Question

Find the time when simple interest on Rs 3.3 lakhs at $6.5\% $ per annum is Rs 75075.

Answer 1

Hint:
We have given the principle amount, rate of interest and simple interest and we have to find the time.
By using the formula of simple interest, we will find the time rate
Formula used:
$SI = \dfrac{{P \times r \times t}}{{100}}$

Complete step by step solution:
Here, we have given the principle amount(P) $ = $Rs 3,30,000, rate of interest(r) = $6.5\% $ per annum and simple interest(SI)$ = $Rs 75,075
We have to find the time by using principle amount, rate of interest and simple interest
$\because $ We know, the formula of simple interest
$\therefore SI = \dfrac{{P \times r \times t}}{{100}}$
Now, substitute the value of P, r and SI in the above equation
$\therefore 75,075 = \dfrac{{3,30,000 \times 6.5 \times t}}{{100}}$
$\therefore t = \dfrac{{75075 \times 100}}{{330000 \times 6.5}}$
$\therefore $ By solving the above equation, we get,

$\therefore t = 3.5 \text{years}$

Note:
Difference between Simple Interest and Compound Interest
Simple Interest is based on the principle amount of a loan or deposit. Generally, simple interest paid or received over a certain period is a fixed percentage of the principle amount that was borrowed or lent.
Compound Interest is based on the principle amount and the interest that accumulates on it in every period. Compound interest accrues and is added to the accumulated interest of previous periods, so borrowers must pay interest on interest as well as principle