Question

Calculate the interest on ₹2,500 for 1 year at the rate of 10%p.a.

Answer 1

Hint: Calculate the interest by making use of the simple interest formula by making use of the rate of interest,time period and the principal amount already given.
Formula used for simple interest is: SI = $\dfrac{{PRT}}{{100}}$

Complete step-by-step answer:
P- principal sum
R – rate of interest
T – Time period
Here P = ₹2500
R = 10% P.a
T = 1 year
SI = $\dfrac{{PRT}}{{100}}$
SI = 2500 x $\dfrac{{10}}{{100}} \times 1$
First we will multiply 2500 x 10 x 1 then we will divide by 100
Interest = ₹250.
Hence, interest calculated over ₹2500 at 10% P.a over a period of 1 year is ₹250.

Note: In this question, we have been asked to calculate only the simple interest. In case, we had been asked to calculate the amount, then we will just add the principal amount with the rate of interest which will give us the required amount.