7

PTER
CHA

INTEREST

INTEREST Let R be the rate percent per annum.

If an agency (i.e. an individual, a firm or a bank etc.) borrow some S.I. × 100 x × 100 300
Using R = , We get R = = = 18.75.
money from any other agency, then the first agency is called the P×T 16 16
x×
borrower and the second agency is called the lender. The borrowed 3
money is called the principal. Hence required rate = 18.75 % p.a.
If the borrower has to pay some additional money together with Illustration 2: Find the SI on ` 1800 from 21st Feb. 2003 to
the borrowed money for the benefit of using borrowed money for 12th April 2003 at 7.3% rate per annum.
a certain time period is called loan period, then this additional Solution: P = ` 1800; R = 7.3%; I = ?
money is called the interest and the principal together with the No. of days = 7 + 31 + 12 = 50 days.
interest is called the amount (i.e. Amount = Principal + Interest). 50
When we deposite money in a bank, we earn interest, interest is T= years.
365

calculated according to an agreement which specifies the rate of
interest. Generally the rate of interest is taken as “percent per 50
1800 × × 7.3
PTR 365
annum” which means “per ` 100 per year”. For example, a rate I= = = ` 18.
100 100

of 10% per annum means ` 10 on ` 100 for 1 year.

SIMPLE INTEREST (S.I.) COMPOUND INTEREST (C.I.)

If the principal remains the same for whole loan period, then the If the borrower and the lender agree to fix up a certain interval
interest is called the simple interest. of time (a year, a half year or a quarter of a year etc.) called
PRT conversion period, so that the amount (= principal + interest) at
S.I. = the end of an conversion period becomes the principal for the
100
next conversion period, then the total interest over the whole loan
where P = Principal, R = Rate of interest in percent per annum, period calculated in this way is called the compound interest.
T = Loan period (or whole time period in years) Note: The main difference between the simple interest and the
In the formula of simple interest, by putting the value of any compound interest is that the principal in the case of simple interest
three unknowns out of the four unknowns S.I., P, R, T; you can remains constant throughout the loan period whereas in the case
find the remaining fourth unknown. of compound interest, the principal changes periodically (i.e. after
Simple rate of interest is generally written as rate of interest each conversion period) throughout the loan period.
only i.e. if it is not mentioned whether the interest is simple or

Rate of interest is always given annually but it can be
compound, then we should assume it as simple interest. compounded annually, half yearly, quaterly or monthly.
Illustration 1: At what rate percent by simple interest, will a Interest compounded annually means conversion period is one
sum of money double itself in 5 years 4 months ? year and hence amount at the end of every one year becomes the
Solution: Let P = ` x principal for the next conversion period.
Then A = ` 2x Interest compounded half yearly means conversion period is

∴ S.I. = A – P = ` 2x – ` x = ` x half year and hence amount at the end of every half year becomes
4 the principal for the next conversion period.
T = 5 years 4 months = 5 years Interest compounded quarterly means conversion period is a
12
quarter of a year and hence amount at the end of every quarter
1 16 of a year becomes the principal for the next conversion period.
=5 year = years
3 3 Similarly, interest compounded monthly means conversion
period is one month and hence amount at the end of every one
month becomes the principal for the next conversion period.
1
 l Interest

1. Computation of Compound Interest When (c) In case of interest compounded monthly, k = 12

12 n
Interest is Compounded Annually  r 
∴ A = P 1 +
 100 × 12 

n
 r 
A = P 1 +   12 n 
 100  r 
and C.I. = P 1 +  − 1
 n   100 × 12  
r 
∴ C.I. = A – P = P 1 +  − 1
 100   Illustration 4: A sum of money is lent out at compound interest
rate of 20 % per annum for 2 years. It would fetch ` 482 more
Here A is the amount,
if interest is compounded half-yearly. Find the sum.
P is the principal, r is the rate of interest in percent per conversion
Solution: Suppose the sum is ` P.
period and n is the number of conversion periods in the whole
C.I. when interest is compounded yearly
loan period.
2
In the formula of compound interest by putting the value of  20 
= P 1 + –P
any three unknowns out of the four unknowns A, P, r and n; you  100 
can find the remaining fourth unknown.
C.I. when interest is compounded half-yearly
Illustration 3: Roohi deposited ` 7,000 in a finance company 4
for 3 years at an interest of 15% per annum compounded  10 
= P 1 +
annually. What is the compound interest and the amount that  100 
Roohi gets after 3 years ? Now, we have,
4 2
Solution: Principal, P = ` 7000, n = 3 years, r = 15% per annum  10   20 
P 1 + –P 1 + 100  = 482
Amount of C.I.  100 

n 3 3
 r   15   115 
P {1.1} − {1.2}  = 482
4 2
A = P 1 + = 7000 1 + = 7000  ⇒
 100   100   100   

= 7000 ×
115 115 115
× × = 10646.125 = ` 10646.13
⇒ {
P  (1.1) − (1.2)
2
}{(1.1) 2
 }
+ (1.2)  = 482


100 100 100
= ` 10646 (approx.) ⇒ P [{1.21 – 1.2}{1.21 + 1.2}] = 482


Compound interest = A – P = 10646 – 7000 = ` 3646 ⇒ P [(0.01) (2.41)] = 482


482
2. Computation of Compound Interest When ∴ P= = ` 20,000
2.41 × 0.01

Interest is Compounded k Times Every Year
If r be the rate of interest in percent per year, then the rate of Illustration 5: Lussy deposited ` 7500 in a bank which pays
r him 12% interest per annum compounded quarterly. What is
interest in percent per conversion period is . the amount which she will receive after 9 months?
k
If n be the number of years in the whole loan period (or whole Solution: Here, P = ` 7500, r = 12% per annum and
time period), then the number of conversion period is nk. 9 3
n = 9 months = years = years.
nk 12 4
 r 
∴ A = P 1 +  r 
4n
 100 k  ∴ Amount after 9 months = P 1 + 
 400 
 r 
nk  3
4×
and C.I. = P 1 +  − 1  12  4  3 
3
 100 k   = ` 7500 × 1 +  = ` 7500 × 1 +
 400   100 
(a) In case of interest compounded half-yearly, k = 2 103 103 103

2n = ` 7500 × × × = ` 8195.45
r  100 100 100
∴ A = P 1 +
 100 × 2 

Illustration 6: A sum of money placed at compound interest
 r 
2n  doubles itself in 4 years. In how many years will it amount to
and C.I. = P   100 × 2  − 1
1 + eight times itself ?
 
Solution: We have
(b) In case of interest compounded quarterly, k = 4 4
 r 
 r 
4n P 1 +  = 2P
∴ A = P 1 +  100 
 100 × 4 

