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
Anil lent a sum of Rs. 5,000 on simple interest for 10 years in such a way that the rate of interest is 6% per annum for the first 2 years, 8% per anmum for the next 2 years and 10% per annum beyond 4 years. How much interest (in Rs.) will he earn at the end of 10 years?
What will be the simple interest on a sum of Rs. 12000 at the rate of 15 percent per annum for three years ?
If in 13 years fixed sum doubles at simple interest, what will be the interest rate per year? (correct to two decimal places)
On simple interest a sum of Rs. 640 becomes Rs. 832 in 2 years. What will Rs. 860 become in 4 years at the same rate of simple interest?
A certain sum amounts to Rs. 81840 in 3 years and to Rs. 92400 in 5 years at x% p.a. under simple interest. If the rate of interest is becomes (x + 2)%, then in how many years will the same sum double itself?
