principal=1000 SI=500 find amount
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It is an easy and quick method of calculating an interest charge on a loan. Simple interest (S.I.) is determined by multiplying the principal (P) with rate of interest (R) and time period (T).
S.I.= \dfrac{P \times R \times T}{100}
Example: Henry borrowed Rs. 5000 for 4 years at an interest rate of 5% from a bank. How much of interest is that?
We know,
S.I.=\dfrac{P \times R \times T}{100}
Here P= Rs. 5000, R= 5%, T= 4 years
So, I=\dfrac{5000 \times 5 \times 4}{100}=Rs. 1000
Ans: Henry has to pay Rs. 1000 as interest.
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