4
 r 
 r 
4n  ∴ 1 +  =2
100 
and C.I. = P 1 + − 1
 100 × 4  
2
 Interest l

Cubing both sides, we get n

 R 
12 A = P 1 −
 r   100 
 1 +  = 23 = 8
100 
12 Illustration 9: The population of a town 2 years ago was
 r  62500. Due to migration to cities, it decreases every year at the
∴ P 1 +  = 8P
 100  rate of 4% per annum. Find its present population.
Hence required time = 12 years. Solution: We have,
Shortcut Approach: Population two years ago = 62500
x becomes 2x in 4 yrs. Rate of decrease of population = 4% per annum.
2x becomes 4x in 4 yrs. 2
 4 
4x becomes 8x in 4 yrs. ∴ Present population = 62500 × 1 −
 100 
Thus x becomes 8x in 4 + 4 + 4 = 12 yrs.
2
Remember the follow result  1
= 62500 × 1 − 
If a sum becomes x times in y years at compound interest then  25 
it will be (x)n times in ny years 2
 24 
Thus if a sum becomes 3 times in y years at compound interest, = 62500 ×  
 25 
it will be (3)2 times in 2 × 3 = 6 years.
Illustration 7: If a sum deposited at compound interest be- 24 24
= 62500 × × = 57600
comes double in 4 years, when will it be 4 times at the same 25 25
rate of interest ? Hence, present population = 57600
Solution: Using the above conclusion, we say that the sum will
be (2)2 times in 2 × 4 = 8 years. 5. If P be the population of a country (or value of an
article etc.) at a certain time, which increases
3. Computation of Compound Interest When at the Rate R1 % per year for first n1 years
Interest is Compounded Annually but Rate of and decreases at the rate of R2 % per year
Interest in Percent being Different for for next n2 years, then the population at the
Different Years end of (n1 + n2) years is given by
n n2
 R  R   R   R1  1  R 
A = P 1 + 1  1 + 2  ... 1 + n  , A = P 1 +  . 1 − 2 
 100   100   100   100   100 
where R1, R2, ..., Rn are rate of interest in percent per year for This formula can be extended for more than 2 different periods
different years. and rates.
Illustration 8: Ram Singh bought a refrigerator for ` 4000 Illustration 10: 10000 workers were employed to construct
on credit. The rate of interest for the first year is 5% and of a river bridge in four years. At the end of first year, 10%
the second years is 15%. How much will it cost him if he pays workers were retrenched. At the end of the second year, 5% of
the amount after two years. the workers at the begining of the second year were retrenched.
Solution: Here, P = ` 4000, R 1 = 5% per annum and However to complete the project in time, the number of
R2 = 15% per annum. workers was increased by 10% at the end of the third year.
 R  R  How many workers were working during the fourth year ?
∴ Amount after 2 years = P 1 + 1  1 + 2  Solution: We have,
 100   100 
Initial number of workers = 10000
 5   15 
Reduction of workers at the end of first year = 10%
` 4000 × 1 +
= 1 +
 100  
100  Reduction of workers at the end of second year = 5%
 1 3 Increase of workers at the end of third year = 10%
` 4000 × 1 +   1 + 
=
 20   20  ∴ Number of workers working during the fourth year
21 23  10   5   10 
× = 10000 1 − 1 − 1 +
=
` 4000 ×
20 20
= ` 4830  100  
100 

100 
Thus, the refrigerator will cost ` 4830 to Ram Singh. 9 19 11
= 10000 × × × = 9405
4. If P be the value of an article (or population 10 20 10
 
of a town or a country etc.) at a certain Hence, the number of workers working during the fourth year
time and R % per annum is the rate of was 9405.
depreciation, then the value A at the end of
n years is given by 3
 l Interest

Practice Exercise
Level - I
1. To buy furniture for a new apartment, Sylvia Chang 9. A certain amount is lent at x% p.a. simple interest for two
borrowed ` 5000 at 11% per annum simple interest for 11 years. Instead, if the amount was lent at 2x% p.a. simple
months. How much interest will she pay? interest for ‘y’ more years, then the interest would have
(a) 500 (b) 504.17 been five times the earlier interest. What is the value of y?
(c) 6050 (d) 605 (a) 2 years (b) 3 years
2. Find the compound interest on ` 18,750 in 2 years the rate (c) 4 years (d) 5 years
of interest being 4% for the first year and 8% for the second 10. A certain sum of money triple itself in 8 years. In how many
year. years it will be five times?
(a) 2310 (b) 1130 (a) 22 years (b) 16 years
(c) 3120 (d) None of these (c) 20 years (d) 24 years
3. At a simple interest ` 800 becomes ` 956 in three years. If 11. The difference between CI and SI on a certain sum of money
the interest rate, is increased by 3%, how much would ` 800 at 10% per annum for 3 years is ` 620. Find the principal if it
become in three years? is known that the interest is compounded annually.
(a) ` 1020.80 (b) ` 1004 (a) ` 200, 000 (b) ` 20,000
(c) ` 1028 (d) Data inadequate (c) ` 10,000 (d) ` 100, 000
4. On retirement, a person gets 1.53 lakhs of his provident 12. An amount of ` 12820 due 3 years hence, is fully repaid in
fund which he invests in a scheme at 20% p.a. His monthly three annual instalments starting after 1 year The first
income from this scheme will be instalment is 1/2 the second instalment and the second
(a) ` 2, 450 (b) ` 2,500 instalment is 2/3 of the third instalment. If the rate of interest
(c) ` 2, 550 (d) ` 2, 600 is 10% per annum, find the first instalment.
5. In how many minimum number of complete years, the (a) ` 2400 (b) ` 1800
interest on ` 212.50 P at 3% per annum will be in exact (c) ` 2000 (d) ` 2500
number of rupees?
13. What will be the ratio of simple interest earned by certain
(a) 6 (b) 8
amount at the same rate of interest for 6 years and that for
(c) 9 (d) 7
9 years?
6. A scooter costs ` 25, 000 when it is brand new. At the end of
(a) 1 : 3 (b) 1 : 4
each year, its value is only 80% of what it was at the
(c) 2 : 3 (d) None of these
beginning of the year. What is the value of the scooter at
14. A man borrows ` 6000 at 5% interest, on reducing balance,
the end of 3 years?
at the start of the year. If he repays ` 1200 at the end of
(a) ` 10,000 (b) ` 12,500
(c) ` 12,800 (d) ` 12,000 each year, find the amount of loan outstanding, (in `), at
7. Village A has a population of 6800, which is decreasing at the beginning of the third year.
the rate of 120 per year. Village B has a population of 4200, (a) 3162.75 (b) 4155.00
which is increasing at the rate of 80 per year. In how many (c) 4155.00 (d) 5100.00
years will the population of the two villages will become 15. Two equal sums were lent, one at the rate of 11% p.a. for five
equal ? years and the other at the rate of 8% p.a. for six years, both
(a) 9 (b) 11 under simple interest. If the difference in interest accrued in
(c) 13 (d) 16 the two cases is ` 1008. find the sum.
8. A person invested some amount at the rate of 12% simple interest (a) ` 11,200 (b) ` 5,600
and a certain amount at the rate of 10% simple interest. He (c) ` 12,600 (d) ` 14,400
received yearly interest of ` 130. But if he had interchanged the 16. A sum is invested at compound interest payable annually.
amounts invested, he would have received ` 4 more as interest. The interest in two successive years was ` 225 and
How much did he invest at 12% simple interest ? ` 236.25. Find the rate of interest
(a) ` 700 (b) ` 500 (a) 2% (b) 3%
(c) ` 800 (d) ` 400 (c) 5% (d) 9%

