Question

Find the interest if $P = 10,000$, $R = 6$ and $T = 1$ year.

Answer 1

Hint: To find the interest for $T = 1$ year, first we will write the simple interest formula.
Then, we will substitute the given values in the simple interest formula.

Complete step by step answer:
Here given that $P = 10,000$, $R = 6$ and $T = 1$ year.
Now we are going to write the simple interest formula.
Simple interest (SI) $ = \dfrac{{PRT}}{{100}}$ where $P$ is principal amount, $R$ is rate of interest
and $T$ is time in years.
Now we are going to substitute the values of $P$, $R$ and $T$ in the formula of simple interest.
Therefore, simple interest (SI) $ = \dfrac{{10000 \times 6 \times 1}}{{100}}$
$ \Rightarrow $ Simple interest (SI) $ = \dfrac{{60000}}{{100}}$
$ \Rightarrow $ Simple interest (SI) $ = 600$
Therefore, the interest is $600$ Rs. for $T = 1$ year.

Note: Simple interest is calculated only on the principal amount but compound interest is calculated
on principal amount as well as previous year’s interest. If interest is paid only for $T = 1$ year then there is no distinction between simple interest and compound interest. Therefore, when $T = 1$ year is given in the example then always use the formula of simple interest.