Solve problems on Interest

Guys, when a lender gives some money to the borrower he gives it on some percentage. The money is paid back to the lender paying the interest on the debt. Now lets learn what this interest is or how to calculate interest of some amount for a given period of time. I will solve some problems which will help you find the interest.

Some simple problems to find the interest


1) Find the interest on an amount of $600 for one year at the rate of 6% per annum.

Solution:

The formula is SI = PNR / 100

Principal (P) = $600

Rate of interest(r) = 6 % per annum

N= Interest on 100 dollar for 1 year = $6 (can also be called as time)

Interest on 600 dollar for 1 year =600*1*6/100

Therefore the interest is $36.

2) Find the simple Interest on a sum of Rs. 800 for 2.5 years at 4.5% per annum.

Solution:

Principal (p) = Rs. 800

Time (n) = 2.5 years

Rate (r %) = 4.5% per annum

Simple interest = (p x n x r)/100

= (800 x 2 .5 x 4 .5) /100

= Rs 90

Simple interest = Rs 90

Will you be able to calculate the interest now? Set up a few examples and try to find out their interest, check out if you are able to find if not take the help of your dad or mom. This will be interesting try them!!! Let me know if it worked out.