Question

If 5000 is lent at simple interest at 10% annual interest rate, then how much amount will the person get after 3
years.​

Answer 1

The concept of simple interest has to be used here. The principal, rate of interest and time is given in the question.

Principal = Rs 5000

Rate of interest = 10%

Time = 3 years

To find:-

The amount.

How to do:-

We will calculate the simple interest using a suitable formula. Once we know the simple interest and principal, we can easily calculate the amount.

Solution:-

SI = (P × R × T)/100

SI = (5000 × 10 × 3)/100

SI = 50 × 10 × 3

SI = Rs 1500

Amount = Principal + SI

Amount = Rs 5000 + Rs 1500

Amount = Rs 6500

Hence, the amount which the person will receive after 3 years equals Rs 6500.

Abbreviations used:-

P → Principal

R → Rate of interest

T → Time

SI → Simple interest