Question

find the simple interest on an amount 5000 at the rate of 8.5 % per annum for 3 years 7 years and 9 years batoli find out whether simple interest and is and direct variation with time period or not also find the compound interest on the same amount at the at the same rate of interest for the similar time period find whether the compound interest earned is indirect variation with the time period or not​

Answer 1

Answer:

Here, we will find simple interest (SI) using the formula PRN100PRN100 where, P is principal amount i.e. Rs. 5000, R is rate of interest i.e. 5% and N is time period i.e. 2 years.

So, on substituting the values we get answer as

SI=PRN100SI=PRN100

SI=5000×5×2100SI=5000×5×2100

On solving, we get as

SI=50×5×2SI=50×5×2

SI=Rs.500SI=Rs.500

Thus, simple interest is Rs. 500.

Hence, option (a) is the correct answer.

Note: Be careful while selecting the formula. Students make mistake in selecting the formula i.e. instead of selecting PRN100PRN100 , they select P(1+R100)NP(1+R100)N which is generally used at time of compound interest amount to be found. Thus, the answer will be totally wrong. So, students should know proper concepts of simple interest and compound interest and then select the formula to avoid mistakes.