Question

Kisanrao wanted to make a pond in his field. He borrowed Rs.35250 from a bank at an interest rate of 6 percent per annum. How much interest will he have to pay to the bank at the end of the year?

Answer 1

Hint: Simple interest is the accumulated interest on the principal amount while the total amount accumulated in a defined time period is the sum of the principal amount and the interest accumulated on the principal amount. The formula used for the calculation of the simple interest is $ SI = \dfrac{{prt}}{{100}} $ where, $ p $ is the principal amount, $ r $ is the rate of interest annually (in percentage), and $ t $ is the time for which the interest to be determined (in years).

Complete step-by-step answer:
In this question the principle or the amount on which interest is to be calculated is give and also the rate and the time period has been given, so calculate the simple interest after 1 year and then the amount Kisanrao has to pay to the bank.
Principal amount borrowed by Kisanrao to make a pond in his field, \[{\text{Principle }}(p) = Rs.{\text{ }}35250\] at the rate of interest, \[Rate{\text{ }}(r) = 6\% {\text{ per annum}}\] for the time period of, \[Time(t) = 1year\].
So the Simple interest after 1 year is given as:
 $
  SI = \dfrac{{prt}}{{100}} \\
   = \dfrac{{35250 \times 6 \times 1}}{{100}} \\
   = \dfrac{{211500}}{{100}} \\
   = Rs.{\text{ }}2115 \\
  $
Now the total amount Kisanrao will have to pay to the bank after 1 year will be the summation of the principal amount and the interest amount.
\[
  {\text{Amount = Interest + Princilple}} \\
   = 2115 + 35250 \\
   = Rs.{\text{ }}37365 \\
 \]
Hence, the amount to be paid by Kisanrao at the year of the year is Rs. 37365.

Note: Students must not get confused between simple interest and the amount, since interest is just the additional amount to be paid on the sum of money borrowed. The total amount to be paid is the summation of the principal amount and the interest.