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316 Concept of Arithmetic

Chapter-17

Simple Interest
Lender and Borrower uniformly on the original principal throughout the

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loan period, it is called simple interest.
Generally in transactions involving large sums of To explain the meaning of simple interest let
money such as buying a house or a car etc we us suppose that you have borrowed a sum of Rs
borrow money either from a bank or an individual 100 at 10% per annum for 2 years from Mr X. This
or some other agency. The bank or an individual means that at the end of 2 years you would pay Rs
or some other agency from which we borrow money 20 as interest in addition to the principal. Now
is called the lender and the person or a company suppose you had borrowed Rs 100 for 1 year only
who borrows money is called the borrower. The from Mr X. Then you would have to return Rs 100
money borrowed is known as the loan. The amount + Rs 10 = Rs 110 at the end of the year. Mr X has
of loan may be big or small depending upon the Rs 110 now. If Mr X lends this sum again to you
requirement of the borrower. for 1 more year at the same rate, then at the end of
When a borrower borrows some money from a one year he would get his Rs 110 back together
lender, he or she also makes a promise to return it with the interest on this sum. The interest on Rs
after a specified period of time. At the end of the 110 at the rate of 10% per annum would be Rs
specified period, the borrower has not only to pay
the money which he had borrowed but also to pay 10
110 = Rs 11. Hence, Mr X would be having
some additional money for using lenders money. 100
Rs 110 + Rs 11 = Rs 121 at the end of 2 years.
Some Important Terms
Clearly, this amount differs from the amount in
In borrowing and lending money the following the first case. This happens because in the second
terms are commonly used: case the interest is charged on the interest which
(i) Principal: The money borrowed by a borrower he got from you at the end of first year. When the
from the money-lender is known as the principal. interest is charged in this manner, it is known as
(ii) Interest: The additional money paid by the compound interest (We will discuss Compound
borrower to the lender for having used his (her) Interest in detail in the next chapter). If t he
money is called interest. interest is calculated on principal only, it is known
(iii) Amount: The total money paid by t he as simple interest.
borrower to the lender at the end of the specified In this chapter the term interest will be used
period is called the amount. in the sense of simple interest only.
Thus, Amount = Principal + Interest

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or, A = P + I; Methods for Finding Simple Interest
where, A stands for the Amount, P for Principal
and I for Interest. (i) By Unitary Method:
(iv) Rate: The interest paid for keeping Rs 100
In this method, by using rate per cent per annum
for one year is known as the rate per cent per
(interest on Rs 100 for 1 year) we calculate simple
annum.
interest on the given sum for given period of time.
If the money is borrowed at the rate of 12% per
For example, suppose a man lends Rs 500 at
annum, then the interest paid for keeping Rs 100
10% per annum for 2 years. If we want to find the
for one year is Rs 12.
interest he earns we shall proceed as follows:
Clearly, the interest we pay is proportionate to
Principal = Rs 500, Rate = 10%, Time = 2 years.
the money that we borrow and also to the period of
time for which we keep the money ie the more the
Interest on Rs 100 for one year = Rs 10
money and the time, the more the interest. Interest 10
is also proportionate to the rate of interest agreed Interest on Re 1 for one year = Rs
100
upon by the lending and the borrowing parties.
Interest on Rs 500 for one year
Thus, interest varies directly as principal, time
and rate. 10
= Rs 500
(v) Simple Interest: If interest is calculated 100
Simple Interest 317

Interest on Rs 500 for two years we proceed as follows:


We have, Principal (P) = Rs 7300, Rate
500 10 2
= Rs = Rs 100 (R) = 10% per annum and Time (T) = 15th
100 May 2000 to 8th October 2000.
Thus, we say that Rs 100 is the interest on Rs Number of days
500 for 2 years at 10% per annum. This interest = May + June + July + August +
is called Simple Interest. It is abbreviated as SI. Septermber + October
= 16 + 30 + 31 + 31 + 30 + 8
(ii) By Formula: = 146 days
We shall find the simple interest on the sum of Rs
146 2
P invested at R% per annum for T years, from the Time (T) = year = year
above method as given below: 365 5

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Interest on Rs 100 for 1 year = Rs R
PRT 7300 10 2
Now, SI = = Rs
R 100 100 5
Interest on Re 1 for 1 year = Rs
100 = Rs 292
In this context, you should remember the
RT following:
Interest on Re 1 for T years = Rs
100 73, 146, 219 and 292 days are respectively
Interest on Rs P for T years
1 2 3 4
R , , and of a year.
P R T 5 5 5 5
= Rs P T = Rs
100 100 ( i i) From the above example, it is clear that one
Thus, the simple interest (SI) on Rs P at the should know the number of days in each
rate of R% per annum for T years is given by month.
Mo n t h Number of Days
PRT January 31
SI = ie
100 February 28 or 29*
March 31
Principal Rate Time
Simple Interest = Apr il 30
100 May 31
For example, in the above example, we have June 30
P = Rs 500, R = 10% and T = 2 years July 31
August 31
PRT 500 10 2
SI = = = Rs 100 September 30
100 100 October 31
From this formula, we have November 30
100 SI December 31
(i) P = * February is always of 28 days except the
RT Leap Year. In the Leap Year the month
100 SI February contains 29 days.
(ii) R = Leap Year: Every year which is exactly

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PT
divisible by 4 such as 1988, 1992, 1996
100 SI etc. is called a leap year.
(iii) T = Also every 4th century is a leap year. The
PR
other centuries, although divisible by 4, are
Important Points not leap years. Thus, for a century to be a
leap year, it should be exactly divisible by
( i ) In the above formulae, time T is in years. If 400. For example,
the time is given in months or days, then (1) 400, 800, 1200, etc are leap years since
we convert it into years by dividing by 12 they are exactly divisible by 400.
or 365 according as the time is given in (2) 700, 600, 500 etc are not leap years
months or days. since they are not exactly divisible by
Note that for counting the number of 400.
days we do not count the day on which ( i ii ) To find Amount, we can also use formula
the money is deposited but we count the as given below:
day of withdrawal. Amount = Principal + Interest
For example, if we have to find the simple
interest on Rs 7300 from 15th may 2000 to PRT RT
A= P = P 1
8th October 2000 at 10% per annum, then 100 100
318 Concept of Arithmetic

per rupee per annum and time = 219 days.


