Question

Maths Example Question:-

Assume that you have a car loan for $20,000. Your interest rate is 4%. your time is 6 years. To find the simple interest?

Question:-

How can we find Simple Intrest?
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Answer 1

Solution!!

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

Principal (P) = $20,000

Rate of interest (R) = 4%

Time (T) = 6 years

We will use the interest formula and substitute the given values.

Interest = (P × R × T)/100

Interest = (20,000 × 4 × 6)/100

Interest = 200 × 4 × 6

Interest = $4,800

Hence, the simple interest is $4,800.

We can find the simple interest by using the formula.

Simple interest = (Principal × Rate of interest × Time)/100

Simple interest = Amount - Principal

Using these 2 formulae, one can find the simple interest!

Answer 2

Required Answers:

Answer 1:

Here,

Principal = $20,000

Rate = 4%

Time = 6 years

To find simple Interest, we use the formula: P×R×T/100

Simple Interest = P×R×T/100

S.I. = 20,000 × 4 × 6 / 100

S.I. = 200 × 4 × 6

S.I = $4,800

Answer 2:

To find Simple Interest, formula will be P×R×T/100.

Simple Interest = P×R×T/100

In the above numerical example we found out the simple Interest by this formula only.

Simple Interest = Amount + Principal

By this formula we can find the Simple Interest.