Calculate Principal Sum Using Simple Interest Formula
The problem asks for the initial sum of money (Principal, P) that will generate a specific amount of simple interest (SI) over a given time period (T) at a certain interest rate (R).
Given Information:
- Simple Interest (SI) = ₹720
- Time Period (T) = 2 years
- Annual Interest Rate (R) = 6%
Formula for Simple Interest:
The formula to calculate Simple Interest is:
$SI = \frac{P \times R \times T}{100}$
Solving for Principal (P):
To find the Principal (P), we need to rearrange the formula:
$P = \frac{SI \times 100}{R \times T}$
Calculation:
Substitute the given values into the rearranged formula:
$P = \frac{720 \times 100}{6 \times 2}$
$P = \frac{72000}{12}$
$P = 6000$
Result:
The sum of money that will yield ₹720 as simple interest in 2 years at 6% per annum is ₹6000.
Important Questions from Simple Interest
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
If the interest on a sum of Rs.1200 is more than the interest on Rs.1000 by Rs.120 in three years, then what is the rate of interest per annum?.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
A sum of Rs.1200 becomes Rs.1560 at a rate of simple interest in 3 years. In how many years will the sum of Rs.800 amount to Rs.1120 at the same rate of simple interest?
