SIMPLE INTEREST [SIMPLE INTEREST222]

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

1. Mr. Akbar invested two sums of money on simple interest. The first was Rs. 2,200 invested at
8% per annum and the second Rs. 1,960 at 10% per annum. The two sums were allowed to
grow till books amounted to the same figure. In how many years did this happen and what
was the final amount.

2. Mr. Zaheer opened two accounts to grow up by simple interest. The first account with a
principle of Rs. 2500 grew at a 8% annually and the second account with a principal of Rs.
4400 at 10% annually till such time that the second amount become double of the first
amount. In how many years this reopened and what were the two amounts.

3. Mr Anzar invested two sums of money on simple interest. The first was Rs. 5,000 invested at
10% per annum and the second Rs. 8,000 at 12% per annum. The two sums were allowed to
grow till the difference between their interest equal to Rs 2,300. In how many years did this
happen and what was the final amount.

4. Mr. Akbar invested two sums of money on simple interest. The first was Rs. 5,000 invested at
10% per annum and the second Rs. 6,250 at 8% per annum. The two sums were allowed to
grow till interest of second investment will become three times the interest on First
Investment. In how many years did this happen.?

5. Mr. Akbar invested two sums of money on simple interest. The first was Rs. 5,000 invested at
10% per annum and the second Rs. 6,250 at 8% per annum. The two sums were allowed to
grow till product of the interest on the two investment become Rs.2,250,000. In how many
years did this happen.?

6. Tom & Jerry wants to deposit Rs. 5,000 for 5 years & Rs. 8000 for 5 years but at the rate which
is less by 3% than First Investment. If the interest on both investment is same over the period
of Five years you are required to calculate the relevant rate of interest on both investments.?

7. Rs 9,000 & Rs. 11,000 were invested for the same period of time in such a ways that interest
earned on both investment was same but Rs. 11,000 was invested at 2% less than the rate on
Rs 9,000. Calculate the rate of interest in both cases.

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

8. A sum of money would amount to Rs. 6200 in 2 years and Rs. 7400 in 3 years. The principal
and rate of simple interest are.
9. A total of Rs. 14000 is invested for a year, part at 5% and the rest at 6%. It
Rs. 740 is the total interest, amount invested at 5% is.

10. If the simple interest on a certain sum for 15 months at 7 % per annum exceeds the simple

interest on the same sum for 8 months at 12 % per annum by
Rs. 32.50, then the sum (in Rs) is
11. A person borrowed Rs. 500 @ 3% per annum S.I and 600 @ 4.5% per annum on the
arrangement that the whole sum will be returned only when the total interest becomes Rs.
126. The number of years, after which the borrowed sum is to be returned is:
12. A lend Rs. 2500 to B and a certain sum to c at the same time at 7% p.a. Simple interest. If
after 4 years. A altogether receives Rs. 1120 as interest from B and C, then the sum lent to c
is.
13. An investor receives a total of Rs. 5700 per annum in interest from 3 stock yielding 4%, 5%
and 8% per annum respectively. The amount at 4% is
Rs. 20,000 more than the amount invested at 5% and the interest from the 8% investment.
Amount of invested in each stock is. Total amount of interest = 5700

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

14. A sum of money would amount to Rs. 6200 in 2 years and Rs. 7400 in 3 years. The principal
and rate of simple interest are.
15. A total of Rs. 14000 is invested for a year, part at 5% and the rest at 6%. It
Rs. 740 is the total interest, amount invested at 5% is.

Solution1
Given
Investment I Investment II
p = 2200 p = 1960
r = 8% r = 10%
t=? t=?
Using
S1 = p(1 + rt) S2 = p(1 + rt)
= 2200(1 + 0.08t) = 1960(1 + 0.10t)

According to statement
S1 = S2
2200(1 + 0.08t) = 1960(1 + 0.10t)
2200 + 176t = 1960 + 196t
2200 - 1960 = 1960t - 176t

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

240 = 20t
t = 12 years

Solution 2
Given
Investment I Investment II
p = 2500 p = 4400
r = 8% r = 10%
t=? t=?
Using
S = p(1 + rt) S = p(1 + rt)
= 2500(1 + 0.08t) = 4400(1 + 0.6t)
According to statement
2A = B
2[2500(1+0.08t)] = 4400[1 + 0.01t]
2[2500 + 200t)] = 4400 + 440t
5000 + 400t = 4400 + 440t
600 = 40t
t = 15 years

Solution 9
Ict
Amount invested at 5% = x
Amount invested at 6% = 14000 - x
Also
I = 740