4
 Interest l

17. A person borrowed ` 500 at 3% per annum S.I. and ` 600 25. Akram Ali left an amount of ` 340000 to be divided
1 between his two sons aged 10 years and 12 years such
at 4 % per annum on the agreement that the whole sum,
2 that both of them would get an equal amount when each
will be returned only when the total interest becomes attain 18 years age. What is the share of elder brother if
` 126. The number of years, after which the borrowed the whole amount was invested at 10% simple interest ?
sum is to be returned, is : (a) 120000 (b) 140000
(a) 2 (b) 3 (c) 160000 (d) 180000
(c) 4 (d) 5 26. A Sonata watch is sold for ` 440 cash or for ` 200 cash down
18. A bank offers 5% compound interest calculated on half- payment together with ` 244 to be paid after one month. Find
yearly basis. A customer deposits ` 1600 each on 1st the rate of interest charged in the instalment scheme
January and 1st July of a year. At the end of the year, the
(a) 10% (b) 15%
amount he would have gained by way of interest is
(c) 20% (d) 25%
(a) ` 120 (b) ` 121 27. What will be the compound interest on a sum of ` 7500/- at
(c) ` 122 (d) ` 123 4 p.c.p.a. in 2 years ? [SBI Clerk-June-2012]
19. A sum of money invested at simple interest triples itself (a) ` 618/- (b) ` 612/-
in 8 years. How many times will it become in 20 years (c) ` 624/- (d) ` 606/-
time? (e) ` 621/-
(a) 8 times (b) 7 times 28. In how many years will ` 4600 amount to ` 5428 at 3 p.c.p.a.
simple interest ? [SBI Clerk-June-2012]
(c) 6 times (d) 9 times
(a) 3 (b) 5
20. The population of a city is 200,000. If the annual birth rate
(c) 6 (d) 4
and the annual death rate are 6% and 3% respectively,
(e) None of these
then calculate the population of the city after 2 years.
29. A sum of money becomes eight times in 3 years if the rate is
(a) 212,090 (b) 206,090 compounded annually. In how much time, the same amount
(c) 212,000 (d) 212,180 at the same compound interest rate will become sixteen times ?
21. The population of Bangalore was 1283575 on 1 January [SBI Clerk-2014]
2001 and the growth rate of population was 10% in the (a) 6 years (b) 4 years
last year and 5% in the years prior to it, the only (c) 8 years (d) 5 years
(e) None of these
exception being 1999 when because of a huge exodus
30. If the compound interest on a certain sum of money for
there was a decline of 20% in population. What was the 3 years at 10% p.a. be ` 993, what would be the simple
population of January 1, 1995 ? interest ? [SBI Clerk-2014]
(a) 1,000,000 (b) 1,200,000 (a) ` 800 (b) ` 950
(c) 1,250,000 (d) 1,500,000 (c) ` 900 (d) ` 1000
22. A person bought a motorbike under the following (e) None of these
scheme: Down payment of ` 15,000 and the rest amount 31. Mahesh starts work as a sales representative on an annual
at 8% per annum for 2 years. In this way, he paid ` 28,920 salary of ` 1,60,000. If he receives a 15% pay-rise each year,
the number of years he has worked for the company, when his
in total. Find the actual price of the motorbike. (Assume
annual salary became ` 2,79,841 is [SSC-Sub. Ins.-2012]
simple interest). (a) 2 (b) 3
(a) ` 26,000 (b) ` 27,000 (c) 4 (d) 5
(c) ` 27,200 (d) ` 26,500 32. A sum of money placed at compound interest doubles itself
23. The ratio of the amount for two years under C.I. annually in 5 years. It will amount to eight times of itself in :
and for one year under S.I. is 6 : 5. When the rate of [SSC-Sub. Ins.-2013]
interest is same, then the value of rate of interest is (a) 15 years (b) 12 years
(a) 12.5% (b) 18% (c) 10 years (d) 20 years
(c) 20% (d) 16.66% 33. A sum amounts double in 8 years by simple interest. Then
the rate of simple interest p.a. is [SSC-Sub. Ins.-2014]
1 (a) 10% (b) 12.5%
24. Mr. Bajaj invested of his total investment at 4% and
7 (c) 15% (d) 20%
1 34. Rekha invested a sum of ` 12000 at 5% per annum
at 5% and rest at 6% for the one year and received
2 compound interest. She received an amount of ` 13230
total interest of ` 730. What is the total sum invested? after n years. Find n. [SSC-Sub. Ins.-2014]
(a) ` 70000 (b) ` 14000 (a) 2.8 years (b) 3.0 years
(c) ` 24000 (d) ` 38000 (c) 2.5 years (d) 2.0 years

5
 l Interest

35. A sum of money becomes 1.331 times in 3 years as compound 42. ` 64,000 will amount to ` 68,921 at 5% per annum and
interest. The rate of interest is interest payable half yearly in [SSC 10+2-2014]
[SSC-MT-2013] 1
(a) 3 years (b) 2 years
(a) 50% (b) 8% 2
(c) 7.5% (d) 10%
1 1
36. A person deposited ` 500 for 4 years and ` 600 for 3 years at (c) 2 years (d) 1 years
2 2
the same rate of simple interest in a bank. Altogether he 43. If the simple interest and compound interest at the same
received ` 190 as interest. The rate of simple interest per rate of certain amount for 2 years are ` 400 & ` 420
annum was [SSC-MT-2013] respectively, then the rate of interest is [SSC 10+2-2014]
(a) 3% (b) 4% (a) 12% (b) 8%
(c) 5% (d) 2% (c) 10% (d) 11%
37. The difference between the interests received from two 44. What would be the compound interest obtained on an
amount of ` 1,210 at the rate of 6. p.c.p.a. after a year ?
different banks on ` 500 for 2 years is ` 2.50. The difference [IBPS Clerk-2012]
between their rates is: [SSC 10+2-2012] (a) ` 70.50 (b) ` 74.60
(a) 0.5% (b) 2.5% (c) ` 73.80 (d) ` 72.60
(c) 0.25% (d) 1% (e) None of these
38. A principal of ` 10,000, after 2 years compounded annually, 45. What is the difference between the simple and compound
the rate of interest being 10% per annum during the first interest earned from a sum of ` 13,033 at a rate of 13 percent
per annum for a period of 3 years (rounded off to 2 digits
year and 12% per annum during the second year (in rupees) after decimal) ? [IBPS Clerk-2012]
will amount to: [SSC 10+2-2012] (a) ` 5,082.87 (b) ` 689.41
(a) 12,000 (b) 12,320 (c) ` 5,772.28 (d) ` 680.94
(c) 12,500 (d) 11,320 (e) None of these
39. A sum becomes ` 2,916 in 2 years at 8% per annum 46. ` 58,750 amounts to ` 79,900 in four years at simple interest.
compound interest. The simple interest at 9% per annum What is the rate of interest paid? [IBPS Clerk-2012]
(a) 14 (b) 13
for 3 years on the same amount will be [SSC 10+2-2013]
(c) 12 (d) 16
(a) ` 625 (b) ` 600 (e) 9
(c) ` 675 (d) ` 650 47. How much will a sum of ` 12,000 deposited at a rate of 9%
40. The population of a village increases by 5% annually. If its per annum (simple interest) for 13 years amount to?
present population is 4410, then its population 2 years ago [IBPS Clerk-2012]
was [SSC 10+2-2014] (a) ` 14,040 (b) ` 20,650
(a) 4500 (b) 4000 (c) ` 13,404 (d) ` 27,800
(c) 3800 (d) 3500 (e) ` 26,040
41. A sum of ` 210 was taken as a loan. This is to be paid back 48. Simple interest on a sum of money for 4 yrs at 7 pcpa is
` 3584. What would be the compound interest (compounded
in two equal instalments. If the rate of interest be 10% annually) on the same amount of money for 2 yr at 4 pcpa?
compounded annually, then the value of each instalment is [IBPS Clerk-2013]
[SSC 10+2-2014] (a) ` 1162.32 (b) ` 1098.72
(a) ` 127 (b) ` 121 (c) ` 992.38 (d) ` 1231.76
(c) ` 210 (d) ` 225 (e) ` 1044.48

Level - II
1. The comound interest on a certain sum for 2 years at 10% 3. A person lent a certain sum of money at 4% simple
per annum is ` 1260. The simple interest on the same sum interest; and in 8 years the interest amounted to ` 340
for double the time at half the rate per cent per annum is less than the sum lent. Find the sum lent.
(a) ` 1200 (b) ` 1160 (a) 500 (b) 600
(c) ` 1208 (d) ` 1175 (c) 1000 (d) 1500
2. The simple interest on a sum of money will be ` 300 after 4. A sum was put at simple interest at a certain rate for
5 years. In the next 5 years principal is trepled, what will 2 years. Had it been put at 1% higher rate, it would have
be the total interest at the end of the 10th year? fetched ` 24 more? The sum is
(a) 1200 (b) 900 (a) 1200 (b) 1500
(c) 600 (d) 1500 (c) 1800 (d) 2000

