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
- 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?