Rate Time
or, Amount = Principal 1 we have,
100 P = Principal = Rs 1000
For example, suppose we hav e to f ind R = Rate = 10 paise per rupee per
Amount if the Principal is Rs 800, rate is annum
6% per annum and the time is 4 years. = 100 10 paise per cent per
64 annum
Amount = Rs 800 1 = Rs 10 per cent per annum
100
= 10 per cent per annum
6 and T = Time = 219 days
= Rs 800 1
25 219 3

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= year = year
31 365 5
= Rs 800
25
3
= Rs (32 31) = Rs 992 PRT 1000 10
SI = = Rs 5
( iv) If the interest is paise per rupee not rupees 100 100
per cent, then we convert it into per cent

by multiplying it by 100.
The following example will illustrate the = Rs 60
computation of simple interest. Now, Amount = Principal + SI
Find the simple int er est and amount = Rs 1000 + Rs 60
when, principal = Rs 1000, rate = 10 paise = Rs 1060

Solved Examples

Ex. 1(i): Find the simple interest on Rs 2400 at Ex.1(iii): A man borrowed Rs 8500 at 12% per
the rate of 10% per annum for 3 years. annum for 3 years. Find the amount he
had to pay after 3 years.
PRT
Soln: Simple Interest = Soln: Principal = Rs 8500
100 Rate = 12% per annum
Time = 3 years
2400 10 3
= = Rs 720
100 PRT 8500 12 3
SI = = Rs
Ex.1(ii): Ajay deposited Rs 6000 in post office 100 100
for 6 months. If the post office pays = Rs 3060
1 Amount to be paid after 3 years
interest at 5 % per annum, find the = Rs 8500 + Rs 3060 = Rs 11560
2
Alternative Method:
interest Ajay got after 6 months.

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Soln: Here, Principal = Rs 6000 RT
Amount = A = P 1
1 100
Time = 6 months = year
2 12 3

1 = Rs 8500 1
100
Rate = 5 % per annum
2
8500 34
11 = Rs = Rs 11560
= % per annum 25
2
Ex.2(i): Find the simple interest on Rs 800 at
PRT 6000 11 1 t he r ate of 5% per annum fr om 2
SI = = Rs
100 100 2 2 January 1980 to 26 May 1980.
= Rs 165 Soln: Here Principal (P) = Rs 800;
Ajay got Rs 165 as int er est on his Rate (R) = 5% per annum
deposit. Time (T) = From 2 January 1980 to 26
Note: The rate of interest is per annum. May 1980.
Therefore, the time must be expressed in = January + February + March
years. + April + May
Simple Interest 319

= 29 + 29 + 31 + 30 + 26 When amount is Re 1, principal


146 100
= 146 days = years = Rs
365 136
When amount is Rs 9520, principal
2
= years 100
5 9520 = Rs 7000
= Rs
Since, the year 1980 is exactly divisible 136
by 4, it is a leap year. Therefore, the month Note: From the above example, we see that
of February will be of 29 days.
A 100
PRT 800 5 2 Principal =
100 R T
SI = = Rs

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100 100 5 Ex. 4(i):At what rate per cent per annum will
= Rs 16 Rs 300 produce Rs 18 as interest in 2
Ex.2(ii): Find the simple interest on Rs 500 at years?
t he r ate of 4% per annum fr om 21
100 SI 100 18
January 1900 to 4 April 1900. Soln: Rate = = = 3%
Soln: P = Rs 500, R = 5% per annum PT 300 2
T = From 21 January 1900 to 4 April Ex.4(ii): At what rate per cent per annum will
1900 Rs 800 amounts to Rs 1000 in 2 years?
= January + February + March + April Soln: Let the required rate per cent be R% per
= 10 + 28 + 31 + 4 annum.
We have,
73 1 Principal (P) = Rs 800,
= 73 days = year = year
365 5 Amount = Rs 1000
Since 1900 is div isible by 4 but not SI = Amount Principal
divisible by 400, therefore, it is not a leap = Rs 1000 Rs 800 = Rs 200.
year . Hence, t he mont h of Febr uar y Time (T) = 2 years.
consists of 28 days.
SI 100
Now, R
PRT 500 4 1 PT
SI = = Rs = Rs 4
100 100 5
200 100 25
Ex. 3(i):What sum lent out at 10% per annum R = % % 12.5%
800 2 2
simple interest would produce Rs 150
as interest in 5 years? Hence, required rate per cent = 12.5% per
Soln: We have, SI = Rs 150, R = Rate per cent = annum.
10% per annum and T = Time = 5 years. Ex.5(i): In what time will Rs 250 produce Rs
We have to find the principal. 125 as interest at the rate of 10% per
annum?
SI 100
Now, Principal = 100 SI 125 100
RT Soln: Time = = = 5 years
PR 250 10
150 100

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Ex.5(ii): In what time will Rs 8500 amount to
Principal = Rs
10 5 Rs 15767.50 at 9% per annum simple
= Rs 300. interest?
Hence, required sum = Rs 300. Soln: Amount = Rs 15767.50
Ex. 3(ii): What sum will amount to Rs 9520 at Principal = Rs 8500
9% per annum in 4 years at simple SI = Rs 15767.50 Rs 8500 = Rs 7267.50
interest? Rate = 9% per annum
Soln: Rate = 9% , Time = 4 years and Amount 100 SI 7267.50 100
= Rs 9520. Time = =
PR 8500 9
Let principal be Rs 100.
Then simple interest 1
= 9 years
100 9 4 2
= Rs = Rs 36
Ex. 6: A person deposits Rs 4200 in a bank
100
at the rate of 8% per annum interest
Amount = Rs 100 + Rs 36 = Rs 136
and Rs 1400 in a post office at the rate
Now,
of 6% per annum interest. At what rate
When amount is Rs 136, principal per cent will he get interest on his total
= Rs 100
deposits?
320 Concept of Arithmetic

Soln: Let the time be equal and he deposits his Amount in 5 years = Rs (100 2)
money with the bank and the post office = Rs 200
for 1 year. Interest = Rs (200 100) = Rs 100
PRT SI 100 100 100
Interest of bank = Rate = = = 20%
100 PT 100 5
Now in T years Amount = Rs (3 100)
4200 8 1
= Rs = Rs 336 = Rs 300
100 Interest in T years = Rs 300 Rs 100
= Rs 200
PRT
and interest of post office = SI 100 200 100
100
Time = T = =

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PR 100 20
1400 6 1
= Rs = Rs 84 = 10 years
100 Ex. 8: What sum lent out at 6.25% per annum
Total interest = Rs 336 + Rs 84 produces the same simple interest in 2
= Rs 420 and years as Rs 1500 lent out at 5% produce
Total deposits = Rs 4200 + Rs 1400 in 1 year and 4 months?
= Rs 5600 Soln: Let t he r equired sum of money be
Rs P.
100 SI 420 100 1
Rate = = = 7 % When this sum is lent out at 6.25% per
PT 5600 1 2 annum for 2 years, we have,
Ex.7(i): In how many years will a sum of money
doubl e i tself at 18.75% per annum 25
P 2
simple interest? 4
SI = Rs
Soln: Let the principal be Rs P. Then, Amount 100

= Rs 2P.
We have, Principal = Rs P,
Amount = Rs 2P P
SI = Rs .....(i)
SI = Amount Principal 8
= Rs 2P - Rs P = Rs P
R = rate per cent PRT
= 18.75% per annum. Using : SI 100 , where

Let the required time be T years. Then, R 6.25% 25
% and T 2 years
SI 100 4
T =
PR For the computation of SI on Rs 1500 at
5% per annum lent out for 1 year 4
P 100
T = years months, we have,
P 18.75 P = Rs 1500, R = 5% per annum and
16 16 4
= years = 5 years 4 months Time (T) = years = years
3 12 3

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Ex.7(ii): At what rate per cent per annum will a

Soln:
sum treble itself in 16 years?
Let the sum be Rs P. Then,
amount = Rs 3P.
SI = Rs (3P P =) Rs 2P.
We have, Time (T) = 16 years.
We have to find the value of R.

