Question

Find the simple interest on: Rs 3000 for 4 years at 8% per annum.

Answer 1

- Hint: In this question we asked to find the Simple interest. Here, we will calculate simple interest for 4 years at 8% per annum by using the formula of simple interest (SI) $=\dfrac{PRN}{100}$ .

Complete step-by-step solution -

To find the simple interest first we will know about simple interest.
Simple interest is based on principal amount for a fixed period of time. The amount which we deposit or take loan from the bank is known as principal amount. The period of time for which the money is lent is known as time on interest.
Now, we will calculate here simple interest,
SI $=\dfrac{PRN}{100}$
Where P (principal amount) $=$ Rs. 3000
R (Rate of interest) $=$ 8%
N (number of period) $=$ 4 years
So, finding simple interest by putting all the value, we get
$=\dfrac{3000\times 8\times 4}{100}$
$=30\times 8\times 4$
$=960$ Rs.
Hence, the simple interest on: Rs 3000 for 4 years at 8% per annum is Rs.960/-.

Note: Be clear with the concept of simple interest. Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. Simple interest benefits consumers who pay their loans on time or early each month. Auto loans and short-term personal loans are usually simple interest loans.