Aptitude - Simple Interest - Discussion

Avinash Anand said: (Jun 3, 2010)  
A person takes a loan of Rs. 200 at 5% simple interest. He returns Rs. 100 at the end of 1 year. In order to clear his dues at the end of 2 years, he would pay: (Ans Rs. 115)


Answer is wrong, else the method is wrong , coz at the end of 1 year he pays 100/- , bcoz the amount at the end of 1 year must be 210/- n 210-100=110/- which is the principal for the next year.
First year SI = 10, amount = P+SI=200+10=210,
He pays 100/- at the end , so amount = 210-100=110,
110 is the new P for next year,

Naveen said: (Jun 25, 2010)  
The answer is wrong. Answer should be 115.50 based on amount of 110.

Rosemary Maisnam said: (Jul 23, 2010)  
I agree with Mr. Avinash, Pls clarify how you got that 115.

Shwetha said: (Sep 6, 2010)  
Solution is correct first he takes loan 200 then he return backs 100 so 200-100=100 then simple interest for 1 year and for 2 years that is ptr/00 so 115 is correct answer.

Avinash Kumar said: (Sep 21, 2010)  
He had taken 200/- at r.p.a 5% at the end of 1st year it increases to 210 but he had paid 100/- . So 210-100=110 in 110 10/- is interest and remaining is 100/- so calculate interest for 100/- it is 5/- so add 100+10+5=115. So by the end of the 2nd year he have to pay 115/-.

Punit said: (Sep 26, 2010)  
Anser is wrong. Correct answer is 110. Because it is not compound interest. It is simple interest it does not matter when you are paid to it and it would not be change.

Sunte said: (Oct 31, 2010)  
Ans is 115.5. The concept of SI is different from CI.

Rlnmurty said: (Nov 7, 2010)  
Answer is wrong as per my knowledge. He paid 100 at the end of first year. Out of which 10 is interest. So he paid 90 as part of paying back his principle. So remaining principal which is interest chargeable is 110. So he has to pay 110+ (110*5*1) /100=115. 50.

Ajay Goyal said: (Nov 13, 2010)  
I am agree with Rlnmurty. Nice explanation yar.

Priya said: (Nov 29, 2010)  

Really good solution....in easy way..

Baba said: (Dec 26, 2010)  
The ans is correct as it is based on simple interest, according to SI interest must be calculated only to initial sum borrowed...

Prateek said: (Jan 10, 2011)  
The given answer is correct. The value 10 is the interest not money for Simple Interest. So interest should be calculated on 100 instead of 110.

Sundari said: (Jan 11, 2011)  
Tha answer is correct. Because calculating the interest for 1st year which Rs 10 is the interest. He paid 100 at the end of first year so calculate interest for amt 100 ie for Rs 5. So total interest he has to pay is Rs.15+Plus borrowed amount is 200(215).

But he paid 100 in the previous year.

So finally 215-100 = 115. So the answer is correct from my point of view.

Viay Narayan Singh said: (Jan 25, 2011)  
The answer is right. Because first year he only pay principal amount and not interest. So he has to pay Rs 10 as a interest for first year and Rs 5 for 2 nd year so total amount paid to clear his debt is 100+10+5= 115.

Tripti said: (Jan 31, 2011)  
The answer is absolutely correct. Sundari has given the exact explanation. It is the actual concept.

Harsha R said: (Feb 15, 2011)  
The SI for 200 at the end of 1st year=(200*1*5)/100=10.

Hence total amount at the end of 1st year=200+10=210.

But he returns back RS 100 at the end of 1st year.
Hence principl amount for 2nd year=(210-100)=110.

Then SI at the end of 2nd year=(110*1*5)/100=5.5.

Hence total amount he needs to return at the end of 2nd year
= 110+5.5 = Rs 115.5.

Shivakarthik said: (Feb 24, 2011)  
In general 5% interest of 200rs is 10rs .He return rs 100 at the end of 1 year (here the interest is 10 rs). so he want to give the another 100 rs in 1 year the interest for that amt is 5 rs so (10+5=15)
100+15=115 answer s correct ...
hope u understand....