Now, R =
100 SI

1500 5
SI = Rs



= Rs 100
100
4
3






.....(ii)
As given in the question that SI is the
same in both the cases.
PT P
= 100
100 2P 8
R = % = 12.5%
or, P = 800.
P 16
Ex.7(iii): A sum of money doubles itself in 5 Hence, the required sum = Rs 800.
years. In how many years will it treble Ex. 9: The simple interest on a sum of money
itself? 1
Soln: Suppose the sum of money is Rs 100. is of the principal and the number
4
Simple Interest 321

of years is equal to the rate per cent When the amount is Rs 150, then the
per annum. Find the rate per cent. sum = Rs 100
Soln: Let the Principal be Rs 100. When the amount is Re 1, the sum
1 100
Interest = of Rs 100 = Rs 25 = Re
4 150
When the amount is Rs 7500, the sum
Suppose rate per cent = x%
time = x years 100 7500
= Rs = Rs 5000
PRT 150
Now, SI = Alternative Method:
100
Let the sum be Rs x.
100 x x

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or, 25 = x
100 Interest = Rs
2
or, x2 = 25
Amount = Principal + Interest
x = 5%
Ex. 10: A sum of money lent out at si mple x 3x
interest amounts to Rs 2200 in one year = Rs x = Rs
2 2
and Rs 2800 in 4 years. Find the sum
Now, according to the question,
of money and the rate of interest.
Soln: We have, Amount in 4 years 3x
= 7500
= (Principal + SI for 4 years) = Rs 2800 2
Amount in 1 year 7500 2
= (Principal + SI for 1 year) x = = Rs 5000
3
= Rs 2200
On subtracting, we get Principal = Rs 5000 and Interest
SI for 3 years = Rs (2800 - 2200) = Rs 600 5000
= Rs = Rs 2500
600 2
SI for 1 year = Rs = Rs 200.
3 SI 100 2500 100 1
But, Principal Rate = = = 12 %
PT 5000 4 2
= Amount in 1 year - SI for 1 year
Principal = Rs 2200 Rs 200 Ex. 12: A sum of money invested at 20% per
= Rs 2000. annum simple interest amounts to Rs
Now, Principal (P) = Rs 2000, 1
650 in 1 years. What will it amount
SI = Rs 200 and Time (T) = 1 year. 2
to in 2 years at 12% per annum simple
SI 100 interest?
R =
PT Soln: Let the given sum of money be Rs 100.
When it is invested at 20% per annum
200 100
R = % = 10%
2000 1 1
for 1 years, we have
2

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Hence, Principal = Rs 2000 and rate
= 10% per annum.
Ex. 11: A sum of money amount to Rs 7500 in 3
100 20
4 years. If the simple interest is half PRT 2

SI = = Rs 30
of the sum, then find the sum of money 100 100

and the rate of interest.
Soln: Suppose the sum of money is Rs 100.
Amount = Principal + SI
Simple interest = Half of the sum
= Rs 100 + Rs 30 = Rs 130.
= Rs 50
Now,
Interest on Rs 100 for 4 years = Rs 50 If amount is Rs 130, then principal
Interest on Rs 100 for 1 year
= Rs 100
50 1
= Rs = Rs 12 100
4 2 If amount is Re 1, then principal = Re
130
1 If amount is Rs 650, then principal
Rate = 12 %
2
Now, Rs 100 in 4 years amounts to 100
= Rs 650 = Rs 500.
Rs (100 + 50) = Rs 150 130
322 Concept of Arithmetic

Thus, the giv en sum of money is Other amount = Rs (3100 - x)


Rs 500. = Rs (3100 - 1600)
When this sum of money is invested at = Rs 1500
12% per annum for 2 years, we have Hence, ratio of money lent
= 1600 : 1500 = 16:15
PRT
SI = Ex. 15: Divide Rs 1550 into two parts such that
100 if one part be lent out at 15% per annum
and the other at 24% per annum, the
500 12 2
SI = Rs = Rs 120. total yearly income is Rs 300.
100 Soln: Let the first part be Rs x.
Amount = Principal + SI Then the second part = Rs (1550 x).
= Rs 500 + Rs 120 = Rs 620. Now, SI on Rs x at 15% per annum for 1

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Hence, the given sum of money amounts year
to Rs 620.
Ex. 13: A money-lender lends Rs 3600 to Ram x 15 1 3x
= Rs = Rs
for 2 years and Rs 2400 to Shyam for 100 20
3 years. If he gets Rs 864 as interest SI on Rs (1550 - x) at 24% per annum for
find the rate of interest per annum. 1 year
Soln: Let the rate of interst be x% per annum
Interest on Rs 3600 for 2 years 1550 x 24 1
= Rs
100
3600 x 2
= Rs = Rs 72x
1550 x 6
100
= Rs
and the interest on Rs 2400 for 3 years 25

2400 x 3 9300 6x
= Rs = Rs 72x = Rs
100 25
Total interest = Rs (72x + 72x)
3x 9300 6x
= Rs 144x Total SI = Rs
Now, according to the question, 20 25
144x = 864 But, total SI = Rs 300. (Giv en in t he
question)
864
x = = 6% 3x 9300 6x
144 300

Ex. 14: A sum of Rs 3100 was lent partly at 20 25
5% and partly at 8% interest. Total or, 15x + 4 (9300 6x) = 300 100
interest received after 3 years was Rs [Multiplying both sides by the
600. Find the ratio of the money lent LCM of 20 and 25 ie 100]
at 5% and 8%. or, 15x + 37200 24x = 30000
Soln: Suppose money lent at 5% = Rs x or, 9x = 30000 37200
Money lent at 8% = Rs (3100 - x) or, 9x = 7200
Time (T) = 3 years
7200

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Interest in the first case or, x = = 800
9
x 53 15x
= = Rs So the first part = Rs 800 and the second
100 100 part = Rs (1550 800) = Rs 750.
Interest in the second case Ex. 16: Divide Rs 4350 in two parts so that
3100 x 8 3 the simple interest on the first when
= Rs deposited for one year at 9% per annum
100
and that on the second when deposited
24 (3100 x ) for two years at 10% per annum in a
= Rs
100 bank are the same.
Now according to the question, Soln: Let the first part be Rs x.
Then the second part = Rs (4350 - x).
5x 243100 x For the f irst part, we hav e Principal
600
100 100 = Rs x, rate of interest = 9% per annum
or, 15x + 74400 24x = 60000 and Time = 1 year
or, 9x = 14400
x 9 1 9x
14400 SI = Rs = Rs
or, x = = Rs 1600 100 100
9
Simple Interest 323

For the second part, we have Am an, find the rat e of interest per
Principal = Rs (4350 - x), rate of interest annum.
= 10% per annum and Time = 2 years. Soln: We have, sum borrowed by Amit = Rs 3000
Sum borrowed by Aman = Rs 2500
(4350 x ) 10 2
SI = Rs Difference of sum
100 = Rs 3000 - Rs 2500 = Rs 500
It is given that Amit paid Rs 175 more
204350 x
= Rs interest than Aman. Therefore,
100
It is given that the interest earned on two 1
SI on Rs 500 for 2 years is Rs 175
parts are same. 2
9x 204350 x Now, Principal = Rs 500,

