SIMPLE INTEREST AND COMPOUND INTEREST-LEARN SERIES

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LEARN SERIES

                                  Aspirants SIMPLE INTEREST AND COMPOUND INTEREST topic is asked in IBPS Exams.The Questions from Simple Interest and Compound Interest is asked for 1 Marks in Prelims Exam and 2 Marks in Mains Exam.

SIMPLE INTEREST:

If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.

Let Principal = P,

Rate = R% per annum (p.a.) and

Time = T years. Then

Amount=Principal + SI

TYPE 1:

CALCULATING SI,WHEN P,R,T ARE GIVEN:

1.Find the Simple Interest when the Principal is Rs.10000 Rate is 10% and Time is 2years and 4months?

Explanation

P=Rs.10000

Rate=10%

Time=2yrs and 1/3 years=2(1/3)  =7/3 years.


2.Find the Simple Interest when the Principal is Rs.10000 Rate of interest is 10% and Time is 2years and 73 days.

Explanation

Since it is not mentioned as leap year so we take it as ordinary year-365days

T=2 (73/365) =11/5 years

Principal=Rs.10000

Rate=10%

TYPE 2:

DIFFERENT RATE OF INTEREST FOR DIFFERENT YEARS:

1.What is the Simple Interest whose Principal is Rs.10000 and its Rate of interest for 5 years is separated as for First 2 year=10%   next year=20%  and last 2 year=25%?

Explanation

S.I.=P[(R1*T1)+(R2*T2)+(R3*T3)]/100

=10000[(2*10)+(1*20)+(2*25)]/100

=10000[20+20+50]/100

=10000[90]/100

=Rs.9000

 

TYPE 3:

CHANGE IN INTEREST:

1.A man invests Principal of Rs.10000 for 2 years.What is the change in SI when rate of interest changes from 10% to 15%?

Explanation

=10000*2*5/100

=Rs.1000

Change in SI when two time Period is given is calculated by=P*R*(T1-T2)/100

Change in SI when two Principals are given = R*T*(P1-P2)/100

TYPE 4:

BASED ON EFFICIENCY:

where n=number of times and t=time in yrs

1.A sum becomes 5 times in 20 years at SI.Find the rate of interest?

Explanation

ORDINARY METHOD:

SI=5P-P=4P

=400/20   =20%

ALTERNATE METHOD:

 

TYPE 5:

EQUALITY OF INTEREST:

1.If a sum is invested by A at 20% per annum for 2years ,B  at  10% per annum for 3 years  and C at 5% per annum for 4years.If SI received from all of three persons are equal. Find the ratio A,B,C?

Explanation

ORDINARY METHOD:

Formula for Simple Interest:

Ration for A,B and C

40A:30B:20C=1

4A=3B=2C=1

A:B:C =1/4 :1/3 :1/2

A:B:C=3:4:6

ALTERNATE METHOD:

=15:20:30

=3:4:6

For finding amount when SI are equal

 

TYPE 6:

PARTIAL PRINCIPAL:

1.A sum of Rs.20000 is distributed in 2 schemes namely A at 10%per annum  and   B at 15% per annum at the end of 2 years he gets Rs.5200.What is the amount invested in scheme B?

Explanation

ORDINARY METHOD:

Let the money invested in scheme A=x, the money invested in scheme B=20000-x.

A=X=8000   B=12000

ALTERNATE METHOD:

BY ALLEGATION:

Principal=20000 SI=5200 T=2years therefore R=13%

 

20000* (3/5) =Rs.12000

The amount invested in scheme B=Rs.12000

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