Question

Priya deposited Rs 10000 in the bank for one year at
an interest of 3 p.c.p.a. how much interest will she get
at the end of the year?​

Answer 1

Answer:

Simple Interest

Interest is the extra money paid by institutions like banks or post offices on money deposited (kept) with them. Interest is also paid by people when they borrow money.

Example - 1

A sum of Rs 10,000 is borrowed at a rate of interest 15% per annum for 2 years. Find the simple interest on this sum and the amount to be paid at the end of 2 years.

Solution :

On Rs 100, interest charged for 1 year is Rs 15.

With Simple interest, the interest is calculated on the same amount of money in each time period, and, therefore, the interest earned in each time period is the same. i.e., If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple interest.

Let the principal = P, Rate = R% per annum (p.a) and Time = T years. Then ,