Subscribe to our YouTube channel for the latest videos, updates, and tips.


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. 8 Times Table | Multiplication Table of 8 | Read Eight Times Table

    May 18, 25 04:33 PM

    Printable eight times table
    In 8 times table we will memorize the multiplication table. Printable multiplication table is also available for the homeschoolers. 8 × 0 = 0 8 × 1 = 8 8 × 2 = 16 8 × 3 = 24 8 × 4 = 32 8 × 5 = 40

    Read More

  2. Worksheet on Average | Word Problem on Average | Questions on Average

    May 17, 25 05:37 PM

    In worksheet on average interest we will solve 10 different types of question. Find the average of first 10 prime numbers. The average height of a family of five is 150 cm. If the heights of 4 family

    Read More

  3. How to Find the Average in Math? | What Does Average Mean? |Definition

    May 17, 25 04:04 PM

    Average 2
    Average means a number which is between the largest and the smallest number. Average can be calculated only for similar quantities and not for dissimilar quantities.

    Read More

  4. Problems Based on Average | Word Problems |Calculating Arithmetic Mean

    May 17, 25 03:47 PM

    Here we will learn to solve the three important types of word problems based on average. The questions are mainly based on average or mean, weighted average and average speed.

    Read More

  5. Rounding Decimals | How to Round a Decimal? | Rounding off Decimal

    May 16, 25 11:13 AM

    Round off to Nearest One
    Rounding decimals are frequently used in our daily life mainly for calculating the cost of the items. In mathematics rounding off decimal is a technique used to estimate or to find the approximate

    Read More