What is the Formula for Simple Interest?

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,......

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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.

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