Question

Application : 16. Let us write in the blank by calculation. [Let me do it mysell]
al Inte Principal Time Rate of simple interest per annum Amount
principle=?

5 yrs
3 %
₹966
​

Answer 1

Answer:

At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

A. 6%

B. 6.5%

C. 7%

D. 7.5%

Answer 2

Answer:

Interest: Interest is the amount paid in lieu of using some money which is not owned by us.

The amount of money deposited, lent or borrowed is called principal (P).

The additional money given at the end of a period for using the principal is called interest.

The total money we receive or pay is called the amount due at that time. Thus the sum of principal and interest is called amount.

i.e. amount = principal + interest

The time for which the money is kept in the bank or for which the loan has been borrowed is called the time period.

To find the simple interest on a certain amount of money we need to know three quantities.

(i) Amount deposited or borrowed is called principal (P)

(ii) Rate of interest (R)

(iii) Time period (T)

How do you Calculate Simple Interest 2

Note: If the rate of interest is given per annum then the time period must be expressed in terms of year.

For Example Time period