Question

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)


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


1. Find the simple interest when; Principal = ₹ 600, Rate = 2% per annum and Time = 20 months.
2. Find the principal when Simple Interest = ₹ 72, Rate = 3% per annum and Time = 3 months.​

Answer 1

may it helpful ................