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
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?