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100 100 5
Time = years and SI = Rs 175
or, 9x = 20 (4350 - x) 2
[Multiplying both sides by 100]
or, 9x = 87000 20x 100 SI 100 175
Rate = % = 14%
or, 20x + 9x = 87000 PT 5
500
[Transposing 20x on LHS] 2
or, 29x = 87000 Hence, rate of interest is 14% per annum.
87000 Ex. 18: If Rs 640 amounts to Rs 784 in 2 years
or, x = = 3000. 6 months, what will Rs 860 amount to
29
in 4 years at the same rate per cent
First part = Rs 30000 per annum?
Second part = Rs (4350 - 3000) Soln: Let the rate per cent be R% per annum.
= Rs 1350. We have, Principal P = Rs 640
Hence, the two parts are of Rs 3000 and Amount = Rs 784 and
Rs 1350. Time = T = 2 years 6 months
Alternative Method:
Let SI in each case be Re 1. Then, 1 5
= 2 years = years.
P1 = Principal in first case 2 2
100 1 100 SI = Amount - Principal
= Rs = Rs = Rs 784 Rs 640 = Rs 144
9 1 9
SI 100
100 SI Now, R =
PT
Using : P R T

P2 = Principal in second case 144 100
R = % = 9%
5
100 1 640
= Rs = Rs 5 2
10 2
Now, if Rs 860 are invested at the same
100 rate for 4 years. Then,

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P1 : P2 = : 5 = 20 : 9
9 860 9 4
SI = Rs = Rs 309.60
100
20
So, first part = Rs 4350
29 PRT
= Rs 3000 and Using : SI 100 , P Rs 860,

20 R 9% and T 4 years
second part = Rs 4350
29 Amount = Principal + SI
= Rs 1350. = Rs 860 + Rs 309.60
Hence, the two parts are of Rs 3000 and = Rs 1169.60.
Rs 1350. Ex. 19: The simple interest on a certain sum
Ex. 17: Aman and Amit borrowed Rs 2500 and for 2.5 years at 12% per annum is Rs
Rs 3000 respectively at the same rate 40 less than the simple interest on the
same sum for 3.5 year s at 10% per
1 annum. Find the sum.
of simple interest for 2 years. If
2 Soln: Let the required sum be Rs P.
Amit paid Rs 175 more interest than Case: I. W hen, Pr incipal = Rs P,
324 Concept of Arithmetic

Rat e = 12% per annum and Time Soln: Yearly interest on Rs 1500 at the rate
= 2.5 years. of 10% per annum
In this case, we have SI
PRT 1500 10 1
P 12 2.5 3P = = Rs
100 100
= Rs = Rs
100 10 = Rs 150
Case: II. W hen, Pr incipal = Rs P, and the yearly interest on Rs 1000 at the
Rat e = 10% per annum and rate of 8% per annum
Time = 3.5 years.
In this case, we have 1000 8 1
= Rs = Rs 80
100
P 10 3.5 7P
SI = Rs = Rs Total yearly interest received by both

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100 20 the sums = Rs 150 + Rs 80 = Rs 230
It is given that the SI in the first case is Both sums = Rs 1500 + Rs 1000 = Rs 2500
Rs 40 less than the SI in the second case. Remaining sum = Rs 4000 Rs 2500
7P 3P = Rs 1500
40 Now,
20 10 Yearly interest on Rs 4000 at the rate of
7P 6P 9.125%
or, 40
20 4000 9.125 1
= Rs = Rs 365
100
P
or, = 40 Remaining interest
20
= Rs 365 Rs 230 = Rs 135
or, P = 40 20 = 800 He wants Rs 135 as a interest on the
Hence, the required sum = Rs 800. remaining sum Rs 1500.
Alternative Method:
Let the principal be Rs 100. SI 100 135 100
Rate = = = 9%
Case I: When, Rate = 12% per annum and PT 1500 1
Time = 2.5 years. In this case, we have
2
P Ex. 21: A man lends of his capital at the
SI = Rs = Rs 30 5
20
Case II: When, Rate 10% per annum and 3
rate of 8% per annum, of his capital
Time = 3.5 years. In this case we have 8
100 12 3.5 at the rate of 10% per annum and the
SI = Rs = Rs 35 r em ai ni ng at the rat e of 12% per
100
annum. If his annual income is Rs 965,
Difference in the simple interests in the then find his capital.
two cases = Rs (35 - 30) = Rs 5 Soln: Suppose the capital = Rs 100
Now,
If the difference is Rs 5, the principal 2
of Rs 100 = Rs 40

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= Rs 100 5
If the difference is Re 1, the principal
3 75
100 of Rs 100 = Rs = Rs 37.50
= Rs 8 2
5 Remaining capital
If the difference is Rs 40, the principal = Rs (100 40 37.50) = Rs 22.50
Annual interest on Rs 40 at the rate of
100
= Rs 40 = Rs 800
5 40 8 1
8% = Rs = Rs 3.20
Hence, the required sum = Rs 800 100
Ex. 20: A person has Rs 4000. He lends Rs Annual interest on Rs 37.50 at the rate of
1500 at the rate of 10% per annum and
Rs 1000 at the rate of 8% per annum 37.50 10 1
10% = Rs = Rs 3.75
interest. At what rate of interest would 100
he lend the remaining amount so that Annual interest on Rs 22.50 at the rate of
his t ot al yearl y income shoul d be
9.125% of the total sum. 22.50 12 1
12% = Rs = Rs 2.70
100
Simple Interest 325

Total annual income on Rs 100


y t r 100 y
= Rs (3.20 + 3.75 + 2.70) = Rs 9.65 or, z x
100 r t
When annual income is Rs 9.65, then
capital = Rs 100 [Putting the value of x
W hen annual income is Re 1, then from equation (i)]
00 y2 = zx (proved)
capital = Rs Ex. 24: Divide Rs 2379 into three parts so that
9.65
their amount after 2, 3 and 4 years
When annual income is Rs 965, then
may be equal, the rate of interest being
00 5% per annum.
capital = Rs 965 = Rs 10000
9.65 Soln: Let t he sum in f irst , second and
t hir d case be Rs x, Rs y and Rs z
Ex. 22: Divide Rs 2000 into two sums such that,

K KUNDAN
respectively.
if the first be put out at simple interest
Now, according to the question,
1 The amount in first case of Rs x.
for 6 years at 3 per cent, and the
2
x 25 11x
1 = Rs x = Rs
second for 3 years at 4 per cent, the 100 10
2
i nter est of t he fi rst sum woul d be The amount in second case of Rs y
double that of the second.
y 35 23y
Soln: Let the first part be Rs x, then = Rs y = Rs
second part be Rs (2000 x). 100 20
The amount in third case of Rs z
x 67 21x
Interest on first part = = Rs z 45 6y
100 2 100
= Rs z = Rs
Interest on second part 100 5
Again, according to the question,
2000 x 3 9
2000 x 27
= = 11x 23y 6y
100 2 200 k
According to the question, 10 20 5
21x 2 2000 x 27 10k 20k 5k
x = ; y = ; and z =
100 200 11 23 6
or, 21x + 27x = 2000 27
10k 20k 5k
x: y : z= : :
2000 27 11 23 6
or, x
48
20k 20k 20k 1 1 1
x = 1125 = : : = : :
Hence, first part = Rs 1125 and 22 23 24 22 23 24
the second part = Rs (2000 1125) 22 23 24 22 23 24 22 23 24
= Rs 875. = : :
Ex. 23: x, y, z are three sums of money such 22 23 24