Agarwal said: (Mar 18, 2011)  
1st year (200*5*1/100)+200=210.rs100 refund,so 210-100=110

2nd year (110*5*1/100)+110=115.5

If any doubt arise in any other question also post here..

Krishna said: (Mar 20, 2011)  
I agree with harsha, its the exact explanation according to me.

Wow harsha.

Shilpa said: (Apr 11, 2011)  
Tel me the exact ans with denomination like p=? t=? r=?

Sravanthi said: (Apr 14, 2011)  
The solution is correct..
Here,the 100 is the remaining amount he have 2 pay
10 is the S.I for first year
5 is the S.I for remaining 100..

Neela said: (Apr 17, 2011)  
Agreed with harsha's calculation.......its very simple and easy to understand

Sahil said: (May 4, 2011)  
Simple interest is ALWAYS calculated on the original principal.

Compound interest is calculated on the original principal plus the interest accumulated over the years.

If you apply compound interest method u will get 115.5

But if u apply simple interest you will get the correct answer which is 115.

Sahil EEE, B.E(hons) Bits Pilani

Neelam Verma said: (May 12, 2011)  
115 is correct answer because 10 rupee was remaing from 1 year and for the 2 year the simple interest on 100 rupee will be only 5% so adding 100+remaing year 10+5 % simple interest will be 115

Mukesh Rai said: (Jun 4, 2011)  
Dear All I am not getting what you are justifying let's have a solution from my end

the person takes loan of Rs. 200 at 5% PA

He returns Rs. 100 at the end of 1 year

Bank will charged interest on Rs 200 for one Year

taht is (200*5*1)/100 comes Rs 10 as interest

But he returned Rs. 100 at the end of the first year hence the total is (90+10=100).

hence still he has taken Rs 110.

Now he clears all his dews at the end of the 2nd year now again Bank will charg interest over Rs 110 for 1 year

Hence interest will be (110*5*1)/100 and taht comes Rs 5.5

hence total amount he has to pay at the end of the 2nd year is (110+5.5 = 115.5)

hence the option D is correct and this given in answer is wrong

Hasmukh Maniya said: (Jun 13, 2011)  
You are Right Mr.Mukesh Rai..

I 100% agree with you...

Keep it up

You clear my mind to give good solution

Sundar said: (Jun 13, 2011)  
@All those are supporting 115.50

Given Question: A person takes a loan of Rs. 200 at 5% "simple interest"....

What will be the answer if "compound interest" in the place of "simple interest" in the given question ?

What will the difference in the amount he has to pay, while calculating with "simple interest" and "compound interest"?

Can some one answer my questions please?

Dharampal Singh said: (Jun 15, 2011)  
Hi guys its me dharampal singh. There is no confusion at all.

Please read problem carefully, particular problem is about simple interest not about compound interest. Interest has been charge on principle amount only not on interest. So answer is 115. Thanks you.

Manoj said: (Jun 23, 2011)  
The ans is correct as it is based on simple interest, according to SI interest must be calculated only.

Nanditha said: (Jul 10, 2011)  
Finally what is the conclusion? is 115 correct or 115.5 correct?

Santhosh Yada said: (Jul 17, 2011)  
115 is correct

Jojo Negi said: (Jul 28, 2011)  
115 is correct answer bcoz he had taken 200 for 2 years at 5%

S.I for which become 10 rupees

Total =210 at the end of 1st year
so 210-100=10 rupees

Now P become 100 for next year(S.I) coz he had return 100 rupees already

S.I for 100 in one year at 5% is 5

So TOTAL momey to be paid by him would be

210+105=315 out of which he had return 100

So it becomes 215 , means which contains 100 rupees for sum and 115 rupees are to be paid.

Bhashkar Tiwary said: (Jul 29, 2011)  
The answer should be 115.50.

It's very simple:
after one year- net amount will be= principal + interest

The person paid 100.
So new p is 110, so interest comes out to be=( 110*5*1)/100

So total amt to be paid after 1 year gaain is = Rs. 115.50.

