Principal:
The money borrowed or lent out for a certain period is called the principal or the sum.
Interest:
Extra money paid for using other's money is called interest.
Simple Interest
Compound Interest
Expansion
A = Amount
P = Principal
I = Interest
N = Number of years
R = Rate percent per yr
S.I = Simple Interest
C.I = Compound Interest
Problems :
1. What will be the simple interest accrued on a sum of Rs.4000/- at a rate of 8p.c.p.a in 2years?
2. Shrihari invested an amount of Rs.22,400 at simple interest of 12% p.c.p.a how much amount
will he get after seven years?
3. Arjun got a simple interest of Rs.750 on a principal of Rs.2,500 in 4 years. How much
percent arjun got interest per year?
4. If Rs.600 becomes Rs.3,600 in 20 years on a simple interest rate ‘R’, then what is the rate of
interest(value of R)?
5. The simple interest accrued in 4 years on a principal of Rs.25,000 is two-tenth the principal.
What is the rate of simple interest p.c.p.a?
6. In how many years will as sum of money doubles itself as 12.5% per annum?
7. A sum of money doubles itself in 20years at simple rate of interest. In how many years does
it become 4 times?
8. Raman invest Rs.2,000, part at 10% S.I and the balance at 15% simple interest. If he receives
an interest of Rs.460 for 2years. How much he has invested under each heads?
9. What is the interest amount on a sum of Rs.25,000 at 12% compound interest for two years?
10. What will be the compound interest on an amount of Rs.5,000 for a period of 2 years at
10p.c.p.a?
11. What is the amount of interest got at 5% compound interest on Rs.6,000 for 3years?
12. The compound interest accrued on a sum of Rs.7,500 in two years is Rs.927. What would be
the rate of interest p.c.p.a?
13. What sum invested grows into a total amount of Rs.8,820 at 5% compound interest in 2
years?
14. A sum of money placed at a compound interest doubles itself in 5 years. When it will be
amounted to eight times itself in?
15. A sum of money placed at compound interest doubles itself in 4 years. When it will be
amounted to eight times itself in?
16. The interest amount got for 2years at certain rate of simple interest and compound interest are
Rs.300 and Rs.309 respectively. What is the sum and rate of interest?
17. A sum of money was invested at 6% simple interest for 2 years. If the same amount is
invested for the same period at same rate of compound interest, it would have been Rs 7.20
more. What is the sum?
18. The difference between simple interest and compound interest on a certain sum of money for
3 years at 10% per annum is Rs.15.50. Find the sum?
19. The difference between the compound interest payable half-yearly and the simple interest on
a certain sum lent out at 20% p.a. for 1 year is Rs.35. What is the sum?
20. The simple interest accrues on a sum of certain principal is Rs.8000 in four years at the rate
of 10p.c.p.a what would be the compound interest accrued on that principal at the rate of
4p.c.p.a for two years?