K KUNDAN
that y is the simple interest on x, and = 276 : 264 : 253
z is the simple interest on y for the Dividing Rs 2379 into three parts in
same time and rate. Show that y2 = zx. the ratio 276 : 264 : 253, we get
Soln: Let the rate be r per cent per annum and 276
the time be t years. x= 2379
276 264 253
Now, according to the question,
x t r 276
y = 2379 = Rs 828
100 793
100y 264
or, x ....(i) y = 2379 = Rs 792
t r 793
Again,
y t r 253
z z = 2379 = Rs 759
100 793
Hence, t he t hr ee par t s ar e Rs 828,
y t r
or, x zx Rs 792 and Rs 759.
100
[Multiplying both sides by x]
326 Concept of Arithmetic

Ex. 25: What annual payment will discharge a = Rs 480x + Rs 600(x + 1)


debt of Rs 770 due in 5 years, the rate = Rs 480x + Rs 600x + Rs 600
of interest being 5 per cent per annum? = Rs 1080x + Rs 600
Soln: Let Rs P be the annual payment. Total interest paid = Rs 9240 (Given in
The amount of Rs P in 4 years at 5% the question)
1080x + 600 = 9240
4 5 120P
= P 1 or, 1080x = 9240 600 = 8640
100 100
8640
The amount of Rs P in 3 years at 5% or, x = = 8
1080
5 3 115P
= P 1 First rate is 8% and second is 9%.
100 100 Ex. 27: A sum of money was lent at simple

K KUNDAN
The amount of Rs P in 2 years at 5%
1
5 2 110P int erest at 11% per annum for 3
2
= P 1
100 100
1
The amount of Rs P in 1 year at 5% years and 4 years respectively. If the
2
5 1 105P difference in interest for two periods
= P 1
100 100 was Rs 412.50, then find the sum?
These four amounts together with the last Soln: Suppose the Principal (P) = Rs 100;
annual payment of Rs P will discharge Rate = 11%
the debt of Rs 770. 1
If the Time (T) = 3 years
120P 115P 110P 105P 2
P 770
100 100 100 100
100 11 7 77
Then SI = Rs = Rs
550P 100 2 2
or, 770
100
1
If the time (T) = 4 years
770 100 2
or, P = = 140.
550
100 11 9 99
Hence annual payment = Rs 140. Then, SI = Rs = Rs
100 2 2
Note: W e hav e a separ ate chapter on
Instalment in which various types of 99 77
questions have been discussed in detail. Difference in SI = Rs
2 2
Ex. 26: A man borrowed Rs 16000 at certain
rate of interest and Rs 20000 at 1% 22
= Rs = Rs 11
higher than the first. He paid Rs 9240 2
as interest in 3 years. Find the two If the difference is Rs 11, Principal
rates at which he borrowed the money. = Rs 100
Soln: Interest on Rs 20000 at 1% for 3 years If the difference is Rs 412.50, Principal

K KUNDAN
20000 1 3 100
= Rs = Rs 600 = Rs 412.50 = Rs 3750.
100 11
Interest on Rs 16000 + Rs 20000 at Ex. 28: A sum of money amounts to Rs 944 in
equal rate for 3 years 3 years at a simple interest. If the rate
= Rs 9240 Rs 600 = Rs 8640 of interest be raised by 25 per cent, the
sum am ount s t o Rs 980 duri ng t he
8640 100 same period. Find the sum and the rate
Rate = = 8%
36000 3 of interest.
First rate = 8% and Soln: Let the rate be R
second rate = (8 + 1) = 9% The amount in 3 years = Rs 944
Alternative Method: Let the Principal be P
Let the first rate be x% and the second be Then interest = Rs (944 - P)
(x + 1)%. PRT
Then total interest on Rs 16000 and Rs But SI =
100
20000 in 3 years
PR3
16000 x 3 20000 (x 1) 3 or, 944 P = .... (1)
= Rs + Rs 100
100 100
Simple Interest 327

In the second case or, (5450 + 3000 7000)


The rate per cent is increased by its 25%
7000 3 r 4000 2 r
Then the rate per cent =
100 100
25 5R
=R R or, 1450 = 210r + 80r
100 4
1450
Amount after three years = Rs 980 r = = 5%
Interest after three years 290
= Rs (980 - P) Ex. 31: A person invested some amount at the
rate of 12% simple interest and some
R other amount at the rate of 10% simple
P 5 3
980 P = 4 ..... (2) interest. He received yearly interest of

K KUNDAN
100 Rs 130. But if he had interchanged the
Dividing equation (1) by equation (2), we am ount s i nvest ed, he woul d hav e
get received Rs 4 more as interest. How
much amount did he invest at different
4 944 P rates?

5 980 P Soln: Suppose the person invested Rs x at the
or, 3920 4P = 4720 5P rate of 12% simple interest and Rs y at
or, 5P 4P = 4720 3920 the rate of 10% simple interest.
or, P = 800
12x 10y
Putting the value of P in equation (1) Then, yearly interest = .
We get, 100 100

800 R 3 12x 10y


944 800 = = 130
100 100 100
or, 14400 = 2400R or, 12x + 10y = 13000
or, 6x + 5y = 6500 .... (i)
14400 If the invested amounts are interchanged,
or, R = = 6%
2400 then yearly interest increases by Rs 4.
Rate = 6% 10 x 12y
Ex. 29: The simple interest on a sum of money = 134
100 100
will be Rs 300 after 5 years. In the next
5 years principal is trebled, what will or, 10x + 12y = 13400
be the total interest at the end of the or, 5x + 6y = 6700 .... (ii)
10th year? Subtracting (ii) from (i), we get
Soln: Simple interest for 5 years = Rs 300 x y = 200 .... (iii)
Now, when pr incipal is tr ebled, t he Adding (ii) to (i), we get
simple interest for 5 years will also be 11x + 11y = 13200
t reble t he simple int er est on original or, x + y = 1200 .... (iv)
principal for the same period. Thus SI for Adding (iii) and (iv), we get
last 5 years when principal is trebled 2x = 1000

