Question

Find the simple interest on Rs.\[5,000\] for 6 months at \[5\% \]per annum.

Answer 1

Hint: Simple interest is determined by multiplying the daily interest rate by the principal by the time period that elapse between payments ,and the formula for calculation the \[S.I = \dfrac{{P \times R \times T}}{{100}}\]

Complete step-by-step answer:
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
Here, $ P = $ ₹ $ 5,000 $
 $ R = 5\% $
 $ T = 6\,months $
Here, $ T $ is in months. So we convert months into years.
Then $ T = \dfrac{6}{{12}}year = \dfrac{1}{2}year $
Now, the formula of $ S.I = \dfrac{{P \times R \times T}}{{100}} $
In the formula of S.I we will substitute the value of $ P,R\,\,and\,T $ , we have
 $ S.I = $ $ \dfrac{{5000 \times 5 \times \dfrac{1}{2}}}{{100}} $
 $ S.I = \dfrac{{5000 \times 5 \times 1}}{{100 \times 2}} $
 $ S.I = \dfrac{{50 \times 5}}{2} $
 $ S.I = 25 \times 5 $
 $ S.I = 125 $
Hence, the $ S.I $ is $ 125 $ .

Note: Students must know that time ,some time it is given in days, some times in months and some times in years. So, always convert time into year as the value of T in the formula is corresponding to the year, for 1 year take T=1 but for 6 months take T=½ and accordingly.