. compound interest compounded annually. He lends this
money at 11% p.a. compound interest compounded quarterly. If he earns Rs. 46.26 in two years,
find the sum borrowed.
25. A banker borrows a certain sum at 3 2 8 % per annum compound interest compounded half yearly.
He lends this money at 9 % per annum compound interest compounded quarterly. If he earns Rs.
212.08 fin four years, find the sum borrowed.
26. A banker borrows a certain sum at 10% per annum compound interest compounded annually. He
lends this money at 12% per annum compound interest compounded quarterly. If he earns Rs.
17,544.85 in three years, find the sum borrowed.
27. Find the difference between the compound interest ant simple interest of Rs. 12,000 for 4.5 years at
the interest rate of 7% per annum.
28. On what sum the difference between its compound interest and simple interest of 2 years at 6% per
annum is Rs.39.60.
29. A person borrowed Rs. 22,400 at 10% per annum simple interest and invested at 9% per annum
compound interest, compounded half yearly. If the transaction was for 3 years, what was his gain.

Annuity Immediate(Ordinary)
1. Find the amount of an ordinary annuity of Rs. 5750 per annum for 10 years at the rate of interest of
10% per period.
2. Find the amount of an ordinary annuity of Rs. 10000 per annum for 20 years at the rate of interest
of 8% per period.
3. Find the amount of an ordinary annuity of Rs. 7600 per annum for 15 years at the rate of interest of
12% per period.
4. Find the amount of an ordinary annuity of 36 monthly payments of Rs. 12,000 that earn interest at
12% per annum compounded monthly.
5. Find the amount of an ordinary annuity of 24 monthly payments of Rs. 5000 that earn interest at 6%
per annum compounded monthly.
6. Find the amount of an ordinary annuity of 18 monthly payments of Rs. 8,500 that earn interest at
14.5% per annum compounded monthly.
7. A person is repaying a debt with payments of Rs. 1,000 per month. If he misses his payments for
January, February, March, April and May, what payment will be required in June to put him back on
schedule, if interest is at 12% per annum?
8. A person is repaying a debt with payments of Rs. 1,650 per month. If he misses his payments for
July, August, September, October and November, what payment will be required in December to
put him back on schedule, if interest is at 8.5% per annum?
9. What amount should be set-aside at the end of each year to amount to Rs. 23,466.40 at the end of 5
years at 8% per annum compounded annually?
10. What amount should be set-aside at the end of each year to amount to Rs. 32,647.96 at the end of
15 years at 7.5% per annum compounded annually?
11. A bank pays 15% per year interest, compounded quarterly. What equal deposits have to be made at
the end of each quarter for 12 years, to have Rs. 1,00,000 at the end of 12 years?
12. A bank pays 12.5% per year interest, compounded half-yearly. What equal deposits have to be made
at the end of each quarter for 20 years, to have Rs.3,00,000 at the end of 20 years?
13. A machine costs Rs. 66,00,000 and its effective life is estimated 10 years. If the scrap value is
Rs.1,00,000. What amount should be retained out of profits at the end of each year to accumulate
at compound interest at 12% per annum compounded annually?

Annuity Due

1. Find the amount of an annuity due of Rs. 5750 per annum for 10 years at the rate of interest of 10%
per period.
2. Find the amount of an annuity due of Rs. 10000 per annum for 20 years at the rate of interest of 8%
per period.
3. Find the amount of an annuity due of Rs. 7600 per annum for 15 years at the rate of interest of 12%
per period.
4. Find the amount of an annuity due of 36 monthly payments of Rs. 12,000 that earn interest at 12%
per annum compounded monthly.
5. Find the amount of an annuity due of 24 monthly payments of Rs. 5000 that earn interest at 6% per
annum compounded monthly.
6. Find the amount of an annuity due of 18 monthly payments of Rs. 8,500 that earn interest at 14.5%
per annum compounded monthly.
7. A person is repaying a debt with payments of Rs. 1,000 per month. If he misses his payments for
January, February, March, April and May, what payment will be required in the beginning of June to
put him back on schedule, if interest is at 12% per annum?
8. A person is repaying a debt with payments of Rs. 1,650 per month. If he misses his payments for
July, August, September, October and November, what payment will be required in the beginning of
December to put him back on schedule, if interest is at 8.5% per annum?
9. What amount should be set-aside at the beginning of each year to amount to Rs. 25,343.82 after 5
years at 8% per annum compounded annually?
10. What amount should be set-aside at the beginning of each year to amount to Rs.35096.96 after 15
years at 7.5% per annum compounded annually?
11. Find the present worth of an annuity due of Rs. 1200 payable at the beginning of each month for 2
years, if the money is worth 18% p.a compounded monthly.
12. Find the present value and amount of an annuity due of Rs. 1500 payable once in the beginning of
two months for 4 years, if the money is worth 12% p.a compounded once in two months.