48. In what time will Rs 500 amount to Rs 1000 at 5% per years?
49. At what rate percent simple interest Rs 1 will amount to Rs 9 in 60 years?
50. A man borrowed Rs 875 for a period of 3 ½ years at the rate of 5% simple interest per annum. After the fixed time he cleared of his debt by paying Rs 200 in cash and a bicycle. Find the price of the bicycle?
51. Find the simple interest on Rs 1000 from 2nd july to 12 september 2006 at 4% per years?
rahul, 08:3252. In what time will the interest on Rs 2600 amount to Rs 288 at 8% per annum?
53. Pramod took rs 1100 from Ajay at 8% interest per year. how much will he return to Ajay after six month?
54. Find the principal that shall earns interest of rs 60 at 6% per annum in 5 years?
55. Prabhat deposited Rs 1000 in a bank which gives simple interest at 6% per annum. He withdrew rs 650 after 3 years. How much is left in his account after 3 years?
Answers
Answer:
Step-by-step explanation:
The formula for calculating simple interest is:
P x r x t ÷ 100
P = Principal
r = Rate of Interest
t = Term of the loan/deposit in years
This means that you are multiplying the principal amount with the rate of interest and the tenure of the loan or deposit. Make sure you enter the tenure in years and not months. If you are entering the tenure in months, then the formula will be:
P x r x t ÷ (100 x 12)
If you want to find the total amount – that is, the maturity value of a deposit or the total amount payable including principal and interest, then you can use this formula:
FV = P x (1 + (r x t))
Here, FV stands for Future Value. To get the interest payable or receivable, you can subtract the principal amount from the future value.
Let's give you some examples to understand how much you will earn on your deposits, or how much you will have to pay on your loan if your bank uses simple interest.
Simple Interest Calculation in Deposits
Example 1: If you invest Rs.50,000 in a fixed deposit account for a period of 1 year at an interest rate of 8%, then the simple interest earned will be:
50,000 x 8 x 1 ÷ 100 = Rs.4,000
The interest you will receive at the end of the 1-year tenure will be Rs.4,000. Therefore, the maturity amount of the FD will be Rs.54,000.
Example 2: If you invest Rs.8 lakh in a fixed deposit account for a period of 5 years at an FD interest rate FD interest rate of 6.85%, then the simple interest earned will be:
8,00,000 x 6.85 x 5 ÷ 100 = Rs.2,74,000
The interest you will receive at the end of the 5-year tenure will be Rs.2.74 lakh. Therefore, the maturity amount of the FD will be Rs.10.74 lakh.
Simple Interest Calculation in Loans
Example 1: Say you borrowed Rs.5 lakh as personal loan from a lender on simple interest. The interest rate is 18% and the tenure is 3 years. The interest you will end up paying to the bank will be:
5,00,000 x 18 x 3 ÷ 100 = Rs.2,70,000
The interest you will be paying over the period of 3 years will be Rs.2.7 lakh. Therefore, the total repayment you will make to the bank will be Rs.7.7 lakh. On a monthly basis, this would come up to around Rs.21,389.
Example 2: Say you took a car loan on simple interest. The principal amount is Rs.12 lakh, the interest rate is 7%, and the tenure is 5 years. The interest you will end up paying will be:
12,00,000 x 7 x 5 ÷ 100 = Rs.4,20,000
The interest you will be paying over the period of 5 years will be Rs.4.2 lakh. Therefore, the total repayment you will make will be Rs.16.2 lakh. On a monthly basis, this would come up to around Rs.45,000.