Question

8.6 CHARGE GIVEN ON BORROWED MONEY OR SIMPLE

INTEREST

Sohini said that they were going to buy a new scooter. Mohan asked her

whether they had the money to buy it. Sohini said her father was going

to take a loan from a bank. The money you borrow is known as sum

borrowed or principal.

This money would be used by the borrower for some time before it is

returned. For keeping this money for some time the borrower has to pay

some extra money to the bank. This is known as Interest.

You can find the amount you have to pay at the end of the year by adding the sum

borrowed and the interest. That is, Amount = Principal + Interest.

Interest is generally given in per cent for a period of one year. It is written as say 10%

per year or per annum or in short as 10% p.a. (per annum).

10% p.a. means on every ` 100 borrowed, ` 10 is the interest you have to pay for one

year. Let us take an example and see how this works.

EXAMPLE 20 Anita takes a loan of ` 5,000 at 15% per year as rate of interest. Find​

Answer 1

Answer:

I think answer is Rs. 600

Step-by-step explanation:

SI=PxRxT/100

SI=5000x15x1/100

SI=50*15*1

=Rs. 600