## Title:- What is the Formula for Simple Interest?

## Introduction:-

### Today I have come infront of you with a new topic of arithmetic,What is the Formula for Simple Interest?which is a helpful topic of mathematics is very essential for lower classes students specially from class (v) to class(viii)

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## Explanation:-

### What is the Formula for Simple Interest? to start today's discussion let us quick reflect the term,

## What is Simple Interest?

### Answer:- An interest which is calculated only principal amount at a some fixed rate for a definite period of time is known as simple interest.

Let us suppose,we have borrowed a sum of $200 from Mr.Thomas on a condition that we will return the money after one month and Mr.Thomas also urged us you must give an extra sum of $10 with$200 when returned, this extra sum of money $10 is simple interest for a period of one month and rate of interest@$10 as it is calculated on $100.

Now, we will learn,

## What is the Formula for Simple Interest?

### Answer:-

### The Formula for Simple Interest is given as,

### (S.I) = (P × n × r)/100

### Where,

P=Principal or Initial borrowed amount.

n=Number of years for which S.I will be calculated.

r=Rate of interest onwhich S.I will be calculated.

## More formula of Simple Interest:

### (i) Amount (A) = S.I + P

### Where, P = Principal

S.I = Simple Interest

(ii) Rate of Interest (r) = (S.I × 100)/P × n

where, P = Principal

S.I = Simple Interest

n = Number of years

### (iii) Principal(P) = (S.I × 100)/r × n

Where,

S.I = Simple Interest

r = Rate of Interest

n = Number of years.

(iv) Time(n) = (S.I × 100)/P × r

Where,

S.I = Simple Interest

P = Principal

r = Rate of Interest

## Some Problems On Simple Interest:-

### (i) If principal $1000 rate of interest @2% per annum for 3years then,find simple interest for that period of time.

### Solution:-

### Principal(P)=$1000

Rate of interest(r %) =2%

=> r/100 = 2/100

∴ r =2

Time(n)=3years

∴ S.I = (P×n×r)/100

=$1000×3×2/100

=$10×3×2

=$60

∴Required S.I=$60

### (ii) Mr.Roy borrowed Rs 2000 from HDFC Bank,after 2years later he paid S.I Rs 200,how much rate of S.I,he had to pay?

### Solution:-

### Principal(P) = Rs2000

Time(n) = 2 years

S.I = Rs 200

r =?

### Let,

The rate of interest = r %

∴ r = (S.I × 100)/P× n

### = Rs 200×100/2000×2

= Rs 20000/4000

= Rs 20/4

= Rs 5

### ∴ Rate of S.I he paid (r) = 5%

### (iii) At what rate a sum of money becomes triple in 5 years?

### Answer:- Principal (P) = Rs P

Amount (A) = Rs 3P

∴ S.I = A - P

= Rs ( 3P - P)

= Rs 2P

Time (n) = 5 years

### Let, rate of interest = r %

∴ Rate of Interest (r) = (S.I × 100)/P × n

= Rs( 2P × 100)/P × 5

= Rs ( 2 × 100) × 5

= Rs (2 × 20)

= Rs 40

# ∴ Required rate of interest (r %) = 40%

### (iv) A sum of money becomes double @ 5 % p.a find in how many years it becomes double.

### Answer:- Principal (P ) = Rs P

Amount (A) = Rs 2P

∴ S.I = A - P

= Rs (2P - P)

= Rs P

Rate of interest (r %) = 5 %

∴ r = 5

# ∴ Number of years (n) = (S.I × 100)/P × r

### = (P × 100)/ P × 5

= 20 years

### (v) A principal's interest becomes Rs 15 @ 10% p.a in 3 years, find the principal.

### Answer :- S.I = Rs 15

Time (n) = 3 years

Rate of interest(r % ) = 10 %

∴ r = 10

### ∴ Required Principal(P) = (S.I × 100)/r × n

= Rs (15 × 100)/10 × 3

= Rs (15 × 10)/3

= Rs 50

## Conclusion:-

### From the above discussion we have learnt What is the Formula for Simple Interest? Generally interest are classified in two types:- (i) Simple Interest (ii) Compound Interest.

### The formula of Compound Interest (C.I)

= P (1 + r/100)ⁿ

Where,

P = Principal

r = Rate of Interest

n = number of years.

### In arithmetic we find the uses of S.I and C.I in a large number scale,......

## FREQUENTLY ASKED QUESTIONS:-
## What is the formula for simple interest and compound interest?

Answer:-The Formula for Simple Interest is given as,
(S.I) = (P × n × r)/100
Where,
P=Principal or Initial borrowed amount.
n=Number of years for which S.I will be calculated.
r=Rate of interest on
which S.I will be calculated.
The formula of Compound Interest given as,
C.I = P (1 + r/100)ⁿ
Where,
P =Principal
r = Rate of Interest
n = number of years.

## What is simple interest class 10?

Answer:- The Formula for Simple Interest is given as,
(S.I) = (P × n × r)/100
Where,
P=Principal or Initial borrowed amount.
n=Number of years for which S.I will be calculated.
r=Rate of interest on
which S.I will be calculated.

## Time formula in simple interest

Answer:- Time formula in simple interest is given by,
Time(n) = (S.I × 100)/P × r
Where,
S.I = Simple Interest
P = Principal
r = Rate of Interest

## What is principal in simple interest?

Answer:- The sum of money which is borrowed or lent is called principal in simple interest.

##
What is simple interest formula Class 8?

Answer:-
The Formula for Simple Interest is given as,
(S.I) = (P × N × R)/100
Where,
P=Principal or Initial borrowed amount.
N=Number of years for which S.I will be calculated.
R = Rate of interest on
which S.I will be calculated.

## What is the formula for simple interest and compound interest?

Answer:-The Formula for Simple Interest is given as, (S.I) = (P × n × r)/100 Where, P=Principal or Initial borrowed amount. n=Number of years for which S.I will be calculated. r=Rate of interest on which S.I will be calculated. The formula of Compound Interest given as, C.I = P (1 + r/100)ⁿ Where, P =Principal r = Rate of Interest n = number of years.

## What is simple interest class 10?

Answer:- The Formula for Simple Interest is given as, (S.I) = (P × n × r)/100 Where, P=Principal or Initial borrowed amount. n=Number of years for which S.I will be calculated. r=Rate of interest on which S.I will be calculated.

## Time formula in simple interest

Answer:- Time formula in simple interest is given by, Time(n) = (S.I × 100)/P × r Where, S.I = Simple Interest P = Principal r = Rate of Interest

## What is principal in simple interest?

Answer:- The sum of money which is borrowed or lent is called principal in simple interest.

## What is simple interest formula Class 8?

Answer:- The Formula for Simple Interest is given as, (S.I) = (P × N × R)/100 Where, P=Principal or Initial borrowed amount. N=Number of years for which S.I will be calculated. R = Rate of interest on which S.I will be calculated.