If principal is Rs. 250 and rate of interest is 4% per annum, Find the simple interest for 6 years.
Answers
Step-by-step explanation:
Principal = Rs250.
Rate 4%
Time 6 years
So, Simple interest= Principal*Rate*Time / 100.
Rs250*4*6/100 = Rs60
Amount= ( principal+Interest)
= Rs (250+60)
= Rs 310
*=multiple
/=division
Hi friend..
we know that ,
Principal: The money which we deposit in or the lower from the bank or the money learned called the principal.
Rate of interest: The interest paid on RS. 100 for one year is called the rate per cent per year or rate per cent per annum.
Time: The period of time for which the money is lent or invested.
Interest: Additional money paid by the borrowed to the lender for using the money is called interest.
Simple Interest: If the interest is calculated uniformly on the original principal throughout the lone period, it is called simple interest.
Amount: The total money paid back to the lender is called the amount.
Formula to calculate Simple Interest?
If P denotes the principal , R denotes the rate (percentage p.a.) and T denotes time (years), then:-
S.I = (P × R × T)/100
R = (S.I × 100)/(P × T)
P = (S.I × 100)/(R × T)
T = (S.I × 100)/(P × R)
principal (p) is = Rs. 250
rate (r) of interest is = 4%
time (t) = 6 years
then, S.I = (P × R × T)/100
=>S.I = (250 × 4 × 6)/100
=>S.I = 6000/100
=> S.I = 60
hence, Simple interest = R.s 60