Simple Interest Calculation: Finding the Principal Sum
The question asks for the principal sum (P) that earns a simple interest (I) of ₹480 over a period (T) of 2 years at an annual interest rate (R) of 16%.
Applying the Simple Interest Formula
The formula for simple interest is:
\( I = \frac{P \times R \times T}{100} \)
Where:
- I = Simple Interest = ₹480
- P = Principal Sum (what we need to find)
- R = Rate of Interest per year = 16%
- T = Time period in years = 2 years
Rearranging the Formula to Solve for Principal (P)
To find the principal sum (P), we rearrange the formula:
\( P = \frac{I \times 100}{R \times T} \)
Calculating the Principal Sum
Substitute the given values into the rearranged formula:
\( P = \frac{480 \times 100}{16 \times 2} \)
First, calculate the denominator:
\( 16 \times 2 = 32 \)
Now, calculate the numerator:
\( 480 \times 100 = 48000 \)
Finally, divide the numerator by the denominator:
\( P = \frac{48000}{32} \)
\( P = 1500 \)
Therefore, the sum that will earn an interest of ₹480 in 2 years at 16% simple interest is ₹1500.
Similar Questions
- How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
- A sum of ₹1,250 amounts to ₹1,550 in 4 years. What is the simple interest rate?
- What will be the simple interest on ₹1,450 invested for 5 years at a rate of 5% pa?
- A sum of ₹1,250 amounts to ₹1,550 in 4 years. What is the simple interest rate?
- What will be the simple interest on ₹ 1,450 invested for 5 years at a rate of 5% pa?
- 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 $x : y$.
The simple interest on ₹1,280 at 5% p.a. in 3 years is:
- Reeta invests a certain sum of money at a certain rate of simple interest per annum, and the interest she gets is equal to one-fourth of the sum invested. If the time period (in years) of investment is equal to the percentage rate of interest per annum, for how many years did Reeta invest the sum of money?
In what duration will a sum of money double itself at 10% per annum rate of simple interest?
Important Questions from Simple Interest
- How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
- Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 5.5 years at 12% per annum rate of interest.
- Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 4.5 years at 8% per annum rate of interest.
Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 5.5 years at 4% per annum rate of interest.
- Find the simple interest (in ₹) on ₹1,200 at an interest rate of 3% per month for 11 months.
