Simple Interest

  • Concept of Simple Interest

    When interest is calculated for every period only on the principal, then the total amount of interest gain on all the periods is called simple interest. Let Principal amount = P Rate of interest = r Then amount of interest after one year = Pr. Amount after two years Amount after three years and so […]

  • Examples of Simple Interest

    Example 1: Find simple interest on Rs. 3000 at 7% rate of interest for one year. Solution: Let Principal = 3000, Rate of interest = 7%, Simple interest Example 2: Find simple interest on Rs. 10,000 at the rate of 5% for 5 years. Also find the amount for 5 years. Solution: Let Principal = […]

  • More Examples of Simple Interest

    To Find Principal When interest, time, rate are given: Example 01: What amount was borrowed, for which amount of interest is 200 at the rate of 5% for 4 years. Solution: Let P = Principal , Rate = 5%, Interest = 200, time = n = 4, I = Interest We know that To Find […]