Solved Examples on Simple Interest
Simple Interest Solved Examples
Simple interest is a easy and quick method for calculating the interest charged on a loan or principal amount. The concept of simple interest is famous and used in many sectors such as finance, automobile and banking.
Solved examples on simple interest will help us to understand to solve step-by-step different types of simple interest problems.
Here we will apply the concept of simple interest to solve various types of examples on simple interest.
(1) Find the simple interest, when Principle = Rs 1000,
Rate of Interest = 5% per annum and Time = 4 years.
Solution: Given Principle P = 1000,
Rate of Interest R = 5% per annum and
Time T = 4 years.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (1000 x 5 x 4)/100
SI = Rs 200
Simple interest = Rs 200
(2) Find the simple interest, when Principal = Rs 3000,
Rate of Interest = 2% per annum and Time = 5 years.
Solution: Given Principle P = 3000,
Rate of Interest R = 2% per annum and
Time T = 5 years.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (3000 x 2 x 5)/100
= Rs 300
Simple interest = Rs 300
(3) Find the interest on Rs 500 for a period of 4 years at the rate of 8% per annum and the amount to be paid at the end of the period.
Solution: Given Principle amount P = Rs 500
Time period T = 4 years
Rate of interest R = 8 %/
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (500 x 8 x 4)/100
= Rs 160
Amount = Principal amount + interest
= 500 + 160
= Rs 660
Amount paid at the end of the year = Rs 660
(4) Find the simple interest, when Principle = Rs 2000,
Rate of Interest = 5% per annum and Time = 5 years.
Solution: Given Principle P = 2000,
Rate of Interest R = 5% per annum and
Time T = 5 years.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (2000 x 5 x 5)/100
= Rs 500
Simple interest = Rs 500
(5) Find the simple interest, when Principle = Rs 400, Rate of Interest = 5% per annum and Time = 2 years.
Solution: Given Principle P = 400,
Rate of Interest R = 5% per annum and
Time T = 2 years.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (400 x 5 x 2)/100
= Rs 40
simple interest = Rs 40
(6) Find the simple interest, when Principle = Rs 400,
Rate of Interest = 6% per annum and Time = 3 years.
Solution: Given Principle P = 400,
Rate of Interest R = 6% per annum and
Time T = 3 years.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (400 x 6 x 3)/100
= Rs 72
Simple interest = Rs 72
(7) Find the simple interest, when Principle = Rs 25000,
Rate of Interest = 20% per annum and Time = 1 year.
Solution: Given Principle P = 25000,
Rate of Interest R = 20% per annum and
Time T = 1 year.
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (25000 x 20 x 1)/100
= Rs 5000
Simple interest = Rs 5000
(8) A man borrowed Rs 8000 from a bank at 8% per annum. Find the amount he has to pay after 4 ½ years.
Solution: Given Principle amount P = 8000,
Rate of Interest R = 8% per annum and
Time T = 4 ½ years = 9/2 years
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = {8000 x 8 x (9/2)}/100
= Rs 2880
Amount = Principal amount + interest
= 8000 + 2880
= Rs 10880
Amount = Rs 10880
(9) John lent out Rs 8000 for 5 years at 15% per annum and borrowed Rs 6000 for 3 years at 12% per annum. How much he gain or loss?.
Solution: Given Principle amount P = 8000,
Rate of Interest R = 15% per annum and
Time T = 5 year
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (8000 x 15 x 5)/100 = Rs 6000
Principal Amount P = Rs 6000
Rate of Interest R = 12% per annum and
Time T = 3 years
Amount = Principal amount + interest
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get,
SI = (6000 x 12 x 3)/100 = Rs 2160
Amount gained by John = 6000 – 2160
= Rs 3840
Amount = Rs 3840
(10) Joseph deposits Rs 1000 in a saving bank account. The bank pays interest at the rate of 5% per annum. What amount can Joseph get after 1 year?.
Solution: Given Principle amount P = 1000,
Rate of Interest R = 5% per annum and
Time T = 1 year
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get,
SI = (1000 x 1 x 5)/100 = Rs 50
Amount = Principal amount + interest
= 1000 + 50
= 1050
= Rs 1050
Amount = Rs 1050
(11) David borrowed Rs 550 from his friend at 8% per annum. He returned the amount after 6 months. How did he much pay?
Solution: Given Principle amount P = 550,
Rate of Interest R = 8% per annum and
Time T = 6 month = 1/2 year
We know that simple interest = (P x R x T)/100
Substituting these values in above equation we get
SI = (550 x 8 x 1/2)/100 = Rs 22
Total amount = Principal amount + interest
= 550 + 22
= 572
= Rs 572
Pay = Rs 572
(12) David borrowed Rs 60000 from his friend at 9% per annum for 2 years. He lent this amount to Jacob at 10% per annum of 2 years. How much did david earn?
Solution: Given Principle amount P = 60000,
Rate of Interest R = 9% per annum and
Time T = 2 years
We know that simple interest SI = (P x R x T)/100
Substituting these values in above equation we get
SI = (60000 x 10 x 2)/100
= Rs 12000
Principle amount P = 60000,
Rate of Interest R = 9% per annum and
Time T = 2 years
We know that simple interest SI = (P x R x T)/100
Substituting these values in above equation we get
SI = (60000 x 9 x 2)/100 = Rs 10800
Amount gained by david = 12000 – 10800
= 1200
David earn = Rs 1200
(13) David lent Rs 15000 from his friend he charged 15% per annum on Rs 12500 and 18% on the rest. How much interest does he earn in 3 years?
Solution: Given Principle amount P = Rs 12500,
Rate of Interest R = 6% per annum and
Time T = 1 year
We know that simple interest SI = (P x R x T)/100
Substituting these values in above equation we get
SI = (2000 x 6 x 1)/100
= Rs 120
Amount after 1 year
Principal amount + Interest
= 2000 + 120
= 2120
after 1 year, amount withdrawn = 700
Principle left = 2120 – 700
= 1420