K KUNDAN
= 3 300 = Rs 900 x = 500.
Total SI for 10 years = Rs (300 + 900) Putting x = 500 in (iii), we get y = 700.
= Rs 1200 Thus, the person invested Rs 500 at the
Ex. 30: Ramesh borrows Rs 7000 from a bank rate of 12% per year and Rs 700 at the
at SI. After 3 years he paid Rs 3000 to rate of 10% per year.
the bank and at the end of 5 years from Ex. 32: The rate of interest for the first 2 years
the date of borrowing he paid Rs 5450 is 3% per annum, for the next 3 years
to the bank to settle the account. Find is 8% per annum and for the period
the rate of interest. beyond 5 years 10% per annum. If a
Soln: Any sum that is paid back to the bank man gets Rs 1520 as a simple interest
before the last instalment is deducted from for 6 years, how much money did he
the principal and not from the interest. deposit?
Thus, Soln: Let the deposit be Rs 100.
Total interest = Interest on Rs 7000 for 3 Interest for first 2 years at 3% simple
years + Interest on (Rs 7000 - Rs 3000 =) 100 3 2
Rs 4000 for 2 years. interest = Rs = Rs 6
100
328 Concept of Arithmetic

Interest for next 3 years at 8% simple Total interest = Rs 6 + Rs 24 + Rs 10


= Rs 40
100 8 2
interest = Rs = Rs 24 When inter est is Rs 40, deposited
100 amount is Rs 100.
Interest for the last year at 10% simple When interest is Rs 1520, deposited
100 10 1 100
interest = Rs = Rs 10 amount = Rs 1520 = Rs 3800
100 40

Practice Exercise

K KUNDAN
1.

2.
Rishi deposit ed Rs 20000 in a f inancial
institution on 28th March, 2000 and closes
his account on 21st August, 2000. If the
institution pays an interest of 9% per annum,
what amount does Rishi get?
One can borrow money from a bank for setting
up a dairy or a poultry farm. Vijay set up a
poultry farm and had to invest Rs 8888 for
9. The simple interest on Rs 1650 will be less
than the interest on Rs 1800 at 4% simple
interest by Rs 30. Find the time.
10. If simple interest on Rs 1800 exceeds the
interest on Rs 1650 in 3 years by Rs 45. Find
the rate per cent per annum.
11. A farmer borrowed Rs 2400 at 12% interest
1
this purpose. Under the rules for loan, the per annum. At the end of 2 year s, he
bank loans at the most 75% of the tot al 2
investment and the person concerned has to cleared his account by paying Rs 1200 and a
inv est t he r emaining 25% of t he t ot al cow. Find the cost of the cow.
investment. The rate of simple interest is 12. Two equal amounts of money are deposited
in two banks each at 15% per annum for 3.5
1 year s and 5 year s respect ively. If t he
12 % per annum. Vijay borrowed as much
2 difference between their interests is Rs 144,
money from the bank as he could under the find each sum.
13. The difference between the interest received
1
rules. After 1 years, he cleared the loan. from two different banks on Rs 500 for 2 years
2 is Rs 2.5. Find the difference between their
How much money did he return to the bank? rates.
3. In how much time will the simple interest 14. A sum was put at SI at a certain rate for 2
on a certain sum be 0.125 times the principal years. Had it been put at 3% higher rate, it
at 10% per annum? would have fetched Rs 300 more. Find the
sum.
1
4. The simple interest on a sum of money is 15. A person lent a certain sum of money at 4%
9 simple interest and in 8 years the interest
of the principal, and the number of years is amounted to Rs 340 less than the sum lent.
equal to the rate per cent per annum. Find Find the sum lent.

K KUNDAN
the rate per cent. 16. Arun and Ramu are friends. Arun borrowed a
5. A sum of money doubles itself in 4 years at a sum of Rs 400 at 5% per annum simple interest
simple interest. In how many years will it fr om Ramu. He ret urns the amount with
amount to 8 times itself? interest after 2 years. Ramu returns to Arun
1 2% of the total amount returned. How much
6. A money lender wants of t he amount did Arun receive?
5
17. A person wants to divide a sum of Rs 375000
loaned every year as interest. What is the rate between his son and daughter aged 12 years
of interest? If a farmer borrows Rs 5000 for 1 and 14 years respectively so that when they
year f rom the money lender, what is t he attain the age of 18 years, the amounts to be
amount that he has to pay back altogether? received by each at 5% simple interest per
7. If Rs 450 amounts to Rs 540 at 10% simple annum will be the same. Find the share of
interest, find the principal that amounts to each.
Rs 708 at 9% simple interest in the same 18. Divide Rs 7053 into three parts so that the
period. amount after 2, 3 and 4 years respectively
8. A sum of money lent out at simple interest may be equal. The rates of interest being 4%
amounts to Rs 1440 in 2 years and Rs 2040 in per annum.
7 years. Find the rate of interest per annum. 19. A sum of money at simple interest amounts to
Simple Interest 329

Rs 9440 in 3 years. If the rate of interest is was the original sum borrowed?
increased by 25% , the same sum of money 24. A boy aged 10 years is left with Rs 50000
amounts to Rs 9800 in the same time. Find which is under trust. The trustees invest the
the sum and the rate of interest. money at 4% per annum and pay the minor
20. A person deposited Rs 8000 in a bank. After boy a sum of Rs 1200 for his pocket money at
2 years he withdrew Rs 3000 and at the end the end of each year. The expenses of trust
of 4 years he received an amount of Rs 6800. come out to be Rs 300 per annum. Find the
Find the rate of simple interest. amount that will be handed over to the minor
21. When the rate of interest in a bank is increased boy after he attains the age of 18 years.
from 5% to 6% per annum, a person deposits 25. A man deposits some money in a savings bank
Rs 1000 more into his account. If the annual and at the end of one year earns Rs 15 as
interest now received by him is Rs 110 more interest. He put in another Rs 85 and deposits

K KUNDAN
than that before, find his original deposit. the money for another one year. After the
22. A man derives his income from the investment expiry of this period he gets Rs 420 as the
of Rs 4150 at a certain rate of interest and Rs sum total of the principal and the interest.
3500 at 1 per cent higher than the first. His What amount was originally deposited and
whole income for 4 years is Rs 1211. Find what rate of interest the bank paid?
the rates of interest. 26. Naresh borrowed Rs 28000 from a bank at
23. A sum of money was borrowed at 6% per simple interest. After three years he paid back
annum simple interest. At the end of first Rs 12000 to bank and after two more years
year Rs 6800 was paid off and the rate of he paid back 21800 and settled the account.
interest on the balance was reduced to 5% Find the rate of interest charged by the bank.
per annum. If the interest for the second year 27. At what rate per cent per annum of simple
11 interest, will a sum of money double itself in
was of the interest for the first year, what 12 years?
20

Answers and explanations


1. Here Principal P = Rs 20000 and 2. Total investment = Rs 8888
Rate R = 9% per annum. Total loan received by Vijay = 75% of Rs 8888
In calculating the time, we count the number
75
of days, excluding t he date on which the = Rs 8888 = Rs 6666.
money was deposited and including the date 100
on which the money was withdrawn.
1
Thus, we have Now, Principal (P) = Rs 6666, Rate (R) = 12 %
Number of days = 3 days (March) + 30 days 2
(April) + 31 days (May) + 30 days (June) + 31
1
days (July) + 21 days (Aug) = 146 per annum and Time (T) = 1 years
2
146 2
Time = 146 days = year = year.

