Simple Interest Calculation Explained
The question asks us to find the principal sum (P) required to earn a simple interest (SI) of ₹460 over a period of 4 years (T) at an annual interest rate (R) of 10%.
Formula for Simple Interest
The formula for calculating Simple Interest is:
\(SI = \frac{P \times R \times T}{100}\)
Finding the Principal Sum
To find the principal sum (P), we can rearrange the formula:
\(P = \frac{SI \times 100}{R \times T}\)
Applying the Values
Given values are:
- Simple Interest (SI) = ₹460
- Time (T) = 4 years
- Rate (R) = 10%
Substitute these values into the rearranged formula:
\(P = \frac{460 \times 100}{10 \times 4}\)
Calculation
- Calculate the numerator: \(460 \times 100 = 46000\)
- Calculate the denominator: \(10 \times 4 = 40\)
- Divide the numerator by the denominator: \(P = \frac{46000}{40}\)
- Simplify the fraction: \(P = \frac{4600}{4}\)
- Final calculation: \(P = 1150\)
Therefore, the sum that will earn an interest of ₹460 in 4 years at 10% simple interest is ₹1150.
Similar Questions
- A sum of ₹ 2,000, invested at the rate of 8.5% simple interest per annum for 6 years will yield an interest of:
- ₹ $x$ invested at 9% simple interest per annum for 5 years yields the same interest as that on ₹ $y$ invested at 6.25% simple interest per annum for 8 years. Find $x : y$.
Important Questions from Simple Interest
If ₹12,800 is invested in a bank for 5 years at the rate of 9% per annum simple interest. what amount is returned by the bank?
Somu has borrowed ₹10,000 from a money lender with simple interest at a rate of 7% half yearly. How much amount will he pay to the money lender after 3 years?
Find the Simple interest on Rs. 2,400 from 20 March 2019 to 31 may 2019 at \(6{1 \over 4}\) % rate?
If the simple interest for five years is equal is 35% of the principal, that rate of interest is:
A sum fetched a simple interest of Rs. 3,040 at the rate of 8% p.a in 5 years. what is the sum?
