Simple Interest


 
 
Concept Explanation
 

Simple Interest

Rightarrow   that the interest is incurred simply on the principal amount   

OR   

Rightarrow   Simple interest is interest that is calculated each year as a fixed percentage of the original amount of money borrowed or invested . 

Formula:

Rightarrow    small Simple;Interest = frac{P X RX T}{100}    ,

where  P = initial amount , R = rate of interest , T =  time 

OR    

Rightarrow    SI = PIN       

where P = principal or initial amount , I = rate of interest in decimal form , N = time or duration    

Illustration: Mr Bector deposited a sum of Rs 5596 at a simple interest for 5 years at 10% rate of interest. Find Simple interest and the Amount.

Solution :   P = 5596 Rs.

          R = 10 %

          T = 5 Years

     small S.I. = frac{P X R XT}{100}= frac{5596 X 10 X 5}{100}= 2798; Rs

Amount = P + SI = 5596 + 2798 = 8394 Rs

Illustration:  Find the simple interest payable on an investment of $ 20000 at 12% p.a. over a period of 4 years ?

Solution :   here P = 20000 ,  R = 12% which is also 0.12  , N = 4 

now , SI = PIN

      SI =  20000times  0.12 times 4   =  9600 

So the simple interest is $9600 

Sample Questions
(More Questions for each concept available in Login)
Question : 1

A certain lent out at simple interest amount to Rs.575 in 3years and to Rs.625 in 5 years .Then the rate of interest is:

Right Option : B
View Explanation
Explanation
Question : 2

Rajan borrowed Rs.50000 from Rakesh at Simple Interest. After 3 years, Rakesh got Rs.3000 more than what he had given to Rajan. What was the rate of interest per annum?

Right Option : A
View Explanation
Explanation
Question : 3

How much should money lender lend at simple rate of interest of 15% in order to have Rs.3234 at the end of large 1frac{1}{2};years   ?

Right Option : D
View Explanation
Explanation
 
Video Link - Have a look !!!
 
Language - English
 
 
 
 


Students / Parents Reviews [10]