Path_Breaker said: (Aug 10, 2011)  
The answer is 115.50, correct it NOW

Rufus Alex said: (Aug 11, 2011)  
115 is correct

because logically thinking the power of simple interest is one must not calculate interest for the previous interest money and so no one will return the interest before returning the complete principle so 115 is correct

Bindu said: (Aug 17, 2011)  
Ans is 115 when it is SI and 115.5 when it is CI

p=200 initially


So si for first year =200*1*5/100=10 rs

He returns rs 100 ie 200-100=100

So for the first year after paying 100 rs balance will be 100 rs principle and 10 rs interest .as it is si next year interest will be calculated for rs 100 which is
The balance in his loan
2nd year si=100*1*5/100=5 rs

So at the end of 2nd year to close the loan he has to pay rs 100(principle balance) +rs 10(interest 1st yr) +rs 5(interest 2nd year)=115 rs

If it was CI answer will be 115.5 as 2nd years p will be 100+10
hope the confusion is over now :)

Sumit said: (Aug 19, 2011)  
For 1 year...

si=200*5*1/100=10 rs

Now lets say simple interest will be paid after 2nd yr...

So after he paid 100 rs ..

For next yr si will be calculated on (200-100)=100


So total amount should be paid after 2nd yr=100+5+10=115

Bharghav said: (Aug 21, 2011)  
I agree with bindu explanation.

Vikas said: (Aug 22, 2011)  
Statement is wrong. It should be stated that the Rs. 100 is paid back from the pricipal.

Then answer is 115. Otherwise ans is 115. 50.

Deepesh said: (Aug 28, 2011)  
The given answer is correct , coz he left with 100/- plus the interest plus the interest of that 100/- which is due..
100+10+(100*5*1/100) = 115

Avijeet said: (Sep 5, 2011)  
Hey guys,

The answer is correct, because in simple interest the calculation is always done on the main amount not on the addition of interest and main.

After first year amount=210, where 10 is intrest.
since 100 is already paid so rest amount is 200+10-100=100+10.

Since 10 is the interest of first year so we cannot include that amount for calculating the rest money of 2nd year.

Now SI for next year = 100*5*1/100=5

Hence the total amount = main amount + SI of 1st year + SI of 2nd year
= 100+10+5 = 115.

Abdul said: (Sep 16, 2011)  
Answer is absolutely correct. Just know about what is simple interest and compound interest.

Sanyam said: (Sep 17, 2011)  
Answer is 115......
SI for 1st year:(200*5)/100=10 (Now this is Interest)
He paid 100/- after 1st year
Now, new Principal becomes:100/-
Interest on 100:(100*5)/100=5
So he has to pay:100+10+5=115

Harika said: (Oct 28, 2011)  
115 is absolutely correct answer. Please don't get confused with simple interest with compound interest.

Shub said: (Oct 31, 2011)  
The SI for 200 at the end of 1st year=(200*1*5)/100=10.

Hence total amount at the end of 1st year=200+10=210.

But he returns back RS 100 at the end of 1st year.
Hence principl amount for 2nd year=(210-100)=110.

Then SI at the end of 2nd year=(100*1*5)/100=5.

Hence total amount he needs to return at the end of 2nd year
= 110+5 = Rs 115

Anu said: (Nov 12, 2011)  
I agree with miss Harsha are.

Ramanath said: (Feb 8, 2012)  
I agree with avinash kumar. Answer 115/- is absolutely currect.

Shivani said: (Sep 1, 2012)  
The answer is absolutely correct. it is 115.
because in Simple Interest calculation interest is charged only on PRINCIPAL and not on interest accumulated meanwhile.
so, it goes like:
for year1: 200*5*1/100 = 10
Amount repaid: 100
Principal remaining= 200-100=100, Interest of year1= 10
For year2: 100*5*1/100 = 5
total amount payable= 100+10+5=115

Amol A said: (Aug 18, 2013)  
115.5 is 100% Correct answer not 115 (115.5% Sure).

Joel said: (Aug 26, 2013)  
If we follow the concept of SI then the answer 115 is correct.

Er. Mayank Jain said: (Jan 12, 2014)  
The answer is correct as it is based on simple interest, according to SI interest must be calculated only to initial sum borrowed.

Ritesh said: (Feb 7, 2014)  
For first year S.I = 200*5*1/100 = 10 so total amount he needs to pay at the end of 1 year = 10+200 = 210.

