Simple Interest
Basic calculation – to find I and S.
1. Diana saved RM4000 at 6% per annum for 6 years. Find the total interest and total amount.
Solution ( t in years)
P = 4000 r = 0.06 t = 6
I = P r t = 4000 x 0.06 x 6 = 1440
S = P + I = 4000 + 1440 = 5440
2. Linda borrowed RM12,000 at 3.5% simple interest for 7 years and 10 months. Find the total
interest charged and total amount of payment.
Solution ( t in years and month (combine))
P = 12000 r = 0.035 t = 7 years and 10 months = (7x12 + 10)/12 = 94/12
I = P r t = 12000 x 0.035 x 94/12 = 3290
S = P + I = 12000 + 3290 = 15290
3. Imran invested RM6000 at 5.5% per annum for 32 months. Find the total interest and total
amount.
Solution ( t in months)
P = 6000 r = 0.055 t = 32/12
I = P r t = 6000 x 0.055 x 32/12 = 880
S = P + I = 6000 + 880 = 6880
4. Dina saved RM4000 at 6% per annum for 56 weeks. Find the total interest and total amount.
Solution ( t in weeks)
P = 4000 r = 0.06 t = 56/52
I = P r t = 4000 x 0.06 x 56/52 = 258.46
S = P + I = 4000 + 258.46 = 4258.46
5. Marry saved RM5000 in 2016 at 6% per annum for 116 days. Find the total exact simple interest
and total amount.
Solution ( t in days using exact simple interest)
P = 5000 r = 0.06 t = 116/366
I = P r t = 5000 x 0.06 x 116/366 = 95.08
S = P + I = 5000 + 95.08 = 5095.08
Page 1
6. Marry saved RM5000 in 2016 at 6% per annum for 116 days. Find the total ordinary simple
interest and total amount.
Solution ( t in days using ordinary simple interest)
P = 5000 r = 0.06 t = 116/360
I = P r t = 5000 x 0.06 x 116/366 = 96.67
S = P + I = 5000 + 96.67 = 5096.67
7. Marry saved RM5000 in 2015 at 6% per annum for 116 days. Find the total exact simple interest
and total amount.
Solution ( t in days using exact simple interest)
P = 5000 r = 0.06 t = 116/365
I = P r t = 5000 x 0.06 x 116/365 = 95.34
S = P + I = 5000 + 95.34 = 5095.34
8. Marry saved RM5000 at 6% per annum from 10 Jan 2016 to 23 June 2016. Find the total simple
interest and total amount using banker’s rule.
Solution ( t in days using exact time and interest using ordinary simple interest)
Calculate days :
Jan --- 31 – 10 = 21
Feb = 29
March = 31
April = 30
May = 31
June = 23
Total days = 165
P = 5000 r = 0.06 t = 165/360
I = P r t = 5000 x 0.06 x 165/360 = 137.50
S = P + I = 5000 + 137.50 = 5137.50
Page 2
9. Marry saved RM5000 at 6% per annum from 10 February 2015 to 23 September 2015. Find the
total simple interest and total amount using approximate time and exact simple interest.
Solution ( t in days using approximate time and interest using exact simple interest)
Calculate days :
Feb – 30 – 10 = 20
March = 30
April = 30
May = 30
June = 30
July = 30
August = 30
September = 23
Total days = 223
P = 5000 r = 0.06 t = 223/365
I = P r t = 5000 x 0.06 x 223/365 = 183.29
S = P + I = 5000 + 183.29 = 5183.29
10. Halim deposited RM3000 at 6% per annum from 16 July 2009 to 28 December 2009. Using
Banker’s Rule find the maturity value and the total interest.
Solution :
Step 1 : find the keyword for the interest that will be used.
Key word :
6% per annum : Keyword that shows this is a simple interest problem
Step 2 : list all the variables that stated in the problem.
P = 3000 r = 0.06 t = from 16 July 09 to 28 Dec 09 (use banker’s rule)
July : 31 – 16 = 15
August: = 31
Sept : = 30
Oct : = 31
Nov: = 30
Dec: = 28
Total : 165 days (using exact)
t = 165/360
Page 3
Step 3 : choose the correct or appropriate formula to use depending on the information we
have above.
Since we have P, r and t, we can use I = P r t to find the total interest and then use S = P + I or
we can use S = P ( 1 + r t ) to find the amount first then find I using I = S – P.
Step 4 : Substitute the value in the formula
Method 1.
I = P r t = 3000 x 0.06 x 165/360 = 82.5 : Total Interest = I = RM82.50
Maturity value is S which equal to S = P + I : S = 3000 + 82.50 = RM3082.5
Method 2.
S = P ( 1 + r t) = 3000( 1 + 0.06 x 165/360) = 3082.50 :
So we get the maturity value first S = RM3082.50
Thus to find total interest is just I = S – P = 3082.50 – 3000 = 82.50
Total Interest = RM82.50.
11. Sarimah plans to have RM20,000 in 10 years time. Find how much money should she save in the
account that pays 4.5% simple interest.
Solution :
Step 1 : find the keyword for the interest that will be used.
Keyword : Keyword that shows this is a simple interest problem
4.5% simple interest :
Step 2 : list all the variables that stated in the problem.
P= ? r = 0.045 t = 10 S = 20000
Step 3 : choose the correct or appropriate formula to use depending on the information we
have above.
Since we have r, t and S we can only use S = P ( 1 + r t ) to find the amount P.
Step 4 : Use the value and substitute in the formula.
S = P ( 1 + r t)
20000 = P ( 1 + 0.045 x 10) { P is unknown variable that we want to find}
Solve P , P = 20000 / ( 1 + 0.045 x 10) = 13793.10
So Sarimah should save RM13793.10
Page 4