6
 Interest l

5. A sum of money at compound interest amounts in two 13. The population of towns A and B is the ratio of 1 : 4. For
years to ` 2809, and in three years to ` 2977.54. Find the the next 2 years, the population of A would increase and
rate of interest and the original sum that of B would decrease by the same percentage every
(a) 2000 (b) 2100 year. After 2 years, their population became equal. What
(c) 2200 (d) 2500 is the percentage change in the population?
6. Consider the following statements (a) 33.33% (b) 66.66%
If a sum of money is lent at simple interest, then the (c) 25% (d) Not possible
I. money gets doubled in 5 years if the rate of interest 14. If the population of a town at the beginning of a year was
2 1530000, and the birth rate was 53.2, while the death rate
is 16 %. was 31.2 per 1000 of the population, then the net increase in
3 the population at the end of the year was
II. money gets doubled in 5 years if the rate of interest (a) 336600 (b) 363600
is 20%. (c) 366300 (d) 330000
III. money becomes four times in 10 years if it gets 15. Arun borrowed a sum of money from Jayant at the rate of
doubled in 5 years. 8% per annum simple interest for the first four years, 10%
Of these statements, per annum for the next six years and 12% per annum for the
(a) I and III are correct (b) II alone is correct period beyond ten years. If he pays a total of ` 12,160 as
(c) III alone is correct (d) II and III are correct interest only at the end of 15 years, how much money did
9 he borrow?
7. Simple interest on a certain amount is of the principal. (a) ` 8000 (b) ` 10,000
16
If the numbers representing the rate of interest in percent (c) ` 12,000 (d) ` 9,000
and time in years be equal, then time, for which the 16. What will be the difference in simple and compound interest
principal is lent out, is on ` 2000 after three years at the rate of 10 percent per
annum?
1 1 (a) ` 160 (b) ` 42
(a) 5 years (b) 6 years
2 2 (c) ` 62 (d) ` 20
1 17. Aniket deposited two parts of a sum of ` 25000 in different
(c) 7 years (d) 7 years banks at the rates of 15% per annum and 18% per annum
2 respectively. In one year he got ` 4050 as the total interest.
8. If the rate increases by 2%, the simple interest received What was the amount deposited at the rate of 18% per
on a sum of money increases by ` 108. If the time period annum?
is increased by 2 years, the simple interest on the same (a) ` 9000 (b) ` 18000
sum increases by ` 180. The sum is : (c) ` 15000 (d) None of these
(a) ` 1800 (b) ` 3600 18. Mr. X invested an amount for 2 years at 15 percent per
(c) ` 5400 (d) Data inadequate annum at simple interest. Had the interest been
9. A man lends ` 10,000 in four parts. If he gets 8% on compounded, he would have earned ` 450/- more as interest.
1 1 What was the amount invested?
` 2000; 7 % on ` 4000 and 8 % on ` 1400; what (a) ` 22000 (b) ` 24000
2 2
percent must he get for the remainder, if his average (c) ` 25000 (d) None of these
annual interest is 8.13% ? 19. Mr Sridharan invested money in two schemes A and B,
(a) 7% (b) 9% offering compound interest at 8 percent per annum and 9
percent per annum respectively. If the total amount of interest
1 1 accrued through the two schemes together in two years
(c) 9 % (d) 10 %
4 2 was ` 4818.30 and the total amount invested was ` 27,000,
10. A man borrows ` 12,500 at 20% compound interest. At what was the amount invested in Scheme A ?
the end of every year he pays ` 2000 as part repayment. (a) `15,000 (b) ` 13,500
How much does he still owe after three such instalments? (c) ` 12,000 (d) Cannot be determined
(a) ` 12,000 (b) ` 12,864 20. Parameshwaran invested an amount of ` 12,000 at the simple
(c) ` 15,600 (d) None of these interest rate of 10 percent per annum and another amount at
11. A part of ` 38,800 is lent out at 6% per six months. The the simple interest rate of 20 percent per annum. The total
rest of the amount is lent out at 5% per annum after one interest earned at the end of one year on the total amount
year. The ratio of interest after 3 years from the time when invested became 14 percent per annum. Find the total amount
first amount was lent out is 5 : 4. Find the second part invested.
that was lent out at 5% (a) ` 22,000 (b) ` 25,000
(a) ` 26, 600 (b) ` 28,800 (c) ` 20,000 (d) ` 24,000
(c) ` 27,500 (d) ` 28,000 21. A father left a will of ` 68,000 to be divided between his two
12. The difference between C.I. and S.I. on a certain sum of sons aged 10 years and 12 years such that they may get
money at 10% per annum for 3 years is ` 620. Find the equal amount when each attains the age of 18 years If the
principal if it is known that the interest is compounded money is reckoned at 10% p.a., find how much each gets at
annually. the time of the will.
(a) ` 200,000 (b) ` 20,000 (a) ` 30,000, ` 38,000 (b) ` 28,000, ` 40,000
(c) ` 10,000 (d) ` 100,000 (c) ` 32,000, ` 36,000 (d) Cannot be determined

