Aptitude Day 189

Problems on Simple Interest:

1. A man took a loan from a bank at the rate of 10% p.a. simple interest. After 2 years he had to pay 3000 interest only for the period. The principal amount borrowed by him was:

Solution:

                 S.I = PTR/100

                 3000 = P*2*10/100

                  P = 3000*100/2*10

                  P = 15000.

2. What is the present worth of 160 due in 5 years at 10% simple interest per annum?

Solution:

                 Let the present worth be x.

                 S.I = PTR/100

                 160-x = x*5*10/100

                 x = 160-50x/100

                 x = 160-1/2(x)

                 x(1+1/2) = 160

                 x = 160*(2/3)

                 x = 106.67.