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2. SIMPLE
INTEREST
MATHEMATICS

3. CALCULATE SIMPLE INTEREST
Annual interest rate
SIMPLE INTEREST FORMULA
Interest paid
Principal
(Amount of money
invested or
borrowed)
Time (in years)
100
SI = PRT

4. CALCULATE SIMPLE INTEREST
Simple Interest (S.I) is the method of calculating the interest
amount for some principal amount of money.
Simple Interest Formula
The Formula for simple interest helps you find the interest
amount if the principal amount, rate of interest and time periods
are given. Simple interest formula is given as:
SI = (P × R ×T) / 100
Where SI = simple interest
P = principal amount, R = interest rate (in percentage)
T = time duration (in years)
In order to calculate the total amount paid after given period of
time, the following formula is used:
Amount (A) = Principal (P) + Interest (SI)
Where, Amount (A) is the total money paid back at the end of the
time period for which it was borrowed.

5. CALCULATE SIMPLE INTEREST
Find the simple interest, when :
Principal = Rs 2000, Rate of interest = 5% per annum and Time = 5 years
Solution:
Principal = Rs 2000, Rate of interest (R) = 5 % p.a. , Time (T) = 5 Years
Simple Interest (S.I)
100
P R T
 

2000 5 5
. 500
100
S I Rs
 
 

6. SIMPLE INTEREST
In what time will Rs. 5600 amount to Rs. 6720 at 8% per annum ?
Solution:
Principal (P) = Rs. 5600 , Amount (A) = Rs. 6720
S.I. = A – P = Rs. 6720 – 5600 = Rs. 1120
Rate (r) = 8% p.a.

7. CALCULATE SIMPLE INTEREST
Find the simple interest, when :
Principal = Rs 4500, Rate of interest = 4% per annum and Time = 6 months
Solution:
Here Time is in months, convert it into years i.e. T =
6 1
12 2
 years
Simple Interest (S.I)
100
P R T
 

1
4500 4
2
. 90
100
S I Rs
 
 

8. SIMPLE INTEREST
In what time will Rs. 8000 amount to Rs. 8360 at 6% per annum simple
interest?
(a) 8 months (b) 9 months
(c) 1 years (d) 1 years
Solution:
Principal (P) = Rs. 8000, Amount (A) = Rs. 8360
S.I. = A – P = Rs. 8360 – Rs. 8000 = Rs. 360
Rate (R) = 6% p.a.

9. SIMPLE INTEREST
At what rate per cent per annum simple interest will a sum double itself
in 10 years?
(a) 8% (b) 10%
(c) 12% (d) 15%
Solution:
Let Sum = P
Then amount (A) = 2P
S.I. = A – P = 2P – P = P
Period (T) = 10 years
. . 100 100
( ) 10%
10
S I P
Rate R
P T P
 
  
 

10. SIMPLE INTEREST
At what rate per cent per annum simple interest will a sum triples itself
in 20 years?
(a) 8% (b) 10%
(c) 12% (d) 15%
Solution:
Let Sum = P
Then amount (A) = 3P
S.I. = A – P = 3P – P = 2P
Period (T) = 20 years
. . 100 2 100
( ) 10%
20
S I P
Rate R
P T P
 
  
 

11. SIMPLE INTEREST
At what rate per cent per annum simple interest will a sum quadruples
itself in 15 years?
(a) 8% (b) 10%
(c) 20% (d) 15%
Solution:
Let Sum = P
Then amount (A) = 4P
S.I. = A – P = 4P – P = 3P
Period (T) = 15 years
. . 100 3 100
( ) 20%
15
S I P
Rate R
P T P
 
  
 

12. SIMPLE INTEREST
At simple interest a sum becomes
6
5
of itself in
1
2
2
years.
The rate of interest per annum is
(a) 6% (b)
1
7
2
%
(c) 8% (d) 9%
Solution:
Let Sum = P
Then amount (A) =
6
5
P
S.I. = A – P =
6
5
P – P =
1
5
P
Period (T) = 20 years
100
. . 100 100 2
5
( ) 8%
5 5 5
2
P
S I
Rate R
P T P

 
   
 


13. SIMPLE INTEREST

14. SIMPLE INTEREST

15. CALCULATE SIMPLE INTEREST
Find the simple interest, when :
Principal = Rs 1000, Rate of interest = 10% per annum and Time = 73 days
Solution:
Here Time is in days, convert it into years i.e. T =
73 1
365 5
T   years
Simple Interest (S.I)
100
P R T
 

1
1000 10
5
. 20
100
S I Rs
 
 

16. CALCULATE SIMPLE INTEREST
Find the simple interest and the amount paid when : Principal = Rs. 1500,
Rate of interest = 12% p.a. , and time = 3 years 3 months.
Solution:
Principal (P) = Rs. 1500, Rate (r) = 12% p.a.

17. CALCULATE SIMPLE INTEREST
Find the simple interest and the amount paid when : Principal = Rs. 9600,
rate =
1
7
2
% p.a. and time = 5 months
Solution:
Principal (P) = Rs. 9600

18. CALCULATE SIMPLE INTEREST
A person deposits Rs . 25000 in a firm who pays an interest at the rate of
20 % per annum. Calculate the income he gets from it annually .
Solution:
Simple Interest (S.I)
100
P R T
 

25000 20 1
5000
100
Annual Interest Rs
 
 
His annual interest is the income he gets = Rs 5000

19. CALCULATE SIMPLE INTEREST
Shanta borrowed Rs. 6000 from the State Bank of India for 3 years 8
months at 12% per annum. What amount will clear off her debt ?
Solution:
Principal (P) = Rs. 6000, Rate (r) = 12% p.a.

20. SIMPLE INTEREST
In what time will ₹ 3600 amount to ₹ 4410 at 9%
per annum simple interest ?
Solution:
P = ₹ 3600, A = ₹ 4410, R = 9%
S.I. = A – P = ₹ 4410 – ₹ 3600 = ₹ 810