Question

Change given pn borrowed money is ______​

Answer 1

PLEASE MARK AS BRAINLIST

When a person is borrowed money from bank or some other resources, interest is charged for the use

of that money over a certain period of time. The amount of interest charged depends on the amount of

money borrowed, the interest rate and the length of time for which the money is borrowed.

The money we borrow is known as sum borrowed or principal. For keeping this money for some time

the borrower has to pay some extra money to the bank or other resources. This is known as Interest.

Simple interest is a quick and easy method of calculating the interest charge on a loan.

The formula for calculating simple interest is:

Simple interest (SI) = (P * R * T)/100

P: Principal (original amount)

R: Rate of Interest (in %)

T: Time period (yearly, half-yearly etc.)

We can find the amount we have to pay at the end of the year by adding the sum borrowed and the

interest. That is, Amount = Principal + Interest.

=> A = P + SI

Problem: Find the amount to be paid at the end of 3 years in each case:

(a) Principal = ₹1,200 at 12% p.a. (b) Principal = ₹ 7,500 at 5% p.a.

Solution:

(a) Here, Principal (P) = ₹1,200, Rate (R) = 12% p.a., Time (T) = 3 years

Simple Interest = (P * R * T)/100

= (1200 * 12 * 3)/100

= 12 * 12 * 3

= ₹ 432

Now, Amount = Principal + Simple Interest

= ₹1200 + ₹432 = ₹1,632

(b) Here, Principal (P) = ₹7,500, Rate (R) = 5% p.a., Time (T) = 3 years

Simple Interest = (P * R * T)/100

= (7500 * 5 * 3)/100

= 75 * 5 * 3

= ₹1,125

Now, Amount = Principal + Simple Interest

= ₹7,500 + ₹1,125 = ₹ 8,625

Problem: What rate gives ₹ 280 as interest on a sum of ₹ 56,000 in 2 years?

Solution:

Here, Principal (P) = ₹56,000, Simple Interest (S.I.) = ₹280, Time (T) = 2 years

Simple Interest = (P * R * T)/100

=> 280 = (56000 * R * 2)/100

=> R = (280 * 100)/(56000 * 2)

=> R = 28/(56 * 2)

=> R = 1/(2 * 2)

=> R = 1/4

=> R = 0.25%

Hence, the rate of interest on sum is 0.25%.

Problem: If Meena gives an interest of ₹45 for one year at 9% rate p.a. What is the sum she has

borrowed?

Solution:

Simple Interest = ₹45, Rate (R) = 9% p.a., Time (T) = 1 years

Simple Interest = (P * R * T)/100

=> 45 = (P * 9 * 1)/100

=> 45 = 9P/100

=> 9P = 45 * 100

=> P = (45 * 100)/9

=> P = 5 * 100

=> P = 500

Hence, she borrowed ₹ 500.