Question

Anita takes a loan of $Rs.5000$ at $15\% $ per year as rate of interest. Find the interest she has to pay at the end of one year.

Answer 1

Hint: Simply use the formula for Simple Interest to calcute the interest received by her at the end of one year. The formula is $SI = \dfrac{{P \times R \times T}}{{100}}$, where $P$ is the principal amount, $R$ is the rate of interest per year and $T$ is the time period. Note that the values of these quantities are already provided in the question.


Complete step-by-step answer:
The Principal amount(P) in this question is $Rs.5000$ and the rate of interest(R) is $15\% $. We need to use the formula of Simple interest to determine the interest received by her at the end of the one year. So the time period (T) in this question is $1$ year.
The formula for Simple interest(SI) is:
$SI = \dfrac{{P \times R \times T}}{{100}}$
We will now substitute the above values into this equation.
$
   \Rightarrow SI = \dfrac{{50{0}{0} \times 15 \times 1}}{{1{0}{0}}} \\
   \Rightarrow SI = 50 \times 15 \times 1 \\
   \Rightarrow SI = 750 \\
 $
So the interest that she will receive at the end of one year is $Rs750$.

Note: When using this formula, always remember that time($T$) should always be mentioned in units of years. If the time is given in any other unit in the question, convert it into years and then use it in the formula. Also be careful about what the question asks. If the question had asked about the total amount received by her, we would have to add the interest amount to the principal amount and that would have been our answer.