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Simple Interest - advanced

Learn how to calculate simple interest with detailed examples and solutions. Understand how to convert periods to years and calculate interest, principal, and rate. Examples provided with step-by-step explanations.

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Simple Interest - advanced

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  1. Simple Interest - advanced

  2. Example 5 Lokesh invested Rs 2,400 in a bank that pays an interest of 7 % per annum. He withdraws the amount after 2 years and 5 months. Find the interest, he receives. Solution Given: Principal(P)=2400 , Rate(r)=7% per year , Period(n)=2 year 5 months. To find : Simple Interest(I) Period(n) is not completely in year so lets convert it to year Ans: Interest (I) = Rs 406

  3. Some more example where period (r) is not in years 1) Period=14 months. In a year there are 12 months , so period as a fraction of year is (after simplifying) 2) Period=200 days. In a year there are 365 days, so period as a fraction of year is (after simplifying) 3) Period from 4th Oct 2017 to 11th Dec 2017. We need to find the number of days between the given dates Oct=31 days – 3 days (except days from Oct 1 to Oct 3 ) =28 days Nov=30 days (whole month) and Dec = 11 days (from Ist to 11th Dec) Total days = 28 + 30 + 11 = 69 days. So period as fraction of years is

  4. Example 6: A sum of money doubles itself in 10 years. Find the rate of interest Solution Given: Period(n)=10 , A=double of principal=2P, To find: Rate(r) All value is given except value I. So lets find I We Know that I=A-P = 2P-P=P (∵A=2P) Ans: Rate (r) = 10% yearly

  5. Example 7: A sum of money doubles itself at 10 % per annum over a certain time. Find the number of years. Solution Given: Rate(r)=10 , A=double of principal=2P, To find: Rate(r) All value is given except value I. So lets find I We Know that I=A-P = 2P-P=P (∵A=2P) Ans: Period(n) = 10 years

  6. Example 8: A certain sum of money amounts to Rs 5,750 in years and Rs 6,500 in 3 years respectively . Find the principal and the rate percent. Solution Given: Period 1: Amount(A1)=5750, Period (n1) = Period 2: Amount(A2)=6500, Period (n2) = 3 To find: Principal(P), Rate(r) From period 1 to Period 2 Years passed=n2-n1= Interest earned = A2-A1= 6500-5750 =750 In years Interest earned Rs 750 ∴ In 1 year Interest earned Now lets calculate Interest(I2) ,Principal(P) and rate(r) based on period2 Interest earned in Period 2 (I2) = Interest per year x 3=500 x 3 =Rs 1500 We know that P = A2 - I2 ∴ P = 6500 -1500=Rs 5000 Ans: Principal(P)=Rs 5000 Rate (r) = 10% yearly

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