Question

Sahil has Rs.100 in a
savings account that
earns 10% interest per
year. How much money
will he have in 3 years
with simple interest?
Answer:
Rs 103
Rs 160
Rs 130
Rs 70
tell from this option only​

Answer 1

As the formule
SI =PRT
—- -
100

100 X 10 X 3
———————
100


So the SI = Rs30
THEN, amount will be P + SI
= 100 +30
130

Answer 2

Simple Interest Formula

Simple interest is a method of calculating the interest that is charged on fixed deposits, savings accounts, and loans. It is calculated on the principal amount. Simple interest does not add any interest rate on the interest amount gathered on the principal amount.

Where Is the Concept of Simple Interest Used?

Simple interest may be used in the following financial situations:

Borrowing money: In the case of a loan, you will need to pay interest on the amount you have borrowed.

Lending money: In the case of a savings account, fixed deposit , or recurring deposit, you will receive the amount in the form of interest on your principal.

However, banks, financial institutions, and professional lenders in India do not use simple interest. They use compound interest instead.

Simple Interest Formula

The formula for calculating simple interest is:

(P x r x t) ÷ 100

P = Principal

r = Rate of Interest

t = Term of the loan/deposit in years

This means that you are multiplying the principal amount with the rate of interest and the tenure of the loan or deposit. Make sure you enter the tenure in years and not months. If you are entering the tenure in months, then the formula will be:

(P x r x t) ÷ (100 x 12)