K KUNDAN
365 5 25 3
PRT 6666
Now, interest on Rs 100 for one year = Rs 9 SI = = Rs 2 2
100 100
2 2
Interest on Rs 100 for year = Rs 9 6666 3
5 5
= Rs = Rs 1249.875
16
2 Amount = Principal + SI
Interest on Rs 20000 for year
5 = Rs 6666 + Rs 1249.875
= Rs 7915.875.
2 1
= Rs 9 20000 = Rs 720. Hence, Vijay returned Rs 7915.875 to the
5 100 bank.
Interest = Rs 720. 3. Let the principal be Rs P.
Now, Amount = Principal + Interest We have, Principal = Rs P, SI = 0.125 P and
= Rs 20000 + Rs 720 R = 10% per annum.
= Rs 20720. We have to find the time T.
Thus, the man receives Rs 20720 on 21st
SI 100
August 2000. Now, T =
PR
330 Concept of Arithmetic

7. Amount in the first case = Rs 540


0.125P 100
T = years Principal = Rs 450
P 10 SI = Rs 540 Rs 450 = Rs 90
Rate = 10%
12.5P 2.5
= years = years = 1.25 years. SI 100 90 100
10P 2
Time = = = 2 years
4. Let Principal = P, time = R years, rate = T PR 540 10
PTT P Now, in second case, amount = Rs 708
Then Rate = 9% and Time = 2 years
100 9 Let the principal be Rs 100
2 100 PRT 100 9 2
T Then, SI = = = Rs 18

K KUNDAN
9 100 100
10 1 Amount = Principal + Simple Interest
T = 3 = Rs 100 + Rs 18 = Rs 118
9 3
When amount is Rs 118, principal
1 = Rs 100
rate = 3 %
3 100
When amount is Re 1, principal = Rs
5. Let the sum of money be Rs 100. 118
Amount in 4 years = 100 2 = Rs 200 When amount is Rs 708, principal
Simple interest = Rs 200 Rs 100
100 708
= Rs 100 = Rs = Rs 600
118
SI 100 100 100 Note: When, amount, rate per cent per annum
Rate = = = 25% and time is given, to find sum we can apply
PT 100 4
Now, amount in T years = Rs 100 8 the formula as given below:
= Rs 800 100 Amount
Interest in T years Sum = 100 R T
= Rs (800 100) = Rs 700
In the above case,
SI 100 700 100
Time = T = = = 28 years 100 708 100 708
PR 100 25
Sum = Rs = Rs
Alternative Method: 100 (2 9) 100 18
A sum of money doubles in 4 years.
3 times in 4 2 = 8 years 100 708
= Rs = Rs 600
4 times in 4 3 = 12 years 118
... ... ... ... ... ... 8. According to the question,
... ... ... ... ... ... Principal + SI for 2 years = 1440 ....... (i)
... ... ... ... ... ... Principal + SI for 7 years = 2040 ....... (ii)
8 times in 4 7 = 28 years Subtracting (i) from (ii), we have
1 SI for 5 years = Rs 600
SI for 1 year = Rs 120

K KUNDAN
6. Since t he money lender wants of the
5
From (i), we have
amount loaned every year as interest. So, if Principal + 120 2 = 1440
money lender gives a loan of Rs 100, then or, Principal = 1200
1 100 SI 100 120
interest after one year = Rs 100 = Rs 20. Rate of interest = 10%
5 PT 1200 1
Thus, the rate of interest is 20% per annum. 9. We may consider that Rs (1800 - 1650) gives
Now, interest on Rs 100 for one year = Rs 20. interest of Rs 30 at 4% per annum.
20 30 100
Interest on Re 1 for one year = Re Time = = 5 years.
100 150 4
Hence, interest on Rs 5000 for one year 10. First principal = Rs 1800
Second principal = Rs 1650
20
= Rs 5000 = Rs 1000 Difference = Rs 1800 Rs 1650 = Rs 150
100 Rs 45 in SI on Rs 150 in 3 years.
Amount to be paid = Principal + Interest
= Rs 5000 + Rs 1000 = Rs 6000 SI 100 45 100
Rate % = = = 10%
PT 150 3
Simple Interest 331

11. We have, Principal P = Rs 2400, or, xy + 3x xy = 15000


Rate of Interest R = 12% per annum and or, x = 5000
Thus, the sum = Rs 5000
1 5
Time T = 2 years = years 15. Let the sum be Rs x.
2 2 Now, according to the question,
ie Interest on Rs 100 for one year = Rs 12 x 84
x 340
5 100
Interest on Rs 100 for years
2 8x
or, x 340
5 25
= Rs 12 = Rs 30. or, 8x = 25x 25 340
2
or, 17x = 25 340

K KUNDAN
5 30 340 25
Interest on Re 1 for years = Re
x = = Rs 500
2 100 17
5 Sum lent = Rs 500
Hence, interest on Rs 2400 for years 16. Here, borrowed sum = Rs 400
2
Rate of interest = 5% per annum
30 Time = 2 years
= Rs 2400 = Rs 720
100 400 5 2
Amount = Principal + Interest SI = Rs = Rs 40
100
= Rs 2400 + Rs 720 = Rs 3120.
After 2 years amount returned to Ramu
It is given that the farmer cleared his account
= Principal + SI
by paying Rs 1200 and a cow.
= Rs (400 + 40) = Rs 440
Therefore, Amount = Rs 1200 + Cost of the
Amount returned to Arun = 2% of Rs 440
cow
or, Rs 3120 = Rs 1200 + Cost of the cow 2
or, Cost of the cow = Rs 3120 Rs 1200 = 440 = Rs 8.80
100
= Rs 1920.
17. The son aged 12 years will attain the age of
12. Let the sum be Rs x, then
18 years after (18 12 =) 6 years.
x 15 5 x 15 7 The daughter aged 14 years will attain the
144
100 200 age of 18 years after (18 14 =) 4 years.
Let the sum allotted to the son be Rs x
or, 150x 105x = 144 200
Sum allotted to the daughter
144 200 = Rs (375000 x)
x = = Rs 640 Then, according to the question,
45
Amount of Rs x for 6 years at 5% rate of
500 2 r1 interest
13. I1 10 r1
100 = Amount of Rs (375000 x) for 4 years at 5%
rate of interest.
500 2 r2

K KUNDAN
I2 10 r2 x 65 (375000 x ) 4 5
100 x (375000 x )
100 100
I1 I 2 10 r1 10 r2 = 2.5 3x 1

or, x (375000 x ) 1
2.5 10 5
or, r1 r2 = 0.25%
10 13x 6
or, (375000 x )
14. Let the sum be Rs x and the original rate be 10 5
y% per annum. Then, new rate = (y + 3)%
per annum. 13x
or, 6 (375000 x )
Now, according to the question, 2
x (y 3) 2 x (y ) 2 or, 13x = 4500000 12x
300 or, 13x + 12x = 4500000
100 100
2xy 6x 2xy 4500000
or, 300 or, x = = 180000
100 25
Sum allotted to the son = Rs 180000 and
xy 3x xy the sum allotted to the daughter
or, 300
50 = Rs (375000 180000) = Rs 195000
332 Concept of Arithmetic

