10 Basic Sums in Simple Interest with Detailed Explanation
10 Basic Sums in Simple Interest with Detailed Explanation
Sum 1:
A sum of Rs. 5000 is borrowed at a rate of 10% per annum for a period of 2 years. Find the Simple Interest.
Solution: Simple Interest = (Principal x Rate x Time) / 100 SI
= (5000 x 10 x 2) / 100
= Rs. 1000 Therefore, the Simple Interest for the given sum is Rs. 1000.
Sum 2:
If a sum of Rs. 10000 is borrowed at a rate of 8% per annum for 3 years, what is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (10000 x 8 x 3) / 100
= Rs. 2400 Therefore, the Simple Interest for the given sum is Rs. 2400.
Sum 3:
A sum of Rs. 7500 is borrowed at a rate of 12% per annum for 4 years. What is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (7500 x 12 x 4) / 100
= Rs. 3600 Therefore, the Simple Interest for the given sum is Rs. 3600.
Sum 4:
A sum of Rs. 2000 is lent at a rate of 6% per annum for 5 years. What is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (2000 x 6 x 5) / 100
= Rs. 600 Therefore, the Simple Interest for the given sum is Rs. 600.
Sum 5:
If a sum of Rs. 4500 is borrowed at a rate of 7.5% per annum for 2 years, what is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (4500 x 7.5 x 2) / 100
= Rs. 675 Therefore, the Simple Interest for the given sum is Rs. 675.
Sum 6:
A sum of Rs. 8000 is borrowed at a rate of 9% per annum for a period of 6 years. Find the Simple Interest. Solution: SI = (P x R x T) / 100
= (8000 x 9 x 6) / 100
= Rs. 4320 Therefore, the Simple Interest for the given sum is Rs. 4320.
Sum 7:
If a sum of Rs. 6000 is lent at a rate of 5% per annum for 4 years, what is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (6000 x 5 x 4) / 100
= Rs. 1200 Therefore, the Simple Interest for the given sum is Rs. 1200.
Sum 8:
A sum of Rs. 12000 is borrowed at a rate of 10% per annum for a period of 3 years. Find the Simple Interest.
Solution: SI = (P x R x T) / 100
= (12000 x 10 x 3) / 100
= Rs. 3600 Therefore, the Simple Interest for the given sum is Rs. 3600.
Sum 9:
If a sum of Rs. 5000 is borrowed at a rate of 8% per annum for 2 years, what is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (5000 x 8 x 2) / 100
= Rs. 800 Therefore, the Simple Interest for the given sum is Rs. 800.
Sum 10:
A sum of Rs. 10000 is borrowed at a rate of 12% per annum for 5 years. What is the Simple Interest?
Solution: SI = (P x R x T) / 100
= (10000 x 12 x 5) / 100
= Rs. 6000 Therefore, the Simple Interest for the given sum is Rs. 6000.
In all the above examples, we have used the formula for Simple Interest, which is given as:
Simple Interest = (Principal x Rate x Time) / 100
where P is the principal, R is the rate of interest per annum, and T is the time period in years. The formula helps to calculate the interest payable on a sum of money borrowed or lent for a particular period of time.
From the above examples, we can see that the Simple Interest depends on the principal, rate of interest, and time period. The higher the principal or rate of interest, or the longer the time period, the higher will be the Simple Interest.
Calculating Simple Interest is a fundamental concept in finance, and it is essential for individuals to understand how it works to make informed financial decisions.