In simple interest we will learn about how to calculate simple interest. We will recapitulate the formula for simple interest and know more about it. When we borrow money from any source (bank, agency, moneylender), we have to pay back the money after a certain period along with extra money for availing the facility to use the money borrowed. Show
What is Simple Interest? ● The money borrowed is called the principal (P). ● Extra money paid back is called the simple interest (S.I). ● Interest is expressed as rate par cent per annum (p.a.) i.e., 12% per month means, the interest on $100 for 1 year is $12. ● The total money paid back after the given time is called the amount. ● Time for which money is borrowed is called the time period. We already know what is simple interest and while calculating the time period we need to:
When number of day is converted into year, we always divide the number of days by 365, whether it is a leap year or an ordinary year. Here,
R = rate% per annum Important: Formula for calculating amount is A = P + I Examples on simple interest:What is Simple Interest? 1. Find simple interest on $2000 at 5% per annum for 3 years. Also, find the amount. Solution: Principal = $2000Rate = 5% p.a. T = 3 yearsS.I = (P × R × T)/100= (2000 × 5 × 3)/100 = $ 300 Amount = P + I = $ ( 2000 + 300 ) = $ 2300
Solution: P = $ 6400R = 10% p.a.T = 9 months or 9/12 years [12 months = 1 year1 months = 1/12 years 9 months = (1 × 9)/12 years] Therefore, S.I. = (P × R × T)/100 = (6400 × 10 × 9)/(100 × 12) = $480 3. Mike took a loan of $20000 from a bank on 4 February 2009 at the rate of 8% p.a. and paid back the same on 6th July 2009. Find the total amount paid by Mike. P = $20000 R = 8 % p.a. T = 152/365 Solution: Time = February + March +April + May + Jun + July = 24 days + 31 days + 30 days + 31 days + 30 days + 6 days = 152 days Therefore, S.I. = (P × R × T)/100 = (20000 × 8 × 152)/(100 × 365) = $ (40 × 8 × 152)/73 = $ 666.30 Therefore, the amount paid = $ (20,000 + 666.30) = $ 20666.30
4. At what per cent will $ 1500 amount to $ 2400 in 4 years? Solution: P = $ 1500 R = ? T= 4 years and A = $ 2400 S.I. = A - P = $(2400 - 1500 ) = $ 900 S.I. = (P × R × T)/100 900 = (1500 × R × 4)/100 Therefore, R = (900 × 100)/(4 × 1500) = 15%5. In how much time will a sum of money triple itself at 15 % p.a.? Solution: Let P = x, then A = 3x So, I = A - P = 3x - x = 2x We know that S.I = (P × R × T)/100 2x = (x × 15 × T)/100 T = (2x × 100)/(x × 15) = 40/3 = 13.3 years6. At what rate percent per annum simple interest will a sum of money double itself in 6 years? Solution: Let P = x, then A = 2x Also, S.I = A - P = 2x - x = x T = 6 years We know that S.I. = (P × R × T)/100 (x × R × 6)/100 = x R = 100x/6x = 16.6 %
7. A some amounted to $ 2520 at 10% p.a. for the period of 4 years. Find them sum. Solution: Let A = $ 2520 R = 10% p.a. T = 4 years P = ? Let the principal be x S.I = (x × 10 × 4)/100 = 2x/5 A = P + I A = x + 2x/5 A = (5x + 2x)/5 = 7x/5 [But given that A = $2520] 7x/5 = 2520 7x = 2520 × 5 x = (2520 × 5)/7 = $ 1800
Solution: What is Simple Interest? ● Simple Interest What is Simple Interest? Calculate Simple Interest Practice Test on Simple Interest ● Simple Interest - Worksheets Simple Interest Worksheet 7th Grade Math Problems 8th Grade Math Practice From What is Simple Interest to HOME PAGE
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
Question Hint:Use the formula of total amount and then find the rate of interest R.The correct answer is: 18.75%Complete step by step solution:Formula for total amount = A = P + SI…(i)where A is the total amount, P is the principal amount and SI is simple interest .Here, A = 2P and SI = where P is Principal amount, T is number of years and R is the rate of interest.We have, T = 5 years and 4 months = years (given) and R = ?On substituting the known values in (i), we have .Subtract P from both sides.Then we have, So, we have R = 18.75%At 18.75% per annum the sum amount will double itself in 5 years and 4 months. |