7
 l Interest

22. Two equal sums of money were invested, one at 4% and However, if he had interchanged the rate of interest on the
the other at 4.5%. At the end of 7 years, the simple two sums, he would have earned ` 200 more. The amount
interest received from the latter exceeded to that received lent will fetch what 15%?
from the former by ` 31.50. Each sum was (a) ` 6000 (b) ` 4000
(a) ` 1,200 (b) ` 600 (c) ` 10000 (d) ` 4400
(c) ` 750 (d) ` 900 1
31. The simple interest on a sum of money is th of the
23. A sum of ` 725 is lent in the beginning of a year at a certain 9
rate of interest. After 8 months, a sum of ` 362.50 more is principal, and the number of years is equal to the rate per
lent but at the rate twice the former. At the end of the year, cent per annum. Find the rate per cent.
` 33.50 is earned as interest from both the loans. What was 1
the original rate of interest? (a) 3 % (b) 3%
3
(a) 3.6% (b) 4.5% (c) 10% (d) None of these
(c) 5% (d) 3.46% 32. Amin borrowed some money from Vishwas. The rate of
24. David invested certain amount in three different schemes interest for first two years is 8% p.a., for the next three years
A, B and C with the rate of interest 10% p.a., 12% p.a. and is 11 % p.a. and for the period beyond 5 years 14% p.a.
15% p.a. respectively. If the the total interest accrued in Vishwas got an amount of ` 10920 as an interest at the end
one year was ` 3200 and the amount invested in Scheme C
of eight years. Then what amount was borrowed by Amin’?
was 150 % of the amount invested in Scheme A and 240% of
(a) ` 12000 (b) ` 15000
the amount invested in Scheme B, what was the amount
invested in Scheme B? (c) ` 1400 (d) None of these
(a) ` 5000 (b) ` 6500 33. The simple interest accrued on an amount of ` 22,500 at the
(c) ` 8000 (d) cannot be determined end of four years is ` 10,800. What would be the compound
25. Subash purchased a refrigerator on the terms that he is interest accrued on the same amount at the same rate at the
required to pay ` 1,500 cash down payment followed by end of two years ? [IBPS-PO-2011]
` 1,020 at the end of first year, ` 1,003 at the end of second (a) ` 16,908 (b) ` 5,724
year and ` 990 at the end of third year. Interest is charged at
(c) ` 28,224 (d) ` 8,586
the rate of 10% per annum. Calculate the cash price
(a) ` 3,000 (b) ` 2,000 (e) None of these
(c) ` 4,000 (d) ` 5,000 34. What is the difference between the simple and compound
1
26. A owes B ` 1,573, payable 1 years hence. Also B owes A interest on ` 7,300/- at the rate of 6 p.c.p.a. in 2 years ?
2
` 1,444.50, payable 6 months hence. If they want to settle [IBPS-PO-2012]
the account forthwith, keeping 14% as the rate of interest, (a) ` 29.37/- (b) ` 26.28/-
then who should pay whom and how much ? (c) ` 31.41/- (d) ` 23.22/-
(a) A to B, ` 28.50 (b) B to A, ` 37.50 (e) ` 21.34/-
(c) A to B,` 50 (d) B to A, ` 50
35. The simple interest accrued on a sum of certain principal in
27. Seema invested an amount of ` 16,000 for two years on
compound interest and received an amount of ` 17,640 on 8 yr at the rate of 13% per year is ` 6500. What would be the
maturity. What is the rate of interest ? compound interest accrued on that principal at the rate of
(a) 5% pa (b) 8% pa 8% per year in 2 yrs? [IBPS-PO-2013]
(c) 4% pa (d) Data inadequate (a) ` 1040 (b) ` 1020
28. A finance company declares that, at a certain compound (c) ` 1060 (d) ` 1200
interest rate, a sum of money deposited by anyone will (e) None of these
become 8 times in three years. If the same amount is 36. The difference between C. I. (Compound Interest) and S.I.
deposited at the same compound rate of interest, then in
(Simple Interest) on a sum of ` 4,000 for 2 years at 5% p.a.
how many year will it become 16 times ?
payable yearly is [SSC CGL-2012]
(a) 5 years (b) 4 years
(c) 6 years (d) 7 years (a) ` 20 (b) ` 10
29. Two friends A and B jointly lent out ` 81,600 at 4% per (c) ` 50 (d) ` 60
annum compound interest. After 2 years A gets the same 37. Two equal sums were borrowed at 8% simple interest per
amount as B gets after 3 years. The investment made by B annum for 2 years and 3 years respectively. The difference
was in the interest was ` 56. The sums borrowed were
(a) ` 40,000 (b) ` 30,000 [SSC CGL-2013]
(c) ` 45,000 (d) ` 38,000
(a) ` 800 (b) ` 700
30. A money-lender, lends a part of his money at 10% per annum
and the rest at 15% per annum. His annual income is ` 1900. (c) ` 560 (d) ` 350

8
 Interest l

Hints & Solutions

Level-I Þ 13400 = 10 x + 12 y (2)
From equations (1) and (2)
1. (b) From the formula, I = Prt, with P = 5000, r = .11, and
x = 500
t = 11/12 (in years). The total interest she will pay is
9. (b) Let the sum be ` x.
I = 5000 (.11) (11/12) = 504.17
100 ´ 2 x ´ ( y + 2) 5 ´ 100 ´ x ´ 2
or ` 504.17 ATQ = =
100 100
2. (a) After first year the amount Þ y = 3 years
æ 4 ö æ 104 ö 10. (b) It triple itself in 8 years, which makes interest equal to
= 18750 ç 1 + ÷ = 18750 ç ÷ 200% of principal.
è 100 ø è 100 ø
So, 200% is added in 8 years
æ 104 ö æ 108 ö Hence, 400% which makes the whole amount equal to
After 2nd year the amount = 18750 ç ÷ ç ÷
è 100 ø è 100 ø five times of the principal, which will be added in
æ 26 ö æ 27 ö 16 years
= 18750 ç ÷ ç ÷ = 21060 11. (b) Go through trial and error of the options. You will get:
è 25 ø è 25 ø
20000×(1.3) = 26000 (@ simple interest)
\ C.I. = 21060 –18,750 = ` 2310.
20000 × 1.1×1.1×1.1 = 26620 @ compound interest.
956 , 800 Thus 20000 is the correct answer.
3. (c) Rate of interest = ´100 < 6.50%
3´800 12. (c) Solve using options. Option (c) fits the situation as:
12820 = 2000 + 2 years interest on 2000 + 4000 + 1 years
800 ´ 9.5 ´3 interest on 4000 + 6000 (use 10% compound interest
[ Amount = 800 +
100 for calculation of interest) ®
= 800 + 228 = ` 1028 12820 = 2000 + 420 + 4000 + 400 + 6000.
4. (c) Let S.I. = ` x Thus, option (c) fits the situation perfectly.
13. (c) Let the principal be P and rate of interest be R%.
1.53 ´105 ´ 20
= = 30600 éæ P´ R ´ 6 öù
100
ê ç 100 ÷ ú 6PR 6
è øú =
30600 \ Required ratio = ê = = 2 : 3.
Monthly income = = ` 2550 êæ P ´ R ´ 9 ö ú 9PR 9
12 ê çè 100 ÷ø ú
ë û
3 51 14. (c) The amount man gets after one year
5. (b) Interest for one year = ` 212.50 ´ ´1 = `
100 8
6000×5×1
Thus in 8 years, the interest is ` 51. = 6000 + –1200
6. (c) After first year, the value of the scooter 100
25000 ´ 80 = 6000 + 300 – 1200 = 5100
= = ` 20,000 \ Amount after two years i.e., at the beginning of the
100
After second year, the value of scooter = ` 16,000 third year
After third year, the value of scooter = ` 12,800 5100×5×1
7. (c) Checking with options, we find that after 13 years, = 5100 + –1200 = 5100 + 255 – 1200 = 4155
100
population of the village A = 6800 – 120 × 13 = 5240
And that of village B = 4200 + 80 × 13 = 5240 Hence option (c)
15. (d) Let the sum be ` x.
8. (b) Let amount invested at 12% be x and amount invested x ´ 11 ´ 5 x ´ 8 ´ 6
\ - = 1008
at 10% be y. 100 100
According to question 7x
Þ = 1008
x ´ 12 ´ 1 y ´ 10 ´ 1 100
130 = + Þ x = 14400
100 100 16. (c) Difference in interest = 236.25 – 225 = ` 11.25
Þ 13000 = 12 x + 10 y …(1) This difference is the simple interest over ` 225 for
one year. Hence, rate of interest
x ´ 10 ´ 1 y ´ 12 ´ 1
And 134 = + 11.25 ´ 100
100 100 = = 5%
225 ´ 1