He paid 100 so rest amount = 210-100 = 110(100+10)(10 is the interest).

Now instead of 110 the principal will be 100 for the next year.(interest is calculated on principal value in case of S.I).

So S.I = 100*5*1/100 = 5(interest).

So he will pay 100+10+5 = 115.

Suman Saurav said: (Mar 1, 2014)  
According to question solution is wrong. In the question it should be mention that the 100 rupees returned after 1 yr. is from the principal. Otherwise there should not be option of 115.50.

Sreehari said: (Oct 19, 2014)  
Hello all.

115 is the correct answer.

200*0.05 = 210. But he paid 100. So, though the remaining amount is 110, interest is only for 100 as the case is simple interest. So 5 Rs on 100 plus 210-100. If this is the case of compound interest then, answer is 115.5, for now its 115.

Gayathridevi said: (Jan 21, 2015)  
Answer is correct.

Consider for 200, totally he has to pay = 200+(200*2*5)/100 = 220.

= P+(PTR)/100 = 220.

Remove that returned 100/-and that interest from 220.

= 220-(100+(100*1*5)/100) = 220-105 = 105. Which is answer?

Prasanthi said: (Apr 21, 2015)  
Hey the answer should b 115.5.

Because for the last 1 year, the SI is calculated as (210-100)*1*5/100 which is 5.5/-.

So the total amount to be re payed now is 110+5.5 rupees.

Trishul said: (Jul 19, 2015)  
The question is not clear here. There are two cases:.

1) If Rs. 100 he paid at the end of 1st year is used to first clear the interest of Rs. 10 generated, then answer will come Rs. 115.50/-.

2) If Rs. 100 he paid at the end of 1st year is only used to reduce the principle amount, then answer comes as Rs. 115/-.

Because it is simple interest and only the principle amount, not interest amount, is used to calculate interest.

Sarath said: (Aug 5, 2015)  
Friends question is clear he taken loan Rs. 200 for two years so,

1st calculate simple interest for 2 years.

i.e S.I = 200*5*2/100 = 20.

So total amount = 200+20 = 220.

So he returns 100 rupees in 1st year = 220-100 = 120.

Rs. 120 is a right answer.

And 1st year he didn't give he give only Rs. 100.

Ram Kr Prajapati said: (Aug 24, 2015)  
Its answer is wrong.

Right answer is = 115.5.


If he wants to clear his loan in 1 year then he has to pay:

200+[(200*5*1)/100] = 210.

But he only pay 100 rupees at the end of 1 year, so he is in debt of rupees = (210-100) = 110;

Now if he wants to remove all his debt in end of 2nd year.

Then he has to pay : 110+{(110*5*1)/100)}.

= 115.5.

Abhishek Pplo said: (Oct 24, 2015)  
After 1st year, SI was 10, amount at the end of 1st year to paid is 210 and he paid 100, so remaining amount is 110.

Next year, SI will be on 110, so SI is coming out to be 5.5, and amount to be paid is 115.5.

Amit said: (Jan 26, 2016)  
Correct answer is 115.50 because 110 is P for next year.

Addan Kayani said: (May 8, 2016)  
Correct answer is 115.

As per calculation and definition of simple interest.
The total amount borrowed 200. For 2 year period.

If we calculate interest per period we get our answer.

S = p(1 + rt).
S = 200(1 + .05*1).
S = 210.

Less amount returned.
210 - 100 = 110.

For the second period of time, we take 100 as principal, not 110.

S = p(1 + rt).
S = 100(1 + .05*1).
S = 105.

Add the previous interest which is 10 Rs.
Total payable,

105 + 10 = 115.

Nishant said: (Jul 18, 2016)  
You are absolutely correct @Addan Kayani.

Manisha said: (Aug 4, 2016)  
The answer should be 115.50 because at the end of one year he pays back 100, so the principle for the 2nd year becomes 110, interest at the end of the 2nd year is 5.5 so the amount to be paid will be 115.50.

Padal said: (Aug 12, 2016)  
Yes, the answer is 115.50.

Santosh K said: (Sep 9, 2016)  
The correct answer is 115.50.

