Question

5 Find the interest that a person has to pay if he burrows rs 50,000 from a
bank for a period of five years at a rate of 10% per annum.​

Answer 1

Brief Concept of SI :-

SI stands for simple interest . Simple interest is a quick and easy method of calculating the interest charge on a loan . Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

Given :-

• Here, The person have to pay interest on = Rs 50000

• The time has been issued by bank

= 5 years

• The bank has issued loan on a 5 years period at a rate of = 10% per annum

Solution :-

Here,

We have to find the SI

According to the question,

Principal = Rs 50000

Time Period = 5 years

Rate of interest = 10% per Annum

As We know that ,

SI = Principal * Rate * Time / 100

Put the required values in the given formula,

SI = 50000 * 10 * 5 / 100

SI = 500 * 10 * 5

SI = 5000 * 5

SI = 25000

Hence, The Person has to pay interest = Rs 25,000$.$

Formulas kept in mind :-

• SI = P * R * T / 100

• CI = P ( 1 + R/100 )^T - 1

Here,

P denotes principal

R denotes Rate

T denotes time