9
 l Interest

17. (b) Let the time be x years. Then, 25. (d) Go through options
æ 500 ´ 3 ´ x ö æ 600 ´ 9 ´ x ö 1.8 ´ 6 ´ 10 1.6 ´ 8 ´ 10
ç ÷ + ç ÷ = 126 1.8 + = 1.6 +
è 100 ø è 100 ´ 2 ø 100 100
Û 15x + 27x = 126 Û 42x = 126 Û x = 3. Hence (d) is correct.
\ Required time = 3 years P1 ´ 6 ´ 10 P ´ 8 ´ 10
Alternatively : P1 + = P2 + 2
é 2 100 100
æ 5 ö
18. (b) Amount = ` ê1600 ´ ç1 + ÷ P1 9
êë è 2 ´ 100 ø =
Þ P2 8
æ 5 öù 340000 ´ 9
+1600 ´ ç1 + ÷ú = ` 180000
è 2 ´ 100 ø û Share of elder brother =
17
26. (c) Principal for next month = 440 – 200 = 240
é 41 41 41 ù Amount paid after next month = 244
= ` ê1600 ´ ´ + 1600 ´ ú
ë 40 40 40 û Therefore interest charged at ` 240 = 4
é 41 æ 41 ö ù æ 1600 ´ 41 ´ 81ö 240 ´ r ´ 1
= ` ê1600 ´ ç + 1÷ ú = ` çè ÷ \ 4=
ë 40 è 40 ø û 40 ´ 40 ø 12 ´ 100
r = 20% per annum
= ` 3321.
C.I. = ` (3321 – 3200) = ` 121 2
æ 4 ö
19. (c) Tripling in 8 years means that the interest earned in 27. (b) Total amount = 7500 ç1 +
è 100 ÷ø
8 years is equal to 200% of the capital value. Thus,
interest per year (simple interest) is 25% of the
æ 26 26 ö
capital. In 20 years, total interest earned = 500% of = 7500 ç ´ ÷ = 8112
è 25 25 ø
the capital and hence the capital would become 6
times it's original value. C I = Total amount – sum
20. (d) The yearly increase in the population is 3%. Thus, = 8112 – 7500 = ` 612
the population would increase by 3% each year.
p´r´t
200000 would become 206000 while 206000 would 28. (c) P + = 5428
become 212180. 100
21. (b) Solve through options to see that the value of 4600 ´ 3 ´ t
1200000 fits the given situation. = 5428 - 4600 = 828
100
22. (b) Solve using options. If the price is 27000, the interest
on 12000 (after subtracting the down payment) 828 ´ 100
would be 16% of 12000 = 1920. Hence, the total Þt= = 6 years
4600 ´ 3
amount paid would be 28920.
23. (c) On the second year (in terms of C.I.) is 29. (b) Let the sum of money be ` x.
3
2 æ r ö
æ r ö Now, 8x = x ç1 +
P ç1 +
è 100 ÷ø è 100 ÷ø
6 æ r ö 6
= Þ ç1 + =
æ Pr ö 5 è 100 ÷ø 5 3
r
çè P + ÷
100 ø or, æç1 + r ö÷ = (2)3 or 1 + =2
è 100 ø 100
Þ r = 20% Again, let the sum becomes 16 times in n years. Then,
24. (b) Let the principal be x, then n
æ r ö
16 x = x ç1 +
æx x
çè ´ 4 + ´ 5 +
5x ö
´ 6÷ è 100 ÷ø
7 2 14 ø
= 730 Þ 16 = 2 n or 2 4 = 2 n or n = 4
100
30. (c) Let Principal = ` P
Þ x = 14000 3
æ 10 ö
- P = 993 Þ æç ´ ´ - 1ö÷ P = 993
Alternatively : Go through suitable options. 11 11 11
P ç1 +
Choose any middlemost option so that if the è 100 ÷ø è 10 10 10 ø
choosen option is not correct, then you can
determine that whether you have to increase or æ 1331 - 1000 ö
Þ ç P = 993 or ,
decrease the value of the choices given. è 1000 ÷ø

10
 Interest l

993 ´ 1000 36. (c) S.I (Simple Interest)

P= = 3000
331 Principle1× Rate×Time1 Principle1 + Rate× Time1
= +
æ 3000 ´ 3 ´ 10 ö 100 100
\ Simple interest = ` çè 100
÷ø = ` 900
500 ´ R ´ 4 600 ´ R ´ 3
190 = +
31. (c) Initial salary = 160000 100 100
15% pay-rise each year 190 = 20R + 18R Þ 38R = 190 Þ R = 5%
After 1 year salary= 160000 + 15% of 160000
= 160000 + 24000 = ` 184000
37. (c) Let r1 and r2 are the rates of interests.
After 2 years salary = 184000 + 15% of 184000
So, the difference in S.I
= 184000 + 27600 = ` 211600
After 3 years salary = 211600 + 15% of 211600 principal × time × difference between
= 211600 + 31740 = ` 243340 the rates of interests
=
After 4 years salary = ` 279841 100
T 500 ´ 2 ´ ( r1 - r2 )
æ R ö Þ 2.50 =
32. (a) A = P ç1 + ÷ 100
è 100 ø
2.50 ´ 100
5 So, (r1 – r2) = = 0.25
æ R ö 500 ´ 2
Þ 2 = 1ç 1 + ÷
è 100 ø æ r öæ r ö
38. (b) A = P ç1 + 1 ÷ ç1 + 2 ÷
Cubing both sides. è 100 ø è 100 ø
15
æ R ö æ 10 ö æ 12 ö
23 = 1ç1 + A = 10000 ç1 + 1+
è 100 ø
÷ è 100 ø è 100 ÷ø
÷ ç
Therefore, T = 15 years. æ 110 ö æ 112 ö
A = 10000 ç
33. (b) Let P be the principle amount and R be rate of interest. è 100 ÷ø çè 100 ÷ø
P´ R ´8 A = 12320
2P = P +
100 2
æ 8 ö
39. (c) 2916 = P ç1 +
100 è 100 ø÷
R= = 12.5%
8
34. (d) P = ` 12000, Rate = 5 %, Time (n) = ?, Amount = 13230 2916
P= = 2500
(1.08) 2
T n
æ R ö æ 5 ö
A = P ç1+ Þ 13230 = 12000 ç 1 +
è 100 ÷ø è 100 ÷ø 2500 ´ 9 ´ 3
S.I = = 675
100
n n
13230 æ 21ö 1323 æ 21ö
Þ =ç ÷ Þ =ç ÷ 4410 4410
12000 è 20 ø 1200 è 20 ø 40. (b) Population 2 years ago = = ´ 400
2 441
æ 5 ö
441 æ 21ö
n ç1 + ÷
è 100 ø
Þ =ç ÷
400 è 20 ø = 4000
2 n 41. (a) Principal (P) = 210
æ 21ö æ 21ö
çè ÷ø = çè ÷ø Ratio (R) = 10%
20 20 Loan has to be paid in the instalments i.e., it take two
\ n = 2 years years to pay.
3 3
æ R ö æ R ö æ R ö
2
P ç1 + = 1.331P Þ ç1 + = 1.331
è 100 ÷ø è 100 ÷ø
35. (d) CI = P ç 1 +
è 100 ÷ø

3 3 2
æ R ö æ 11ö æ 10 ö 11 11
çè1 + ÷ø = çè ÷ø = 210 ç1 + Þ 210 ´ ´ = 254
100 10 è 100 ÷ø 10 10

R 11 R 11 R 1 254
1+ = Þ = –1Þ = So, equal instalment = = 127
100 10 100 10 100 10 2
R = 10%

