Arithmetic

Simple & Compound Interest

Medium

What is the present worth of ₹ 161 due in 3 years at 5% simple interest per annum?

₹ 144

₹ 140

₹ 130

₹ 185

✅ Correct Option: 2

Given:

Amount due in future = ₹161

Time period = 3 years

Interest rate = 5% per annum (simple interest)

Present Worth (P) needs to be determined.

When present worth is kept for 3 years at 5% simple interest, it grows to ₹161.

The relationship between future amount and present worth with simple interest:

$A = P + \dfrac{P \times R \times T}{100}$

$A = P(1 + \dfrac{RT}{100})$

Substituting the values:

$161 = P(1 + \dfrac{5 \times 3}{100})$

$161 = P(1 + \dfrac{15}{100})$

$161 = P(1.15)$

$161 = P \times \dfrac{115}{100}$

Solving for P:

$P = 161 \times \dfrac{100}{115}$

$P = \dfrac{16100}{115}$

$P = 140$

Therefore, the present worth is ₹140.

2023: 19 June Shift 1

A woman wants to give Rs 32,800 to her two grandchildren aged 17 years and 18 years. The amount is to be divided such that each grandchild receives equal amounts when they turn 20 years old, at 5% p.a. compound interest. Find the present share of the younger grandchild.

2023: 24 May Shift 3

For a certain period, simple interest on Rs. 1000 at 10% per annum is Rs. 100 more than that on Rs. 800. Find the period (in years).

2026: 12 May Shift 2

Consider the simple interest of the following:

(A) A sum of Rs 1200 at 3% per annum for 3 years.

(B) A sum of Rs 5500 at 7% per annum for 2 years.

(D) A sum of Rs 2000 at 14% per annum for 4 years.

Arrange the above in descending order.

Choose the correct answer from the options given below:

2025: 15 May Shift 1

The simple interest on Rs 7200 at 14% per annum for 7 years is:

2026: 21 May Shift 2

A bank lends money at 12% per annum on simple interest. A customer borrows ₹ 50,000 for 9 months and repays after receiving a 5% rebate on total interest amount. What effective annual interest rate did he pay?

2026: 26 May Shift 1

Simple interest on a certain sum of money for 3 years at 8% per annum is half of the compound interest on ₹ 6000 for 2 years at 10% per annum. Find the sum on which simple interest is calculated ?

What is the present worth of ₹ 161 due in 3 years at 5% simple interest per annum?

Solution

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