solve 2 questions with example of your choice (Ist sum of simple interest and other oof compound interest)
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Answer:
Step-by-step explanation:
When a person lends money to a borrower, the borrower usually has to pay an extra amount of money to the lender. This extra money is what we call the interest. We can express this interest in terms of the amount that the borrower takes initially. If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest or the flat rate. Before starting the formula for the simple interest, let us first state some terms that we will use in the formula.
Principal: The money borrowed or lent out for a certain period is called the principal or the sum.
Interest: Interest is the extra money that the borrower pays for using the lender’s money.
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Simple Interest
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But What is the Difference Between Simple Interest and Compound Interest?
Simple Interest
Formula For The Simple Interest
Let the principal amount be equal to P. Let the rate at which the interest is levied is equal to R% per annum (per year). let the time for which the amount is lent = T years. Then we can write:
Simple Interest = [{P×R×T}/100]
We can also calculate the Principal amount as P = [{100×(Simple Interest)}/(R×T)].
Similarly, we can write the time T as equal to T = [{100×(Simple Interest)}/P×R].
Now let us solve some examples to get acquainted with these formulae.
Example 1: Find the simple interest on Rs. 68,000 at 16(2/3)% per annum for a period of 9 months?
A) Rs. 8500 B) Rs. 3200 C) Rs. 2100 D) Rs. 4300
Answer: Here, P = Rs. 68000, R = 50/3% per annum and T = 9/12 years = 3/4 years. Note that the time has been converted into years as the rate is per annum. The units of rate R and the time T have to be consistent. Now using the formula for the simple interest, we have:
S.I. = [{P×R×T}/100]; therefore we may write: S.I. = Rs. [68000×(50/3)×(3/4)×(1/100)] = Rs. 8500.
In some cases the days of the start and the days when we calculate the interest are present. We don’t count the day on which we deposit the money. However, we do count the day on which we withdraw the money.
Practice Questions for Simple Interest here.
Solved Examples For You
Example 3: Khan borrows some money at the rate of 6% p.a. for the first two years. He borrows the money at the rate of 9% p.a. for the next three years, and at the rate of 14% per annum for the period beyond five years. If he pays a total interest of Rs. 11400 at the end of nine years, how much money did he borrow?
A) Rs. 12000 B) Rs. 21000 C) Rs. 37000 D) Rs. 63000
Answer: Let ‘x’ be the sum that Khan borrows. Then the total simple interest that Khan pays is the sum of the interests. We can write from the formula of the simple interest, [x×6×2]/100 + [x×9×3]/100 + [x×14×4]/100 = Rs. 11400.
Therefore we can write, 95x/100 = 11400 or x = Rs. 12000 and hence the correct option is A) Rs. 12000.
Example 4: The simple interest on a certain sum of money for 2(1/2) years at 12% per annum is Rs. 40 less than the simple interest on the same sum for 3(1/2) years at 10% per annum. Find the sum.
Answer:
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