How to Find Simple Interest?
Simple interest on any sum of money is calculated using the steps discussed below,
Step 1: The principal(P), Rate of interest(R) and time(T) of loan amount is noted.
Step 2: Use the formula SI = (P×R×T/100) to calculate Simple Interest
Step 3: Use all the values from Step 1 and substitute them in Step 2.
Step 4: Simplify the value obtained in Step 3 to get required simple interest.
Let’s consider an example to understand the procedure better.
Example: Find the SI on rupees 10000 deposited for 3 years at 5% per annum.
Solution:
Given,
- P = Rupees 10,000
- R = 5% per annum
- T = 3 years
Thus, SI = (P×R×T/100)
⇒ SI = (10000×5×3)/100 = 1500
Thus the interest earn is rupees 1,500
Simple Interest
Simple Interest is the interest paid on the principal amount for which the interest earned regularly is not added to the principal amount as we do in compound interest.
Let’s learn more about Simple Interest in detail, including its formula and examples.
Table of Content
- Simple Interest Definition
- Simple Interest Formula
- How to Find Simple Interest?
- Simple Interest vs Compound Interest
- Applications of Simple Interest
- Simple Interest Solved Questions