Simple Interest Calculation: Finding the Principal Sum
To find the original sum (principal) that earns a certain simple interest over a period, we can use the simple interest formula and rearrange it.
Given Information:
- Simple Interest (SI) = ₹460
- Time (T) = 4 years
- Rate of Interest (R) = 5% per year
Formula for Simple Interest:
The formula for calculating Simple Interest is:
\(SI = \frac{P \times R \times T}{100}\)
Where:
- SI = Simple Interest
- P = Principal Sum
- R = Rate of Interest (in %)
- T = Time (in years)
Calculating the Principal Sum (P):
We need to find P. We can rearrange the formula:
\(P = \frac{SI \times 100}{R \times T}\)
Now, substitute the given values into the rearranged formula:
\(P = \frac{460 \times 100}{5 \times 4}\)
First, calculate the denominator:
\(5 \times 4 = 20\)
Now, calculate the numerator:
\(460 \times 100 = 46000\)
Finally, divide the numerator by the denominator:
\(P = \frac{46000}{20}\)
\(P = 2300\)
Conclusion:
The principal sum required to earn an interest of ₹460 in 4 years at 5% simple interest per year is ₹2300.
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?