18. Let the sum in first, second and third case be Dividing equation (1) by equation (2), we get
Rs x, y and z respectively.
4 9440 P
Now, according to the question,
The amount in first case of Rs x 5 9800 P
P = 8000
x 2 4 27x
= Rs x = Rs Putting the value of P in equation (1), we get
100 25 R = 6%.
The amount in second case of Rs y Alternative Method:
Let the principal be Rs P and the rate of
y 3 4 28y
= Rs y = Rs interest be R%
100 25 In first case, applying the SI formulae
The amount in third case of Rs z
RT

K KUNDAN

z 44 29z A = P 1
100
= Rs z = Rs
100 25
3R
Again, according to the question, 9440 = P 1
100
27x 28y 29z
k 9440 100
25 25 25 or, P
100 3R
25k 25k 25k In second case
x= , y = and z =
27 28 29
5R 3
25k 25k 25k 1 1 1 9800 = P 1
: : : : 4 100
x: y : z = =
27 28 29 27 28 29
or, x : y : z 400 15R
or, 9800 P
400
27 28 29 27 28 29 27 28 29
= : :
27 28 29 9800 400
or, P
or, 812 : 783 : 756 400 15R
But the principal in both the cases is same.
812
Now x = 7053 = Rs 2436 So computing the principal in both the cases,
812 783 756 we get
783 9440 100 9800 400
y = 7053 = Rs 2349
812 783 756 100 3R 400 15R
756 944 980 4
z = 7053 = Rs 2268. or,
812 783 756 100 3R 400 15R
19. Let the rate be R.
or, 944 400 15R 980 4100 3R
The amount in 3 years = Rs 9440.
Let the principal be P. or 944 400 944 15R 980 400 980 12R
Then, interest = Rs (9440 P)

K KUNDAN
or, 377600 14160R 392000 11760R
PRT or, 14160R 11760R 392000 377600
But SI =
100
or, 2400R 14400
PR3
or, (9440 P) = ....(1) 14400
100 or, R = 6%
2400
In the second case,
The required rate percentage is 6% .
The rate per cent is increased by its 25%.
2 0 . Let the rate of interest be R% per annum.
25 5R Since Rs 8000 were with the bank for 2 years
Then, the rate per cent = R R
and the balance ie Rs (8000 - 3000) = Rs 5000
100 4
Amount after three years = Rs 9800 were with the bank for 4 years. Therefore,
Interest after three years = Rs (9800 P) Total SI earned = SI on Rs 8000 for 2 years +
SI on Rs 5000 for 4 years
5R
P 3 8000 R 2 5000 R 4
or, (9800 P) = 4 ....(2) = Rs + Rs
100 100
100
= Rs 160R + Rs 200R = 360 R
Simple Interest 333

Also, SI earned = Rs (3000 + 6800 - 8000) 23. Let the sum be Rs x.


= Rs 1800 Simple Interest at 6% for one year
360 R = 1800 6 1 x 6x

1800 100 100
R = = 5
360
6x 106x
Hence, required rate of interest = 5% per Amount = x
annum. 100 100
Alternative Method: Principal for second year after return of Rs
We have, interest received 6800
= Rs (3000 + 6800 - 8000) = Rs 1800 106x
(SI on Rs 8000 for 2 years) + (SI on Rs 5000 6800
for 4 years) = Rs 1800 100

K KUNDAN
or, (SI on Rs (8000 2) for 1 year) + (SI on Rs Simple interest at 5% on this amount
(5000 4) for 1 year) = Rs 1800 106 x 5
or, (SI on Rs 16000 for 1 year) + (SI on Rs 6800
20000 for 1 year) = Rs 1800 100 100
or, SI on Rs 36000 for 1 year = Rs 1800 Now according to the question,
or SI on Rs 100 for 1 year 6x 11 106 x 5
6800
1800 100 20 100 100
= Rs 100 = Rs 5
36000
66x 106x 6800 5
Hence, required rate of interest or, 5
2000 10000 100
= 5% per annum.
21. Let the original deposit be Rs P. 6800 5 106x 5 66x
Then, simple interest on Rs P for one year at or,
100 10000 2000
(6 5)% = 1% per annum + SI on Rs 1000 for
one year at 6% per annum = Rs 110. 530x 66x 530x 330x
or, 340 =
P 1 1 1000 6 1 10000 2000 10000
or, 110
100 100 200x
P or, 340
60 110 10000
or,
100
340 10000
P or, x 17000
or, 110 60 200
100
the required amount is Rs 17000.
P 24. Principal in this case = Rs 50000
or, = 50 Rate of interest per annum = 4%
100
So, interest for one year
or, P = 50 100 = 5000
Hence, original deposit = Rs 5000. 4
= 50000 = Rs 2000
2 2 . Let the first rate be x% and the second be 100
(x + 1)%.

K KUNDAN
Expenditure per annum = Pocket money of
Then total interest on Rs 4150 and Rs 3500 the boy + expenses of trust
in 4 years = Rs (1200 + 300) = Rs 1500
4150 x 4 3500 (x 1) 4 Net earnings per annum
= Rs + Rs = Rs 2000 Rs 1500 = Rs 500
100 100
Time after which boy will attain the age of 18
= Rs 166x + Rs 140 (x + 1) years = 8 years
= Rs (306x + 140) Total income at the end of 8 years
Total income = Rs 1211 = 8 500 = Rs 4000
306x + 140 = 1211 Total amount given to the boy at the end of 18
or, 306x = 1211 140 = 1071 years = Rs 50000 + Rs 4000 = Rs 54000.
1071 7 1 25. Let the Principal be P and the Rate R%
or, x = 3 %
306 2 2 P R 1
15
1 100
First rate is 3 % and the second rate is
2 PR
or, = 15
1 1 100
3 % 1 4 % . PR = 1500
2 2
334 Concept of Arithmetic

Changed principal = P + 15 + 85 26. Let the rate of simple interest be x% per


= Rs (P + 100) annum.
After 3 years
R
Amount = (P + 100) 1 Principal = Rs (28000 12000) = Rs 16000
100 Interest charged by the bank
= Rs (12000 + 21800 28000)
PR
or, 420 = P + + 100 + R = Rs 5800
100 According to the question,
1500 28000 3 x 16000 2 x
or, 420 = P + + 100 + R = 5800
100 100 100
= P + 15 + 100 + R [ PR = 1500] or, 840x + 320x = 5800

K KUNDAN
or, P + R = 305 or, 1160x = 5800
or, (P R)2 (P R)2 4PR (305) 2 4 1500 5800
or, x = = 5
2
or, (P R) 93025 6000 87025 1160
Rate of interest = 5% per annum.
or, (P R)2 87025 295 27. Let the principal be Rs P
Now, P + R = 305 .....(i) Amount = Rs 2P
P R = 295 .....(ii) SI = Rs (2P P) = Rs P
Now, on adding equations (i) and (ii), we have, SI 100 P 100
2P = 600 Rate = Principal Time P 12
600
or, P = = 300 25 1
2 = 8
On putting the value of P in either equation 3 3
(i) or in equation (ii), we have, 1
R = 5 Hence the required rate per cent = = 8 %.
3
Principal = Rs 300 and Rate = 5%.

K KUNDAN