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.



● Simple Interest.

Word Problems on Simple Interest.

Factors Affecting 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 Simple Interest.

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.



New! Comments

Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.




Share this page: What’s this?

Recent Articles

  1. Word Problems on Dividing Money | Solving Money Division Word Problems

    Feb 13, 25 10:29 AM

    Word Problems on Dividing Money
    Read the questions given in the word problems on dividing money. We need to understand the statement and divide the amount of money as ordinary numbers with two digit numbers. 1. Ron buys 15 pens for…

    Read More

  2. Addition and Subtraction of Money | Examples | Worksheet With Answers

    Feb 13, 25 09:02 AM

    Add Money Method
    In Addition and Subtraction of Money we will learn how to add money and how to subtract money.

    Read More

  3. Worksheet on Division of Money | Word Problems on Division of Money

    Feb 13, 25 03:53 AM

    Division of Money Worksheet
    Practice the questions given in the worksheet on division of money. This sheet provides different types of questions on dividing the amount of money by a number; finding the quotient

    Read More

  4. Worksheet on Multiplication of Money | Word Problems | Answers

    Feb 13, 25 03:17 AM

    Worksheet on Multiplication of Money
    Practice the questions given in the worksheet on multiplication of money. This sheet provides different types of questions on multiplying the amount of money by a number; arrange in columns the amount…

    Read More

  5. Division of Money | Worked-out Examples | Divide the Amounts of Money

    Feb 13, 25 12:16 AM

    Divide Money
    In division of money we will learn how to divide the amounts of money by a number. We carryout division with money the same way as in decimal numbers. We put decimal point in the quotient after two pl…

    Read More