Word Problems on Simple Interest
Word Problems on Simple Interest are solved here:
1. Robert deposits $ 3000 in State Bank of India for 3 year which earn him an interest of 8%.What is the amount he gets after 1 year, 2 years and 3 years?
Solution:
In every $ 100, Robert gets $ 8.
(Since rate is 8% → 8 for every 100)
Therefore, for $ 1 he gets = $ 8/100
And for $ 2000 he gets = 3000 x 8/100
= $ 240
Simple Interest for 1 year = $ 240.
Simple Interest for 2 year = $ 240 x 2
= $ 480
Simple Interest for 3 year = $ 240 x 3
= $ 720
Therefore, Amount after 1 year = Principal (P) + Simple Interest (SI)
= 3000 + 240
= $ 3240
Amount after 2 years = Principal (P) + Simple Interest (SI)
= 3000 + 480
= $ 3480
Amount after 3 years = Principal (P) + Simple Interest (SI)
= 3000 + 720 = $ 3720
We observe from the above example that, the Interest cannot be calculated without Principal, Rate and Time.
Therefore, we can conclude that Simple Interest (S.I.) depends upon:
(i) Principal (P)
(ii) Rate (R)
(iii) Time (T)
And therefore, the formula for calculating the simple interest is
Simple Interest (SI) = {Principal (P) × Rate (R) × Time (T)}/100
Amount (A) = Principal (P) + Interest (I)
Principal (P) = Amount (A) – Interest (I)
Interest (I) = Amount (A) – Principal (P)
2. Richard deposits $ 5400 and got back an amount of $ 6000 after a year. Find the simple interest he got.
Solution:
Principal (P) = $ 5400,
Amount (A) = $ 6000
Simple Interest (SI) = Amount (A) – Principal (P)
= 6000 - 5400
= 600
Therefore, Richard got an interest of $ 600.
3. Seth invested a certain amount of money and got back an amount of $ 8400. If the bank paid an interest of $ 700, find the amount Sam invested.
Solution:
Amount (A) = $ 8400,
Simple Interest (SI) = $ 700
Principal (P) = Amount (A) – Interest (I)
= 8400 - 700
= 7700
Therefore, Seth invested $ 7700.
4. Diego deposited $ 10000 for 4 year at a rate of 6% p.a. Find the interest and amount Diego got.
Solution:
Principal (P) = $ 10000,
Time (T) = 4 years,
Rate (R) = 6% p.a.
Simple Interest (SI) = {Principal (P) × Rate (R) × Time (T)}/100
= (10000 x 6 x 4)/100
= $ 2400
Amount (A) = Principal (P) + Interest (I)
= 10000 + 2400
= $ 12400
The interest Diego got = $ 2400.
Therefore, the amount Diego got $ 12400.
Word Problems on Simple Interest.
In Simple Interest when the Time is given in Months and Days.
To find Principal when Time Interest and Rate are given.
To find Rate when Principal Interest and Time are given .
To find Time when Principal Interest and Rate are given.
Worksheet on Factors affecting Interest
5th Grade Numbers Page
5th Grade Math Problems
From Word Problems on Simple Interest to HOME PAGE
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
Recent Articles
-
What is a Polygon? | Simple Closed Curve | Triangle | Quadrilateral
Apr 19, 24 12:19 PM
What is a polygon? A simple closed curve made of three or more line-segments is called a polygon. A polygon has at least three line-segments. -
Perpendicular Lines | What are Perpendicular Lines in Geometry?|Symbol
Apr 19, 24 02:46 AM
In perpendicular lines when two intersecting lines a and b are said to be perpendicular to each other if one of the angles formed by them is a right angle. In other words, Set Square Set Square If two… -
Fundamental Geometrical Concepts | Point | Line | Properties of Lines
Apr 19, 24 01:55 AM
The fundamental geometrical concepts depend on three basic concepts — point, line and plane. The terms cannot be precisely defined. However, the meanings of these terms are explained through examples. -
Simple Closed Curves | Types of Closed Curves | Collection of Curves
Apr 18, 24 01:36 AM
In simple closed curves the shapes are closed by line-segments or by a curved line. Triangle, quadrilateral, circle, etc., are examples of closed curves. -
Tangrams Math | Traditional Chinese Geometrical Puzzle | Triangles
Apr 18, 24 12:31 AM
Tangram is a traditional Chinese geometrical puzzle with 7 pieces (1 parallelogram, 1 square and 5 triangles) that can be arranged to match any particular design. In the given figure, it consists of o…