Question

4. Kasanrao wanted to make a pond in his field. He borrowed 35,250 at 6 p.c.p.a. from a bank. Pod
much interest will he have to pay to the bank at the end of 1 year?
Solution :​

Answer 1

$\begin{gathered}\sf Given \: that \begin{cases} & \sf{Principal\: = \bf{35250 \: Rupees}} \\ & \sf{Rate \: of \: interest \: = \bf{6\: \% \: per \: annum}} \\ & \sf{Time \: = \bf{1 \: year}} \end{cases}\\ \\\end{gathered}$

$\begin{gathered}\begin{gathered}\bf \: To\:find - \begin{cases} &\bf{Simple \: Interest</p><p>}  \\ \end{cases}\end{gathered}\end{gathered}$

Understand the problem :-

We have given Principal, Rate of interest per annum and time period. We have to find the simple interest after 1 year, to find the simple interest, we use the formula of Simple interest and substitute the values of P, R and T.

Let recall the basic definitions :-

Principal: The principal is the amount that initially borrowed from the bank or invested. The principal is denoted by P.

Rate: Rate is the rate of interest at which the principal amount is given to someone for a certain time. The rate of interest is denoted by R.

Time: Time is the duration for which the principal amount is given to someone. Time is denoted by T.

Amount: When a person takes a loan from a bank, he/she has to return the principal borrowed plus the interest amount, and this total returned is called Amount.

Amount = Principal + Simple Interest

and Simple Interest is evaluated as

Formula to find Simple Interest

${\sf{ Simple \: interest \: = \: \dfrac{P \times R \times T}{100}}}$

Let's use the formula to find Simple Interest and implied the values and let us find Simple Interest...!!

${\sf{ Simple \: interest \: = \: \dfrac{35250 \times 6 \times 1}{100}}}$

${\bf{:\implies Simple \: interest \: = 2115}}$