Commercial Arithmetic [SIMPLEINTEREST] Whe the interest is calculat verjod, it is called simple ewer On Principal at a uniform rate every Formula: Simple interest = fur x ‘ 109 Where P j number of years, ris the rate of interest per oie ‘Amount at the end ofn" year =p 4 Por _ py a a year =P + Too =P + ey gx: Find total interest and amo 5000 at 10% p-a, simple interest. tunt at the end of S" year for Rs. ans: P=5000, n=5, r= 10 p a Total interest= 799 = =~ S*10 _ sop. Total Amount = P(1 + 2& y= 5x10 , (1+ 799 )=5000 (1+ $°<19 y= 5000 (1 +5) =5000x 1.5= 7500 Rs. gx. 2: Calculate the total interest on Rs. 500 for 73 d Ex. lays, Rs.720 weeks and on Rs. 900 for 3 months, all at 6% per ant — (a) P=500,n= 3 .r=6 ; ee e _ $1= FH =500x 305 x 765 =6 (b) P=720,n= 3 ,r=6 he principal, n is the = Pat = 720.35 x 7g = 11.63 Fas = 900% 7h if ~ 13.50 nterest = 6 + 11.63 + 13.50= 31.13 face value of a bill due 6 months hence at 12% p.a whose Rs.4500. n= $ =0.5,r=12%.= 10122 (1+ i95°)*= 10122 (1.02)4 = 10122 1.0824 = 10950 Total compound interest = 10950~ 8000 = 2950 Rs. 2250 Rs, rate of interest px. 8: Find the effective rate of interest if interest is calculated at 8% Ans: LetP=100,n=1x4=4, p= 4% —7 ThenA=P(1 + 765)” = 1001+ 2, ys = 1 ( Too * = 1001.02) = 108.24 Compound interest = 108.24— 100=8.24 Effective Rate of interest = 8.24% pa Find the amount that Rs. 100 in un . ; ‘ pound interest @ 5% aa Seeman oS at eas: 2. Findthe compound interest Rs. 10,000 for 3 years at 5% p.a. 3. What sum will amount to Rs. 1000 in 2 years at 5% p.a. C. |. payable { half-yearly ? 4. - What sum of money put out at 4% p.a. compound interest for 18 i years, will amount to Rs. 10,000? 5, A wants to invest a sum of money which will amount to Rs. 2000 three years hence, when his son goes to college. Find out the sum he has to invest now if the rate of interest be 4% per annum com- pound interest payable yearly. 13. Aman wants to invest Rs. 5000 for four years. He may invest the amount at 10% per annum compound interet accruing at the end of each quarter of the year or he may invest it at 10% %? 14. Thedifference between simple interest and compound interest on a sum is 30 at 9% p.a. for 3 years. Find out the principal. Find the effective rate of interest if interest is calculated at 10% half yearly. The population of a city increases at the rate of 15 per thousand. will be the population at the end of 5 years if the present tion is 69360 ? . [2] 1576.25 [3] 1103.8 [4] 4936.31 [5] 1778 1d [14] 1200 [15] 10.25 [16] 74720