Example 1 · level 1
Isha deposits ₹12,000 with Mehta Enterprises at 7% p.a. simple interest for 4 years. Find the simple interest.
Show solution
- SI = 12,000 × 7 × 4 ÷ 100 = ₹3,360.
Answer: ₹3,360
CA FOUNDATION: QUANTITATIVE APTITUDE · TIME VALUE OF MONEY
Simple interest
SI = P × R × T ÷ 100; Amount = P + SI; R = 100 × SI ÷ (P × T).
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Worked examples
Example 2 · level 2
Saanvi deposits ₹47,000 with Sharma Traders at 9% p.a. simple interest for 3 years. Find the amount at maturity.
Show solution
- SI = 47,000 × 9 × 3 ÷ 100 = ₹12,690.
- Amount = 47,000 + 12,690 = ₹59,690.
Answer: ₹59,690
Example 3 · level 3
Saanvi lent ₹5,000 for 6 years and earned simple interest of ₹3,000. What was the rate of interest per annum?
Show solution
- R = 100 × 3,000 ÷ (5,000 × 6)
- = 3,00,000 ÷ 30,000 = 10% p.a.
Answer: 10 %