Udit Narayan(Msrit) said: (Sep 22, 2016)  

200 * 1 * 5/100 = 10.
TOT PAID = 210.
210 - 100 = 110.
110 * 5 * 1/100 = 5.5.
TOT AMT = 110 + 5.5 = 115.5.

Seraj Khan said: (Oct 26, 2016)  
The right answer is;

Principal = 200.
For first year
Now Rs 100 take out from the bank then principal = 100.
For 2nd year,
Because question mention is simple interest (always kept in mind do no consider interest rate).

Hari said: (Jan 7, 2017)  
As per my calculation, the answer is 115.5rs.

Kishore said: (Feb 11, 2017)  
The si on 200 is 10, he paid 100 so amount principal in 2 and would be 100 not 110 because if we have taken 110 it would be ci.

Krishu said: (Mar 17, 2017)  
IN SI, the principal is always same, but in CI principal get vary ie, (p+ci) this is the concept.

You can take an example for it and find CI and SI for single case. you will see SI is always found in original principal, whether it is for 1st, 2nd yr and so on.

But for CI, interest always find on (p+interest), every year principal gets changed which will be( p+interest).

So the ans is correct ie 115.

Emailpurnendu@Gmail.Com said: (Jun 22, 2017)  
It is S.I.

For 1st yr he has to pay (200 x 1 x 5/100) = 10 (interest only),
Now he cleared Rs. 100. So remaining principle is (200-100) = rs. 100.
Hence, he has to pay (100 x 1 x 5/100) = 5 (interest only).
So, In total he has to pay [10(prv int.) + 5 (nxt int) + 100 (remaining principle)] = rs. 115.

Is it clear?

Teju said: (Aug 1, 2017)  
115 is the clear answer.

Because I have 200 /- for 3 years with 5% simple interest. So its interest will be 30/- and totally become 230/-. If you solve this problem year by year its interest will be 231.525/- as for one year si is 10/- and sum is 210/- for second year si is 10. 5/- and sum is 220.5/- for 3rd year SI is 11.025 so the total sum is 231.525 so you can easily understand.

Riya said: (Feb 15, 2018)  
The Basic Rule: Any sum that is paid back to the bank before the last installment is deducted from the principal and not from the interest.

So, the answer is 115 calculated using SI.

Nagendra T said: (May 7, 2018)  
200+10=210(principal + SI)
He returns 100 at the end of the year,

He has to pay 115.50 at the end of the second year.

Ganesh said: (Jul 8, 2018)  
Answer is correct as;

--> 1. firstly calculate the SI for the first year that comes to be 10rs.

2.Then he returned 100rs at the end of the first year so remaining amount to be paid is 100 + 10.

3.Now for the second yr the SI will be calculated on 100rs which comes to be 5rs. So total amount to be paid at the end of second yr is 100 + 10 + 5 =115.

Kunjan Modi said: (Oct 12, 2018)  
The Answer is correct.

First, he takes 200$ loan from the bank.

So, for first 1 year duration the interest value is = (200*1*5/100) = 10$.
Then, he gives back $100 so net amount he has on which simple interest will apply is 100 because of simple interest take account only initially invested money.

So, for 2nd-year interest =(100*1*5/100)=5$.
So the total amount he gives back after the end of 2nd year = 100+10+5=115 (Principal amount remaining after 1st year + 1st-year interest+2nd-year interest).

Raisa said: (Oct 28, 2018)  
(200*5v1)/100 = 10.
(110*5*1)/100 = 5.5.
110+5.5 = 115.5.

Jasubhai said: (Nov 18, 2018)  
115 is the right answer because simple interest calculates on 100 not on 110. It is not C I.

Rohit Soni said: (Nov 19, 2019)  
115 is the right answer. The first thing this question is based on simple interest, so for the second year, interest money will not be added with the rest of the principal money. after one-year total interest will be:

(200 x 5 x 1)/100 = 10 -> first-year interest = 10 Rs -- this money will not add up with principal for next year.

And he paid 100 Rs in the last one year so the rest of the money is 200-100 = 100.
Now we will calculate interest for 100 Rs for 2nd year -- ( 100 x 5 x 1 )/100 = 5 Rs.

So total money after 2nd year he has to pay = ( 100 + 10 + 5 ) = 115.

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