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SI & CI

The document covers the concepts of Simple Interest (SI) and Compound Interest (CI), including their calculations, formulas, and differences over time. It provides learning outcomes for students, basic terms, and various problems to solve related to both types of interest. Additionally, it includes suggested readings for further study.

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Pratyush Barik
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16 views

SI & CI

The document covers the concepts of Simple Interest (SI) and Compound Interest (CI), including their calculations, formulas, and differences over time. It provides learning outcomes for students, basic terms, and various problems to solve related to both types of interest. Additionally, it includes suggested readings for further study.

Uploaded by

Pratyush Barik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SIMPLE INTEREST &

COMPOUND INTEREST
• Concept of Simple Interest
• Problems related to missing rate, principal and time
• Concept of Compound Interest
• Concept of half yearly, quarterly interest
• Problems related to interest/amount being n times of Principal
• Difference between SI and CI for 2 years or more
Learning Outcomes
• Student should be able to compute Simple Interest.
• He should be able to compute Compound Interest.
• Should understand the principles of SI & CI.
• Know the concepts of growth and depreciation.
• Calculate CI/SI when interest is compounded annually, half-yearly and quarterly.
• Should be able to calculate the difference between CI & SI using formula as well as by basic
understanding.
Basic Terms:
⮚INTEREST: It is money paid by a borrower for using the lender's money for a specified
period of time. Denoted by I.

⮚PRINCIPAL: The original sum borrowed. Denoted by P.

⮚TIME: The time period for which the money is borrowed. Denoted by T.

⮚RATE OF INTEREST: The rate at which interest is calculated on the original sum. Denoted
by R.

⮚AMOUNT: Amount is Sum of Principal plus Interest. Denoted by A


Simple Interest (S.I.): The method of calculating the interest amount for a particular principal amount of
money at some rate of interest.
1. Rajat deposited an amount of Rs.31400 to obtain a simple interest at rate of interest of 12 %p.a. for 3 years.
What is the total amount will Mr. Rajat get at the end of 3 years?
A) Rs.46544
B) Rs.46472
C) Rs.41544
D) Rs.42704
2. Find out the capital required to earn a monthly interest of Rs.1200 at 3% simple interest?
A) 3.2 lakhs
B) 1.2 lakhs
C) 4 lakhs
D) 4.8 lakh
3. Find the Principal of Amount Rs.6,000 due after 5 years at 10 % p.a. simple interest.
A) Rs.3000
B) Rs.4000
C) Rs.2000
D) Rs.2500
4. The interest for the 3rd year on a certain sum at a certain rate of simple interest is Rs.4,000. Find the sum of
the interests accrued on it in the 6th, 8th and 11th years?
A) Rs.6,000
B) Rs.9,000
C) Rs.4,500
D) Rs.12,000
5. What would a sum of Rs.9,000 amount to in 8 years at a simple interest rate of 12 % every year?
A) Rs.17,640
B) Rs.18,846
C) Rs.25,696
D) Rs.32,322
6. A sum of money is lent at simple interest after 10 years its simple interest becomes 2/5th of principal. Find the
rate.
A) 8%
B) 4%
C) 6%
D) 5%
7. A sum of money amounts to Rs.6400 after 4 years and Rs.7200 after 6 years at the same rate of interest.
What is rate of interest per annum?
A) 7%
B) 25/3 %
C) 7 (9/13) %
D) 8(9/13) %
8. If X is the simple interest on Y and Y is the simple interest on Z, the rate % and the time being the same case.
If X=Rs.40000 and Z=Rs.144, then the value of Y is:
A) Rs.3000
B) Rs.4800
C) Rs.240
D) Rs.2400
9. A lent Rs.10000 to B for 2 years and Rs.6000 to C for 4 years on simple interest at the same rate of interest
and received Rs.6600 in all from both as interest. The rate of interest per annum is:
A) 15%
B) 5%
C) 20%
D) 10%
10. A certain sum becomes 5 times itself in 8 years at simple interest. In how many years will it become 15 times
itself (at SI)?
A) 24
B) 20
C) 28
D) 30
11. The effective annual rate of interest corresponding to a nominal rate of 10% per annum payable
compounded half-yearly.
A) 21
B) 20
C) 21.5
D) None of these
COMPOUND INTEREST(C.I.): Compound interest is based on the principal amount and the interest that accumulates
on it in every period.
IMPORTANT FORMULAS OF COMPOUND INTEREST:
When the interest is compounded Annually:
Amount= P (1 + R/100) n

When the interest is compounded Half-yearly:


Amount = P (1 + (R/2)/100)2n

When the interest is compounded Quarterly:


Amount = P (1 + (R/4)/100)4n

When the rates are different for different years, say R1%, R2%, and R3% for 1 year, 2 years, and 3-year resp.
Then,
Amount = P (1 + R1/100) (1 + R2/100) (1 + R3/100)

Present worth of ₹ x due n years hence is given by:


Present worth = x/ (1 + R/100)n
12. The compound interest on Rs.60000 at 5% per annum is Rs.6150. Find the period?
A) 2
B) 2 ½
C) 3
D) 4
13. The compound interest on 16,000 at 15% per annum for 2 years 2 months, compounded annually is:
A) 2980
B) 3091
C) 3109
D) 5689
14. Sudhanshu invested Rs.60000 at interest at 10 % p.a. for one year. If the interest is compounded every six
months. What amount will Sudhanshu get at the end of the year?
A) 66150
B) 66000
C) 63150
D) 66015
15. A certain sum of money amounts to Rs.2,50,000 in 2 years and to Rs.2,80,000 in 3 years at compound
interest. find the rate of interest.
A) 10%
B) 11%
C) 12%
D) 13%
16. A certain sum of money becomes 2 times in 8 years in how many years it becomes 8 times at the same rate
of compound interest?
A) 2 years
B) 40 years
C) 24 years
D) 32 years
Difference between CI and SI for 2 years:
Difference between CI & SI for 3 years:
17. The difference between 2 years CI and SI is Rs.7.25 at 5% per annum. Find the principal.
A) 2900
B) 2500
C) 4900
D) 2750
18. The difference between simple interest and compound interest on an amount of Rs.30,000 for 2 years is
Rs.48. What is the rate of interest per annum?
A) 4
B) 8
C) 12
D) None of these
19. The simple interest on a sum of money for 2 years is Rs.300 and the compound interest on the same sum at
same rate for 2 years is Rs.310. The rate % p.a. is?
A) 6
B) 20/3
C) 40/3
D) 8
20. The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs.80 less than the
simple interest on the same sum for 3(1/2) years at 10% per annum. Find the sum.
A) 1600
B) 1750
C) 1450
D) 1500
Suggested Readings:
•A

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