{"id":131785,"date":"2020-12-13T09:58:39","date_gmt":"2020-12-13T04:28:39","guid":{"rendered":"https:\/\/www.cbselabs.com\/?p=131785"},"modified":"2021-09-18T10:39:14","modified_gmt":"2021-09-18T05:09:14","slug":"what-is-simple-interest","status":"publish","type":"post","link":"https:\/\/www.cbselabs.com\/what-is-simple-interest\/","title":{"rendered":"What is Simple Interest? | Solved Problems to Calculate Simple Interest"},"content":{"rendered":"

Learn all about What is Simple Interest and How to Calculate Simple Interest from here. Simple Interest is paid or received over a certain period for a fixed percentage of the principal amount. Get to see Solved Examples on finding the\u00a0Simplest Interest<\/strong><\/a>\u00a0and the terms involved in it with detailed explanation. Refer to Simple Interest Formula and learn about it in detail.<\/p>\n

When we borrow or lend money for a certain period we need to pay back along with extra money for availing the facility.<\/p>\n

Formula to Calculate\u00a0SI = PTR\/100<\/strong><\/p>\n

where P is the Principal<\/p>\n

T is the Time duration<\/p>\n

R is the Rate of Interest in Percentage<\/p>\n

Formula to Calculate\u00a0Amount = Principal + Interest<\/strong><\/p>\n

Examples on Simple Interest<\/h3>\n

1. Find simple interest on $4000 at 10% per annum for 2 years. Also, find the amount?<\/p>\n

Solution:<\/p>\n

From given data P = $4000<\/p>\n

R = 10%<\/p>\n

T = 2 years<\/p>\n

Substitute the given data in the formula for Simple Interest<\/p>\n

SI = PTR\/100<\/p>\n

= (4000*2*10)\/100<\/p>\n

= 80000\/100<\/p>\n

= 800<\/p>\n

SI = $800<\/p>\n

Amount = Principal + Interest<\/p>\n

= $4000+$800<\/p>\n

= $4800<\/p>\n

2. Calculate the simple interest on $ 8400 at 5 % p.a. for 8 months?<\/p>\n

Solution:<\/p>\n

Principal = $ 8400<\/p>\n

Rate of Interest = 5%<\/p>\n

Time Duration n = 8 months<\/p>\n

We know the formula to calculate Simple Interest for Months is given by<\/p>\n

SI = (P \u00d7 n \u00d7 R)\/ (12 \u00d7100)<\/p>\n

Substitute the given data in the above formula<\/p>\n

SI = (8400*8*5)\/(12*100)<\/p>\n

= $280<\/p>\n

3. John took a loan of $10000 from a bank on 8th February 2009 at the rate of 5% p.a. and paid back the same on 2nd July 2009. Find the total amount to be paid by John?<\/p>\n

Solution:<\/p>\n

Principal = $10000<\/p>\n

Time = 20 days+ 31 days + 30 days + 31 days + 30 days + 2 days<\/p>\n

= 144 days<\/p>\n

Rate of Interest = 5 %<\/p>\n

General Formula for SI = (PTR)\/100<\/p>\n

Changing the formula in accordance with daily basis we have SI = (P*R*n)\/100*365<\/p>\n

= (10000*5*144)\/100*365<\/p>\n

= $197.26<\/p>\n

Amount to be paid = Principal + Interest<\/p>\n

= $10000 + $197.26<\/p>\n

= $10197.26<\/p>\n

4. A some amounted to $ 4000 at 2% Per Annum for the period of 5 years. Find their sum?<\/p>\n

Solution:<\/p>\n

From the given data A = $ 4000<\/p>\n

R =\u00a0 2 % Per Annum<\/p>\n

T = 5 years<\/p>\n

P = ?<\/p>\n

Consider the principal to be found as X.<\/p>\n

SI = PTR\/100<\/p>\n

= x*5*2\/100<\/p>\n

= 10x\/100<\/p>\n

= x\/10<\/p>\n

A = P + I
\n= x+x\/10<\/p>\n

= 11x\/10<\/p>\n

We know from the given data Amount = $4000<\/p>\n

Equating them we have<\/p>\n

11x\/10 = $4000<\/p>\n

11x= $4000*10<\/p>\n

x = $40000\/11<\/p>\n

x = $3636.36<\/p>\n

Therefore, Principal is $3636.36.<\/p>\n

5. Arun takes a loan of $10,000 to buy a truck at a rate of 10 % Simple Interest. Calculate the Annual Interest to be paid for the loan amount?<\/p>\n

Solution:<\/p>\n

From the given data Principal P = $10,000<\/p>\n

T = 1 Year<\/p>\n

R = 10%<\/p>\n

SI\u00a0 PTR\/100<\/p>\n

= (10, 000*1*10)\/100<\/p>\n

= $ 1000<\/p>\n

Amount = Principal + Interest<\/p>\n

= $10,000 + $ 1000<\/p>\n

= $11, 000<\/p>\n

6. At what rate percent per annum a sum of Rs. 900 will become Rs. 3,600 in 10 years?<\/p>\n

Solution:<\/p>\n

P = Rs. 900, A = Rs. 3,600
\nT = 10 Years
\nI = A \u2013 P = 3600 \u2013 900 = Rs. 2700<\/p>\n

I = PTR\/100<\/p>\n

2700 = 900*10*R\/100<\/p>\n

R = (2700*100)\/(900*10)<\/p>\n

= 270000\/9000<\/p>\n

= 30%<\/p>\n

At 30% Rate of Interest the Sum of Rs. 900 will become Rs.3600 in 10 years.<\/p>\n

7. In how many times will a sum of money becomes 5 times itself as 30% per annum SI?<\/p>\n

Solution:<\/p>\n

Let the Amount be \u2018x\u2019.
\nAfter time \u2018t\u2019 money will be \u20185x\u2019 then
\nInterest for time \u2018t\u2019 is
\nSI=5x\u2212x=4x
\nGiven Rate = 30% Per Annum
\nSI = PTR\/100<\/p>\n

4x = (x*t*30)\/100<\/p>\n

4*100\/30 = t<\/p>\n

t = 400\/30<\/p>\n

= 13.33 years<\/p>\n

The Sum x will become 5x times itself at a 30% interest rate after a span of 13.33 years.<\/p>\n","protected":false},"excerpt":{"rendered":"

Learn all about What is Simple Interest and How to Calculate Simple Interest from here. Simple Interest is paid or received over a certain period for a fixed percentage of the principal amount. Get to see Solved Examples on finding the\u00a0Simplest Interest\u00a0and the terms involved in it with detailed explanation. Refer to Simple Interest Formula …<\/p>\n","protected":false},"author":30,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5350],"tags":[],"class_list":["post-131785","post","type-post","status-publish","format-standard","hentry","category-mathematics"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/posts\/131785"}],"collection":[{"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/comments?post=131785"}],"version-history":[{"count":0,"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/posts\/131785\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/media?parent=131785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/categories?post=131785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cbselabs.com\/wp-json\/wp\/v2\/tags?post=131785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}