Simple Interest Calculation
The question asks to find the principal sum (P) given the simple interest (SI), time period (T), and annual interest rate (R).
Given:
- Simple Interest (SI) = ₹480
- Time (T) = 2 years
- Rate (R) = 5% per year
Calculating the Principal Sum
The formula for Simple Interest is:
\(SI = \frac{P \times R \times T}{100}\)
To find the principal sum (P), we can rearrange the formula:
\(P = \frac{SI \times 100}{R \times T}\)
Step-by-Step Calculation
- Substitute the given values into the rearranged formula:
\(P = \frac{480 \times 100}{5 \times 2}\)
- Calculate the product in the numerator:
\(P = \frac{48000}{5 \times 2}\)
- Calculate the product in the denominator:
\(P = \frac{48000}{10}\)
- Perform the division to find the principal sum:
\(P = 4800\)
Therefore, the sum that will earn an interest of ₹480 in 2 years at 5% simple interest per year is ₹4800.
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?