11
 l Interest

2n 12000 ´ 9 ´13
æ R ö 47. (e) S.I. =
ç ÷ 100
42. (d) For Half yearly, A = P ç1 + 2 ÷ = ` 14040
çç 100 ÷÷ \ Amount = 12000 + 14040
è ø = ` 26040
2n Prt
æ 5 ö 48. (e) Using SI =
68921 = 64000 ç1 + ÷ 100
è 200 ø
P´7´4
2n 3584 =
68921 æ 41 ö 100
=ç ÷
64000 è 40 ø Þ P = ` 12800
Now, amount got by CI
3 2n
æ 41 ö æ 41 ö
ç ÷ =ç ÷ æ r ö
n
è 40 ø è 40 ø A = P ç1 +
è 100 ÷ø
3 1
n= = 1 years 2
2 2 æ 4 ö
= 12800 ç1 +
è 100 ÷ø
= 12800 ´ 1.04 ´ 1.04
43. (c) Let P be the Principal amount and R be the rate of
interest = ` 13844.48
P´R´2 Hence , CI = A – P = 13844.48 – 12800 = ` 1044.48
400 =
100
Level-II
20000
PR = 20000 or P = 1. (a) Let the sum be ` P. Then,
R
é æ 10 ö
2 ù
R2 ê P ç1 +
For 2 years, C.I – S.I. = P Þ ÷ - P ú = 1260
êë è 100 ø úû
(100 )2
20000 R2 é æ 11 ö2 ù
420 - 400 = ´ Þ ê P ç ÷ - 1ú = 1260
R 10000 êë è 10 ø úû
20 = 2R
\ Sum = ` 6000
R = 10
æ 6000 ´ 4 ´ 5 ö
éæ R ö
T ù éæ 6 ö
1 ù So, S.I. = ` ç ÷ = ` 1200
44. (d) C.I. = P ê ç1 + ÷ - 1ú = 1210 êç1 + ÷ - 1ú è 100 ø
ë è 100 ø û ë è 100 ø û
2. (a) Simple interest for 5 years = ` 300
é 3 ù 1210 ´ 3 363 Now, when principal is trebled, the simple interest for
1210 ê1 + - 1ú = = = ` 72.60
ë 50 û 50 5 5 years will also treble the simple interest on original
principal for the same period. Thus, S.I. for last 5
13033 ´13 ´ 3 years when principal is trebled.
45. (b) S.I. = = ` 5082.87
100 = 3 × 300 = ` 900
\ Total SI for 10 years = 300 + 900 = `1200
éæ 13 ö
3 ù
C.I. = 13033 êç1 + ÷ - 1ú 3. (a) Let the sum be ` x.
ëè 100 ø û
x ´ 8 ´ 4 32 x
= 13033 × 0.44 \ Interest = =
= ` 5772.28 100 100
Difference = 5772.28 – 5082.87 32 x 68 x
= ` 689.41 x- =
100 100
46. (e) S.I. = 79900 – 58750 = ` 21150
68 x
S.I. × 100 When interest is less, the sum is ` x.
Rate = 100
Principal × Time \ When interest is ` 340 less, the sum is
21150 ´100 x
= = 9% per annum ´ 100 ´ 340 = ` 500
58750 ´ 4 68 x

12
 Interest l

Direct Formula: 8. (d) Let the sum be ` x, rate be R% p.a. and time be T
100 100 ´ 340 years.
Sum = ´ 340 = = ` 500
100 - 8 ´ 4 68 é x ´ ( R + 2) ´ T ù æ x ´ R ´ T ö
Then, ê
100 ú -ç ÷ = 108
Difference in interest ´ 100 ë û è 100 ø
4. (a) Sum = Û 2xT = 10800 ...(i)
Times ´ Difference in rate

24 ´ 100 é x ´ R ´ (T + 2) ù æ x ´ R ´ T ö = 180
= = ` 1200 ê 100 ú -ç ÷
2 ´1 ë û è 100 ø
5. (d) Difference in amounts = 2977.54 – 2809 = ` 168.54 Û 2xR = 18000 ...(ii)
Now, we see that ` 168.54 is the interest on ` 2809
Clearly, from (i) and (ii), we cannot find the value of
in one year (it is either simple or compound interest
x.
because both are the same for a year).
So, the data is inadequate.
168.54 ´ 100 9. (b) Let the required rate be R. Then,
Hence, rate of interest = = 6%
2809
æ 20000 ´ 8 ´1 ö æ 15 1 ö
Now, for the original sum, ç ÷ + ç 4000 ´ ´ ÷
è 100 ø è 2 100 ø
2
æ 6 ö
2809 = x ç 1 + ÷ æ 17 1 ö æ 1 ö
è 100 ø + ç 1400 ´ ´ ÷ + ç 2600 ´ R ´ ÷
è 2 100 ø è 100 ø
2
æ 53 ö
Or, 2809 = x ç ÷ æ 813 ö
è 50 ø = ç ´10000 ÷
è 10000 ø
2809 ´ 50 ´ 50 Û 160 + 300 + 119 + 26R = 813 Û R = 9.
\ x= = ` 2500
53 ´ 53
6. (b) Let sum be x. Then, S.I. = x.
é ìï æ 20 ö üï
3
100 ´ x 10. (d) Balance = ` ê í12500 ´ ç1 +
=6 ÷ ý-
I. Time = x ´ 50 years (False) êë îï è 100 ø þï
3
100 ´ x ìï 2 üï ù
II. Time = = 5 years (True) æ 20 ö æ 20 ö
x ´ 20 í 2000 ´ ç 1 + ÷ + 2000 ´ ç1 + ÷ + 2000 ý ú
ïî è 100 ø è 100 ø ïþ ûú
III. Suppose sum = x. Then, S.I. = x and Time
= 5 years.
éæ 5 6 6ö
æ 100 ´ x ö = ` êç12500 ´ ´ ´ ÷ -
Rate = ç ÷ % = 20% ëè 6 5 5ø
è x´5 ø
Now, sum = x, S.I. = 3x and Rate = 20%. æ 6 6 6 öù
ç 2000 ´ ´ + 2000 ´ + 2000 ÷ú
æ 100 ´ 3x ö è 5 5 5 øû
\ Time = ç ÷ years = 15 years (False)
è x ´ 20 ø = ` [21600 – (2880 + 2400 + 2000)] = `14320.
So, II alone is correct. F ´ (0.06) ´ 6
11. (b) = 5/4
9 (38800 - F ) ´ 0.05 ´ 2
7. (d) Let sum = x. Then, S.I. = x.
16
where F is the first part.
Let rate = R% and time = R years. 1.44F = 19400 – 0.5F
æ x´ R´ R ö 9x 2 900 F = 19400/1.94 = 10000
\ ç ÷ = 16 Û R = 16 Thus, the second part = 38800 – 10000 = 28800
è 100 ø
12. (b) Go through trial and error of the options. You will
30 1 get:
ÛR= = 7 .
4 2 20000 × (1.3) = 26000 @ simple interest)
1 20000 × 1.1 × 1.1 × 1.1 = 26620 @ compound interest.
Hence, time = 7 years. Thus, 20000 is the correct answer.
2

13
 l Interest

or, x(1.08)2 + (27000 – x) (1.09)2 = 31818.30

2 2
æ r ö æ r ö or, 1.1664x + 32078.7 – 1.1881x = 31818.30
13. (a) x ç1 + ÷ = 4 x ç1 - ÷
è 100 ø è 100 ø or, 0.0217x = 260.4

æ r ö æ r ö 260.4
or, x = = `12000
ç1 + ÷ = 2 ç1 - ÷ 0.0217
è 100 ø è 100 ø
20. (c) Let the amount invested at 20% rate be ` x. According
3r to the question,
=1
100
10 20 14
12000 ´ ∗ x´ < (12000 ∗ x ) ´
100 1 100 100 100
r= = 33 % =33.33%
3 3
x 7
14. (a) The original population was 1530 thousand or, 1200 ∗ < 1680 ∗ x
5 50
Þ No. of births was 53.2% of 1530 thousand
= 813960 x 7
Þ No. of deaths was 31.2% of 1530 thousand = 47360 or, , x < 480
5 50
Þ Net increase in population = 813960 – 47360
= 336600 3
or, x < 480
Examination method : Net increase = (53.2 – 31.2)% of 50
total
[ x = ` 8000
15. (a) Let the Principal = P
[ Total amount invested ` = (12000 + 8000)
P ´ 8 ´ 4 P ´ 10 ´ 6 P ´ 12 ´ 5 = ` 20000
Then + +
100 100 100 21. (c) Let one gets = ` x
= 12160 then, second gets = ` (68,000 – x)
Þ 152P = 12160 ×100 Given : A1 = A2

