Std:VII
SIMPLE INTEREST
What do you observe?
What comes in your mind when you see this picture?
What do we call it in mathematical terms?
imple Interest
We borrow some amount or money from a bank or a money lender
What is simple interest?
This borrowed amount is called as loan. However, at the time of returning the loan to the bank or the money lender we have to pay back an amount somewhat bigger than the loan.
This additional amount is called as
SIMPLE INTEREST.
T = N
1) You want to buy this tractor, It costs Rs.15,000.
You decide to get a five year loan with a 6.5% interest rate for Rs.15,000. How much interest will you pay?
Given
Interest Paid=? Principal(loan amount) = Rs.15,000Rate = 6.5p.c.p.a.Period(N) = 5 years
Solution:
I = P x N x R
100
I = 15000x5x6.5100
= 4,87,500100
=4,875
To buy this tractor we will pay Interest of Rs 4,875
The simple interest on Rs. 45,000 in 3 years is Rs. 13,500. What is the rate of Interest?
Given
o Interest Paid=Rs.13,500
Principal(loan amount) = Rs.45,000
Rate = ?
Period(N) = 3years
Solution:
I = P x N x R
100
13,500 =45000x3xR
100
R = 13500x100
45000x3
=10 p.c.p.a.
The Rate of Interest = 10 p.c.p.a.
A certain sum of money earns an interest of Rs.3,630 in 3 years at the rate of 11 p.c.p.a, what is the principal?
Given
o Interest Paid=Rs.3,630
Principle(loan amount) = ?
Rate = 11p.c.p.a.
Period(N) = 3years
Solution:
I = P x N x R
100
3630 =Px3x11
100
P= 3630x100
11x3
=Rs.11,000
The Principal amount is Rs.11,000
The additional amount paid on a loan amount is called Simple Interest.
The Formula for Simple Interest (S.I.) is:
S.I.= P x R x N
100
Define Simple Interest.
What Is:
P = ?
R= ?
Solve the Following Questions:Sr. No. Principal
Rs.
Rate of
Interest
p.c.p.a.
Number of
years
1 9000 10 3
2 15000 11 2