Investment I Investment II
I1 = p x r x t I2 = prt
5 6
I1 = x x 100 x 1 I2 = (14000 - x) x 100 x 1
I1 = 0.05x I2 = 0.06 (14000 - x)
According to statement
Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

Total interest = I1 + I2
740 = 0.05x + 0.06 (1400 x)
740 = 0.05x + 840 0.06x
740 840 = -0.01x
-100 = -0.01x
100
x = 0.01
x = Rs. 10,000
Solution 10
Given
Investment I Investment II
p=x p=x
I1 = ? r = 12.05% = 0.125
15
t = years t = 8/12 years
12
r = 7.5% = 0.075 I2 = ?

Using Using
I1 = x x 0.075 x 15/12 I2 = x x 0.125 x 18/12
I1 = 0.09375x I2 = 0.083333x

According to statement
I1 = I2 + 32.50
0.09375x = 0.083333x + 32.50
0.10416x = 32.50
x = 3120

Solution 11
Given
Investment I Investment II
p1 = 500 p2 = 600
r1 = 3% = 0.03 r2 = 4.5% = 0.045
t1 = t t2 = t year
I1 = ? I2 = ?

Using Using
I1 = prt I2 = prt
I1 = 500x0.03xt I2 = 600 x 0.045 x t
I1 = 15t (1) I2 = 27t (2)

According to statement
I = I1 = I2
126 = 15y + 27t
126 = 42t
126
42
t
r=3
Solution 12
Given
Investment I Investment II
p1 = 2500 p2 = x
r = 7% = 0.07 r = 7% = 0.07

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

t1 = 4 years t2 = 4 year
Using Using
I1 = prt I2 = prt
= 2500 x 0.07 x 4 = x x 0.007 x 4
I1 = 700 I2 = 0.28x

According to statement
I = I1 + I2
11200 = 700 + 0.28x
11200 - 700 = 0.28x
420
0.28
=x
x = 1500
Solution 13
Investment I at 4% Investment II at 5% Investment III at 8%
let
p1 = x + 20,000 p2 = x I3 = 8 x I2
r1 = 4% = 0.04 r2 = 5% = 0.05 = 8 x 0.05x
t1 = I year t = I year I3 = 0.4x
I1 = ? I2 = 2

Using Using
I1 = prt I2 = prt
= (x + 20,000) = x x 0.05 x 1
I1 = 0.04(x + 20,000) I2 = 0.05x

According to statement
I = I1 + I2 + I3
5700 = 0.04(x + 20,000) + 0.05x + 0.4x
5700 = 0.04 + 800 + 0.05x + 0.4x
5700 = 0.04x + 800
5700 - 800 = 0.49x
4900
0.49
=x
x = 10,000 at 5% investment
Also
Amount investment at 4% = x + 20,000
= 10,000 + 20,000
= 30,000
Now
I3 = p3r3t3
0.4x = p3 x 0.08 x 1
0.4 x 10,000 = 0.08p3
p3 = 50,000 at 8& investment

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

Solution 14
Given
S = 6,200
t=2
r=?
P = p?
Using
s = p (1 + rt)
6200 = p(1 + 2t) (i)
Also
S = 7400
t=3
r=?
p=?

Using
S = P(1 + rt)
7400 = p(1 + 3t) (ii)
Divide (i) and (ii)
7400 P(1+3r)
=
6200 P(1+2r)
74(1 + 2r) = 62(1 + 3r)
37(1 + 2r) = 31(1 + 3r)
37 + 74r = 31 + 93r
37 31 = 93r 74r
6 = 19r
r = 6/19
r = 31.5% = (0-3157)
Put in equation (i)
6200 = p(1 + 2 x 0.3157)
6200 = p(1 + 0.6314)
6200 = p(1.6314)
p = 3800
Solution 15
Iet
Amount invested at 5% = x
Amount invested at 6% = 14000 - x
Also
I = 740

Investment I Investment II
I1 = p x r x t I2 = prt
5 6
I1 = x x 100 x 1 I2 = (14000 - x) x 100 x 1
I1 = 0.05x I2 = 0.06 (14000 - x)
According to statement
Total interest = I1 + I2
740 = 0.05x + 0.06 (1400 x)
740 = 0.05x + 840 0.06x

Zahid Qavi.FCA
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SIMPLE INTEREST [SIMPLE INTEREST222]

740 840 = -0.01x

-100 = -0.01x
100
x=
0.01
x = Rs. 10,000

Zahid Qavi.FCA
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