Simple Interest


Percentages and Its Application II - Concepts
Class - Sainik School Entrance 6th Subjects
 
 
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

Find what sum of money will amount to Rs.900 in 4 years at 5% per annum on simple interest ?

Right Option : A
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Explanation
Question : 2

A sum of money was lent at simple interest at 11% p.a for large 3frac{1}{2}years and  large 4frac{1}{2} years respectively. If difference interests for two periods was Rs.5500, that the sum is _________________________

Right Option : C
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Explanation
Question : 3

At what rate percent by simple interest, will a sum of money double itself in 5 years 4 months?

Right Option : D
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Explanation
 
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