12160 ´ 100 x ´ 10 ´ 8 (68000 - x) ´ 10 ´ 6

or = ` 8000 x+ = (68, 000 - x) +
152 100 100
16. (c) For 3 years: Þ x[100 + 80] = (68, 000 - x)[100 + 60]
2
Sum ´ (rate) (300 + rate) 180 x
Diff. = Þ = 68, 000 – x
(100)3 160
2000 ´ 10 ´ 10 ´ 310 Þ 34 x = 68000 ´ 16 Þ x = ` 32, 000
= = ` 62
100 ´ 100 ´ 100 \ second gets = ` 36,000
17. (d) Let the amount deposited at the rate of 15% per annum 22. (d) Difference of S.I. = ` 31.50
be ` x.
Let each sum be ` x. Then
15% of x + 18% of (25000 – x) = 4050
or, 15% of x + 18% of 25000 – 18% of x = 4050 1
or, 3% of x = 4500 – 4050 = 450 Þ x = ` 15000 x´ 4 ´7 x ´ 4´7
2 - = 31.50
[ Amount deposited at 18% 100 100
= (25000 – 15000 =) ` 10000
7 x 1 63
30 p é æ 15 ö ù or ´ =
18. (d) + 450 = ê p ç1 + ÷- pú 100 2 2
100 ë è 100 ø û or x = ` 900
Þ p = ` 20,000. 23. (d) Let the original rate be R%. Then, new rate = (2R)%.
19. (c) Let, in scheme A, Sridharan invest ` x.
Then, his investment in scheme B = ` (27000 – x). æ 725 ´ R ´ 1ö æ 362.50 ´ 2R ´ 1ö
\ç + ÷ø = 33.50
Now, è 100 ÷ø çè 100 ´ 3

æ 8 ö
2
æ 9 ö
2 Þ (2175 + 725) R = 33.50 ´ 100 ´ 3 = 10050
x ç1 + + (27000 – x) ç 1 +
è 100 ÷ø è 100 ø
÷
10050
ÞR= = 3.46%
– 27000 = 4818.30 2900

14
 Interest l

24. (a) Let x, y and z be the amounts invested in schemes A, B 3

and C respectively. Then, æ r ö
28. (b) Given 8P = P ç1 +
è 100 ÷ø
æ x ´ 10 ´ 1ö æ y ´ 12 ´ 1ö æ z ´ 15 ´ 1ö Where P = Principal amount,
çè ÷ +ç ÷ +ç ÷ = 3200
100 ø è 100 ø è 100 ø r = Compound interest rate
Þ 10x + 12y + 15z = 320000 ..... (1) Þ r = 100%
12 \ let the time in which the principal amount becomes
Now, z = 240% of y = y ..... (2) 16 times be n
5
3 n
And, z = 150% of x = x æ 100 ö
Then 16P = P ç1 +
2 è 100 ÷ø
2 æ 2 12 ö 8
Þx= z=ç ´ ÷ y= y ..... (3) Þ 16 = 2n Þ n = 4yrs.
3 è3 5ø 5
From (1), (2) and (3), we have : 29. (a) Let A lent ` x and B lent ` y
16y + 12y + 36y = 320000 Þ 64y = 320000 Þ y = 5000. Since, A and B together lent out ` 81600
\ Sum invested in scheme B = ` 5000. \ x + y = 81,600
25. (c) Cash down payment = ` 1500 Now, given (r) Rate = 4%
Let ` x becomes ` 1020 at the end of first year. 4 26
\ 1+ r = 1+ =
æ 10 ö 100 25
Then, 1020 = x ç1 +
è 100 ÷ø According to the question, we have
3–2
1020 ´ 100 x æ 26 ö 26
or x = = `. 927.27 =ç ÷ =
110 y è 25 ø 25
2
æ 10 ö 25
Similarly, 1003 = y ç1 + \ Investment made by B = 81600 ´ = 40, 000
è 100 ÷ø 51
30. (a) Let the amount lent = P1 at 15% and P2 at 10%
1003 ´ 20 ´ 20
or y = = ` 828.92 According first condition.
22 ´ 22
P1 ´ 15 ´ 1 P2 ´ 10 ´ 1
990 ´ 20 ´ 20 ´ 20 + = 1900
and z = = ` 743.80 100 100
22 ´ 22 ´ 22
15P1 + 10 P2 = 1900 × 100 ....(1)
Hence, CP = 1500 + 927.27 + 828.92 + 743.80 According to second condition.
= 3999.99 or ` 4000.
P1 ´ 10 ´ 1 P2 ´ 15 ´ 1
26. (d) 14% in 1.5 yrs will be 21% + = 1900 + 200 = 2100
in 6 months will be 7% 100 100
10P1 + 15P2 = 2100 × 100 ....(2) × 10
1573 ´ 100
\ A’s debt = =` 1300 15P1 + 10P2 = 1900 × 100 ....(1) × 15
121
100P1 + 150P2 = 2100000
1444.5 ´ 100
B’s debt = =` 1350 225P1 + 150P2 = 2850000
107 – – –
Hence, B must pay ` 50 to A. 125P1 = 750000
27. (a) Amount = ` 17640, Principal = ` 16000 P1 = 6000
Time = 2 yrs, Rate = R
2 31. (a) Let principal = P, time = t years, rate = t
æ R ö
17640 = 16000 ç 1 + ÷ Ptt P
è 100 ø Then, =
100 9
2 2
17640 æ R ö æ R ö
Þ = ç1 + Þ 1.1025 = ç1 +
16000 è 100 ÷ø è 100 ø
÷
\ t2 =
100
\ t=
10
=3
1
9 3 3
R R
Þ 1+ = 1.05 Þ = 1.05 –1 = 0.05 1
100 100 \ rate = 3 %
3
Þ R = 5%

15
 l Interest Direct

formula: Rate 2
æ R ö
34. (b) Required difference = P ç
= time = 100 ´
1 10
= =3 %
1 è 100 ÷ø
9 3 3
32. (a) Let ‘x’ be the amount borrowed by Amin. 2
æ 6 ö
= 7300 ´ ç = ` 26.28
x ´ 2 ´ 8 x ´ 3 ´ 11 x ´ 3 ´ 14 è 100 ÷ø
\ + + = 10920
100 100 100
SI ´100 6500 ´ 100
91 10920´100 35. (a) P = = = 6250
or, x = 10920 or x = < 12000 R ´T 8 ´ 13
100 91
2
Interest ×100 æ 8 ö
33. (b) Rate of simple interest = CI = 6250 ç 1 + ÷ – 6250 = ` 1040
Principal × Time è 100 ø

10800 ´100 36. (b) PR 2

= < 12% Required difference =
22500 ´ 4 (100)2

é time ù 4000 ´ 5 ´ 5
Compound interest = Principal êæç1+ rate ö÷ – 1ú Þ
100 ´100
=`10
êëè 100 ø úû
37. (b) Let principal be represented by P.
Ist Case :
éæ 12 ö
2 ù
= 22500 êç 1 + - 1ú P ´ R ´ T P´ 8´ 2
÷ S.I. = =
êëè 100 ø úû 100 100
IInd Case :
éæ 3 ö2 ù P ´ R ´ T P ´8´ 3
= 22500 ê ç1 + ÷ - 1ú S.I = =
ê è 25 ø ú 100 100
ë û
According to question
éæ 28 ö 2 ù æ 784 ö P´8´3 P´8´ 2
= 22500 êç ÷ - 1ú = 22500 ç -1 – = 56
êè 25 ø ú è 625 ø÷ 100 100
ë û
P´8 56 ´100
= 56 Þ P = = 700
159 100 8
= 22500 ´ = ` 5724
625

16