Question

Find the simple interest on. Rs. $ 500 $ for $ 2 $ years at $ 6\% $ per annum.

Answer 1

Hint: In the above question, we have to find the simple interest provided with some principal amount, year and rate. So, we can apply the formula for simple interest which is $ \dfrac{{P \times R \times N}}{{100}} $ where P is the principal amount, R is the rate and N is the time period.

Complete step by step solution:
Firstly, knowing the definition for simple interest. It is the method to calculate the interest amount for some principal amount of money.
In the real world, we use simple interest while paying our bank loans. Where the bank provides the loan and we have to pay that amount plus the amount of interest we have to pay on that amount. So, it is very important to learn such methods in our daily life.
We are given that the principal amount of money is Rs. $ 500 $ which we are denoting as P, rate of interest is $ 6\% $ per annum which we are denoting as R, and the time period is $ 2 $ years denoting as N.
 $
  P = 500 \\
  R = 6\% \\
  N = 2 \;
  $
Formula for simple interest,
 $ S.I = \dfrac{{P \times R \times N}}{{100}} $
Substituting the above values,
 $
  S.I = \dfrac{{500 \times 6 \times 2}}{{100}} \\
   = 60 \;
  $
Hence, the simple interest is Rs. $ 60 $
So, the correct answer is “Rs. $ 60 $ ”.

Note: Always while solving any mathematical question, read the question twice or thrice as which quantities are given and what we have to calculate. Like ways, where we have to find the simple interest some students might misread it as compound interest and use the wrong formula. So, the question resulted in being wrong. Therefore use the appropriate formula.