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Question

Arrange the simple interest of the following cases in decreasing order-
(A) The simple interest on Rs 6600 at 5% per annum for 2 yrs.
(B) The simple interest on Rs 200 at 6% per annum for 5 yrs.
(C) The simple interest on Rs 840 at 5% per annum for 4 yrs.
(D) The simple interest on Rs 5000 at 12% per annum for 2 yrs.
Choose the correct answer from the options given below:

The correct answer is
(A), (B), (C), (D)

Simple Interest Calculation for Each Case

To determine the correct order of simple interest for the given cases, we must first calculate the simple interest (SI) for each scenario. The formula for simple interest is:

$SI = \frac{P \times R \times T}{100}$

Where:

  • P represents the Principal amount.
  • R represents the annual Rate of interest.
  • T represents the Time period in years.

Case (A) Calculation

For Case (A), the details are:

  • Principal (PA) = Rs 6600
  • Rate (RA) = 5% per annum
  • Time (TA) = 2 years

Using the formula:

$SI_A = \frac{6600 \times 5 \times 2}{100} = \frac{6600}{100} \times 10 = 66 \times 10 = 660$

So, the simple interest for Case (A) is Rs 660.

Case (B) Calculation

For Case (B), the details are:

  • Principal (PB) = Rs 200
  • Rate (RB) = 6% per annum
  • Time (TB) = 5 years

Using the formula:

$SI_B = \frac{200 \times 6 \times 5}{100} = \frac{200}{100} \times 30 = 2 \times 30 = 60$

So, the simple interest for Case (B) is Rs 60.

Case (C) Calculation

For Case (C), the details are:

  • Principal (PC) = Rs 840
  • Rate (RC) = 5% per annum
  • Time (TC) = 4 years

Using the formula:

$SI_C = \frac{840 \times 5 \times 4}{100} = \frac{840 \times 20}{100} = \frac{16800}{100} = 168$

So, the simple interest for Case (C) is Rs 168.

Case (D) Calculation

For Case (D), the details are:

  • Principal (PD) = Rs 5000
  • Rate (RD) = 12% per annum
  • Time (TD) = 2 years

Using the formula:

$SI_D = \frac{5000 \times 12 \times 2}{100} = \frac{5000}{100} \times 24 = 50 \times 24 = 1200$

So, the simple interest for Case (D) is Rs 1200.

Interest Values Comparison

After calculating the simple interest for all four cases, we can compare the values:

Case Simple Interest (Rs)
(A) 660
(B) 60
(C) 168
(D) 1200

Decreasing Order Arrangement

The question asks to arrange the simple interest amounts in decreasing order, which means from the largest amount to the smallest amount. Based on the calculated values:

  • The highest simple interest is Rs 1200, which corresponds to Case (D).
  • The next highest is Rs 660, corresponding to Case (A).
  • The following interest is Rs 168, corresponding to Case (C).
  • The lowest simple interest is Rs 60, corresponding to Case (B).

Therefore, the simple interest of the cases in decreasing order is (D), (A), (C), (B).

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Important Questions from Simple Interest

  1. Anil lent a sum of Rs. 5,000 on simple interest for 10 years in such a way that the rate of interest is 6% per annum for the first 2 years, 8% per anmum for the next 2 years and 10% per annum beyond 4 years. How much interest (in Rs.) will he earn at the end of 10 years?

  2. What will be the simple interest on a sum of Rs. 12000 at the rate of 15 percent per annum for three years ?

  3. If in 13 years fixed sum doubles at simple interest, what will be the interest rate per year? (correct to two decimal places)

  4. On simple interest a sum of Rs. 640 becomes Rs. 832 in 2 years. What will Rs. 860 become in 4 years at the same rate of simple interest?

  5. A certain sum amounts to Rs. 81840 in 3 years and to Rs. 92400 in 5 years at x% p.a. under simple interest. If the rate of interest is becomes (x + 2)%, then in how many years will the same sum double itself?

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