Tips And Tricks And Shortcuts For Simple Interest Problems

Tips, Tricks & Shortcuts To Solve Simple Interest in Aptitude

Simple interest is the  interest calculated on the principal portion of a loan or the original  amount. Simple interest does not compound, meaning that lender will only gain interest on the principal amount , and a borrower will never have to pay interest on interest already accrued. Simple Interest =  $\mathbf{\frac{P * R * T}{100}}$

Tips & Tricks and Shortcuts for Simple Interest

• Simple Interest= $\mathbf{\frac{P * R * T}{100}}$
• Simple interest is calculated by multiplying the interest rate and  principal and number of days.
• Here, are quick and easy tips and tricks on Simple Interest problems learn easily tricks and tips on SI and efficiently in competitive exams and recruitment drive process.
• There are mainly 2 types of questions asked in exams. However, these questions can be twisted to check the students' understanding level of the topic.

Simple Interest Tricks and Tips and Shortcuts.

• If the interest on a sum of money is $\frac{1}{x}$of the principal, and the number of years is equal to the rate of interest then rate can be calculated using the formula: $\mathbf{\sqrt{\frac{100}{x}}}$
• The rate of interest for t1 years is r1%,  t2 years is r1%,  t3 years is r3 %.  If a man gets interest of Rs x for (t1+ t2 + t3 = n)  years, then principal is given by:
$\mathbf{\frac{x*100}{r_{1}t_{1}}}$+ r2t2 + r3t3
• If sum of money becomes x times in t years at simple interest, then the rate is calculated as R =$\mathbf{\frac{100(x-1)}{t}}$ %
• If a sum of money becomes x times in t years at simple rate of interest, then the time is calculated as t =$\mathbf{\frac{100(x-1)}{R}}$
• If an amount P1 is lent out at simple interest of R1% p.a. and another amount of P2 at simple interest of R2% p.a, then the rate of interest of the whole sum is given by: R =$\mathbf{\frac{P_{1}R_{1}+P_{2}R_{2}}{P_{1}+P_{2}}}$

Type 1: Tips and Tricks and Shortcuts To Find Simple Interest

Question 1. Find the simple interest of Rs 1000 for 10 years at 6% p.a.?

Options:

A. Rs. 60

B. Rs. 6000

C. Rs. 600

D. Rs. 6

Solution:    We know that,

SI = p*r*t/100

SI = 1000*6*10/100

SI = 60000/100

SI = Rs. 600

Correct option: C

Type 2: Simple Interest Tips and Tricks- When Rate of Interest is different for Different Years

Question 1. If a sum of Rs.25000 is given as loan for a period of 4 years with the interest rates 2%, 4%, 5%, and 6% for the 1st, 2nd, 3rd, and 4th year respectively. What is the total amount that has to be paid at the end of 4 years?

Options:

A. Rs. 29250

B. Rs. 29520

C. Rs. 25920

D. Rs. 25290

Solution:    As this is a case of Simple Interest we add 2% + 4% + 5% and 6% = 17%.

Amount = Principal + Rate of Interest.

Principal is 100% of the amount.

Therefore,

Amount = 100% + 17%.

Therefore Amount = 117%

Amount = (117*25000)/100

=29250

Correct option: A

Type 3: Simple Interest Tips and Tricks and Shortcuts To find the (Rate of Interest, Time period, Principal)

Question 1. A sum of money becomes 5 times in 20 years. Calculate the rate of interest.

Options:

A. 20%

B. 13%

C. 15%

D. 25%

Solution:    We know that, If sum of money becomes x times in t years at simple interest, then the rate is calculated as

R = 100 (x-1)/t %

R = 100 (5-1)/20

R = 100 (4)/20

R = 400/20

R = 20%

Correct option: A

Read Also – Formulas for Simple interest in Aptitude